Document:

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                                                                  EXHIBIT 10.1

                                    FORM OF
                                  COACH, INC.
                            2000 STOCK INCENTIVE PLAN

                              ARTICLE I - PURPOSES

         The purposes of the Coach, Inc. 2000 Stock Incentive Plan are to
promote the interests of the Corporation and its stockholders by strengthening
the Corporation's ability to attract and retain highly competent officers and
employees, and to provide a means to encourage stock ownership and proprietary
interest in the Corporation. The Stock Incentive Plan is intended to provide
Plan participants with stock-based incentive compensation which is not subject
to the deduction limitation rules prescribed under Section 162(m) of the
Internal Revenue Code of 1986, as amended (the "Code"), and, when applicable
should be construed to the extent possible as providing for remuneration which
is "performance-based compensation" within the meaning of Section 162(m) of the
Code and the regulations promulgated thereunder.

                            ARTICLE II - DEFINITIONS

         Unless the context clearly indicates otherwise, the following terms
shall have the following meanings:

                  (a)      "AWARD" means, individually or in the aggregate, an
         award granted to a Participant under the Plan in the form of an Option,
         a Stock Award, or an SAR, or any combination of the foregoing.

                  (b)      "BOARD" means the Board of Directors of Coach, Inc.

                  (c)      "CHANGE OF CONTROL" has the meaning set forth in
         Article X.

                  (d)      "COMMITTEE" means the Compensation and Employee
         Benefits Committee of the Board, a subcommittee thereof, or such other
         committee as may be appointed by the Board; provided, however, that
         prior to the issuance of any class of equity securities of the
         Corporation that are required to be registered under Section 12 of the
         Exchange Act, the Committee shall be the Compensation and Employee
         Benefits Committee of Sara Lee Corporation. After the issuance of such
         registered securities, the Committee shall be comprised of three (3) or
         more members of the Board who are "non-employee directors" under Rule
         16b-3 of the Exchange Act and "outside directors" under Section 162(m)
         of the Code.

                  (e)      "CORPORATION" means Coach, Inc. or any entity that is
         directly or indirectly controlled by Coach, Inc. and its subsidiaries.

                  (f)      "EXCHANGE ACT" means the Securities Exchange Act of
         1934, as amended.

                  (g)      "FAIR MARKET VALUE" means the average of the highest
         and lowest sale prices of a Share on the New York Stock Exchange
         Composite Transactions Tape on the date of determination, provided that
         if there should be no sales of Shares reported on such

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         date, the Fair Market Value of a Share on such date shall be the
         average of the highest and lowest sale prices of a Share on such
         Composite Tape for the last preceding date on which sales of Shares
         were reported and, provided further, that the Fair Market Value of
         Shares on the date on which the Corporation first issues Shares to the
         public that are required to be registered under the Exchange Act (the
         "IPO") shall be the initial offering price of Shares on such date.

                  (h)      "INCENTIVE STOCK OPTION" means a stock option that
         complies with Section 422 of the Code, or any successor law.

                  (i)      "NON-QUALIFIED STOCK OPTION" means a stock option
         that does not meet the requirements of Section 422 of the Code, or any
         successor law.

                  (j)      "OPTION" means an option awarded under Article VI to
         purchase Shares. An option may be either an Incentive Stock Option or a
         Non-Qualified Stock Option, as determined by the Committee in its sole
         discretion.

                  (k)      "PARTICIPANT" means any of the following individuals
         designated by the Committee as eligible to receive an Award or Awards
         under the Plan: (i) an officer or key employee of the Corporation at or
         above the "director" level, (ii) all other employees of the
         Corporation, (iii) a person expected to become an employee of the
         Corporation, or (iv) a former officer, employee or director of the
         Corporation for the purposes of adjustments to Awards pursuant to
         Article V(b) of the Plan. Awards under the Plan to employees described
         in (ii) above shall be considered as "Founders' Grants" that are
         subject to the terms and conditions provided in rules that are adopted
         by the Committee. Notwithstanding the foregoing, an employee of the
         Corporation who terminated employment prior to the Corporation's IPO
         shall not be eligible to receive new Awards under the Plan, except to
         the extent such employee is subsequently rehired by the Corporation and
         is eligible to become a Participant in the Plan under (i), (ii) or
         (iii) above.

                  (l)      "PLAN" means this Coach, Inc. 2000 Stock Incentive
         Plan, as amended and restated from time to time.

                  (m)      "PRIOR PLANS" means the Sara Lee Corporation 1989
         Incentive Stock Plan, the Sara Lee Corporation 1995 Long-Term Incentive
         Stock Plan, the Sara Lee Corporation 1998 Long-Term Incentive Plan and
         the Sara Lee Corporation Share 2000 Global Stock Plan, as they may be
         amended and restated from time to time.

                  (n)      "SAR" means a stock appreciation right.

                  (o)      "SHARES" means shares of Coach, Inc. common stock.

                  (p)      "STOCK AWARD" means an Award made under Article
         VI(a)(iii).

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                    ARTICLE III - EFFECTIVE DATE AND DURATION

         The Plan became effective on June 29, 2000, the date it was approved by
the sole stockholder of the Corporation. Unless previously terminated by the
Board, the Plan shall expire when Shares are no longer available for the grant,
exercise or settlement of Awards.

                           ARTICLE IV - ADMINISTRATION

         The Committee shall be responsible for administering the Plan, and
shall have full power to interpret the Plan and to adopt such rules, regulations
and guidelines for carrying out the Plan as it may deem necessary or
appropriate. This power includes, but is not limited to, selecting Award
recipients, establishing all Award terms and conditions, adopting procedures and
regulations governing Awards, and making all other determinations necessary or
advisable for the administration of the Plan. In no event, however, shall the
Committee have the power to cancel outstanding Options or SARs for the purpose
of replacing or regranting such Options or SARs with a purchase price that is
less than the purchase price of the original Option or SAR. All decisions made
by the Committee shall be final and binding on all persons.

         The Committee may delegate some or all of its power to the Chairman and
Chief Executive Officer or other executive officer of the Corporation as the
Committee deems appropriate; provided, that (i) the Committee may not delegate
its power with regard to the grant of an Award to any person who is a "covered
employee" within the meaning of Section 162(m) of the Code or who, in the
Committee's judgment, is likely to be a covered employee at any time during the
period an Award to such employee would be outstanding and (ii) the Committee may
not delegate its power with regard to the selection for participation in the
Plan of an officer or other person subject to Section 16 of the Exchange Act or
decisions concerning the timing, pricing or amount of an Award to such an
officer or other person.

                          ARTICLE V - AVAILABLE SHARES

                  (a)      LIMITATIONS - Subject to Article V(b) of the Plan,
         the aggregate number of Shares which may be issued under the Plan shall
         be five-million three-hundred thousand seven-hundred and ninety-two
         (5,300,792) Shares, reduced by the aggregate number of Shares which
         become subject to outstanding Awards; provided, that the number of
         Shares subject to Awards that are granted in substitution of an option
         or other award (a "Substitute Award") issued under the Prior Plans or
         by an entity acquired by (or whose assets are acquired by) the
         Corporation shall not reduce the number of Shares available under the
         Plan. To the extent that Shares subject to an outstanding Award are not
         issued by reason of the expiration, termination, cancellation or
         forfeiture of such award or by reason of the tendering or withholding
         of Shares to pay all or a portion of the purchase price, if any, or to
         satisfy all or a portion of the tax withholding obligations relating to
         an award, and to the extent Shares are purchased by the Corporation
         with the amount of cash obtained upon the exercise of Options, then
         such Shares shall again be available under the Plan.

