Document:

Exhibit 10.4

 

GUARANTY

 

THIS GUARANTY is made
effective as of May 20, 2015, by Lacerta Management Ltd, a company registered and existing in accordance with the laws of the Seychelles
(the “Guarantor”), in favor of ТOT Group Russia LLC, a limited liability company organized and existing
under the laws of the Russian Federation and TOT Group Europe Ltd., a company organized and existing under the laws
of England and Wales (each individually, a “Purchaser” and, collectively, the "Purchasers").

 

WHEREAS, Maglenta Enterprises
Inc., a company incorporated and existing in the Republic of Seychelles, Champfremont Holding Ltd., a company incorporated and
existing in the Republic of Seychelles (each individually, a “Seller” and, collectively, the “Sellers”)
have entered into that certain Acquisition Agreement, dated as of May 20, 2015 (the “Acquisition Agreement”),
with the Purchasers, and certain “Target Companies” (as defined in the Acquisition Agreement), pursuant to which
the Purchasers agreed to purchase from the Sellers and the Sellers agreed to sell to the Purchasers, subject to certain terms and
conditions, 100% of the issued and outstanding ownership interests of each of the Target Companies. Capitalized terms not otherwise
defined in this Guaranty shall have the meanings ascribed to such terms in the Acquisition Agreement.

 

WHEREAS, as a condition
to entering into the Acquisition Agreement and the consummation of the transactions contemplated by the Acquisition Agreement,
Purchasers have required that the Guarantor guarantees representations and warranties set forth in Section 3.2 and 3.3 and indemnity
obligations set forth in Article 6 of the Acquisition Agreement.

 

NOW, THEREFORE, in
consideration of the Purchasers entering into the Acquisition Agreement and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Guarantor agrees as follows:

 

1.           Subject
to deductions, withholdings, counterclaims or set-offs (if any) for any Purchaser’s failure to pay the then due and payable
obligations of the Purchasers under the Acquisition Agreement, the Guarantor unconditionally, irrevocably guarantees to the Purchasers
the accuracy of the representations and warranties set forth in Section 3.2 and 3.3 and indemnity obligations set forth in Article
6 of the Acquisition Agreement (collectively, the “Guaranteed Obligations”).  If, for any reason whatsoever,
Sellers shall fail to or be unable to pay or perform the Guaranteed Obligations, the Guarantor will forthwith pay and cause to
be paid in lawful currency of the United States, with respect to payment obligations, or perform or cause to be performed, with
respect to performance obligations, the Guaranteed Obligations in the proportion set out in Section 3 hereof. The Purchasers shall
not be obligated to file any claim relating to the Guaranteed Obligations in the event that any Seller becomes subject to a bankruptcy,
reorganization or similar proceeding, and the failure of the Purchasers to so file shall not affect the Guarantor’s obligations
hereunder. For the avoidance of doubt, each and any Guaranteed Obligation may arise only from Undisputed and/or Resolved Claim(s)
(as defined in the Acquisition Agreement) and all limitations of liability of the Sellers provided in Article 6 of the Acquisition
Agreement shall apply mutatis mutandis to the Guarantor.

 

    	1

    	 

    

 

2.           The
Guarantor agrees that the Purchasers may at any time and from time to time, without notice to or further consent of the Guarantor,
make any agreement with any Seller for the extension, renewal, payment, compromise, discharge or release of the Guaranteed Obligations,
in whole or in part, without in any way impairing or affecting the Guarantor’s obligations hereunder. The Guarantor agrees
that the Guaranteed Obligations hereunder shall not be released or discharged, in whole or in part, or otherwise affected by: (i)
the failure or delay of the Purchasers to assert any claim or demand or to enforce any right or remedy against any of the Sellers;
(ii) any change in the time, place or manner of payment of the Guaranteed Obligations; (iii) any change in the corporate existence,
structure or ownership of any of the Sellers or any other Person under Control of the Guarantor now or hereafter liable with respect
to the Guaranteed Obligations; (iv) any insolvency, bankruptcy, reorganization or other similar proceeding affecting any of the
Sellers or any other Person under Control of the Guarantor now or hereafter liable with respect to the Guaranteed Obligations;
or (v) the adequacy of any other means the Purchasers may have of obtaining payment of the Guaranteed Obligations. “Control,”
when used with respect to any specified person, means the power to direct the management and policies of such person, directly
or indirectly, whether through the ownership of voting securities, by contract or otherwise. The guaranty contained herein may
not be revoked or terminated and shall remain in full force and effect and binding on the Guarantor, his successors and assigns
until the complete payment and satisfaction in full of the Guaranteed Obligations. Notwithstanding above, the Purchasers shall
not have a right to claim payment or performance of the Guaranteed Obligations by the Guarantor if the applicable period for bringing
of relevant Claims by the Purchasers to the Sellers under Section 6.1 of the Acquisition Agreement have expired; provided that
if any Purchaser makes to any Seller or the Sellers’ Representative a Claim prior to such expiration, then the Purchasers
shall have a right to demand at any time (including after the expiration of the applicable period under Section 6.1 of the Acquisition
Agreement), and the Guarantors shall be obligated for, payment and/or performance of the Guaranteed Obligations.

