Document:

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                                                                   CONFIDENTIAL

                                EXHIBIT 10.12

                         VALUE ADDED RESELLER AGREEMENT

This Agreement is made as of the 14th day of April, 1998 (the "Effective Date")
by and between QAD INC., 6450 Via Real, Carpinteria, CA 93013 ("QAD") and
PARAGON MANAGEMENT SYSTEMS, INC., 5933 West Century Blvd., 12th Floor, Los
Angeles, CA 90045 ("Paragon").

Paragon Management Systems and QAD Inc. agree as follows:

ARTICLE 1 RIGHTS AND OBLIGATIONS

1.1  Paragon hereby grants to QAD, and QAD hereby accepts from Paragon, a
     non-exclusive, world-wide, transferable right to copy (when sublicensed to
     distributors), modify, market, use, license, sublicense and distribute
     Paragon Applications software in executable form as a QAD product to
     Licensee's of QAD MFG/PRO Software and On/Q Software.

1.2  Paragon shall provide QAD copies of the latest Paragon Applications
     software [*] throughout the term of this Agreement [*]. New releases of
     Paragon Applications shall be provided to QAD [*] including, but not
     limited to [*].

1.3  Paragon shall create/maintain an Application Program Interface ("API")
     between Paragon Applications and QAD MFG/PRO Software and On/Q Software
     required for integration of Paragon Applications to MFG/PRO Software and
     On/Q Software. New versions of Paragon's API shall be concurrent with new
     releases of MFG/PRO Software and On/Q Software.

1.4  The API between Paragon Applications and MFG/PRO Software and On/Q Software
     consists of Paragon owned ERP API and QAD owned MFG/PRO Software and On/Q
     Software specific interface program ("Specific Interface Program"). QAD
     shall own the Specific Interface Program.

1.5  [*]

1.6  QAD and Paragon agree to enter into a mutually acceptable contract
     modification or a separate agreement to cover development of the API
     between Paragon Applications and MFG/PRO Software and On/Q Software. QAD
     and Paragon shall endeavor to complete negotiation of this
     modification/separate agreement within forty-five (45) days of the date of
     execution of this Agreement. The terms of such agreement shall, include,
     but not be limited to technical details of the interface, development
     milestones, ownership, warranties, indemnities, support, quality, etc. In
     the event the parties are unable to reach agreement on this
     modification/separate agreement [*].

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* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED WITH
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ARTICLE 2  PRICES, [*] AND PAYMENT TERMS

2.1  QAD shall pay Paragon a royalty calculated as a percentage of the [*]
     price received by QAD for Paragon Applications licensed by QAD and/or
     its distributors and partners. The royalty percentages are listed in the
     Royalty Schedule attached hereto as Schedule 1. During the [*] of this
     Agreement, QAD shall pay a royalty of [*] of the [*] price received by
     QAD for Paragon Applications subject to a minimum of [*] of the [*]
     price. During the [*] of this Agreement, QAD shall pay a royalty of [*]
     of the [*]price received by QAD for Paragon Applications subject to a
     minimum of [*]of the [*] price. Changes to the royalty schedule may be
     proposed by either party on a case by case basis or on presentation of a
     business case to justify such a change. Any changes to the royalty
     schedule shall be subject to the agreement of both parties.

2.2. QAD shall pay Paragon, a [*] consisting of the following: (1) [*]; and
     (2) [*]. The effective schedule of the payments are listed below:

     a.   [*]. These changes will include but are not limited to all references
          found in menus, help, documentation, training materials, marketing
          materials, etc. and shall be made within [*] of execution of this
          Agreement. All future releases to QAD shall follow this format.

     b.   [*]

     c.   [*]

     d.   [*]

          QAD and Paragon shall jointly define the specific vertical market
          requirements within [*] following execution of this Agreement.

          *This plan shall be submitted to QAD not later than [*] following
          execution of this Agreement.

2.3  [*] shall not affect outstanding offers by QAD or QAD distributors and

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED WITH
  THE SECURITIES AND EXCHANGE COMMISSION.

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                                                                   CONFIDENTIAL

     partners which result in an order within [*] of the date of the original
     offer.

2.4  Payments to Paragon shall be made [*] and shall be [*] from the date
     following the [*] and such payments shall be for licenses granted in
     the previous [*].

ARTICLE 3  SALES, MARKETING AND ORDER ADMINISTRATION

3.1  Demonstration and evaluation licenses shall be available to QAD on an as
     required basis [*]; QAD distributors or partners and to prospective
     licensees of MFG/PRO Software or On/Q Software ("End Users"). For the
     purpose of this section a demonstration license shall be a standard license
     which may be limited in application or use; and an evaluation license shall
     be a standard license which has the same functionality as a regular copy of
     the software.

3.2  QAD may offer Paragon Applications to any End User or site to which QAD,
     a QAD distributor or partner has licensed MFG/PRO Software or On/Q
     Software. Paragon may license Paragon Applications [*]. On an annual
     basis, QAD and Paragon shall review the activity in QAD MFG/PRO and On/Q
     sites surrounding Paragon Applications. [*].

3.3  QAD may offer Paragon Applications to sites not currently using MFG/PRO
     Software or On/Q Software if such site has expressed a desire to
     purchase either MFG/PRO Software or On/Q Software. Such sites must
     intend to purchase MFG/PRO Software or On/Q Software within one (1) year
     of receipt of QAD's offer to purchase such software in conjunction with
     Paragon Applications.