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                  The aggregate number of Shares that may be used in settlement
         or payment of Stock Awards is one-million sixty-thousand one-hundred
         and fifty-eight (1,060,158) Shares. The number of Shares for which
         Awards may be granted to any person over the term of the Plan shall not
         exceed one-million sixty-thousand one-hundred and fifty-eight
         (1,060,158) Shares; provided, that such limit shall be five-hundred
         thousand (500,000) Shares with respect to the calendar year in which
         such person begins service as the Chief Executive Officer of the
         Corporation; and provided, further, that neither limit shall include
         any Restoration Options and the number of Shares for which Restoration
         Options may be granted to any person in any calendar year shall not
         exceed five-hundred thousand (500,000) Shares. Issued Shares shall
         consist of authorized and unissued Shares, or treasury Shares, and no
         fractional Shares shall be issued. Cash may be paid in lieu of any
         fractional Shares in settlement of Awards.

                  (b)      ADJUSTMENTS - In the event of any stock dividend,
         stock split, combination or exchange of securities, merger,
         consolidation, recapitalization, spin-off or other distribution (other
         than normal cash dividends) of any or all of the assets of the
         Corporation to stockholders, or any other similar change or event, such
         proportionate adjustments, if any, as the Committee in its discretion
         may deem appropriate to reflect such change or event shall be made with
         respect to the number and class of securities available under the Plan,
         the limits under Article V(a), the number and class of securities
         subject to each outstanding Option and the purchase price per security,
         the terms of each outstanding SAR, and the number and class of
         securities subject to each outstanding Stock Award shall be
         appropriately adjusted by the Committee, such adjustments to be made in
         the case of outstanding Options without an increase in the aggregate
         purchase price. If any such adjustment would result in a fractional
         security being (a) available under the Plan, such fractional security
         shall be disregarded, or (b) subject to an Award, the Corporation shall
         pay the holder of such Award, in connection with the first vesting,
         exercise or settlement of such award in whole or in part occurring
         after such adjustment, an amount in cash determined by multiplying (i)
         the fraction of such security (rounded to the nearest hundredth) by
         (ii) the excess, if any, of (A) the Fair Market Value on the vesting,
         exercise or settlement date over (B) the exercise price, if any, of
         such Award.

                               ARTICLE VI - AWARDS

                  (a)      GENERAL - The Committee shall determine the type or
         types of Award(s) to be made to each Participant. Awards may be granted
         singly, in combination or in tandem, and either individually or on the
         basis of designated groups or categories. In the sole discretion of the
         Committee, Awards also may be made in combination or in tandem with, in
         replacement of, as alternatives to, or as the payment form for grants
         or rights under the Prior Plans or any other compensation plan of the
         Corporation, including a plan of any entity acquired by (or whose
         assets are acquired by) the Corporation. The types of Awards that may
         be granted under the Plan are:

                           (i)      OPTIONS - An Option shall represent the
                  right to purchase a specified number of Shares during a
                  specified period up to ten (10) years as determined by the
                  Committee. The purchase price per Share for each Option shall

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                  not be less than one-hundred percent (100%) of the Fair Market
                  Value on the date of grant; provided, that a Substitute Award
                  may be granted with a purchase price per Share that is
                  intended to preserve the economic value of the award being
                  replaced. If an Option is granted retroactively in
                  substitution for an SAR, the Fair Market Value in the Award
                  agreement may be the Fair Market Value on the grant date of
                  the SAR. An Option may be in the form of an Incentive Stock
                  Option, or a Non-Qualified Stock Option, as determined by the
                  Committee; provided that Founders' Grants shall always be
                  Non-Qualified Stock Options. The Shares covered by an Option
                  may be purchased, in accordance with the applicable Award
                  agreement, by cash payment or such other method permitted by
                  the Committee, including (i) tendering (either actually or by
                  attestation) Shares owned at least six (6) months, valued at
                  the Fair Market Value at the date of exercise; (ii)
                  authorizing a third party to sell the Shares (or a sufficient
                  portion thereof) acquired upon exercise of an Option, and
                  assigning the delivery to the Corporation of a sufficient
                  amount of the sale proceeds to pay for all the Shares acquired
                  through such exercise and any tax withholding obligation
                  resulting from such exercise, or (iii) any combination of the
                  above. The Committee may grant Options that provide for the
                  grant of a restoration option ("Restoration Options") if the
                  exercise price and tax withholding obligations are satisfied
                  by tendering (either actually or by attestation) Shares to, or
                  having Shares withheld by, the Corporation. The Restoration
                  Option would cover the number of Shares tendered or withheld,
                  would have an option purchase price per Share set at the Fair
                  Market Value per Share on the date of exercise of the original
                  Option, and would have a term equal to the remaining term of
                  the original Option.

                           (ii)     SARS - An SAR shall represent a right to
                  receive a payment, in cash, Shares or a combination, equal to
                  the excess of the Fair Market Value of a specified number of
                  Shares on the date the SAR is exercised over the Fair Market
                  Value on the grant date of the SAR, as set forth in the Award
                  agreement, except that if an SAR is granted retroactively in
                  substitution for an Option, the designated Fair Market Value
                  in the Award agreement may be the Fair Market Value on the
                  grant date of the Option.

                           (iii)    STOCK AWARDS - A Stock Award shall represent
                  an Award made in or valued in whole or in part by reference to
                  Shares, such as performance shares or units or phantom shares
                  or units. Stock Awards may be payable in whole or in part in
                  Shares. All or part of any Stock Award may be subject to
                  conditions and restrictions established by the Committee and
                  set forth in the Award agreement or other plan or document,
                  which may include, but are not limited to, continuous service
                  with the Corporation and/or the achievement of one or more
                  performance goals. The performance criteria that may be used
                  by the Committee in granting Stock Awards contingent on
                  performance goals shall consist of total stockholder return,
                  appreciation in the fair market value of the Corporation's
                  stock, net sales growth, net revenue, EBITDA, gross margin,
                  cost reductions or savings, funds from operations, operating
                  income, income before income taxes, net income, income per
                  share (basic or diluted), earnings per share (basic or
                  diluted)

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                  profitability as measured by return ratios, including return
                  on invested capital, return on equity, return on sales and
                  return on investment, cash flows, market share or cost
                  reduction goals. The Committee may select one criterion or
                  multiple criteria for measuring performance, and the
                  measurement may be based on Corporation or business unit
                  performance, or based on comparative performance with other
                  companies.