 

3.           The
Guarantor agrees that the Purchasers shall not be required to initiate and/or exhaust their legal remedies for recovery and collection
against the Sellers or Sellers’ property before looking to the Guarantor for payment, and that the Purchasers may, at once,
seek to collect all monies due to them from the Sellers from the Guarantor without first proceeding against Sellers or Sellers’
property. Any rights of the Guarantor to subrogation, reimbursement, indemnification and/or contribution are waived and relinquished
until the Guaranteed Obligations are satisfied. The Guarantor hereby waives all notices and demands of any kind or nature to which
it may be entitled, including without limitation all demands for payment, notices of nonpayment, protest and dishonor to the Guarantor
or to any Seller or Seller Representative.

 

4.           The
Guarantor hereby agrees that if the Purchasers receive from any source, payment in whole or in part of the Guaranteed Obligations,
and if the payment of any part thereof is declared invalid or is set aside or is subject to any setoff or counterclaim, then and
to the extent of that payment, the obligation hereunder shall be continued in full force and effect without reduction, credit or
discharge from that payment. The Guarantor hereby agrees that the discharge of any Seller or the Guarantor in bankruptcy will not
relieve the undersigned from liability with regard to any amount due under this Guaranty. Furthermore, no automatic stay resulting
from a bankruptcy petition filed by or against any Seller shall stay any act, action or activity by the Purchasers against the
Guarantor. The Guarantor hereby agrees that all foregoing waivers herein shall survive any revocation; that the Purchasers’
failure to exercise any right hereunder shall not be construed as a waiver of the right to exercise the same or any other right
at any time and from time to time thereafter and; that no knowledge of any breach or other non-observance by the Purchasers of
the terms and provision of this Guaranty shall constitute a waiver thereof, nor a waiver of any obligations to be performed by
the undersigned hereunder.

 

5.           None
of the parties to this Guaranty shall, nor purport to, assign, transfer, charge or otherwise deal with all or any of its rights
and/or obligations under this Guaranty nor grant, declare, create or dispose of any right or interest in it.

 

6.           The
Guarantor hereby agrees that if any action is brought to enforce this Guaranty against him, the prevailing party shall be entitled
to recover, in addition to any other relief awarded, his or its attorneys’ fees and costs incurred in such enforcement action.
This Guaranty binds the Guarantor, his successors and assigns, and shall extend to and include all renewals of any claims or demands
guaranteed under this instrument, and all extensions of time of payment thereof.

 

7.           All
documents, notices, requests, demands and other communications that may be delivered or given under this Guaranty shall be in writing
and shall be deemed to have been duly delivered or given upon (i) the delivery thereof, if delivered personally or sent by facsimile,
e-mail or (ii) the mailing thereof if sent by registered or certified mail, return receipt requested, postage prepaid or by overnight
courier, such as FedEx or DHL:

 

    	2

    	 

    

 

If to the Guarantor:

Lacerta Management Ltd

s.1, Sound&Vision, Francis st,

Victoria, Mahe, Seychelles

Attention: Directors

 

If to Purchasers:

ТOT Group Russia LLC

office 01, 54th Floor

Federation Tower West

12, Presnenskaya emb. 

Moscow, 123100, Russia

Attention: General Director/Konstantin
Zaripov

Telephone: +7 495 286 72 00

E-mail: kzaripov@netelement.com

 

and

 

TOT Group Europe Ltd.

Acre House

11-15 William Road

London, England

NW1 3ER

Attention: Company Director/ Konstantin
Zaripov

Telephone: +44 7789 658193

E-mail: kzaripov@netelement.com

 

With a copy to:

 

Net Element, Inc.

3363 NE 163rd Street, Suite 705

North Miami Beach, Florida 33160

Attention: Chief Legal Officer

E-mail: swolberg@netelement.com

 

Any notice sent by courier shall be, for
information purposes only, duplicated by facsimile or email (immediately prior to posting). A notice or other communication delivered
by hand or by courier service shall be deemed to have been given when delivered, provided that where a notice sent by courier is
duplicated by fax or email, then such notice shall be deemed to be sent by courier only.

 

8.           If
any term or provision of this Guaranty is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the
remainder of the terms and provisions set forth herein shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term or provision.

 

    	3

    	 

    

 

9.           This
Guaranty shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles
of conflicts of law thereof. The Guarantor hereby irrevocably submits to the jurisdiction of the courts of the State of New York,
sitting in New York County, and the courts of the United States for the Southern District of New York. The Guarantor irrevocably
waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of
any such suit, action or proceeding brought in any such court, any claim that any such suit, action or proceeding brought in such
a court has been brought in an inconvenient forum and the right to object, with respect to any such suit, action or proceeding
brought in any such court, that such court does not have jurisdiction over the Guarantor.

