Document:

Exhibit 10.2

EXECUTIVE
EMPLOYMENT AGREEMENT

This EXECUTIVE
EMPLOYMENT AGREEMENT (the “Agreement”),
made as of August 6, 2007 (the “Effective
Date”), between Guess?, Inc., a Delaware corporation (the “Company”), and Carlos Alberini (the “Executive”).

W
I  T  N  E  S  S  E  T  H:

WHEREAS, the
Executive has served as the Company’s President and Chief Operating Officer
since December 2000.

WHEREAS,  the Executive
has heretofore been employed by the Company pursuant to an employment agreement
made effective as of November 8, 2000 and amended as of June 16, 2003 (the “Prior
Agreement”).

WHEREAS, the Company recognizes that the Executive’s
talents and abilities are unique and have been integral to the success of the
Company.

WHEREAS, the Company wishes to retain the services of
the Executive and anticipates that the Executive’s contribution to the growth
and success of the Company will continue to be substantial.

WHEREAS, the Company and the
Executive wish to amend and restate the Prior Agreement as evidenced by this
Agreement, effective as of the date hereof.

NOW THEREFORE, in
consideration of the foregoing, of the mutual promises contained herein and of
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

1.                                       POSITION/DUTIES.

(a)                                  During
the Employment Term (as defined in Section 2 below), the Executive shall serve
as the Company’s President and Chief Operating Officer.  In this capacity the Executive
shall have such duties, authorities and responsibilities commensurate with the
duties, authorities and responsibilities of persons in similar capacities in
similarly sized companies and such other duties and responsibilities as the
Board of Directors of the Company (the “Board”) shall designate that are
consistent with the Executive’s position as President and Chief Operating
Officer.  The Executive shall report to
the Chairman of the Board and to the Chief Executive Officer of the
Company.  The Executive shall have
authority as is appropriate to carry out his duties and responsibilities as set
forth in this Agreement.

(b)                                 During
the Employment Term (as defined below), the Executive shall use the Executive’s
best reasonable efforts to perform faithfully and efficiently the duties and
responsibilities assigned to the Executive hereunder and shall devote
substantially all of the Executive’s business time (excluding periods of
vacation and other approved leaves of absence) to such performance of the
Executive’s duties with the Company. 
Executive may serve on the board of directors or advisory boards of
other non-profit companies or, subject to Board

approval, of other for-profit companies, provided that
any such service does not create a potential business conflict or the
appearance thereof.

(c)                                  The
Company shall not relocate the Executive’s principal place of business outside
of the Los Angeles metropolitan area without the Executive’s written consent.

(d)                                 The
Executive shall be provided with appropriate office facilities and support
services in the Company’s corporate headquarters in Los Angeles, California in
order for the Executive to perform his duties to the Company.

2.                                       EMPLOYMENT TERM.  The
Executive’s term of employment under this Agreement (such term of employment,
as it may be extended or terminated, is herein referred to as the “Employment Term”) shall be for a term
commencing on the Effective Date and, unless terminated earlier as provided in
Section 7 hereof, ending on the last day of the fourth whole Fiscal Year of the
Company commencing on or after the Effective Date (the “Original Employment Term”), provided that the Employment Term
shall be automatically extended, subject to earlier termination as provided in
Section 7 hereof, for successive additional one (1) Fiscal Year periods (the “Additional Terms”), unless, on or
before 90 days prior to the expiration of the Original Employment Term or of
any Additional Term, the Company or the Executive has notified the other in
writing that the Employment Term shall terminate at the end of the then-current
term (a “Non-Renewal”).

3.                                       BASE SALARY.  The
Company agrees to pay the Executive a base salary (the “Base Salary”) at an annual rate of not less than Eight Hundred
Thousand Dollars ($800,000), payable in accordance with the regular payroll practices
of the Company, but not less frequently than monthly.  The Executive’s Base Salary shall be subject
to annual review by the Board (or a committee thereof) and may be increased,
but not decreased, from time to time by the Board.  No increase to Base Salary shall be used to
offset or otherwise reduce any obligations of the Company to the Executive
hereunder or otherwise.  The base salary
as determined herein from time to time shall constitute “Base Salary” for
purposes of this Agreement.