                  (b)      LIMITATIONS - Notwithstanding anything herein to the
         contrary, the following limitations shall apply:

                           (i)      OPTIONS - No Option may be exercised under
                  any condition: (A) prior to the date that is six (6) months
                  after the date of the IPO; (B) prior to the date that is
                  twelve (12) months after the date of the IPO unless at the
                  time of exercise, Sara Lee Corporation certifies to the
                  Corporation that it no longer owns either (I) Shares
                  representing "control" of the Corporation (within the meaning
                  of Section 368(c) of the Code) or (II) Shares sufficient to
                  satisfy the "80-percent voting and value test" (described in
                  Section 1504(a)(2) of the Code); or (C) on and after the date
                  that is twelve (12) months after the date of the IPO, unless
                  at the time of exercise, either (I) Sara Lee Corporation
                  certifies to the Corporation that it no longer owns either (X)
                  Shares representing "control" of the Corporation (within the
                  meaning of Section 368(c) of the Code) or (Y) Shares
                  sufficient to satisfy the "80-percent voting and value test"
                  (described in Section 1504(a)(2) of the Code), or (II) the
                  Corporation demonstrates to the satisfaction of Sara Lee
                  Corporation that it has purchased Shares on the open market
                  prior to the exercise in a number sufficient to cover the
                  exercise, and actually reissues such repurchased Shares
                  pursuant to such exercise. Any attempted exercise of an Option
                  that would violate any of the requirements of the previous
                  sentence, and all actions taken in furtherance of any such
                  attempted exercise, shall be null and void ab initio.

                           (ii)     SARS - No SAR may be exercised, in whole or
                  in part, for Shares under any condition: (A) prior to the date
                  that is six (6) months after the date of the IPO; (B) prior to
                  the date that is twelve (12) months after the date of the IPO
                  unless, at the time of exercise, Sara Lee Corporation
                  certifies to the Corporation that it no longer owns either (I)
                  Shares representing "control" of the Corporation (within the
                  meaning of Section 368(c) of the Code) or (II) Shares
                  sufficient to satisfy the "80-percent voting and value test"
                  (described in Section 1504(a)(2) of the Code); or (C) on and
                  after the date that is twelve (12) months after the date of
                  the IPO, unless, at the time of exercise, either (I) Sara Lee
                  Corporation certifies to the Corporation that it no longer
                  owns either (X) Shares representing "control" of the
                  Corporation (within the meaning of Section 368(c) of the Code)
                  or (Y) Shares sufficient to satisfy the "80-percent voting and
                  value test" (described in Section 1504(a)(2) of the Code), or
                  (II) the Corporation demonstrates to the satisfaction of Sara
                  Lee Corporation that it has purchased Shares on the open
                  market in a number sufficient to cover the exercise, and
                  actually reissues such repurchased Shares pursuant to such
                  exercise. Any attempted exercise of an SAR, in whole or in
                  part,

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                  for Shares, that would violate any of the requirements of the
                  previous sentence, and all actions taken in furtherance of any
                  such attempted exercise, shall be null and void ab initio.

                           (iii)    STOCK AWARDS - Notwithstanding anything to
                  the contrary herein, no Shares shall be issued pursuant to any
                  Stock Award under any condition: (A) prior to the date that is
                  six (6) months after the date of the IPO; (B) prior to the
                  date that is twelve (12) months after the date of the IPO
                  unless at the time of exercise, Sara Lee Corporation certifies
                  to the Corporation that it no longer owns either (I) Shares
                  representing "control" of the Corporation (within the meaning
                  of Section 368(c) of the Code) or (II) Shares sufficient to
                  satisfy the "80-percent voting and value test" (described in
                  Section 1504(a)(2) of the Code); or (C) on and after the date
                  that it twelve (12) months after the date of the IPO, unless,
                  at the time of exercise, either (I) Sara Lee Corporation
                  certifies to the Corporation that it no longer owns either (X)
                  Shares representing "control" of the Corporation (within the
                  meaning of Section 368(c) of the Code) or (Y) Shares
                  sufficient to satisfy the "80-percent voting and value test"
                  (described in Section 1504(a)(2) of the Code), or (II) the
                  Corporation demonstrates to the satisfaction of Sara Lee
                  Corporation that it has purchased Shares on the open market
                  prior to the grant of any Stock Award or issuance of Shares
                  pursuant to any Stock Award (as the case may be) in a number
                  sufficient to cover the grant or issuance, and actually
                  reissues such repurchased Shares pursuant to such grant or
                  issuance. Any attempted grant of a Stock Award, or attempted
                  issuance of Shares pursuant to a Stock Award, that would
                  violate any of the requirements of the previous sentence, and
                  all actions taken in furtherance of any such attempted grant
                  or attempted issuance, as applicable, shall be null and void
                  ab initio. In addition, in the event that the Corporation
                  liquidates in bankruptcy, recipients of Stock Awards shall be
                  not be entitled to receive Shares pursuant to such Stock
                  Awards and all payments made pursuant to a Stock Award shall
                  be made in cash.

                ARTICLE VII - DIVIDENDS AND DIVIDEND EQUIVALENTS

         The Committee may provide that any Awards under the Plan earn dividends
or dividend equivalents; provided, that no dividends or dividend equivalents
shall accrue under any Stock Awards prior to the date that Sara Lee Corporation
certifies to the Corporation that it no longer owns either (a) Shares
representing "control" of the Corporation (within the meaning of Section 368(c)
of the Code) or (b) Shares sufficient to satisfy the "80-percent voting and
value test" (described in Section 1504(a)(2) of the Code). Such dividends or
dividend equivalents may be paid currently or may be credited to a Participant's
account under a deferred compensation plan maintained by the Corporation (to the
extent permitted under such deferred compensation plan). Any crediting of
dividends or dividend equivalents may be subject to such restrictions and
conditions as the Committee may establish, including reinvestment in additional
Shares or Share equivalents.

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                  ARTICLE VIII - PAYMENTS AND PAYMENT DEFERRALS

         Payment of Awards may be in the form of cash, Shares, other Awards or
combinations thereof as the Committee shall determine, and with such
restrictions as it may impose. The Committee, either at the time of grant or by
subsequent amendment, may require or permit Participants to elect to defer the
issuance of Shares or the settlement of Awards in cash under such rules and
procedures as it may establish. It also may provide that deferred settlements
include the payment or crediting of interest on the deferral amounts, or the
payment or crediting of dividend equivalents where the deferral amounts are
denominated in Share equivalents.

                          ARTICLE IX - TRANSFERABILITY

         Unless otherwise specified in an Award agreement, Awards shall not be
transferable or assignable other than by will or the laws of descent and
distribution or pursuant to beneficiary designation procedures approved by the
Company. The interests of Participants under the Plan are not subject to their
debts or other obligations and, except as may be required by the tax withholding
provisions of the Code or any state's income tax act, or pursuant to an
agreement between a Participant and the Corporation, may not be voluntarily
sold, transferred, alienated, assigned or encumbered.

                          ARTICLE X - CHANGE OF CONTROL

         Either in contemplation of or in the event of a Change of Control (as
defined below), the Committee may provide for appropriate adjustments (including
acceleration of vesting and settlements of or substitutions for Awards either at
the time an Award is granted or at a subsequent date).