3.4  Paragon reserves the right to license Paragon Applications [*].

3.5  [*]

3.6  On a quarterly basis, QAD shall report the number of Paragon
     Applications licenses issued and detail the funnel for global sales
     activity related to Paragon Applications, including the company name,
     location and projected revenue. The funnel information shall be used by
     Paragon for planning purposes only.

3.7  Annually, QAD shall update the revenue plan for Paragon Applications
     based on QAD's current revenue projections through the end of the then
     current contract term. The revenue plan shall be determined by good
     faith negotiation of both parties at the beginning of each calendar year.

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED WITH
  THE SECURITIES AND EXCHANGE COMMISSION.

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3.8  All license agreements with End Users shall be based upon QAD standard
     software license terms and conditions. Paragon shall have an opportunity
     to review QAD's form of license agreement and any changes made thereto
     by QAD during the term of this Agreement.

3.9  Any public announcements, media releases, or public disclosure for
     general distribution (including, but not limited to, promotional or
     marketing material) by either party, or by their employees or agents,
     relating to this Agreement or its subject matter shall be coordinated
     with and approved in writing by the other party prior to its release.

3.10 Paragon shall in electronic format make available to QAD, and QAD
     distributors and partners, advertising literature relating to Paragon
     Applications which Paragon has prepared or may in the future prepare,
     and marketing materials to be used by QAD in performing it rights under
     this Agreement. QAD shall have the right to determine the use of such
     literature as it deems appropriate. QAD may employ any marketing
     collateral provided by Paragon, and any portion thereof, in its
     marketing activity or material QAD chooses to develop, including any
     translation or modification of the Paragon marketing material.

ARTICLE 4  TRAINING AND SUPPORT

4.1  During the [*] of this Agreement, Paragon [*] to QAD to provide sales
     training to QAD personnel.

4.2  During the term of this Agreement, Paragon [*] the following personnel
     resources to support of QAD's licensing Paragon Applications: [*].
     QAD shall designate an Alliance Product Manager and shall provide
     sufficient resource to facilitate its obligations under this Agreement.

     4.3  Paragon shall offer training for the Paragon Applications in the
          form of [*] "Train the Trainer" [*] for QAD personnel at a
          QAD location, at a reasonable time as QAD may elect. QAD shall bear
          its own out of pocket expenses for travel, meals and lodging in
          attending such training session. Within [*] of each major release of
          Paragon Applications, Paragon shall offer to provide one (1) free
          training session to "Train the Trainer" for QAD personnel or its
          designated partner. Pricing for additional training sessions
          shall be [*].

4.4  QAD shall provide worldwide support to all QAD customers utilizing
     MFG/PRO Software or On/Q Software in conjunction with Paragon
     Applications. QAD shall provide level 1 and level 2 support; however,
     during the [*] of this Agreement, Paragon and QAD shall create a support
     plan utilizing QAD and Paragon support personnel. Following sufficient
     training from Paragon and the [*] of this Agreement, QAD shall support
     Paragon Applications for level 1 and level 2 and Paragon shall be
     responsible for level 3 support.

     a.   Level 1 support: receive and log support calls from partners and End
          Users.

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED WITH
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                                                                   CONFIDENTIAL

     b.   Level 2 support: research the reported problem and provide an
          appropriate remedy for such problem if QAD is able to determine one.

     c.   Level 3 support: research problems with Paragon Applications which
          QAD is unable to remedy and provide an appropriate remedy to all
          reported errors in the Paragon Applications. Paragon shall have the
          following goals:

               Severity 1: [*] notify QAD of receipt of the error report,
               identify the nature of the problem and provide a commitment date
               by which the issue shall be remedied.

               Severity 2: [*] notify QAD of receipt of the error report,
               identify the nature of the problem and provide a commitment date
               by which the issue shall be remedied.

               Severity 3: [*] notify QAD of receipt of the error report,
               identify the nature of the problem and provide a commitment date
               by which the issue shall be remedied.

ARTICLE 5  TERM AND TERMINATION

5.1  This Agreement shall remain in force for [*] from the effective date unless
     terminated by either party in accordance with this Section 5. The parties
     shall have the option to extend the term of this Agreement at the end of
     [*] period for an additional [*] upon mutual agreement of both parties by
     providing written notice of such intention at least [*] prior to the
     expiration of the initial [*] term.

5.2  Either party may terminate this Agreement upon [*] notice in writing to the
     other party if the other party has breached a material provision of this
     Agreement. The party breaching a material provision of this Agreement shall
     have [*] to cure the breach, in which case the notifying party shall
     withdraw its notice of termination. In the event that the breach is not
     capable of being remedied within the [*] period to cure, the party in
     breach shall receive a reasonable extension of the cure period, not to
     exceed [*].

5.3  A party may terminate this Agreement immediately by written notice to
     the other party if the other party enters into liquidation, whether
     voluntary or compulsory, or enters into a settlement with its creditors
     or applies for suspension of payment or admits its inability to pay its
     debts when due or is declared bankrupt or takes or suffers any similar
     action in consequence of debt.

5.4  Either party may terminate the Agreement immediately by notice in
     writing in the event the other party sells or disposes of substantially
     all its assets or in the event that the control, management or ownership
     of the other party's business passes into other hands other than those
     now exercising or entitled to the same, either voluntarily or by law.