 

10.         This
Guaranty constitutes the entire agreement between the Guarantor and the Sellers pertaining to the subject matter contained herein
and supersedes all prior and contemporaneous negotiations, proposals, undertakings, understandings, agreements, representations
and warranties, both written and oral, among the parties hereto with respect to such subject matter, and may not be altered, amended,
or modified, nor may any provision hereof be waived or noncompliance therewith consented to, except by means of a writing executed
by the Guarantor as to which such consent or waiver is applicable and by the Purchasers. Any such alteration, amendment, modification,
waiver, or consent shall be effective only to the extent specified therein and for the specific purpose for which it is given.
No course of dealing and no delay or waiver of any right or default under this Guaranty shall be deemed a waiver of any other similar
or dissimilar right or default or otherwise prejudice the rights and remedies hereunder. Any single or partial exercise of any
right, power or remedy provided by this Guaranty shall not preclude any other or further exercise of the right, power or remedy
or any other right, power or remedy.

 

11.        This
Guaranty is a continuing guaranty and is to remain in full force and effect in relation to the Guarantor until expiration of the
Guaranteed Obligations as provided for in the Acquisition Agreement.

 

12.        Each
party to this Guaranty shall treat as confidential and will not disclose any information (unless such information is now or subsequently
becomes generally available in the public domain through no fault or breach on the part of the recipient of such information, is
independently developed by the recipient of such information or is disclosed pursuant to the order or requirement of a court, administrative
agency, or other Governmental Authority, provided that disclosing party gives a written notice of the intended disclosure to other
parties to this Guaranty within three (3) Business Days before such disclosure to the Governmental Authority occurs) received or
obtained by it as a result of entering into or performing this Agreement which relates to:

 

12.1         the
provisions of this Guaranty, or any document or agreement entered into pursuant to this Guaranty;

 

12.2         the
negotiations leading up to or relating to this Guaranty; or

 

12.3         any
of the parties to this Guaranty.

 

Notwithstanding above, any party shall
be entitled to disclose any information contained in this Guaranty or referred to in Subsections 12.1, 12.2 and/or 12.3 of this
Section 12 if such disclosure is required by applicable laws and/or regulations or for the purposes of enforcing the provisions
of this Agreement, including, without limitation, making and prosecuting a Claim under the Acquisition Agreement, bringing and
prosecuting legal actions against the other party(ies) according to and in the manner stipulated herein.

 

13.        This
Guaranty may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one and
the same agreement. The exchange of copies of this Guaranty and of signature pages by facsimile transmission, pdf or other electronic
means shall constitute effective execution and delivery of this Guaranty as to the parties and may be used in lieu of the original
Guaranty for all purposes (and such signatures of the parties transmitted by facsimile, pdf or other electronic means shall be
deemed to be their original signatures for all purposes).

 

[Signature Page follows]

 

    	4

    	 

    

 

IN WITNESS WHEREOF, the Guarantor
has duly executed this Guaranty as of the date first above written.

 

	/s/ Roy Ervin Conrad Delcy, Director	 
	LACERTA MANAGEMENT LTD, GUARANTOR	 

 

    	5EX-10.7

 Exhibit 10.7 

EXECUTION COPY 
 SECOND
AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 This SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of
May 20, 2015 (this “Agreement”), by and among MICHAEL KORS (USA), INC., a Delaware corporation having its principal executive office in New York County, New York (the “Corporation”), MICHAEL KORS
HOLDINGS LIMITED, a British Virgin Islands corporation having its principal executive office in London, United Kingdom (“MKHL”) and MICHAEL D. KORS, a resident of New York, New York (“Kors”). 

IT IS AGREED AS FOLLOWS: 

1. Term. The Corporation agrees to employ Kors, and Kors agrees to serve the Corporation, for a term (the
“Term”) that began on January 29, 2003 and ending as provided herein, upon the terms and conditions set forth herein. 

2. Offices and Positions. Throughout the Term, Kors shall have the title of Honorary Chairman and Chief Creative
Officer of the Corporation and MKHL, and the Corporation and MKHL shall each use its best efforts to cause Kors to be appointed or elected, as the case may be, to the Board of Directors of MKHL (the “Board”) and the Board of
Directors of the Corporation. During the Term, MKHL shall consult with Kors regarding the hiring of any Chief Executive Officer (or equivalent executive officer) of MKHL or the Corporation. 

