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                                                                   Exhibit 10.16













                             HENRY BIRKS & SONS INC.





                           EMPLOYEE STOCK OPTION PLAN







                           EFFECTIVE AS OF MAY 1, 1997

                           AMENDED AS OF JUNE 20, 2000



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                             HENRY BIRKS & SONS INC.

                           EMPLOYEE STOCK OPTION PLAN

1.   PURPOSE

     The Plan is designed to attract and retain the services of selected
employees of the Company who are in a position to make a material contribution
to the successful operation of the business of the Company. The Plan also
provides for awards to Non-Employee Directors. The Plan shall be effective May
1, 1997.


2.   DEFINITIONS

     As hereinafter used in the Plan:

     "BOARD" means the Board of Directors of the Company or such person or
persons as it may choose to delegate any of its powers hereunder pursuant to
section 10.1.

     "COMPANY" means Henry Birks & Sons Inc. and any successor corporation, and
any reference herein to action by the Company means action by or under the
authority of the Board. For the purposes of the definitions of "Participant",
"Disability" and "Retirement", and of sections 4.5, 4.6, 4.7, 4.8, 11.5 and 11.6
hereof, "Company" shall also include any corporation that the Company controls.

     "CONTROL" means, in relation to a Person that is a corporation or other
body corporate, the ownership, directly or indirectly, of voting securities of
such Person carrying more than 50% of the voting rights attaching to all voting
securities of such Person and which are sufficient, if exercised, to elect a
majority of its board of directors or other governing body; and "CONTROLLED"
shall have a similar meaning.


     "DISABILITY" means a physical or mental impairment sufficient to make the
individual eligible for benefits under a long-term disability program of the
Company.

     "FAIR MARKET VALUE" of a Share on a particular date shall be as determined
by the auditors of the Company as of that date or, if the Shares have been
listed on a securities exchange in Canada or the United States, shall mean the
closing price thereof on that date on such exchange. If no sale of the Shares
shall have occurred on such exchange on that date, it shall mean the closing
price on the next preceding day on which there was a sale. If the Shares are
listed on two or more exchanges and the closing prices on such exchanges differ
on a particular date, reference shall be had to the highest closing price. Any
determination of value by the Auditors as of a date may be made in conjunction
with its annual audit as of the next year end of the Company.

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     "MATERIAL EVENT" means any of the following events:

     (i)  the completion of the sale of a majority of the shares of the capital
          stock of the Company resulting from a formal bid for such shares being
          made (other than by the Company or an employee benefit program
          established or maintained by the Company);

     (ii) approval by the Company's shareholders of:

          (a)  an amalgamation, merger or consolidation of the Company with or
               into another corporation (other than a Non-Material Transaction),
               or

          (b)  a plan of liquidation or dissolution of the Company.


     "NON-EMPLOYEE DIRECTOR" means any director of the Company who is not an
employee of the Company.

     "NON-MATERIAL TRANSACTION" means an amalgamation, merger or consolidation
the definitive agreement for which provides that at least 51 percent of the
directors of the surviving or resulting corporation immediately after the
transaction were directors of the Company immediately prior to the transaction.

     "OPTION" means an option to acquire Shares awarded to a Participant, as
provided in article 4.

     "OPTION PERIOD" means the period from the date of award of an Option to the
date of its expiry, specified by the Board pursuant to section 4.3.

     "PARTICIPANT" means an employee of the Company or a Non-Employee Director
who has been selected by the Board to receive an award under the Plan.

     "PLAN" means this Employee Stock Option Plan, as it may be amended from
time to time.

     "PROFITABLE" means that the Company during the course of a fiscal year of
the Company shall have achieved a net profit before taxes as confirmed by the
audited financial statements of the Company for such year.

     "RETIREMENT" means a cessation of employment with the Company at or after
age 55, except in the case of a termination for cause (other than mental or
physical incapacity).

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     "SHARES" means non-voting common shares without nominal or par value in the
capital stock of the Company. If the common shares without nominal or par value
in the capital stock of the Company are listed on a securities exchange in
Canada or the United States, "Shares" shall thenceforth mean such common shares,
and all Options granted prior to such listing shall automatically be converted
into Options for the acquisition of common shares.

Unless the context otherwise requires, references to the masculine shall be
deemed to include references to the feminine, and vice versa, and references to
the singular shall be deemed to include references to the plural, and vice
versa.


