THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Claire's Stores, Inc. (CLE)

5/23/2005 Proxy Information

We lease our executive offices located in Pembroke Pines, Florida from Rowland Schaefer & Associates, a general partnership owned by two corporate general partners. Each of E. Bonnie Schaefer and Marla Schaefer, our Co-Chairmen, as well as a sister of our Co-Chairmen, have an approximately 32% ownership interest in the general partnership, and Ira D. Kaplan, our Chief Financial Officer, has an approximately 5% ownership interest in the general partnership. During fiscal 2006, we paid Rowland Schaefer & Associates, Inc. approximately $1,217,000 for rent, real estate taxes and operating expenses as required under the lease. After obtaining approval of our corporate governance and nominating committee, we executed a new lease in January 2004 which expires on December 31, 2013.

We lease retail space for a Claire’s Boutiques store in New York City from 720 Lexington Realty LLC, a limited liability corporation that is controlled by our two Co-Chairmen and a sister of our Co-Chairmen. During fiscal 2006, we paid approximately $460,000 for rent to 720 Lexington Realty LLC. The lease expired on January 31, 2005 and our corporate governance and nominating committee approved the terms of a new lease in January 2005. The new lease terms provide for a five-year term with a five year renewal option, and annual rental payments of $460,000 (exclusive of real estate taxes and other operating expenses to be paid by us under the lease).

Management believes that these lease arrangements are on no less favorable terms than we could obtain from unaffiliated third parties.

We entered into an agreement, effective as of November 30, 2003, with Rowland Schaefer, who at the time was on a medical leave of absence from his position as our chairman and chief executive officer. Mr. Schaefer is the father of each of E. Bonnie Schaefer and Marla Schaefer, our Co-CEOs and Co-Chairmen. Pursuant to the agreement, Mr. Schaefer resigned as chairman and chief executive officer and all other positions as an officer and director of any of our companies and his employment agreement was terminated. Mr. Schaefer agreed to provide consulting services to us and to serve as Chairman Emeritus of the board. As consideration for terminating the employment agreement and his continued service as Chairman Emeritus, Mr. Schaefer receives an aggregate annual payment of $1,300,000, payable for each of the five years from the date of his resignation.

5/23/2005 Proxy Information

We lease approximately 35,000 square feet for our executive offices located in Pembroke Pines, Florida from Rowland Schaefer & Associates, a general partnership (formerly Two Centrum Plaza Associates) owned by two corporate general partners. Each of E. Bonnie Schaefer and Marla Schaefer, our Co-Chairmen, have an approximately 32% ownership interest in the general partnership, and Ira D. Kaplan, our Chief Financial Officer, has an approximately 5% ownership interest in the general partnership. During fiscal 2005 we paid Rowland Schaefer & Associates, Inc. $1,147,000 for rent, real estate taxes and operating expenses as required under the lease.

We lease retail space for a Claire’s Boutiques store in New York City from 720 Lexington Realty LLC, a limited liability corporation that is controlled by our two Co-Chairmen and an immediate family member of our Co-Chairmen. During fiscal 2005, we paid $293,000 for rent to 720 Lexington Realty LLC. The annual rental payments during Fiscal 2005 are the same rental payments that were in effect prior to the purchase of the building by 720 Lexington Realty LLC in 2002. Our lease expired on January 31, 2005 and our corporate governance/ nominating committee approved the terms of a new lease in January 2005. The new lease terms provide for a five year term with a five year renewal option, and annual rental payments of $460,000 (exclusive of real estate taxes and other operating expenses to be paid by the Company under the lease).

Management believes that these lease arrangements are on no less favorable terms than we could obtain from unaffiliated third parties.

5/26/2004 Proxy Information

Both Marla L. Schaefer and Bonnie E. Schaefer (Co-Chairman and Co-CEO) are daughters of Mr. Rowland Schaefer (Chairman Emeritus).