5.5  In the event of a pending acquisition of Paragon or investment into
     Paragon of more than [*] of Paragon's market value, Paragon shall
     immediately notify QAD. Paragon agrees to notify QAD of Paragon's
     intention to be acquired by a competitor of

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED WITH
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                                                                   CONFIDENTIAL

     QAD [*] prior to such acquisition. QAD agrees to notify Paragon of QAD's
     intention to be acquired by a competitor of Paragon [*] prior to such
     acquisition. QAD agrees to notify Paragon of QAD's intention to acquire a
     competitor of Paragon [*] prior to such acquisition. If such acquisition
     occurs, Paragon may terminate this Agreement upon written notice to QAD.

5.6  Should controlling interest in Paragon be acquired by a third party
     during the term of this Agreement, QAD shall have the right to continue
     to license Paragon Applications and receive all new release of Paragon
     Applications for a period of [*] following termination of this Agreement.

ARTICLE 6  WARRANTIES, INDEMNITIES AND LIMITATION OF LIABILITY

6.1  Paragon shall defend, indemnify and hold harmless QAD against all costs
     (including reasonable attorneys fees arising from a claim that Paragon
     Applications furnished and used within the scope of this Agreement
     infringe a copyright or patent, trade secret, or other intellectual
     property right, provided that: (i) QAD notifies Paragon in writing
     within [*] of the claim; (ii) Paragon has control of the defense and all
     related settlement negotiations; and (iii) QAD provides Paragon with the
     assistance, information, and authority necessary to perform the above.
     Reasonable out-of-pocket expenses incurred by QAD in providing such
     assistance shall be reimbursed by Paragon.

     a.   Paragon shall have no liability for any claim of infringement based
          on: (i) use of a superseded or altered release of Paragon
          Applications if such infringement would have been avoided by the
          use of current unaltered release of Paragon Applications that
          Paragon provides to QAD; or (ii) the combination, operation, or use
          of Paragon Applications furnished under this Agreement with
          programs or data not furnished by Paragon if such infringement
          would have been avoided by the use of Paragon Applications without
          such programs or data.

     b.   In the event Paragon Applications is held or are believed by
          Paragon to infringe, Paragon shall have the option, at its expense,
          to: (i) modify Paragon Applications to be noninfringing; (ii) obtain
          for QAD a license to continue using Paragon Applications; or (iii)
          substitute Paragon Applications with other software reasonably
          suitable to QAD.

6.2  QAD warrants that, to the knowledge of QAD, it has the right to grant
     all the rights to Paragon as specified in the Agreement. [*].

6.3  THE ABOVE WARRANTY IS THE ONLY WARRANTY MADE BY QAD CONCERNING THE
     OBLIGATIONS OF QAD UNDER THIS AGREEMENT. TO THE MAXIMUM EXTENT PERMITTED
     BY APPLICABLE LAW, NO OTHER WARRANTY IS MADE HEREUNDER BY QAD AND ALL
     OTHER CONDITIONS, WARRANTIES, AND REPRESENTATIONS, EITHER EXPRESS OR
     IMPLIED, ARE EXCLUDED, INCLUDING, BUT NOT LIMITED TO, CONDITIONS OR

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                                                             CONFIDENTIAL

     WARRANTIES RELATING TO THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
     PARTICULAR PURPOSE

6.4  Paragon warrants that Paragon Applications will be [*] for a period of [*]
     from the date of shipment of Paragon Applications to an End User.

6.5  Paragon warrants all media delivered to QAD to be [*]. Paragon warrants
     that its technical support, consulting, training and other services will
     be [*]. This warranty shall be valid for [*]. For any breach of the above
     warranty, Paragon shall: [*].

6.6  THE WARRANTIES ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES,
     WHETHER EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF
     MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

6.7  IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR LOSS OF PROFITS, REVENUE OR
     PRODUCT USE, OR LOSS OR INACCURACY OF DATA, AND IN NO EVENT, SHALL EITHER
     PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL
     DAMAGES INCURRED BY EITHER PARTY OR ANY THIRD PARTY, EVEN IF THE OTHER
     PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

ARTICLE 7 CONFIDENTIALITY

7.1  It is recognized that each party under this Agreement, as well as the End
     Users, may make available to the other party confidential information.
     Confidential information may include in any form, but is not limited to,
     processes, formulae, specifications, programs, instructions, source code
     for operating system-dependent routines, technical know-how, methods and
     procedures of operation, benchmark test results, business or technical
     plans and proposals.

     It is agreed that confidential information received by a party under this
     Agreement shall:

     a.   be kept confidential by the receiving party;
     b.   be treated by the receiving party in the same way as it treats
          confidential information generated by itself;
     c.   not be used by the receiving party otherwise than in connection with
          the implementation of this Agreement; and
     d.   be divulged to the receiving party's personnel, or End User's
          personnel, only if they have to know and have undertaken to keep
          confidential information secret.

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED WITH
  THE SECURITIES AND EXCHANGE COMMISSION.

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                                                                   CONFIDENTIAL

     Each party agrees to use all reasonable steps to ensure that confidential
     information received under this Agreement is not disclosed by its employees
     or agents in violation of this Article.

7.2  The commitments pursuant to provision 7.1 shall continue during the term of
     this Agreement and survive the termination of this Agreement for [*]. These
     commitments shall cease if, but only to the extent that, confidential
     information:

     a.   Is or becomes generally known or available to the public at large
          through no act or omission of the receiving party; or
     b.   Can be demonstrated to be available lawfully to the receiving party
          prior to the disclosure or has thereafter been furnished to the
          receiving party without restrictions as to disclosure or use; or
     c.   Can be demonstrated to be independently developed by the receiving
          party without use of any confidential information received under this
          Agreement.