3. Duties. 

(a) Throughout the Term, Kors shall devote substantially all of his business time exclusively to the business of MKHL and its
affiliates to design collections of apparel, accessories and related products as needed by MKHL and its affiliates and to promote the business and affairs of MKHL and its affiliates. It is agreed and understood that, during the Term, Kors will have
creative and aesthetic control of the products produced and sold under or bearing the “MICHAEL KORS” trademark and any variation of such name and the initials of such name in whatever form or style and all related trade names, copyrights,
logos and similar rights (the “Marks”), including exclusive control of the design of such products; provided, that this sentence shall not apply to any attempted exercise by Kors of the foregoing rights that is not
commercially reasonable. 
 (b) Throughout the Term, Kors shall not, without the prior written consent of the Corporation,
directly or indirectly, render services to or for any other person or firm whether or not for compensation or engage in any activity that, in either case, is in competition with the business of MKHL, the Corporation or any other subsidiary of MKHL
(MKHL and its subsidiaries collectively, the “MK Group”); provided, however, that Kors may participate in charitable activities not inconsistent with the intent of this Agreement. The making of passive personal
investments shall not be prohibited hereunder. In addition, subject to Section 3(a), Kors may participate in literary, theatrical or artistic activities, but only if and to the extent that the Corporation shall have determined in advance (in
its reasonable discretion) that such activities would not be detrimental to the Marks. 
 4. Compensation. 

(a) Salary. Throughout the Term, the Corporation shall pay to Kors a salary (the “Base Salary”) at the
rate of US$1,000,000 per annum, which, except as otherwise set forth in the last sentence of this Section 4(a), shall be payable by the Corporation to Kors in periodic installments in accordance with the Corporation’s customary payroll
practices. The Base Salary shall be subject to possible increases at the sole discretion of the Board; provided, however, that in no event shall Kors’ Base Salary during the Term be less than at the rate of US$1,000,000 per year. A portion of
Kors’ Base Salary equal to the annual retainer paid to MKHL’s independent directors (currently US$70,000) shall be payable to Kors by MKHL on a quarterly basis at the same time such retainer payments are paid to the independent directors
of MKHL. 
 (b) Bonus. 

(i) During the Term, commencing with MKHL’s fiscal year that began on March 29, 2015 (the “2016 Fiscal
Year”), Kors shall be eligible to receive the bonuses described in this Section 4, subject to approval of the bonus plan pursuant to which bonuses will be paid by the shareholders of MKHL in a manner that complies with the shareholder
approval requirements of Section 162(m) of the U.S. Internal Revenue Code of 1986, as amended (“Section 162(m)”). Except as otherwise provided in Section 10, Kors must be employed by MKHL or the Corporation as of the last
day of the applicable performance period described below in order to be eligible to receive the bonus payable in respect of such period. Each bonus shall be administered by the Compensation Committee of the Board (the “Compensation
Committee”). 

 (ii) During the Term, commencing with the 2016 Fiscal Year, Kors shall be
eligible to receive a bonus (the “Part-Year Bonus”) with respect to the performance period beginning on the first day of each fiscal year and ending on the last day of the second fiscal
quarter of such year (the “Part-Year Performance Period”). The amount of the Part-Year Bonus shall be equal to 1% of the consolidated income from operations of MKHL for the Part-Year Performance Period, increased by depreciation
plus amortization plus impairment of long-lived assets, in each case calculated in accordance with U.S. generally accepted accounting principles and disclosed in MKHL’s Consolidated Statements of Operations and Comprehensive
Income (“MKHL EBITDA”), up to a maximum of US$1,500,000. The Compensation Committee must certify the MKHL EBITDA for the Part-Year Performance Period and the amount of the Part-Year Bonus. Once certified, the Part-Year Bonus will be
paid to Kors reasonably promptly and in no event later than December 30 next following the last day of the applicable Part-Year Performance Period. 

(iii) During the Term, commencing with the 2016 Fiscal Year, Kors shall be eligible to receive an annual bonus (the
“Annual Bonus”) with respect to each full fiscal year of MKHL (the “Annual Performance Period”). The amount of the Annual Bonus shall be (i) 1% of MKHL EBITDA during the Annual Performance Period, up to a
maximum of US$6,500,000, reduced by (ii) the amount of the Part-Year Bonus in respect of the same fiscal year. The Compensation Committee must certify the MKHL EBITDA for the Annual Performance Period and the amount of the Annual Bonus.
Once certified, the Annual Bonus will be paid to Kors reasonably promptly and in no event later than June 30 next following the last day of the Annual Performance Period. 

(iv) Notwithstanding the foregoing, if the Compensation Committee determines that Kors was overpaid, in whole or in part, as
a result of a restatement of the reported financial or operating results of MKHL due to material non-compliance with financial reporting requirements (unless due to a change in accounting policy or applicable law), the Corporation shall be entitled
to recover or cancel the difference between (i) any bonus payment that was based on having met or exceeded performance targets and (ii) the bonus payment that would have been paid or earned to Kors had the actual payment or accrual been
calculated based on the accurate data or restated results, as applicable (the “Overpayment”). If the Compensation Committee determines that there has been an Overpayment, the Corporation shall be entitled to demand that Kors
reimburse the Corporation for the Overpayment. To the extent Kors does not make reimbursement of the Overpayment, the Corporation shall have the right to enforce the repayment through the reduction of future salary or the reduction or cancellation
of outstanding and future incentive compensation and/or to pursue all other available legal remedies in law or in equity. The Compensation Committee may make determinations of Overpayment at any time through the end of the third (3rd) fiscal year following the year for which the inaccurate performance criteria were measured; provided, that if steps have been taken within such period to restate MKHL’s financial or
operating results, the time period shall be extended until such restatement is completed. 
 (c) Other Compensation.
In addition to what is required pursuant to Section 5, the Corporation may pay, but shall have no obligation to pay, to Kors such additional compensation in the form of bonuses, fringe benefits or otherwise in such amounts and at such times as
the Compensation Committee shall from time to time determine in its sole and absolute discretion. 
 5. Benefits.