We lease approximately 33,000 square feet for our executive offices located in Pembroke Pines, Florida from Rowland Schaefer & Associates, a general partnership (formerly Two Centrum Plaza Associates) owned by two corporate general partners. Each of E. Bonnie Schaefer and Marla Schaefer, our Co-Chairmen, have an approximately 32% ownership interest in the general partnership, and Ira D. Kaplan, our Chief Financial Officer, has an approximately 5% ownership interest in the general partnership. During fiscal 2004, we paid Rowland Schaefer & Associates, Inc. $900,000 for rent, real estate taxes and operating expenses as required under the lease. After obtaining approval from a committee of independent board members, we executed a new lease in January 2004, which expires on December 31, 2013.

We lease retail space for a Claire’s Boutiques store in New York City from 720 Lexington Realty LLC, a limited liability corporation that is controlled by our two Co-Chairmen and an immediate family member of our Co-Chairmen. We entered into the lease with 720 Lexington Realty LLC in fiscal 2002, which is when 720 Lexington Realty LLC purchased the property from the prior owner. During fiscal 2004, we paid $282,000 for rent to 720 Lexington Realty LLC. The terms under our lease with 720 Lexington Realty LLC are the same terms as were in effect when we leased the retail space from an unaffiliated third party prior to the purchase by 720 Lexington Realty LLC. The lease expires on January 31, 2005.

Management believes that these lease arrangements are on no less favorable terms than we could obtain from unaffiliated third parties.

5/29/2003 Proxy Information

Both Marla L. Schaefer and Bonnie E. Schaefer are daughters of Mr. Rowland Schaefer.

Leasing Transactions

We lease approximately 33,000 square feet for our executive offices located in Pembroke Pines, Florida from Rowland Schaefer & Associates, a general partnership (formerly Two Centrum Plaza Associates) owned by two corporate general partners. Each of Marla Schaefer and E. Bonnie Schaefer, our Vice-Chairmen, have an approximately 32% ownership interest in the general partnership, and Ira D. Kaplan, our Chief Financial Officer, has an approximately 5% ownership interest in the general partnership. During fiscal 2003, we paid Rowland Schaefer & Associates, Inc. $874,000 for rent, real estate taxes and operating expenses as required under the lease. The lease expires on July 31, 2005.

We lease retail space for a Claire’s Boutiques store in New York City from 720 Lexington Realty LLC, a limited liability corporation that is controlled by immediate family members of our Chairman, including Marla Schaefer and E. Bonnie Schaefer, our two Vice Chairmen. We entered into the lease with 720 Lexington Realty LLC in fiscal 2002, which is when 720 Lexington Realty LLC purchased the property from the prior owner. During fiscal 2003, we paid $280,710 for rent to 720 Lexington Realty LLC. The terms under our lease with 720 Lexington Realty LLC are the same terms as were in effect when we leased the retail space from an unaffiliated third party prior to the purchase by 720 Lexington Realty LLC. The lease expires on January 31, 2005.

Management believes that these lease arrangements are on no less favorable terms than we could obtain from unaffiliated third parties.

Loans to Officers

During fiscal 2003, we had an outstanding loan to Rowland Schaefer, our Chairman, in the principal amount of $750,000, which represents the greatest principal amount outstanding during fiscal 2003. The interest rate on the loan was 4.6% per annum and had a maturity date of April 2004. The loan has been satisfied in full. In May 2002, we advanced $250,000 to our Chairman against the fiscal 2003 incentive bonus we anticipated would be paid to him under the 2000 Incentive Plan. The 2000 Incentive Plan was approved by our shareholders at the 2000 annual shareholders’ meeting. The payment to our Chairman under the 2000 Incentive Plan for fiscal 2003 was reduced by the $250,000 advance made to him in May 2002. During fiscal 2003, we had an outstanding loan to Ira D. Kaplan, our Chief Financial Officer, in the principal amount of $600,000, which represents the greatest principal amount outstanding during fiscal 2003. The interest rate on the loan was at a floating rate equal to the applicable minimum Federal rate, was payable on demand, and was made for real estate improvements. The loan has been satisfied in full. During fiscal 2003, we had an outstanding loan to Mark Smith, our former Chief Executive of Europe, in the principal amount of 300,000 British pounds (or approximately $495,000 at the current exchange rate), which represents the greatest principal amount outstanding during fiscal 2003. The loan did not bear interest, was payable on demand upon the occurrence of certain events, and was made for real estate improvements. The loan has been satisfied in full.

We have no loans outstanding to our named executive officers.