3.   AWARDS AND GENERAL LIMITATIONS

3.1  PLAN AWARDS. The Board in its sole discretion shall select those employees
and/or Non-Employee Directors to whom awards are made under the Plan and shall
specify the number of Shares with respect to which in each case Options are
awarded and the Option Period applicable to the awards. The Board in its sole
discretion may include as a condition to the exercise of an Option under the
Plan that the Company shall have been Profitable with respect to its most
recently completed fiscal year prior to the exercise of the Option. Participants
may be selected and awards may be made at any time. Participants do not have to
be selected and awards do not have to be made at the same time by the Board. Any
award made to a Participant shall not obligate the Board to make any subsequent
awards to that Participant.

3.2  SOURCE AND NUMBER OF SHARES. Shares acquired under the Plan shall be
treasury Shares. Subject to article 8, the maximum aggregate number of treasury
Shares which may be issued under the Plan shall not exceed the lesser of 237,907
Shares or 10 percent of the common shares issued and outstanding from time to
time. The number of Shares available at any time for awards under the Plan shall
be determined in a manner which reflects the number of Shares then subject to
outstanding awards and the number of Shares previously acquired under the Plan.
For purposes of such determination, Shares attributable to Options which are
cancelled, expire or terminate shall again be available for awards under the
Plan, and the same shall not be deemed an increase in the number of Shares
reserved for issuance under the Plan. No reduction in the number of common
shares outstanding shall affect rights under Options previously awarded.

3.3  DISTRIBUTION REQUIREMENTS. The maximum aggregate number of Shares with
regard to which awards may be made to any one Participant under the Plan
(together with the maximum aggregate number of shares available to such
participant under any other plan or arrangement) shall not exceed 5 percent of
the common shares issued and outstanding after giving effect to the
reorganization described in section 3.2.

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4.   OPTIONS

4.1  AWARDS. Subject to the provisions of article 3 and this article 4, the
Board may award Options to Participants. Each Option award shall be evidenced by
a written agreement between the Company and the Participant which contains the
terms and conditions specified by this article 4 and such other terms and
conditions as the Board in its sole discretion shall specify.

4.2  EXERCISE PRICE. The exercise price per Share with respect to each Option
shall not be less than the Fair Market Value of a Share on the date the Option
is awarded.

4.3  OPTION PERIOD AND VESTING CRITERIA. The Option Period in respect of a
particular award shall be specified by the Board, but in all cases shall end no
later than the day preceding the tenth anniversary of the date of award. The
Board shall prescribe the date or dates upon which Options become exercisable
and may establish any performance criteria which must be met by the Company in
order for all or any Options to become exercisable. Notwithstanding anything to
the contrary in the Plan, upon the occurrence of a Material Event, all
outstanding Options shall become exercisable in full immediately.

4.4  MEANS OF PAYMENT. At the time any Options are exercised, the Participant or
other person exercising the Options shall pay to the Company in cash the full
exercise price of the Shares acquired.

4.5  CESSATION OF EMPLOYMENT. If a Participant ceases to be employed by the
Company prior to the end of the Option Period, other than by reason of death,
Disability or Retirement, each Option then held by the Participant shall remain
exercisable, to the extent that it was exercisable at the time of such
cessation, for a period of up to three (3) months from the date of such
cessation, but not later than the end of the Option Period, and thereafter any
such Option shall expire. Notwithstanding the provisions of this section 4.5, if
a Participant voluntarily terminates his employment or if his employment is
terminated by the Company for cause, his Options shall expire immediately.

4.6  DISABILITY. If a Participant ceases to be employed by the Company prior to
the end of the Option Period by reason of Disability, each Option then held by
the Participant shall remain exercisable, to the extent that it was exercisable
at the time of Disability, for a period of six (6) months from the date of
cessation of employment as a result of Disability, but not later than the end of
the Option Period, and thereafter any such Option shall expire.

4.7  RETIREMENT. If a Participant ceases to be employed by the Company prior to
the end of the Option Period by reason of Retirement, each Option then held by
the Participant shall remain exercisable, to the extent that it was exercisable
at the time of Retirement, for a period of three (3) months from the date of
Retirement, but not later than the end of the Option Period, and thereafter any
such Option shall expire.