         A "Change of Control" shall occur when:

                  (a)      a "Person" (which term, when used in this Article X,
         shall have the meaning it has when it is used in Section 13(d) of the
         Exchange Act, but shall not include the Corporation, any underwriter
         temporarily holding securities pursuant to an offering of such
         securities, any trustee or other fiduciary holding securities under an
         employee benefit plan of the Corporation, or any corporation owned,
         directly or indirectly, by the stockholders of the Corporation in
         substantially the same proportions as their ownership of Voting Stock
         (as defined below) of the Corporation) is or becomes, without the prior
         consent of a majority of the Continuing Directors (as defined below),
         the Beneficial Owner (as defined in Rule 13d-3 promulgated under the
         Exchange Act), directly or indirectly, of Voting Stock (as defined
         below) representing twenty percent (20%) or more of the combined voting
         power of the Corporation's then outstanding securities; or

                  (b)      the stockholders of the Corporation approve and the
         Corporation consummates a reorganization, merger or consolidation of
         the Corporation or the Corporation sells, or otherwise disposes of, all
         or substantially all of the Corporation's property and assets, or the
         Corporation liquidates or dissolves (other than a reorganization,
         merger, consolidation or sale which would result in all or
         substantially all

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         of the beneficial owners of the Voting Stock of the Corporation
         outstanding immediately prior thereto continuing to beneficially own,
         directly or indirectly (either by remaining outstanding or by being
         converted into voting securities of the resulting entity), more than
         fifty percent (50%) of the combined voting power of the voting
         securities of the Corporation or such entity resulting from the
         transaction (including, without limitation, an entity which as a result
         of such transaction owns the Corporation or all or substantially all of
         the Corporation's property or assets, directly or indirectly)
         outstanding immediately after such transaction in substantially the
         same proportions relative to each other as their ownership immediately
         prior to such transaction); or

                  (c)      the individuals who are Continuing Directors of the
         Corporation (as defined below) cease for any reason to constitute at
         least a majority of the Board of the Corporation.

Notwithstanding the foregoing, a "Change of Control" shall not occur upon either
(i) a distribution of Shares to the stockholders of Sara Lee Corporation in
proportion to their ownership of the common stock of Sara Lee Corporation or
(ii) a distribution of Shares owned by Sara Lee Corporation to stockholders of
Sara Lee Corporation pursuant to an exchange offer with Sara Lee Corporation
stockholders.

         The term "Continuing Director" means (i) any member of the Board who is
a member of the Board immediately after the issuance of any class of securities
of the Corporation that are required to be registered under Section 12 of the
Exchange Act, or (ii) any person who subsequently becomes a member of the Board
whose nomination for election or election to the Board is recommended by a
majority of the Continuing Directors. The term "Voting Stock" means all capital
stock of the Corporation which by its terms may be voted on all matters
submitted to stockholders of the Corporation generally.

                          ARTICLE XI - AWARD AGREEMENTS

         Awards must be evidenced by an agreement (or rules, in the case of
Founders' Grants) that sets forth the terms, conditions and limitations of such
Award. Such terms may include, but are not limited to, the term of the Award,
the provisions applicable in the event the Participant's employment terminates,
and the Corporation's authority to unilaterally or bilaterally amend, modify,
suspend, cancel or rescind any Award. The Committee need not require the
execution of any such agreement by a Participant, in which case acceptance of
the Award by the respective Participant shall constitute agreement by the
Participant to the terms of the Award.

                            ARTICLE XII - AMENDMENTS

         The Board may amend the Plan at any time as it deems necessary or
appropriate, subject to any requirement of stockholder approval required by
applicable law, rule or regulation, including Section 162(m) and Section 422 of
the Code; provided, however, that no amendment shall be made without stockholder
approval if such amendment would increase the maximum number of Shares available
under the Plan (subject to Article V(b)), or effect any change inconsistent with
Section 422 of the Code. No amendment may impair the rights of a holder of

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an outstanding Award without the consent of such holder. The Board may suspend
the Plan or discontinue the Plan at any time; provided, that no such action
shall adversely affect any outstanding Award.

                      ARTICLE XIII MISCELLANEOUS PROVISIONS

                  (a)      EMPLOYMENT RIGHTS - The Plan does not constitute a
         contract of employment and participation in the Plan will not give a
         Participant the right to continue in the employ or service of the
         Corporation on a full-time, part-time, or any other basis.
         Participation in the Plan will not give any Participant any right or
         claim to any benefit under the Plan, unless such right or claim has
         specifically accrued under the terms of the Plan.

                  (b)      GOVERNING LAW - Except to the extent superseded by
         the laws of the United States, the laws of the State of New York,
         without regard to its conflict of laws principles, shall govern in all
         matters relating to the Plan.

                  (c)      SEVERABILITY - In the event any provision of the Plan
         shall be held to be illegal or invalid for any reason, such illegality
         or invalidity shall not affect the remaining parts of the Plan, and the
         Plan shall be construed and enforced as if such illegal or invalid
         provisions had never been contained in the Plan.

                  (d)      WITHHOLDING - The Corporation shall have the right to
         withhold from any amounts payable under the Plan all federal, state,
         foreign, city and local taxes as shall be legally required using
         statutory rates.

                  (e)      EFFECT ON OTHER PLANS OR AGREEMENTS - Payments or
         benefits provided to a Participant under any stock, deferred
         compensation, savings, retirement or other employee benefit plan are
         governed solely by the terms of such plan.

                  (f)      FOREIGN EMPLOYEES - Without amending the Plan, the
         Committee may grant awards to eligible persons who are foreign
         nationals on such terms and conditions different from those specified
         in the Plan as may, in the judgment of the Committee, be necessary or
         desirable to foster and promote achievement of the purposes of the Plan
         and, in furtherance of such purposes, the Committee may make such
         modifications, amendments, procedures, subplans and the like as may be
         necessary or advisable to comply with provisions of laws in other
         countries or jurisdictions in which the Corporation or its subsidiaries
         operates or has employees.

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                                                                  EXHIBIT 10.2

                                    FORM OF
                                   COACH, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN
              (Conformed Through the Revised Draft First Amendment)

                                    SECTION 1

                                  INTRODUCTION

                  1.1 THE PLAN AND ITS EFFECTIVE DATE. The Coach, Inc. Executive
Deferred Compensation Plan ("Plan") is established as of June 1, 2000 (the
"Effective Date") by action of the Compensation and Employee Benefits Committee
of the Board of Directors of Sara Lee Corporation taken at its meeting on April
26, 2000.

                  1.2 PURPOSE. The Plan is established by Coach, Inc. (the
"Company") to enable Eligible Employees (as defined in Section 2.1) to defer
future compensation from the Company or an Employer (as defined in Section 6)
and to permit such employees to elect to transfer all amounts deferred and not
yet paid under the Sara Lee Corporation Executive Deferred Compensation Plan
(the "Prior Plan") to the Plan. To the extent that an Eligible Employee elects a
transfer of all amounts deferred and not yet paid under the Prior Plan to the
Plan, the provisions of the Plan amend and supercede the provisions of the Prior
Plan; provided, that elections and beneficiary designations made by such
Eligible Employee under the Prior Plan shall remain in effect under the Plan,
except as specifically provided in subsection 2.2(i) below. The Plan is intended
to be a top-hat plan described in Section 201(2) of the Employee Retirement
Income Security Act of 1974 ("ERISA").

                  1.3 ADMINISTRATION. The Plan shall be administered by the
Compensation and Employee Benefits Committee of the Board of Directors of the
Company (the "Committee"). The Committee shall have the powers set forth in the
Plan and the power to interpret its provisions. Any decisions of the Committee
shall be final and binding on all persons with regard to the Plan. The Committee
may delegate its authority hereunder to the Senior Vice President, Human
Resources of the Company or to such other officers of the Company as it may deem
appropriate.

                  1.4 PLAN YEAR. The Plan shall be administered on the basis of
the calendar year (the "Plan Year"). The first Plan Year shall be a short Plan
Year beginning on the Effective Date and ending on the next following December
31st.