     Each party may disclose confidential information to any of its associated
     companies on condition that such associated companies shall be bound by the
     same commitments undertaken under this Article 7.

7.3  QAD considers MFG/PRO Software and On/Q Software and the API to such
     software to be a trade secret. QAD does not disclose such information to
     QAD competitors or potential competitors. Paragon shall not use design,
     code or documentation gained by access to the MFG/PRO Software or On/Q
     Software for purposes other than those contemplated under this Agreement
     and without the prior written consent of QAD.

7.4  Paragon considers Paragon Applications and the API to such software to be a
     trade secret. Paragon does not disclose such information to Paragon
     competitors or potential competitors. QAD shall not use design, code or
     documentation gained by access to the Paragon Applications for purposes
     other than those contemplated under this Agreement and without the prior
     written consent of Paragon.

ARTICLE 8 GENERAL PROVISIONS

8.1  LAW. This Agreement shall be construed, interpreted, and applied in
     accordance with the laws of the State of California, USA, without regard to
     that body of law known as conflict of laws and without reference to the
     1980 United Nations Convention on Contracts for the Sale of Goods and any
     amendments thereto. Any dispute arising between the parties shall be
     settled by arbitration under the rules of the American Arbitration
     Association in the city of Los Angeles, CA before a single arbitrator
     selected under those rules.

8.2  FORCE MAJEURE. A party shall be excused for failures and delays in
     performance of its obligations under this Agreement caused by war, riots,
     or insurrections, laws and regulations, strikes, floods, fires, explosions
     or other catastrophes beyond the control of such party but excluding the
     financial well being of that party. Such party shall use commercial
     reasonable efforts to avoid or remove such cause and such party shall
     continue performance hereunder promptly whenever such causes are removed.
     The party

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED WITH
  THE SECURITIES AND EXCHANGE COMMISSION.

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                                                                   CONFIDENTIAL

     claiming force majeure shall give prompt written notice thereof to the
     other party. This Paragraph shall not apply to any obligation to pay money.

8.3  TAXES. All payments under this Agreement (the "Payments") are [*] of
     all federal, state, provincial and local sales, use excise, import or
     export, value added and similar taxes or duties (the "Taxes"). Each party
     required to make any Payment [*]. Each party is responsible for payment of
     any net income taxes due on its own income resulting from Payments.

8.4  ASSIGNMENT. The Agreement may not be assigned by Paragon without the prior
     written consent of QAD.

8.5  ENFORCEMENT. The failure of either party to enforce any provision of the
     Agreement shall not be construed to be a waiver of such provision or such
     party's right to thereafter enforce the same, and no waiver of any breach
     shall be construed as an agreement by such party to waive any subsequent
     breach of the same or other provisions.

8.6  [*]

8.7  SURVIVAL. The provisions of Article 6 entitles "Warranties, Indemnities and
     Limitation of Liability", Article 7 entitled "Confidentiality" and Article
     8 entitled "General Provisions" shall survive the expiration or termination
     of this Agreement, as well as the termination or expiration of any license
     granted under this Agreement.

8.8  ENTIRE AGREEMENT. This Agreement, including any schedules attached hereto,
     contain the entire agreement between the parties hereto with respect to the
     subject matter hereof and shall supersede any and all prior communications,
     representations, agreements, and/or undertakings, whether verbal or
     written, between the parties hereto in respect to the said subject matter.
     Any amendment or other modification of any of the terms and provisions
     hereof must be in writing and signed by duly authorized representatives of
     the parties hereto.

The undersigned hereby agree that by causing their duly authorized
representatives to sign this document, they become parties to said Agreement and
agree to be bound by all terms, conditions and obligations contained therein
effective as of the 14th day of April, 1998.

QAD INC.                                    PARAGON MANAGEMENT SYSTEMS, INC.

/s/ VINCE NIEDZIELSKI                       /s/ STEPHANIE HAMILTON
---------------------------------------     ---------------------------------
Signature                                   Signature

Vince Niedzielski                           Stephanie Hamilton
---------------------------------------     ---------------------------------
Name                                        Name

Executive V.P. of Production                Chief Financial Officer
---------------------------------------     ---------------------------------
Title                                       Title

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED WITH
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                                                             CONFIDENTIAL

          April 17, 1998                              4/14/98
---------------------------------------     ---------------------------------
Date                                        Date

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                                   SCHEDULE 1
                                ROYALTY SCHEDULE

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
            COLUMN A                          COLUMN B                     COLUMN C
-----------------------------------------------------------------------------------------
<S>                                 <C>                            <C>
ROYALTY PAYABLE TO PARAGON AS A     MINIMUM ROYALTY PAYABLE TO
    PERCENTAGE OF [*] PRICE          PARAGON AS A PERCENTAGE       PERCENT OF MAINTENANCE
       RECEIVED BY QAD;                  [*] LIST PRICE
 SUBJECT TO COLUMN B CONDITIONS
-----------------------------------------------------------------------------------------
              [*]                              [*]                          [*]
-----------------------------------------------------------------------------------------
              [*]                              [*]                          [*]
-----------------------------------------------------------------------------------------
</TABLE>

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                                    PAGE 11<PAGE>

                                                                   EXHIBIT 10.3

                           FOURTH AMENDED AND RESTATED

                                ROSS STORES, INC.