 (a) In addition to the compensation described in Section 4, during the Term, Kors shall be entitled to the
following: 
 (i) Kors shall be entitled to participate in all Corporation employee benefit plans (to the extent Kors is
eligible therefor), including, without limitation, any health and retirement plans (but, except as otherwise provided in this Agreement or as determined by the Compensation Committee, excluding bonus plans), in each case subject to any applicable
laws which shall be in effect from time to time and on the same basis as is available to the other senior officers of the Corporation. If any such benefit plan shall be unavailable to Kors by reason of his nationality or residence, the Corporation
shall use it best efforts to provide a substantially equivalent benefit, through another source, at its expense. 
 (ii)
Kors shall be eligible, in the discretion of the Compensation Committee, for share option awards, restricted share unit awards and other equity-based awards under the equity incentive plan generally applicable to eligible employees of the
Corporation (currently the Michael Kors Holdings Limited Omnibus Incentive Plan) (the “Equity Incentive Plan”), in accordance with, and subject to, the terms and conditions of the Equity Incentive Plan as the same may be amended or
modified by MKHL or its subsidiaries from time to time in their sole discretion (subject to shareholder approval if required) and the applicable equity award agreement. Except in the case of the termination of Kors for Cause, in which case any
share-based awards granted to Kors under the Equity Plan shall be forfeited and any share options granted to Kors under the Equity Plan shall immediately terminate (whether or not vested and/or exercisable), any such equity awards that have become
vested and/or exercisable prior to the date of Kors’ termination of employment hereunder (the “Termination Date”) shall remain vested and/or exercisable after the Termination Date in accordance with the terms and conditions of
the Equity Incentive Plan and/or any applicable equity award agreement. 

  
 2 

 (iii) The Corporation shall provide the health and medical insurance coverage
referred to in Section 5(a)(i) above at its own cost without contribution from Kors. The Corporation also shall pay during the Term the premiums on (A) the whole life insurance policy (the “Whole Life Policy”) currently in
place on the life of Kors and (B) the $500,000 term life insurance policy (the “Term Life Policy”) currently in place on the life of Kors, both of which policies are owned by Kors. Upon termination of this Agreement, the
Corporation shall cease to pay premiums on the Whole Life Policy and the Term Life Policy and Kors shall thereafter be solely responsible for the payment of any premiums on both such policies. 

(iv) The Corporation shall provide Kors with an automobile and driver for transportation to and from the Corporation’s
offices and for other business purposes. Such automobile shall be a Mercedes-Benz S-Class or an automobile at least substantially equivalent in price thereto. 

(b) In addition to the foregoing, Kors acknowledges and agrees that the Corporation may apply for, and purchase, key-man life
insurance covering Kors (the “Key-Man Insurance”). The Corporation shall own all rights in any such Key-Man Insurance policies and the proceeds thereof, and Kors shall not have any right, title or interest therein. Kors agrees to
assist the Corporation, at the Corporation’s expense, in obtaining such Key-Man Insurance by, among other things, submitting to the customary examinations and correctly preparing, signing and delivering such applications and other documents as
may be required by potential insurers. 
 (c) Anything to the contrary herein notwithstanding, in the event of the
occurrence of a condition that may with the passage of time constitute a Permanent Disability (as defined below) of Kors, then the Corporation shall continue to pay to Kors his Base Salary and all other compensation and benefits owed to Kors
hereunder until the termination of this Agreement as provided in Section 10 below, less any payments received by Kors from any disability insurance policy whose premiums are paid by the Corporation. For purposes of this Agreement, the term
“Permanent Disability” shall mean any mental or physical condition that: (i) prevents Kors from reasonably discharging his services and employment duties hereunder; (ii) is attested to in writing by a physician who is
licensed to practice in the State of New York and is mutually acceptable to Kors and the Corporation (or, if Kors and the Corporation are unable to mutually agree on a physician, the Board may select a physician who is a chairman of a department of
medicine at a university-affiliated hospital in the City of New York); and (iii) continues, for any one or related condition, during any period of six (6) consecutive months or for a period aggregating six (6) months in any
twelve-month period; and such Permanent Disability shall be deemed to have occurred on the last day of such applicable six-month period. 