                                    SECTION 2

                      PARTICIPATION AND DEFERRAL ELECTIONS

                  2.1 ELIGIBILITY AND PARTICIPATION. Subject to the conditions
and limitations of the Plan, all officers and key employees of the Company at
the "C" level and above shall be eligible to participate in the Plan ("Eligible
Employees"). Any Eligible Employee who makes a Deferral Election as described in
Section 2.2 below shall become a participant in the Plan ("Participant") and
shall remain a Participant until the entire balance of his Deferral Account
(defined in Section 3.1 below) is distributed to him.

<PAGE>

                  2.2 RULES FOR DEFERRAL ELECTIONS. Any Eligible Employee may
make irrevocable elections to defer receipt of the amounts described in Section
2.3 below (each such election shall be referred to as a "Deferral Election" and
the amount deferred pursuant to such an election the "Deferral") for a Plan Year
in accordance with the rules set forth below.

                  (a)      An Eligible Employee shall be eligible to make a
                           Deferral Election only if he is an active, regular,
                           full-time employee of an Employer on the date such
                           election is made.

                  (b)      For each Plan Year, an Eligible Employee may make no
                           more than one Deferral Election for the Eligible
                           Employee's Annual Bonus and such number of Deferral
                           Elections with respect to the Eligible Employee's
                           Annual Base Salary as the Committee may prescribe.

                  (c)      Subject to the following, all Deferral Elections must
                           be made in such manner as the Committee may prescribe
                           and must be received by the Committee no later than
                           the date specified by the Committee:

                           (i)      In no event will the date specified by the
                                    Committee with respect to an Annual Bonus be
                                    later than: (A) for the first Plan Year, the
                                    thirtieth (30th) day following the Effective
                                    Date, or (B) for each Plan Year thereafter,
                                    the end of the Plan Year preceding the Plan
                                    Year in which the Annual Bonus is
                                    anticipated to be paid.

                           (ii)     Any Deferral Election with respect to an
                                    Eligible Employee's Annual Base Salary shall
                                    only apply to that portion of the Eligible
                                    Employee's Annual Base Salary remaining to
                                    be paid for service during the Plan Year
                                    after the date the Deferral Election is
                                    made.

                  (d)      As part of each Deferral Election, the Eligible
                           Employee must specify the date on which the Deferral
                           will be paid (the "Distribution Date"); provided,
                           that notwithstanding the Eligible Employee's Deferral
                           Election, in no event shall such Deferral be paid
                           prior to the date that Sara Lee Corporation certifies
                           to the Company that it no longer owns either (i)
                           shares of Coach, Inc. common stock representing
                           "control" of the Company (within the meaning of
                           Section 368(c) of the Internal Revenue Code of 1986,
                           as amended (the "Code")) or (ii) shares of Coach,
                           Inc. common stock sufficient to satisfy the
                           "80-percent voting and value test" (described in
                           Section 1504(a)(2) of the Code) (the "Spin-Off
                           Date"), unless the Company demonstrates to the
                           satisfaction of Sara Lee Corporation that it has
                           purchased shares of Coach, Inc. common stock on the
                           open market in a number sufficient to cover the
                           payment, and actually re-issues such repurchased
                           shares

                                      -2-
<PAGE>

                           pursuant to such payment. The Distribution Dates
                           specified in an Eligible Employee's Deferral
                           Elections may, but need not necessarily, be the same
                           for all Deferrals. Except as provided in subsection
                           (f) below, each Distribution Date is irrevocable and
                           shall apply only to that portion of the Participant's
                           Deferral Account which is attributable to the
                           Deferral.

                  (e)      The Distribution Date selected by an Eligible
                           Employee shall not be earlier than the January 1
                           immediately following the first anniversary of the
                           date on which the Deferral Election is made.

                  (f)      A Participant may make an irrevocable election to
                           extend a Distribution Date (a "Re-Deferral
                           Election"); provided, that no Re-Deferral Election
                           shall be effective unless (i) the Committee receives
                           the election prior to the December 1 of the Plan Year
                           preceding the Plan Year in which the Distribution
                           Date to be changed occurs, and (ii) the new
                           Distribution Date is not earlier than the January 1
                           immediately following the first anniversary of the
                           date the Re-Deferral Election is made. All
                           Re-Deferral Elections must be made in such manner and
                           pursuant to such rules as the Committee may
                           prescribe.

                  (g)      As part of each Deferral Election, an Eligible
                           Employee must elect the manner in which the Deferral
                           will be paid beginning on the selected Distribution
                           Date. The Deferral may be paid in a single lump sum
                           or in substantially equal annual installments over a
                           period not exceeding five (5) years as provided under
                           Section 4.1. Except as provided in Section 4.1, an
                           Eligible Employee's election as to the manner of
                           payment shall be irrevocable. If the Participant
                           elects an installment method of payment the
                           Distribution Date must be as of January 1.

                  (h)      A Deferral Election shall be irrevocable; provided,
                           that if the Committee determines that a Participant
                           has an Unforeseeable Financial Emergency (as defined
                           in Section 4.7), then the Participant's Deferral
                           Elections then in effect shall be revoked with
                           respect to all amounts not previously deferred.

                  (i)      Any Eligible Employee who was a participant in the
                           Prior Plan on the Effective Date may elect to
                           transfer his or her Prior Plan Deferral Account to
                           the Plan at such time and in accordance with such
                           rules as may be established by the Committee. Amounts
                           transferred under this subsection shall be subject to
                           the Deferral Election and any beneficiary designation
                           made under the Prior Plan and shall be treated as a
                           separate Deferral for all purposes of this Plan.
                           Notwithstanding the foregoing, in the event that the
                           Distribution Date specified in the Prior Plan
                           Deferral Election occurs before the Spin-Off Date,
                           distribution of the Prior Plan Deferral Account

                                      -3-
<PAGE>

                           shall not be made until the Spin-Off Date, unless the
                           Company demonstrates to the satisfaction of Sara Lee
                           Corporation that it has purchased shares of Coach,
                           Inc. common stock on the open market in a number
                           sufficient to cover the Prior Plan Deferral payment,
                           and actually re-issues such repurchased shares
                           pursuant to such payment.

                  2.3 AMOUNTS DEFERRED. An Eligible Employee may make a Deferral
Election to defer receipt of the following amounts:

                  (a)      All or any portion of the Eligible Employee's annual
                           bonus for a year due under an annual bonus plan or
                           any other short-term incentive plan of the Company or
                           an Employer (an "Annual Bonus").

                  (b)      All or any portion of the Eligible Employee's Annual
                           Base Salary. "Annual Base Salary" shall mean the
                           regular rate of compensation to be paid to the
                           Eligible Employee for services rendered during the
                           Plan Year excluding severance or termination
                           payments, commissions, foreign service payments,
                           payments for consulting services and such other
                           unusual or extraordinary payments as the Committee
                           may determine.

                  (c)      Such other bonuses and incentive payments under any
                           plan or arrangement established by the Company or an
                           Employer as the Committee may designate as
                           compensation eligible for deferral under this Plan in
                           such increments and subject to such limitations and
                           restrictions as the Committee may establish.