                          EMPLOYEE STOCK PURCHASE PLAN

                        AMENDED EFFECTIVE MARCH 16, 2000

         1.     PURPOSE. The Fourth Amended and Restated Ross Stores, Inc.
Employee Stock Purchase Plan (the "Plan") is established to provide eligible
employees of Ross Stores, Inc. ("Ross") and any current or future parent or
subsidiary corporation of Ross (collectively referred to as the "Company")
with an opportunity to acquire a proprietary interest in the Company by the
purchase of common stock of Ross. For purposes of this Plan, a parent
corporation and a subsidiary corporation shall be as defined in section
424(e) and 424(f) of the Internal Revenue Code of 1986, as amended (the
"Code"). It is intended that the Plan shall qualify as an "employee stock
purchase plan" under section 423 of the Code (including any future amendments
or replacements of such section), and the Plan shall be so construed. Any
term not expressly defined in the Plan but defined for purposes of section
423 of the Code shall have the same definition herein.

         2.     ADMINISTRATION. The Plan shall be administered by the Board
of Directors of Ross (the "Board") and/or by a management committee duly
appointed by the Board having such powers as shall be specified by the Board.
Any subsequent references to the Board shall mean the committee if it has
been appointed. All questions of interpretation of the Plan or of any option
granted pursuant to the Plan (an "Option") shall be determined by the Board
and shall be final and binding upon all persons having an interest in the
Plan and/or any Option. Subject to the provisions of the Plan, the Board
shall determine all of the relevant terms and conditions of Options granted
pursuant to the Plan; PROVIDED, HOWEVER, that all Participants granted
Options pursuant to the Plan shall have the same rights and privileges within
the meaning of section 423(b)(5) of the Code. All expenses incurred in
connection with the administration of the Plan shall be paid by the Company.

         3.     SHARE RESERVE. Subject to the provisions of Section 14
relating to adjustments upon changes in securities, the maximum number of
shares which may be issued under the Plan shall be 5,000,000 shares of Ross
common stock (the "Shares"). In the event that any Option for any reason
expires or is terminated, the Shares allocable to the unexercised portion of
such Option may again be subjected to an Option.

         4.     ELIGIBILITY. Any employee of the Company is eligible to
participate in the Plan except the following:

                  (a)      employees who are customarily employed by the
Company for less than twenty (20) hours a week;

                  (b)      employees who have not completed six (6) months of
continuous employment with the Company as of the commencement of an Offering
Period.

                                        1.

<PAGE>            (c)      employees  whose  customary  employment  is
for not more  than  five (5)  months  in any calendar year; and

                  (d)      employees who own or hold options to purchase or
who, as a result of participation in this Plan, would own or hold options to
purchase, stock of a corporation which comprises part of the Company
possessing five percent (5%) or more of the total combined voting power or
value of all classes of stock of such corporation within the meaning of
section 423(b)(3) of the Code.

         5.       OFFERING DATES.

                  (a)      OFFERING PERIODS. Except as otherwise set forth
below, the Plan shall be implemented by two separate series of offerings (any
one of which shall be referred to hereinafter as an "Offering"). One series
of Offerings shall involve sequential Offerings of twelve (12) months in
duration (an "Annual Offering Period"). An Annual Offering Period shall
commence on the first day of January of each year and end on the last day of
December of the same year. The second series of Offerings shall involve
Offerings of six (6) months in duration (a "Half-Year Offering Period"). A
Half-Year Offering Period shall commence on the first day of July of each
year and end on the last day of December of the same year. The first
Half-Year Offering Period shall commence on July 1, 1989. An employee is
eligible to participate in a given Half-Year Offering Period only if (i) the
eligibility requirements set forth in paragraph 4 above are satisfied prior
to or as of the beginning of such Half-Year Offering Period, and (ii) the
employee is not participating in the Annual Offering Period for that calendar
year (due to ineligibility or an election not to participate in such Annual
Offering Period). (Unless otherwise specified, the term "Offering Period" as
used herein shall refer to either an Annual Offering Period or a Half-Year
Offering Period.) Notwithstanding the foregoing, the Board may establish a
different term for one or more Offerings and/or different commencing and/or
ending dates for such Offerings; PROVIDED, HOWEVER, that such different terms
shall comply with the provisions of section 423(b)(7) of the Code. An
employee who becomes eligible to participate in the Plan after an Offering
Period has commenced shall not be eligible to participate in such Offering
but may participate in any subsequent Offering provided such employee is
still eligible to participate in the Plan as of the commencement of any such
subsequent Offering. The first day of an Offering Period shall be the
"Offering Date" for such Offering Period. In the event the first and/or last
day of an Offering Period is not a business day, the Company shall specify
the business day that will be deemed the first or last day, as the case may
be, of the Offering Period.

                  (b)      GOVERNMENTAL APPROVAL; STOCKHOLDER APPROVAL.
Notwithstanding any other provision of the Plan to the contrary, any Option
granted pursuant to the Plan shall be subject to (i) obtaining all necessary
governmental approvals and/or qualifications of the sale and/or issuance of
the Options and/or the Shares; and (ii) obtaining any necessary stockholder
approval of the Plan.

         6.       PARTICIPATION IN THE PLAN.

                  (a)      INITIAL PARTICIPATION. An eligible employee shall
become a Participant on the first Offering Date after satisfying the
eligibility requirements and delivering to the Company's payroll office at
such time prior to such Offering Date as may be established by the

                                        2.