6. Vacation; Meetings. Kors shall be entitled to six (6) weeks of vacation annually, and such additional vacation
time as may be agreed to by the Chairman of the Board. Kors shall be entitled to additional time off for attendance at meetings, conventions and educational courses, as the Chairman or the Board may from time to time allow. 

7. Expenses; Indemnification. 

(a) The Corporation shall reimburse Kors for the reasonable business expenses (including travel at the highest class of service
available and the use of the corporate jet or private charter in accordance with the Corporation’s policy) incurred by Kors in the course of performing his duties for MKHL and the Corporation, subject to Kors’ compliance with the policies
and procedures for reimbursement generally in effect from time to time for senior officers of the Corporation. 
 (b) The
Corporation and/or MKHL (as applicable) will indemnify Kors and hold him harmless to the maximum extent permitted by applicable law, against all costs, charges, liabilities and expenses incurred or sustained by him in connection with any action,
suit, claim or proceeding to which he may be made a party by reason of his being an officer, director or employee of the Corporation or of any other member of the MK Group; provided, however, that in no event shall Kors be indemnified
for acts taken by him in bad faith or in breach of his duty of loyalty to the Corporation or MKHL under applicable law. Notwithstanding the foregoing, Kors’ indemnification and hold harmless rights under this Section 7 shall in no event be
less favorable in any respect than the terms of any indemnification and hold harmless rights provided by the Corporation and/or MKHL to any senior officer of the Corporation under an employment agreement, indemnification agreement or otherwise. The
provisions of this subsection (b) shall survive the termination of this Agreement. 
 8. Confidentiality;
Intellectual Property Rights. 
 (a) Kors acknowledges that his work for and with the Corporation and the other members
of the MK Group will bring him into close contact with the confidential affairs of the MK Group, including, without limitation, confidential information and trade secrets concerning the MK Group’s working methods, processes, business and other
plans, programs, designs, products, profit formulas, customer names, customer requirements and supplier names (collectively, “Confidential Information”). “Confidential Information” shall not include (i) information
generally known to the public, (ii) information properly received by Kors outside his engagement with the Corporation (or any predecessor of the Corporation) or any other member of the MK Group from any third party not affiliated with
the

  
 3 

 
MK Group and not under any duty to the Corporation not to disclose such information, and (iii) any materials, including designs and products created by Kors and which are otherwise
“Confidential Information”, to the extent approved in writing by the Corporation, which approval shall not be unreasonably withheld. Kors acknowledges that such Confidential Information is reposed in him in trust and he shall, both during
and for a period of three years after the Term (or such longer period as the Corporation may be bound to keep any such Confidential Information confidential pursuant to any agreement or otherwise), maintain such Confidential Information in
confidence and, except as may be required under applicable law, neither disclose to others nor use such Confidential Information personally without written permission of the Corporation. Kors agrees, upon termination of this Agreement, to return to
the Corporation all documents or recorded material of any type (including all copies thereof) which may be in his possession or under his control dealing with the Confidential Information. 

(b) All trademarks, designs, copyrights and other intellectual property created by or at the direction of Kors in the course
of his employment by the Corporation shall remain the property of, and be exclusively owned by, the Corporation without further act of either party. Kors shall, at the reasonable request of the Corporation, execute such documents as may be
reasonably necessary to confirm or evidence the Corporation’s ownership of such property. 
 (c) The obligations of
this Section 8 shall survive the termination of this Agreement. Notwithstanding anything to the contrary set forth herein or in any other agreement to which Kors, on the one hand, and the Corporation or any other member of the MK Group, on the
other hand, are parties or by which they are bound, the obligations of confidentiality contained herein and therein, as they relate to the transactions contemplated by this Agreement, shall not apply to the “structure or the tax aspects”
(as that phrase is used in Section 1.6011-4T(a)(3) (or any successor provision) of the Treasury Regulations promulgated under Section 6011 of the Code) of such transactions. 

9. Notices. Any notice or request permitted or required hereunder shall be in writing deemed sufficient when delivered
in person or mailed by certified mail, postage prepaid, or transmitted by facsimile, and addressed if to the Corporation or MKHL, c/o the Corporation at the Corporation’s principal executive offices in New York, New York, Facsimile No.: (646) 354-4826, Attn: Chief Executive Officer, and if to Kors, to his home address on file with the Corporation, with copy to: 

Patterson Belknap, Webb & Tyler LLP 

1133 Avenue of the Americas 

New York, New York 10036-6710 

Attention: Peter J. Schaeffer, Esq. 

Facsimile No.: (212) 336-2222 

or to such other address as may be provided by such notice. 