                                    SECTION 3

                                DEFERRAL ACCOUNTS

                  3.1 DEFERRAL ACCOUNTS. All amounts deferred pursuant to a
Participant's Deferral Elections under the Plan shall be allocated to a
bookkeeping account in the name of the Participant ("Deferral Account") and the
Committee shall maintain a separate subaccount under a Participant's Deferral
Account for each Deferral. Deferrals shall be credited to the Deferral Account
as of the Deferral Crediting Date coinciding with or next following the date on
which, in the absence of a Deferral Election, the Participant would otherwise
have received the Deferral. A "Deferral Crediting Date" shall mean the business
day coinciding with or next following the 15th day of each calendar month and
the business day coinciding with or next following the last day of each calendar
month.

                  3.2 INVESTMENT OF DEFERRAL ACCOUNT. A Participant's Deferral
Account shall be invested as follows:

                                      -4-
<PAGE>

                  (a)      PRE-INITIAL PUBLIC OFFERING. Prior to the date of the
                           Company's initial public offering (the "IPO Date"),
                           interest will be credited to the Participant's
                           Deferral Account as of (i) each business day
                           coinciding with or next following the last day of
                           each month and (ii) the business day immediately
                           preceding the IPO Date. The rate of interest to be
                           credited shall be equal to 7.5 percent, compounded
                           annually.

                  (b)      POST-INITIAL PUBLIC OFFERING. On and after the IPO
                           Date, the amount of the Participant's Deferral
                           Account shall be invested in "Deferred Stock Units"
                           under which each Deferred Stock Unit represents the
                           right to receive one share of Coach, Inc. common
                           stock on the Distribution Date (subject to Sections
                           4.1 and 4.11 below). On the IPO Date, the number of
                           Deferred Stock Units to be credited to the
                           Participant's Deferral Account and appropriate
                           subaccounts shall be determined by dividing the
                           balance of the Participant's Deferral Account on that
                           date by the initial offering price of the common
                           stock of Coach, Inc. After the IPO Date, the number
                           of Coach, Inc. Deferred Stock Units to be credited to
                           the Participant's Deferral Account and appropriate
                           subaccounts on each Deferral Crediting Date shall be
                           determined by dividing the Deferral to be "invested"
                           on that date by the average of the high and low
                           quotes of Coach, Inc. common stock on the applicable
                           day on the New York Stock Exchange Composite
                           Transaction Tape ("Market Value"). Fractional
                           Deferred Stock Units will be computed to two decimal
                           places. On and after the Spin-Off Date, an amount
                           equal to the number of Deferred Stock Units held as
                           of each dividend record date multiplied by the
                           dividend paid on Coach, Inc. common stock on each
                           dividend payment date shall either (a) be credited to
                           the Participant's Deferral Account and appropriate
                           subaccount as of the March 31st, June 30th, September
                           30th or December 31st coincident with or next
                           following the dividend payment date and "invested" in
                           additional Deferred Stock Units as though such
                           dividend credits were a Deferral or (b) at the
                           election of the Participant at such time and in
                           accordance with such rules as established by the
                           Committee, be paid in cash to the Participant as of
                           the March 31st, June 30th, September 30th or December
                           31st coincident with or next following the dividend
                           payment date. In the event of any stock dividend,
                           stock split, combination or exchange of securities,
                           merger, consolidation, recapitalization, spin-off or
                           other distribution (other than normal cash dividends)
                           of any or all of the assets of the Company to
                           stockholders, or any other similar change or event
                           effected without receipt of consideration, such
                           proportionate adjustments, if any, as the Committee
                           in its discretion may deem appropriate to reflect
                           such change or event shall be made with respect to
                           the number of Deferred Stock Units credited to a
                           Participant's Deferral Account.

                                      -5-
<PAGE>

                           Subject to Sections 4.1 and 4.11, the number of
                           shares of Coach, Inc. common stock to be paid to a
                           Participant on a Distribution Date shall be equal to
                           the number of Deferred Stock Units accumulated in the
                           Deferral Account on such date divided by the total of
                           the payments to be made. Deferred Stock Units shall
                           not have voting rights. Except provided in Section
                           4.11, all payments from the Plan shall be made in
                           whole shares of Coach, Inc. common stock with
                           fractional shares credited to federal income taxes
                           withheld.

                  3.3 VESTING. A Participant shall be fully vested at all times
in the balance of his Deferral Account.

                                    SECTION 4

                               PAYMENT OF BENEFITS

                  4.1 TIME AND METHOD OF PAYMENT. Payment of a Participant's
Deferral shall be made in a single lump sum or shall commence in installments as
elected by the Participant in the Deferral Election. A Participant may make a
one-time election after the original Deferral Election to change the method of
payment elected by the Participant; provided, that such election shall not be
effective unless the election to change the method of payment is received by the
Committee prior to the December 1 of the Plan Year preceding the Plan Year in
which the Distribution Date specified in the original Deferral Election occurs.
If a Participant's Deferral Account is payable in a single lump sum, the payment
shall be made as soon as practicable following the Distribution Date but not
later than thirty (30) days following the Distribution Date. If a Participant's
Deferral is payable in installment payments, then the Participant's Deferral
shall be paid in annual installments of substantially equal shares over the
period as elected by the Participant in the Deferral Election commencing as soon
as practicable following the Distribution Date but not later than thirty (30)
days following the Distribution Date. Notwithstanding anything contained in the
Plan or a Participant's Deferral Election(s) to the contrary, no distributions
or payments shall be made from the Plan prior to the Spin-Off Date, unless the
Company demonstrates to the satisfaction of Sara Lee Corporation that it has
purchased shares of Coach, Inc. common stock on the open market in a number
sufficient to cover such distributions or payments, and actually re-issues such
repurchased shares pursuant to such distributions or payments.

                  4.2 PAYMENT UPON TOTAL DISABILITY. In the event a Participant
becomes totally disabled before all amounts credited to his Deferral Account
have been paid, payment of the Participant's Deferral Account shall be made or
shall commence in the method of payment elected by the disabled Participant;
provided, that the disabled Participant requests payment in writing within
one-hundred eighty (180) days of becoming disabled; and provided further, that
no payment shall be made prior to the Spin-Off Date, unless the Company
demonstrates to the satisfaction of Sara Lee Corporation that it has purchased
shares of Coach, Inc. common stock on the open market in a number sufficient to
cover the payment, and actually re-issues such repurchased shares pursuant to
such payment. If such a request is not made, the disabled

                                      -6-
<PAGE>

Participant's Deferrals will be paid pursuant to the Deferral Elections and the
normal provisions of the Plan. A Participant will be considered to be totally
disabled for purposes of the Plan if the Participant is determined to be totally
disabled under the Company's disability plan applicable to the Participant.

                  4.3 PAYMENT UPON RETIREMENT OR OTHER TERMINATION OF
EMPLOYMENT. In the event the Participant retires or otherwise terminates
employment with the Company for any reason before the entire balance in the
Participant's Deferral Account has been paid, the Participant's Deferral Account
shall continue to be maintained for the benefit of the Participant and Deferrals
shall be paid pursuant to the Deferral Elections and the normal provisions of
the Plan; provided, that a Participant's Deferral Election may provide for the
immediate payment of the Participant's Deferral Account upon his retirement or
other termination of employment; and provided further, that no payment shall be
made prior to the Spin-Off Date, unless the Company demonstrates to the
satisfaction of Sara Lee Corporation that it has purchased shares of Coach, Inc.
common stock on the open market in a number sufficient to cover the payment, and
actually re-issues such repurchased shares pursuant to such payment.