<PAGE>

Company (the "Enrollment Date") a subscription agreement indicating the
employee's election to participate and authorizing payroll deductions. An
eligible employee who does not deliver a subscription agreement to the
Company's payroll office prior to the applicable Enrollment Date for the
first Offering Period after becoming eligible to participate in the Plan
shall not participate in the Plan for that Offering Period or for any
subsequent Offering Period unless such employee subsequently enrolls in the
Plan by filing a subscription agreement with the Company prior to the
applicable Enrollment Date for such subsequent Offering Period.

                  (b)      CONTINUED PARTICIPATION. Subject to satisfying the
eligibility requirements for a particular Offering Period, a Participant shall
automatically participate in each succeeding Annual Offering Period until such
time as such Participant withdraws from the Plan pursuant to paragraph 11 or
terminates employment as provided in paragraph 12. A Participant is not required
to file any additional subscription agreements for subsequent Annual Offering
Periods in order to continue participation in the Plan.

         7.       RIGHT TO PURCHASE SHARES.

                  (a)      Except as set forth below, as of the first day of an
Offering Period (the "Offering Date") for an Annual Offering Period, each
Participant in such Offering Period shall be granted an Option consisting of the
right to purchase that number of whole Shares arrived at by dividing twenty-five
thousand dollars ($25,000) by one hundred percent (100%) of the Fair Market
Value of the Shares on the Offering Date, and as of the Offering Date for a
Half-Year Offering Period, each Participant in such Offering Period shall be
granted an Option consisting of the right to purchase that number of whole
Shares arrived at by dividing twelve thousand five hundred dollars ($12,500) by
one hundred percent (100%) of the Fair Market Value of the Shares on the
Offering Date.

                  (b)      "Fair Market Value" means the value of a security,
as determined in good faith by the Board. Unless otherwise provided herein,
if the security is listed on any established stock exchange or traded on the
Nasdaq National Market system or the Nasdaq SmallCap Market, the Fair Market
Value of the security shall be the closing sales price (rounded up where
necessary to the nearest whole cent) for such security (or the closing bid if
no sales were reported) as quoted on such exchange or market (or the exchange
or market with the greatest volume of trading in the relevant security of the
Company) on the trading day which is coincident with the relevant
determination date, as reported in THE WALL STREET JOURNAL or such other
source as the Board deems reliable.

         8.      PURCHASE PRICE. The purchase price at which Shares may be
acquired in an Offering pursuant to the exercise of all or any portion of an
Option granted under the Plan (the "Offering Exercise Price") shall be set by
the Board; PROVIDED, HOWEVER, that the purchase price shall not be less than
eighty-five percent (85%) of the lesser of (a) the Fair Market Value of the
Shares on the Offering Date of such Offering Period, or (b) the Fair Market
Value of the Shares at the time of exercise of the Option. Unless otherwise
provided by the Board prior to the commencement of an Offering Period, the
Offering Exercise Price shall be eighty-five percent (85%) of the lesser of
(a) the Fair Market Value of the Shares on the Offering Date of such Offering
Period or (b) the Fair Market Value of the Shares at the time of exercise of
the Option.

                                        3.

<PAGE>

         9.      PAYMENT OF PURCHASE PRICE. Shares which are acquired
pursuant to the exercise of all or any portion of an Option may be paid for
only by means of payroll deductions accumulated during the Offering Period.
Except as set forth below, the amount of Compensation to be withheld from a
Participant's Compensation during each pay period shall be determined by the
Participant's subscription agreement. For purposes of the Plan, a
Participant's "Compensation" with respect to an Offering shall include all
amounts paid in cash and includable as "wages" subject to tax under section
3101(a) of the Code without applying the dollar limitation of section 3121(a)
of the code; PROVIDED, HOWEVER, Compensation shall not include amounts paid
as annual bonuses under the Company's Management Incentive Compensation
Program. Accordingly, Compensation shall include salaries, commission,
overtime and bonuses other than bonuses paid as annual bonuses under the
Company's Management Incentive Compensation Program. "Compensation" shall not
include reimbursements of expenses, allowances or any amount deemed received
without the actual transfer of cash or any amounts directly or indirectly
paid pursuant to the Plan or any other stock purchase or stock option plan.

                  (a)      During an Offering Period, a Participant may elect
to decrease (including to zero) the amount withheld from his or her
Compensation by filing an amended subscription agreement with the Company on
or before the "Change Notice Date." The "Change Notice Date" shall initially
be the seventh (7th) day prior to the end of the first pay period for which
such election is to be effective; however, the Company may change such Change
Notice Date from time to time.

                  (b)      The amount of payroll withholding with respect to
the Plan for any Participant during any pay period shall not exceed ten
percent (10%) of the Participant's Compensation for such pay period.

                  (c)      Payroll deductions shall commence on the first
payday following the Offering Date and shall continue to the end of the
Offering Period unless sooner altered or terminated as provided in the Plan.

                  (d)      Individual accounts shall be maintained for each
Participant. All payroll deductions from a Participant's Compensation shall
be credited to such account and shall be deposited with the general funds of
the Company. All payroll deductions received or held by the Company may be
used by the Company for any corporate purpose.

                  (e)      Interest shall not be paid on sums withheld from a
Participant's Compensation.