10. No Termination. 

(a) The Corporation may not terminate the Agreement and Kors’ employment hereunder for any reason other than Cause (as
defined below). It is expressly understood that Kors is to be employed hereunder until he dies or becomes Permanently Disabled (in which case this Agreement shall immediately terminate and the Corporation shall only be liable to promptly pay to Kors
or his estate (as applicable) the Accrued Obligations and Pro Rata Bonus Payment (each as defined below)); provided, however, that Kors has not been terminated for Cause as aforesaid. In the event that the Corporation or MKHL
materially breaches its obligations hereunder, including, without limitation, the Corporation’s obligations to make payments pursuant to Section 4 hereof, then upon thirty (30) days’ notice to the Corporation (which notice shall
describe such breach in reasonable detail), unless the Corporation or MKHL, as applicable, (i) cures such breach within such thirty (30)-day period (or, if the breach cannot reasonably be cured within such thirty (30)-day period, initiates all
possible action that substantially cures the breach within such thirty (30)-day period) to Kors’ reasonable satisfaction (which curative action, at a minimum, places Kors in a no less favorable economic and financial position than he would have
been in had the breach not occurred) and (ii) provides evidence satisfactory to Kors that the Corporation or MKHL, as applicable, has done so, Kors may terminate his employment under this Agreement and in such event shall be relieved of all his
further obligations hereunder and entitled to exercise any rights and remedies he may have at law or in equity with respect to such material breach. In the event of such termination due to breach by the Corporation or MKHL, the Corporation shall, in
addition and not in limitation to any other rights and remedies Kors may have hereunder, at law or in equity, (A) promptly (i) pay Kors any Base Salary earned but not yet paid prior to the date of termination; (ii) pay Kors for any
untaken accrued vacation during the calendar year, (iii) reimburse Kors for any expenses pursuant to Section 7(a) and (iv) permit Kors to maintain his vested equity awards in accordance with Section 5(a)(ii) (collectively, the
“Accrued Obligations”), and (B) (i) with respect to a termination that occurs during the course of any Part-Year Performance Period, an amount representing the amount that the Part-Year Bonus would have been, based on actual
performance over the course of the Part-Year Performance Period, assuming Kors’ employment had not been terminated hereunder, multiplied by a fraction the numerator of which is the number of days Kors was employed hereunder during the Part-Year
Performance Period and the denominator of which is the full number of days in the Part-Year Performance Period and (ii) with respect to a termination that occurs during the course of any Annual 

  
 4 

 
Performance Period, an amount representing the amount that the Annual Bonus would have been, based on actual performance over the course of the Annual Performance Period, assuming Kors’
employment had not been terminated hereunder, multiplied by a fraction the numerator of which is the number of days Kors was employed hereunder during the Annual Performance Period and the denominator of which is the full number of days in the
Annual Performance Period ((i) and (ii) together, the “Pro Rata Bonus Payment”). 

“Cause” shall mean: (i) the material breach by Kors of any material provision contained in this
Agreement (including, without limitation, the provisions set forth in Section 3 hereof), which breach continues without the cure thereof by Kors for a period of thirty (30) days following written notice thereof from the Corporation to Kors
(which notice shall describe Kors’ breach in reasonable detail); (ii) the conviction of Kors for fraudulent or criminal conduct adversely affecting the Corporation; and (iii) the commission by Kors of any willful, reckless, or grossly
negligent act which has a material adverse effect on the Corporation or its products, trademarks or goodwill (including, without limitation, the reputation thereof). 

(b) If Kors shall terminate his employment under this Agreement without the consent of the Corporation other than by reason of
Kors’ death, Permanent Disability or pursuant to the third sentence of Section 10(a) of this Agreement, the Corporation shall only remain responsible to Kors for (i) the Accrued Obligations, (ii) payment of any Part-Year Bonus
with respect to a Part-Year Performance Period that was completed prior to Kors’ termination from employment but which has not yet been paid, and (iii) payment of any Annual Bonus with respect to any Annual Performance Period that was
completed prior to Kors’ termination from employment but which has not yet been paid, and in the case of each of clauses (ii) and (iii), such bonuses shall be paid at such times as they would have otherwise been paid to Kors hereunder had
employment not been terminated and such bonus amounts shall be subject to certification by the Compensation Committee as described in Section 4 of this Agreement. All other obligations of the Corporations shall cease and, subject to
Section 11, the parties hereto shall be relieved of all further obligations hereunder. 
 11. Kors
Non-Competition. If Kors shall have terminated this Agreement pursuant to Section 10(b), for the remainder of Kors’ lifetime, (i) Kors agrees to serve as an independent and exclusive design consultant to the Corporation for a fee
of US$1,000,000 per year, payable monthly in arrears in equal installments with such duties as shall be mutually agreed in good faith at such time, and (ii) in consideration thereof, Kors shall not, without the written consent of the Board,
engage anywhere in the world where the Corporation or any other member of the MK Group is doing business, directly or indirectly, as a designer, consultant, officer, director, employee, agent, proprietor, partner or shareholder in any business
(other than on behalf of the Corporation or any other member of the MK Group) which engages in activities in competition with the Corporation or any other member of the MK Group to the extent those activities were carried on by the Corporation or
any other member of the MK Group during the Term; provided, however, that the Corporation may terminate such consulting arrangement and cease making such payments at any time, in which event Kors’ obligations to serve as a consultant to the
Corporation and to comply with such non-competition restrictions shall immediately terminate. Notwithstanding the foregoing, at any time, Kors may own up to 5% of the common stock or other securities of any public corporation and may have an
interest as a member or limited partner in any limited liability company or partnership, provided he provides no services or advice of any kind to any such corporation, limited liability company or partnership. 