                  4.4 PAYMENT UPON DEATH OF A PARTICIPANT. In the event a
Participant dies before all amounts credited to his Deferral Account have been
paid, payment of the Participant's Deferral Account shall be made or shall
commence in the method of payment elected by the Participant's Beneficiary or
the Executor/Executrix of the Participant's estate; provided, that the request
is made in writing within one-hundred eighty (180) days of the Participant's
death; and provided further, that no payment shall be made prior to the Spin-Off
Date, unless the Company demonstrates to the satisfaction of Sara Lee
Corporation that it has purchased shares of Coach, Inc. common stock on the open
market in a number sufficient to cover the Deferral payment, and actually
re-issues such repurchased shares pursuant to such payment. If such a request is
not made, the deceased Participant's Deferrals will be paid pursuant to the
Deferral Elections and the normal provisions of the Plan.

                  4.5 BENEFICIARY. A Participant's Beneficiary shall mean the
individual(s) or entity designated by the Participant to receive the balance of
the Participant's Deferral Account in the event of the Participant's death prior
to the payment of his entire Deferral Account. To be effective, any Beneficiary
designation shall be filed in writing with the Committee. A Participant may
revoke an existing Beneficiary designation by filing another written Beneficiary
designation with the Committee. The latest Beneficiary designation received by
the Committee shall be controlling. If no Beneficiary is named by a Participant
or if he survives all of his named Beneficiaries, the Deferral Account shall be
paid in the following order of precedence:

                  (a)      the Participant's spouse;

                  (b)      the Participant's children (including adopted
                           children), per stirpes; or

                  (c)      the Participant's estate.

                                      -7-
<PAGE>

                  4.6 FORM OF PAYMENT. Except as provided in Section 4.11, all
payments from the Plan shall be made in whole shares of Coach, Inc. common stock
with fractional shares credited to federal income taxes withheld.

                  4.7 UNFORESEEABLE FINANCIAL EMERGENCY. If the Committee or its
designee determines that a Participant has incurred an Unforeseeable Financial
Emergency (as defined below), the Participant may withdraw in cash and/or stock
the portion of the balance of his Deferral Account needed to satisfy the
Unforeseeable Financial Emergency, to the extent that the Unforeseeable
Financial Emergency may not be relieved through reimbursement or compensation by
insurance or otherwise or by liquidation of the Participant's assets, to the
extent the liquidation of such assets would not itself cause severe financial
hardship. An "Unforeseeable Financial Emergency" is a severe financial hardship
to the Participant resulting from (i) a sudden and unexpected illness or
accident of the Participant or of a dependent of the Participant; (ii) loss of
the Participant's property due to casualty; or (iii) such other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant as determined by the Committee. A
withdrawal on account of an Unforeseeable Financial Emergency shall be paid as
soon as possible following the date on which the withdrawal is approved;
provided, that no withdrawal shall be made prior to the Spin-Off Date, unless
the Company demonstrates to the satisfaction of Sara Lee Corporation that it has
purchased shares of Coach, Inc. common stock on the open market in a number
sufficient to cover the withdrawal, and actually re-issues such repurchased
shares pursuant to such withdrawal.

                  4.8 EARLY WITHDRAWAL WITH PENALTY. Notwithstanding the other
provisions of the Plan to the contrary, a Participant may request a withdrawal
from his Deferral Account by filing a request with the Committee or its designee
in writing. Payment will be made to the Participant within thirty (30) days of
the approval of such a request; provided, that no withdrawal shall be made prior
to the Spin-Off Date, unless the Company demonstrates to the satisfaction of
Sara Lee Corporation that it has purchased shares of Coach, Inc. common stock on
the open market in a number sufficient to cover the withdrawal, and actually
re-issues such repurchased shares pursuant to such withdrawal. Any amount
withdrawn under this provision will be charged with a ten (10) percent early
withdrawal penalty which will be withheld from the amount withdrawn and
forfeited as provided in Section 5.5.

                  4.9 WITHHOLDING OF TAXES. The Company shall withhold any
applicable minimum statutory Federal, state or local income tax from payments
due under the Plan. The Company shall also withhold Social Security taxes,
including the Medicare portion of such taxes, and any other employment taxes as
necessary to comply with applicable laws.

                  4.10 SMALL AMOUNTS. Notwithstanding any election by the
Participant regarding the timing and manner of payment of his Deferrals, in the
event of a Participant's retirement or other termination of employment, the
Employer may elect to pay the Participant a lump sum distribution of the entire
value of the Participant's Deferral Account; provided, that the value is less
than ten-thousand dollars ($10,000) determined as of the Valuation Date
coinciding with or immediately following the Participant's termination of
employment; provided further, that no payment shall be made prior to the
Spin-Off Date, unless the Company demonstrates to the satisfaction of Sara Lee
Corporation that it has purchased shares of Coach, Inc. common stock on

                                      -8-
<PAGE>

the open market in a number sufficient to cover the payment, and actually
re-issues such repurchased shares pursuant to such payment.

                  4.11 PAYMENT UPON BANKRUPTCY LIQUIDATION. Notwithstanding
anything contained in the Plan to the contrary, in the event that the Company is
liquidated in bankruptcy, (a) no distributions from the Plan shall be made in
shares of Coach, Inc. common stock and (b) distributions to a Participant shall
be made in cash in an amount determined by multiplying each Deferred Stock Unit
in the Participant's Deferral Account by the Market Value of Coach, Inc. common
stock on the date such Deferred Stock Unit was first credited to the
Participant's Deferral Account.

                                    SECTION 5

                                  MISCELLANEOUS

                  5.1 FUNDING. Benefits payable under the Plan to any
Participant shall be paid directly by the Participant's Employer (including the
Company if the Participant is employed by the Company). The Company and the
Employers shall not be required to fund, or otherwise segregate assets to be
used for payment of benefits under the Plan.

                  5.2 ACCOUNT STATEMENTS. As soon as practical after the end of
each calendar year (or after such additional date or dates as the Committee, in
its discretion, may designate), each Participant shall be provided with a
statement of the balance of his Deferral Account hereunder as of the last day of
such calendar year (or as of such other dates as the Committee, in its
discretion, may designate).

                  5.3 EMPLOYMENT RIGHTS. Establishment of the Plan shall not be
construed to give any Eligible Employee the right to be retained in the
Company's service or to any benefits not specifically provided by the Plan.

                  5.4 INTERESTS NOT TRANSFERABLE. Except as (a) provided under
(i) Section 4.9 or (ii) an agreement between a Participant and the Company, or
(b) required for purposes of withholding of any tax under the laws of the United
States or any state or locality, no benefit payable at any time under the Plan
shall be subject in any manner to alienation, sale, transfer, assignment,
pledge, attachment, or other legal process, or encumbrance of any kind. Any
attempt to alienate, sell, transfer, assign, pledge or otherwise encumber any
such benefits, whether currently or thereafter payable, shall be void. No person
shall, in any manner, be liable for or subject to the debts or liabilities of
any person entitled to such benefits. If any person shall attempt to, or shall
alienate, sell, transfer, assign, pledge or otherwise encumber his benefits
under the Plan, or if by any reason of his bankruptcy or other event happening
at any time, such benefits would devolve upon any other person or would not be
enjoyed by the person entitled thereto under the Plan, then the Committee, in
its discretion, may terminate the interest in any such benefits of the person
entitled thereto under the Plan and hold or apply them for or to the benefit of
such person entitled thereto under the Plan or his spouse, children or other
dependents, or any of them, in such manner as the Committee may deem proper.

