EXHIBIT 10.1


 


FIRST AMENDMENT TO THE
EMPLOYMENT AGREEMENT


 


THE FIRST AMENDMENT TO THE
EMPLOYMENT AGREEMENT (THE “AMENDMENT”) is made
and entered into this 30th day of January 2003, by Ross Stores, Inc. (the
“Company”) and Michael Balmuth (the “Executive”).  The Executive and the Company previously entered into an
Employment Agreement, effective May 31, 2001 (attached hereto), and it is now
the intention of the Executive and the Company to amend the Agreement as set forth
below.  Accordingly, the Executive and
the Company now enter into this Amendment.


 


I.                                         The Executive and the Company hereby amend
the Employment Agreement by deleting Paragraph 1 of the Agreement in its
entirety and replacing it with the following new Paragraph 1:


 


1.  Term.  The
employment of the Executive by the Company will continue as of the date hereof
and end on January 29, 2007, unless extended or terminated in accordance with
this Agreement, including the extensions contemplated both in paragraphs 1 and
4(b).  During August 2005, and during
August every other year thereafter (every two years) for so long as the
Executive is employed by the Company, upon the written request of the
Executive, the Board shall consider extending the Executive’s employment with
the Company.  Such request must be
delivered to the Chairman of the Compensation Committee no later than the July
31st which precedes the August in which the requested extension will be
considered.  The Board shall advise the
Executive, in writing, on or before the September 1st following its
consideration of the Executive’s written request, whether it approves of such
extension.  The failure of the Board to
provide such written advice shall constitute approval of the Executive’s
request for the extension.  If the
Executive’s request for an extension is approved, this Agreement shall be
extended two additional years.


 


II.                                     The Executive and the Company further amend
the Employment Agreement by deleting Paragraph 4(a) of the Agreement in its
entirety and replacing it with the following new Paragraph 4(a) :


 


4(a).  Salary. 
During his employment, the Company shall pay the Executive a base salary
of not less than Eight Hundred and Seventy-Eight Thousand Dollars ($878,000)
per annum.  The base salary shall be
payable in equal installments in accordance with the Company’s normal payroll
practices applicable to senior officers. 
Subject to the first sentence of this paragraph, the Executive’s base
salary may be adjusted from time to time by the Board in accordance with normal
business practices by the Company.  In
addition, the Company shall pay the Executive each year an amount (“Premium
Payment”) equal to the sum of: (i)  the
total premiums for such year (currently, $37,035) on certain life insurance
policies held in an irrevocable life insurance trust established by the
Executive, with an aggregate face value of $12 million; and (ii) an amount
necessary to gross-up Executive for any federal, state and local income tax
liability attributable to the premium amounts. 
The Premium Payment shall be adjusted each year to reflect changes in
the annual premiums with respect to such policies.


 

















 


III.                                 The Executive and the Company further amend
the Employment Agreement by deleting the first sentence in Paragraph 4(i) in
its entirety and replacing it with the following sentence:


 


4(i).  If Executive
remains employed with the Company through January, 29, 2005, he and his spouse
shall be entitled to continue, until their respective deaths, to participate (at no cost to the Executive
and his spouse) in the following Company employee benefit plans and
arrangements in effect on the date hereof (or other benefit plans or
arrangements providing substantially similar benefits) in which the Executive
now participates:  executive medical,
dental, vision and mental health insurance; life insurance; accidental death
and dismemberment insurance; travel insurance; group excess personal liability;
and the Matching Contributions.


 


Except
for the amendments, as set forth above, the Employment Agreement and all of its
terms remain in force and in effect.


 


IN WITNESS WHEREOF, the parties have executed this Amendment to
the Agreement as of the 30th day of January 2003, effective through January 29,
2007.


 


	
   

  	
  ROSS
  STORES, INC.

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/  N.  Ferber

  	
   

  	
  /s/  M. Balmuth

  	
   

  
	
   

  	
  Norman Ferber

  	
  Michael Balmuth

  
	
   

  	
   

  	
   

  
	
   

  	
  4/15/03

  	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
  Date