12. Other Lines of Business; Transfer or Encumbrance of Marks. The MK Group shall not enter into any new line of
business without the consent of Kors if Kors shall reasonably determine that such line of business is detrimental to the Marks. 

13. Miscellaneous. This Agreement (i) constitutes the entire agreement between the parties concerning the subjects
hereof and supersedes all prior agreements, (ii) may not be assigned by Kors without the prior written consent of the Corporation, but shall be binding upon and inure to the benefit of Kors’ heirs, legal representatives and permitted
assigns (without limiting the generality of the foregoing, the provisions of Sections 4 and 7 hereof specifically shall inure to the benefit of such heirs, legal representatives, successors and permitted assigns), (iii) may be assigned by
the Corporation in connection with any transfer of all or a substantial portion of the Corporation’s assets and shall be binding upon, and inure to the benefit of, the Corporation’s and MKHL’s successors and assigns, and (iv) may
not be amended, modified or supplemented except by a writing signed by each party. 
 14. Arbitration. All disputes
arising under this Agreement including but not limited to any claim for specific performance under Section 15 of this Agreement shall be submitted to binding arbitration in accordance with the rules of commercial arbitration of the American
Arbitration Association of the City of New York. Any arbitration proceeding shall be conducted in New York, New York before a single arbitrator or, if requested by either party, by a panel of three arbitrators. 

15. Specific Enforcement. In addition to any remedies available to the parties at law, the parties each acknowledge
that they would be irreparably damaged and there would be no adequate remedy at law for breach of either’s obligations hereunder and, accordingly, this Agreement is to be specifically enforced if not performed according to its terms. 

16. Severability. The provisions of this Agreement are severable. The invalidity of any provision shall not affect the
validity of any other provision. 

  
 5 

 17. Governing Law. This Agreement shall be construed and governed in all
respects under the laws of the State of New York (without reference to such State’s conflict of law rules). 
 18.
Headings. Headings in this Agreement are for convenience of reference only and shall not define, limit or interpret the contents hereof. 

19. Taxes. All payments to be made to and on behalf of Kors under this Agreement will be subject to required
withholding of federal, state and local income and employment taxes, and to related record reporting requirements, including, with respect to the retainer payment referred to in the last sentence of Section 4(a), applicable U.K. statutory
reductions. 
 20. Code Section 409A. 

(a) It is the intention of the parties hereto that, to the extent any amounts or benefits payable under or otherwise with
respect to this Agreement constitute nonqualified deferred compensation that is or may be subject to Section 409A of the Code and the treasury regulations or other official pronouncements thereunder (herein, collectively, “Section
409A”), the provisions of this Agreement shall be interpreted and administered in a manner (which may, as appropriate, include amendments to this Agreement) that will enable such amounts or benefits to satisfy the requirements of
Section 409A (either pursuant to qualifying for an exemption from coverage under Section 409A or satisfying the substantive provisions for compliance with such section). 

(b) For purposes of any reimbursement of expenses due to Kors or the provision of in-kind benefits with respect to Kors
(including, without limitation, pursuant to Section 7 above), such reimbursements shall be made in a manner consistent with Code Section 409A, including Treasury Regulation Section 1.409A-3(i)(1)(iv). In that regard (i) the
amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, (ii) the reimbursement
of eligible expenses shall be made on or before the end of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange
for another benefit. 
 (c) In the event that any amount or benefit payable under or otherwise with respect to this
Agreement is conditioned on Kors’ termination of employment and such amount or benefit is not otherwise exempt from Section 409A, such termination of employment shall mean a “separation from service” within the meaning of
Section 409A. In addition, if any such payment is conditioned on a separation from service by Kors and Kors shall then be a “specified employee” (as defined in Treasury Regulation section 1.409A-1(i)), then, to the extent necessary to
avoid a violation of Section 409A, the portion of any such payment that would otherwise be paid within the six-month period immediately following Kors’ separation from service shall instead be deferred and paid in a single sum on the first
day following the end of such six-month period. 
 IN WITNESS WHEREOF, this Agreement is entered into as of the day and year
first above written. 
  

			
	MICHAEL KORS (USA), INC.
		
	By:		 /s/ John D. Idol

	Name:		John D. Idol
	Title:		Chairman & Chief Executive Officer
	
	MICHAEL KORS HOLDINGS LIMITED
		
	By:		 /s/ John D. Idol

	Name:		John D. Idol
	Title:		Chairman & Chief Executive Officer
		
			 /s/ Michael D. Kors

			Michael D. Kors

  
 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}]]