                                      -9-
<PAGE>

                  5.5 FORFEITURES AND UNCLAIMED AMOUNTS. Unclaimed amounts shall
consist of the amounts of the Deferral Account of a Participant that are not
distributed because of the Committee's inability, after a reasonable search, to
locate a Participant or his Beneficiary, as applicable, within a period of two
(2) years after the date upon which the payment of any benefits becomes due and
the amount by which a Participant's Account is reduced under Section 4.8.
Unclaimed amounts shall be forfeited at the end of such two-year period. These
forfeitures will reduce the obligations of the Company under the Plan and the
Participant or Beneficiary, as applicable, shall have no further right to his
Deferral Account unless the Committee determines otherwise in a particular case.

                  5.6 CONTROLLING LAW. The law of New York, except its law with
respect to choice of law, shall be controlling in all matters relating to the
Plan to the extent not preempted by ERISA.

                  5.7 GENDER AND NUMBER. Words in the masculine gender shall
include the feminine, and the plural shall include the singular and the singular
shall include the plural.

                  5.8 ACTION BY THE COMPANY. Except as otherwise specifically
provided herein, any action required of or permitted by the Company under the
Plan shall be by resolution of the Board of Directors of the Company or by
action of any member of the Committee or person(s) authorized by resolution of
the Board of Directors of the Company.

                                    SECTION 6

                             EMPLOYER PARTICIPATION

                  Any subsidiary or affiliate of the Company incorporated under
the laws of any state in the United States (an "Employer") may, with the
approval of the Committee and under such terms and conditions as the Committee
may prescribe, adopt the corresponding portions of the Plan. The Committee may
amend the Plan as necessary or desirable to reflect the adoption of the Plan by
an Employer; provided, however, that an adopting Employer shall not have the
authority to amend or terminate the Plan under Section 7.

                                    SECTION 7

                            AMENDMENT AND TERMINATION

                  The Company intends the Plan to be permanent, but reserves the
right at any time by action of its Board of Directors to modify, amend or
terminate the Plan; provided, however, that any amendment or termination of the
Plan shall not reduce or eliminate any Deferral Account accrued through the date
of such amendment or termination. The Committee shall have the same authority to
adopt amendments to the Plan as the Board of Directors of the Company in the
following circumstances:

                                      -10-
<PAGE>

                  (a)      to adopt amendments to the Plan which the Committee
                           determines are necessary or desirable for the Plan to
                           comply with or to obtain benefits or advantages under
                           the provisions of applicable law, regulations or
                           rulings or requirements of the Internal Revenue
                           Service or other governmental or administrative
                           agency or changes in such law, regulations, rulings
                           or requirements; and

                  (b)      to adopt any other procedural or cosmetic amendment
                           that the Committee determines to be necessary or
                           desirable that does not materially change benefits to
                           Participants or their Beneficiaries or materially
                           increase the Company's or adopting Employers'
                           obligations under the Plan.

The Committee shall provide notice of amendments adopted by the Committee to the
Board of Directors of the Company on a timely basis.

                  Executed in multiple originals this ___ day of _____________,
2000

                                   COACH, INC.

                                   By:__________________________
                                     Its: _________________________

                                      -11-
<PAGE>

                                   APPENDIX A
                                       TO
                                   COACH, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

                                GLOSSARY OF TERMS

As used herein, the term:

                  (1) "Annual Base Salary" means the regular rate of
compensation to be paid to the Eligible Employee for services rendered during
the Plan Year excluding severance or termination payments, commissions, foreign
service payments, payments for consulting services and such other unusual or
extraordinary payments as the Committee may determine.

                  (2) "Annual Bonus" means an Eligible Employee's annual bonus
for a year due under an annual bonus plan or any other short-term incentive plan
of the Company or an Employer.

                  (3) "Beneficiary" means the individual(s) or entity designated
by a Participant to receive the balance of the Participant's Deferral Account in
the event of the Participant's death prior to the payment of the Participant's
entire Deferral Account.

                  (4) "Code" means the Internal Revenue Code of 1986, as
amended.

                  (5) "Committee" means the Compensation and Employee Benefits
Committee of the Board of Directors of the Company.

                  (6) "Company" means Coach, Inc.

                  (7) "Deferral" means the amount deferred pursuant to a
Deferral Election.

                  (8) "Deferral Account" means the bookkeeping account
established in the name of the Participant to hold all amounts deferred pursuant
to a Participant's Deferral Elections under the Plan.

                  (9) "Deferral Crediting Date" means the business day
coinciding with or next following the 15th day of each calendar month and the
business day coinciding with or next following the last day of each calendar
month.

                  (10) "Deferral Election" means a Participant's irrevocable
election to defer receipt of amounts described in Section 2.3 of the Plan for a
Plan Year.

                  (11) "Deferred Stock Unit" means the investment vehicle under
the Plan under which each Deferred Stock Unit represents the right to receive
one share of Coach, Inc. common stock on the Distribution Date (subject to
Sections 4.1 and 4.11).

                  (12) "Distribution Date" means the date on which an Eligible
Employee elects to have a Deferral paid pursuant to a Deferral Election.

                                      -12-
<PAGE>

                  (13) "Effective Date" means the effective date of the Plan,
June 1, 2000.

                  (14)  "Eligible Employee" means each officer or key executive
of the Company who is at the "C" level or above.

                  (15) "Employer" means any subsidiary of the Company
incorporated under the laws of any state in the United States.

                  (16) "ERISA" means the Employee Retirement Income Security Act
of 1974, as amended.

                  (17) "Financial Gain" means the difference between the fair
market value of the common stock of the Company on the date of exercise and the
exercise price, multiplied by the number of shares of common stock purchased
pursuant to that exercise (without reduction for any shares of common stock
surrendered or attested to).

                  (18) "IPO Date" means the date of the Coach, Inc. initial
public offering.

                  (19) "Market Value" of Coach, Inc. common stock means the
average of the high and low quotes for Coach, Inc. common stock on the
applicable day on the New York Stock Exchange Composite Transaction Tape.

                  (20) "Participant" means any Eligible Employee who makes a
Deferral Election or has an Account under the Plan.

                  (21) "Plan" means the Coach, Inc. Executive Deferred
Compensation Plan.

                  (22) "Plan Year" means the calendar year.

                  (23) "Prior Plan" means the Sara Lee Corporation Executive
Deferred Compensation Plan.

                  (24) "Re-Deferral Election" means a Participant's irrevocable
election to extend a Distribution Date.

                  (25) "Spin-Off Date" means the date that Sara Lee Corporation
certifies to the Company that it no longer owns either (a) shares of Coach, Inc.
common stock representing "control" of the Company (within the meaning of
Section 368(c) of the Code) or (b) shares of Coach, Inc. common stock sufficient
to satisfy the "80-percent voting and value test" (described in Section
1504(a)(2) of the Code).

                  (26) "Unforeseeable Financial Emergency" means a severe
financial hardship to the Participant resulting from (i) a sudden and unexpected
illness or accident of the Participant or of a dependent of the Participant;
(ii) loss of the Participant's property due to casualty; or (iii) such other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant as determined by the Committee.

                                      -13-

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