                  (f)      On the last day of an Offering Period, each
Participant who has not withdrawn from the Offering or whose participation in
the Offering has not terminated on or before such last day shall
automatically acquire pursuant to the exercise of the Participant's Option
the number of whole Shares arrived at by dividing the total amount of the
Participant's accumulated payroll deductions for the Offering by the Offering
Exercise Price; PROVIDED, HOWEVER, in no event shall the number of Shares
purchased by the Participant exceed the number of Shares subject to the
Participant's Option.

                                        4.

<PAGE>

                  (g)      Any cash balance remaining in the Participant's
account shall be refunded to the Participant as soon as practical after the
last day of the Offering Period. In the event the cash to be returned to a
Participant pursuant to the preceding sentence is an amount less than the
amount necessary to purchase a whole Share, the Company may establish
procedures whereby such cash is maintained in the Participant's account and
applied toward the purchase of Shares in the subsequent Offering.

                  (h)      At the time the Option is exercised, in whole or
in part, or at the time some or all of the Shares are disposed of, the
Company shall withhold from the Participant's Compensation, or the
Participant shall otherwise make adequate provision for, an amount equal to
the federal, state, local and foreign tax withholding obligations of the
Company, if any, which arise upon exercise of the Option or disposition of
Shares, respectively.

                  (i)      No Shares shall be purchased on behalf of a
Participant whose participation in the Offering or the Plan has terminated on
or before the date of exercise.

                  (j)      The Company may, from time to time, establish (i)
a minimum required withholding amount for participation in any Offering which
shall not exceed one percent (1%) of the Participant's Compensation, (ii)
limitations on the frequency and/or number of changes in the amount withheld
during an Offering, (iii) an exchange ratio applicable to amounts withheld in
a currency other than U.S. dollars, and/or (iv) such other limitations or
procedures as deemed advisable by the Company in the Company's sole
discretion which are consistent with the Plan and in accordance with the
requirements of section 423 of the Code.

                  (k)      Any portion of a Participant's Option remaining
unexercised after the end of the Offering Period to which such Option relates
shall expire immediately upon the end of such Offering Period. Any Shares
subject to the unexercised portion of an Option at the end of an Offering
Period shall be returned to the Plan's share reserve.

         10.      LIMITATIONS ON PURCHASE OF SHARES; RIGHTS AS A STOCKHOLDER.

                  (a)      FAIR MARKET VALUE LIMITATION. No Participant shall
be entitled to purchase Shares under the Plan (or any other employee stock
purchase plan which is intended to meet the requirements of section 423 of
the Code sponsored by Ross, a parent corporation of Ross as defined in
section 424(e) of the Code or a subsidiary corporation of Ross as defined in
section 424(f) of the Code) at a rate which exceeds $25,000 in Fair Market
Value, determined as of the Offering Date for each Offering Period (or such
other limit as may be imposed by the Code), for each calendar year in which
the Participant participates in the Plan (or any other employee stock
purchase plan described in this sentence).

                  (b)      PRO RATA ALLOCATION. In the event the number of
Shares which might be purchased by all Participants in the Plan exceeds the
number of Shares available in the Plan, the Company shall make a pro rata
allocation of the remaining Shares in as uniform a manner as shall be
practicable and as the Company shall determine to be equitable.

                  (c)      RIGHTS AS A STOCKHOLDER AND EMPLOYEE. A
Participant shall have no rights as a stockholder by virtue of the
Participant's participation in the Plan until the date of the issuance of a
stock certificate(s) for the shares being purchased pursuant to the exercise
of the

                                        5.

<PAGE>

Participant's Option. No adjustment shall be made for dividends or
distributions or other rights for which the record date is prior to the date
such stock certificate(s) are issued. Nothing herein shall confer upon a
Participant any right to continue in the employ of the Company or interfere
in any way with any right of the Company to terminate the Participant's
employment at any time.

         11.      WITHDRAWAL.

                  (a)      WITHDRAWAL FROM AN OFFERING. A Participant may
withdraw from an Offering by signing and delivering to the Company's payroll
office, a written notice of withdrawal on a form provided by the Company for
such purpose. Such withdrawal may be elected at any time prior to the end of
an Offering Period. Unless otherwise indicated, withdrawal from an Offering
shall not result in a withdrawal from the Plan or any succeeding Annual
Offering Period herein. A Participant is prohibited from again participating
in an Offering upon withdrawal from such Offering at any time.

                  (b)      RETURN OF PAYROLL DEDUCTIONS. Upon withdrawal from
an Offering, the withdrawn Participant's accumulated payroll deductions shall
be returned as soon as practicable after the withdrawal, without the payment
of any interest, to the Participant and all of the Participant's rights in
the Offering shall terminate. Such accumulated payroll deductions may not be
applied to any other Offering under the Plan.

                  (c)      WITHDRAWAL FROM THE PLAN. A Participant may
withdraw from the Plan by signing a written notice of withdrawal on a form
provided by the Company for such purpose and delivering such notice to the
Company's payroll office. In the event a Participant voluntarily elects to
withdraw from the Plan, the Participant may not resume participation in the
Plan during the same Offering Period, but may participate in any subsequent
Offering under the Plan by filing a new subscription agreement in the same
manner as set forth above for initial participation in the Plan.