4.8  DEATH. If a Participant ceases to be employed by the Company prior to the
end of the Option Period by reason of death, each Option then held by the
Participant shall remain exercisable by his estate, to the extent that it was
exercisable at the time of death,


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for a period of three (3) months from the date of death, but not later than the
end of the Option Period, and thereafter any such Option shall expire.


5.   BROKERAGE FEES UPON TRANSFER

     The Participant shall be responsible for the payment of any brokerage fees
in respect of the sale or transfer of Shares acquired under the Plan.


6.   ADHERENCE TO SHAREHOLDERS AGREEMENT

     It shall be a condition precedent to the issuance of Shares pursuant to an
option that the Participant become party to the shareholders agreement by and
among certain management investors, Borgosesia Acquisitions Corporation (its
successors and assigns) and the Company made as of August 31, 1998, as the same
may be amended from time to time, except if the Shares have been listed on a
securities exchange in Canada or the United States of America.


7.   PARTICIPANT'S RIGHTS NOT TRANSFERABLE

     Except as provided herein, the rights of a Participant pursuant to the
provisions of the Plan are non-assignable and non-transferable, in whole or in
part, either directly or by operation of law or otherwise in any manner. No
attempted assignment or transfer thereof, otherwise than in accordance with the
provisions hereof, shall be effective.


8.   FOREIGN PARTICIPANTS

     The Plan is equally open to Participants employed or resident in
jurisdictions other than Canada. The terms and conditions offered to foreign
Participants may vary and be more limited than those set forth herein, depending
upon local regulations and restrictions.


9.   REORGANIZATION OF SHARE CAPITAL

     In the event that the Shares are subdivided, consolidated, converted or
reclassified by the Company, or that any other action of a similar nature
affecting such Shares is taken by the Company, then the Options held by each
Participant shall be appropriately adjusted, and the number of Shares reserved
for issuance under the Plan shall be adjusted in the same manner.

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10.  NON-EMPLOYEE DIRECTORS

     If a Participant who is a Non-Employee Director ceases to serve on the
Board for any reason, he shall be deemed for purposes of this Plan to have
ceased to be employed by the Company on the date he ceases to serve on the
Board.


11.  INTERPRETATION, REGULATIONS, AMENDMENT AND TERMINATION

11.1 REGULATION AND DELEGATION. -- The Company may make, amend and repeal at any
time and from time to time such regulations not inconsistent herewith, as it may
deem necessary or advisable for the issuance of Shares under the Plan, and
generally for the proper administration and operation of the Plan. In
particular, the Board may delegate to a committee of the Board the powers
described in sections 3.1 and 4.1 and to any person, group of persons or
corporation such other administrative duties and powers as it may see fit,
subject to applicable legislation.

11.2 INTERPRETATION AND AMENDMENT. -- The Company shall have the power to
interpret the provisions of the Plan and to make such changes in the Plan as,
from time to time, the Company deems proper; provided, however, that any
amendment increasing the number of Shares which may be issued under the Plan
must be ratified by shareholders holding a majority of the Company's common
shares. All decisions and interpretations of the Company respecting the Plan
shall be binding and conclusive on the Company and all Participants and their
respective legal representatives.

11.3 PRESERVATION OF ACQUIRED RIGHTS. -- For greater certainty, and
notwithstanding anything herein contained to the contrary, the Plan shall not be
construed so as to authorize the Company to alter the provisions of the Plan as
it applies to Participants in such a way as to affect their rights and
obligations thereunder to their detriment, without the consent of the
Participants thereby affected.

11.4 TERMINATION. -- The Plan shall terminate following the final termination of
the Option Periods of all awarded Options. Notwithstanding the foregoing, the
rights and obligations of the Company, the Participants and all other parties in
respect of the Plan following such expiry shall continue to be governed by the
Plan.

11.5 NO RIGHT OF CONTINUED EMPLOYMENT. The fact that an employee of the Company
or Non-Employee Director has been designated a Participant shall not confer on
that employee or Non-Employee Director any right to be retained by the Company,
to re-election to the Board, or to subsequent awards under the Plan.

11.6 RESPONSIBILITY FOR TAX. The Company shall not be responsible for any tax
which may be payable by a Participant as a consequence of participation in the
Plan.

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12.  COSTS

     The Company shall pay all costs of administering the Plan.


13.  APPLICABLE LAW

     This Plan shall be governed by the laws of the Province of Quebec and the
laws of Canada applicable therein.