4.                                       ANNUAL INCENTIVE BONUS AND OTHER BONUSES.  During the Employment Term, the Executive
shall be eligible to participate in the Company’s annual bonus and other
incentive compensation plans and programs for the Company’s senior executives
at a level commensurate with the Executive’s position.  For each fiscal year of the Company (“Fiscal
Year”) that begins on or after February 4, 2007 and ends not later than the
expiration of the Employment Term, the Executive shall be eligible to earn an
annual cash bonus (the “Bonus”) under the Company’s Annual Incentive Bonus
Plan, as amended from time to time (the “Bonus Plan”), and, if appropriate, the
Company’s 2004 Equity Incentive Plan, as amended from time to time (the “Equity
Plan”), based upon the achievement by the Company and its subsidiaries of
performance goals under the Bonus Plan and under the Equity Plan for each such
Fiscal Year established by the Compensation Committee of the Board of Directors
(the “Compensation Committee”).  The
Compensation Committee shall establish objective criteria to be used to
determine the extent to which such performance goals have been satisfied.  The range of the Bonus opportunity for each
Fiscal Year will be as determined by the Compensation Committee based upon the
extent to which such performance goals are achieved, provided that the annual
target Bonus opportunity shall be at least 80% of the Executive’s Base Salary
(for each such

 2
 

year, the “Target Bonus”), the threshold Bonus for a
Fiscal Year shall be one-half the Target Bonus for such year and the maximum
Bonus payable pursuant to this Section 4 for any Fiscal Year shall not exceed
the amount that is 120% of the Executive’s Base Salary for such year.  The Bonus, if any, payable to the Executive
in respect of any Fiscal Year will be paid at the same time that bonuses are
paid to other executives of the Company, but in any event within seventy-five
days after the conclusion of such Fiscal Year. 
After the expiration of the Bonus Plan and the Equity Plan, Executive’s
right to receive future Bonus opportunities under such plan is subject to
approval by the stockholders of the Company of a similar successor plan under
which such opportunity may be granted. 
The Compensation Committee may, in its sole discretion, award additional
bonuses to Executive.

5.                                       EQUITY BASED INCENTIVE AWARDS.

(a)           EMPLOYMENT
INDUCEMENT AWARD.  The Company shall
grant the Executive under the Equity Plan as of the Effective Date a Restricted
Stock Award (“Restricted Stock”) equal to 150,000 shares of the Company’s
common stock subject to the following terms and conditions:

(i)            If,
for the third and fourth fiscal quarters of the Company’s 2008 Fiscal Year,
considered together as one period (the “Second Half of Fiscal 2008”), or for
any one of the four whole Fiscal Years commencing on or after February 3, 2008
during the Original Employment Term, the Company shall record earnings per
share (“Earnings per Share”) growth of greater than the Applicable Annual
Target as compared to the same fiscal period from the immediately preceding
Fiscal Year, then 20% of the Restricted Stock shall become vested as of the
first business day following the issuance of the Company’s financial statement
for such period, provided the Executive is then employed by the Company.  If the Earnings per Share growth requirement
is not met for any such period, all of the shares of the Restricted Stock
eligible for vesting for that period shall vest on the first business day
following the issuance of the Company’s financial statement for any subsequent
Fiscal Year during the Original Employment Term if the cumulative compounded
average Earnings per Share growth from the Second Half of Fiscal 2008 through
such subsequent Fiscal Year is more than the Applicable Cumulative Target for
such subsequent Fiscal Year.  The “Applicable
Annual Target” for each of the Second Half of Fiscal 2008 and the first and
second whole Fiscal Years that commences on or after February 3, 2008 is a
growth in Earnings per Share of 15% or more as compared to the same fiscal
period from the immediately preceding Fiscal Year.  The “Applicable Cumulative Target” for each
of the Second Half of Fiscal 2008 and the first and second whole Fiscal Years
that commences on or after February 3, 2008 is a 15% rate of cumulative
compounded average Earnings per Share growth. 
For the avoidance of doubt, the Applicable Cumulative Target for the
first whole fiscal year commencing on February 3, 2008 shall be calculated by
multiplying the sum of (A) the Company’s actual Earnings per Share for the
first and second fiscal quarters of the Company’s 2008 Fiscal Year and (B) the
Applicable Annual Target of Earnings per Share for the Second Half of Fiscal
2008, by 1.15.  The “Applicable Annual
Target” and the “Applicable Cumulative Target” for each of the third and fourth
whole Fiscal Years that commences on or after February 3, 2008 will be a rate
of Earnings per Share growth and cumulative compounded average Earnings per
Share growth, respectively, determined by the

 3
 

Compensation Committee of
the Board in its sole discretion not later than the end of the first quarter of
such Fiscal Year.

(ii)                                  For
purposes of this Agreement, Earnings per Share shall be equal to the basic
earnings per share calculated in accordance with accounting principles
generally accepted in the United States and as reported in the Company’s
financial statements as filed with the Securities and Exchange Commission,
except that certain adjustments may be made for certain non-recurring or
unusual non-cash items recognized in accordance with accounting principles
generally accepted in the United States including, but not limited to, any
write-offs of unamortized deferred financing costs and any asset impairment
write-downs, which the Committee determines in its sole discretion to exclude
for purposes of this Agreement.