         12.     TERMINATION OF EMPLOYMENT. Termination of a Participant's
employment with the Company for any reason, including retirement or death or
the failure of a Participant to remain an employee eligible to participate in
the Plan, shall terminate the Participant's participation in the Plan
immediately. In such event, the payroll deductions credited to the
Participant's account shall, as soon as practicable, be returned to the
Participant or, in the case of the Participant's death, to the Participant's
legal representative, and all of the Participant's rights under the Plan
shall terminate. Interest shall not be paid on sums returned to a Participant
pursuant to this paragraph 12. A Participant whose participation has been so
terminated may again become eligible to participate in the Plan by again
satisfying the requirements of paragraph 4.

         13.     REPAYMENT OF PAYROLL DEDUCTIONS. In the event a
Participant's rights in the Plan or any Offering therein are terminated, the
Company shall deliver as soon as practicable to the Participant any payroll
deductions credited to the Participant's account with respect to the Plan or
any such Offering. Interest shall not be paid on sums returned to a
Participant pursuant to this paragraph 13.

         14.      ADJUSTMENTS UPON CHANGES IN SECURITIES.

                                        6.

<PAGE>

                  (a)      If any change is made in the Shares subject to the
Plan, or subject to any Option, without the receipt of consideration by the
Company (through merger, consolidation, reorganization, recapitalization,
reincorporation, stock dividend, dividend in property other than cash, stock
split, liquidating dividend, combination of shares, exchange of shares,
change in corporate structure or other transaction not involving the receipt
of consideration by the Company), the Plan will be appropriately adjusted in
the type of security and the maximum number of Shares subject to the Plan
pursuant to Section 3 and the outstanding Options will be appropriately
adjusted in the type of security, number of shares, and purchase limits of
such outstanding Options. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive. (The conversion of any
convertible securities of the Company shall not be treated as a transaction
that does not involve the receipt of consideration by the Company.)

                  (b)      Effective for all Offerings beginning on or after
July 1, 2000, in the event of a Change in Control, then, as determined by the
Board in its sole discretion (i) any surviving or acquiring corporation may
assume outstanding Options or substitute similar Options for those under the
Plan, (ii) such Options may continue in full force and effect, or (iii) the
Participants' accumulated payroll deductions may be used to purchase Shares
immediately prior to the effective date of the Change in Control transaction
and the Participants' Options under the ongoing Offering(s) terminated. In
the event that no affirmative determination is made by the Board pursuant to
the preceding sentence, then alternative (iii) shall apply automatically.

                  (c)      "Change in Control" means the occurrence of any of
the following events:

                           (i)      A dissolution or liquidation of the Company.

                           (ii)     A sale, lease or other disposition of
all or substantially all of the assets of the Company.

                           (iii)    A merger, reverse merger, consolidation or
reorganization of the Company with or into another corporation or other legal
person, or any other capital reorganization in which more than fifty percent
(50%) of the shares of the Company entitled to vote are exchanged.

         15.      NON-TRANSFERABILITY. An Option may not be transferred in
any manner otherwise than by will or the laws of descent and distribution and
shall be exercisable during the lifetime of the Participant only by the
Participant.

         16.      REPORTS. Each Participant who exercised all or part of his
or her Option for an Offering Period shall receive as soon as practicable
after the last day of such Offering Period a report of such Participant's
account setting forth the total payroll deductions accumulated, the number of
Shares purchased and the remaining cash balance to be refunded or retained in
the Participant's account pursuant to paragraph 9(g), if any.

         17.      COVENANTS OF THE COMPANY.

                  (a)      During the terms of the Options granted under the
Plan, the Company shall ensure that the amount of Shares required to satisfy
such Options are available.

                                        7.

<PAGE>

                  (b)      The Company shall seek to obtain from each
federal, state, foreign or other regulatory commission or agency having
jurisdiction over the Plan such authority as may be required to issue and
sell Shares upon exercise of the Options granted under the Plan. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory
commission or agency the authority which counsel for the Company deems
necessary for the lawful issuance and sale of Shares under the Plan, the
Company shall be relieved from any liability for failure to issue and sell
Shares upon exercise of such Options unless and until such authority is
obtained.

         18.      USE OF PROCEEDS FROM SHARES. Proceeds from the sale of
Shares pursuant to Options granted under the Plan shall constitute general
funds of the Company.

         19.      PLAN TERM. This Plan shall continue until terminated by the
Board or until all of the Shares reserved for issuance under the Plan have
been issued, whichever shall first occur.

         20.      AMENDMENT OR TERMINATION OF THE PLAN. The Board may at any
time amend or terminate the Plan, except that such termination cannot affect
Options previously granted under the Plan, nor may any amendment make any
change in an Option previously granted under the Plan which would adversely
affect the right of any Participant (except as may be necessary to qualify
the Plan as an employee stock purchase plan pursuant to section 423 of the
Code), nor may any amendment be made without approval of the stockholders of
the Company within twelve (12) months of the adoption of such amendment if
such amendment would authorize the sale of more shares than are authorized
for issuance under the Plan or would change the designation of corporations
whose employees may be offered Options under the Plan. To the extent
permitted by governing law, the Board authorizes the Senior Vice President of
Human Resources to adopt amendments to the Plan.

         IN WITNESS WHEREOF, the undersigned Senior Vice President of Human
Resources of the Company certifies that the foregoing Fourth Amended and
Restated Ross Stores, Inc. Employee Stock Purchase Plan was duly adopted by
the Board of Directors of the Company on March 16, 1992, amended on March 16,
1995 and amended on March 16, 2000.

                                         /s/ Ivy Council
                                         Ivy Council
                                         Senior Vice President, Human Resources

                                        8.

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