(iii)                               The
Executive shall have the right to vote the shares of the Restricted Stock, and
shall have dividend rights as to such shares, before any forfeiture of the
shares of the Restricted Stock and while such shares are restricted.  The number of shares credited to the
Executive shall be subject to adjustment in accordance with the provisions of
the Equity Plan (for example, in connection with the payment of a stock
dividend by the Company).

(iv)                              The
shares of the Restricted Stock not yet vested or forfeited shall become 100%
vested in the event that there is a Change in Control while the Executive is
employed by the Company or an affiliate during the Employment Term.  For this purpose, the term “Change in Control”
is used as defined in the Equity Plan except that in no event shall a “Change
in Control” be triggered pursuant to clause (A) of such term as so defined
unless the Acquiring Person becomes the Beneficial Owner of twenty percent
(20%) or more of the then outstanding shares of Common Stock or the Combined
Voting Power of the Company (except pursuant to an offer for all outstanding
shares of Common Stock at a price and upon such terms and conditions as a
majority of the Continuing Directors determine to be in the best interests of
the Company and its shareholders (other than an Acquiring Person on whose
behalf the offer is being made)) in one or more bona fide transactions and such
level of ownership of such Common Stock or Combined Voting Power, as
applicable, exceeds the aggregate level of ownership of the Marcianos of such
Common Stock or Combined Voting Power, respectively.  For purposes of the preceding sentence, “Marcianos”
means Maurice Marciano, Paul Marciano, and any trust established in whole or in
part for the benefit of one or more of them or their family members, or any
other entity controlled by one or more of them, and any other capitalized term
used in such sentence is used as defined in the Equity Plan if not otherwise
defined in this Agreement.  If the
Executive terminates his employment with the Company for “Good Reason” (as
defined in Section 7(e) of this Agreement), or is terminated by the Company
without “Cause” (as defined in Section 7(c) of this Agreement), the shares of
the Restricted Stock not yet vested or forfeited shall become 100% vested.

(v)                                 In
all events other than those previously addressed in Section 5(a)(iv), if the
Executive ceases to be an employee of the Company or an affiliate, the
Executive shall be vested only as to that percentage of shares of the
Restricted Stock

 4
 

which are vested at the
time of the termination of his employment and the Executive shall forfeit the
right to the shares of the Restricted Stock which are not yet vested on the
termination date.  Further, any Restricted
Stock which is unvested at the conclusion of the Original Employment Term
(after the final vesting determination is made as described in Section 5(a)(i)
herein) shall be forfeited and terminate. 
Unvested shares of the Restricted Stock that are forfeited shall be immediately
transferred to the Company without any payment by the Company, and the Company
shall have the full right to cancel any evidence of the Executive’s ownership
of such forfeited shares.

(vi)                              The
Restricted Stock Award shall be granted pursuant to and, to the extent not
contrary to the terms of this Agreement, shall be subject to all of the terms
and conditions imposed upon such awards granted under the Equity Plan.

(b)                                 PERFORMANCE SHARE AWARDS. 
The Company shall grant the Executive under the Equity Plan at the
completion of each whole Fiscal Year commencing on and after February 4, 2007
and during the Employment Term shares of the Company’s common stock (“Performance
Shares”) based upon the achievement by the Company and its subsidiaries of
performance goals under the Equity Plan for each such Fiscal Year established
by the Compensation Committee.  The
Compensation Committee shall establish objective criteria to be used to
determine the extent to which such performance goals have been satisfied.  Performance Shares will be granted for each
whole Fiscal Year during the Employment Term at “target” and “stretch” levels
of 90% (i.e., $720,000 for fiscal 2008) and 135% (i.e., $1,080,000 for fiscal
2008) of the Executive’s Base Salary for such Fiscal Year.  Performance Shares granted in any particular
Fiscal Year will be subject to the standard vesting schedule established by the
Compensation Committee for Performance Share grants in that year (the current
vesting schedule is a 4-year vesting schedule). 
After the expiration of the Equity Plan, Executive’s right to receive
future grants of Performance Shares is subject to approval by the stockholders
of the Company of a similar successor plan under which such awards may be
granted.

(c)                                  STOCK OPTION AWARDS. 
The Company shall grant the Executive under the Equity Plan at the
completion of each whole Fiscal Year commencing on or after February 4, 2007
and during the Employment Term stock options to purchase the Company’s common
stock at an exercise price of not less than the fair market value of such stock
on the grant date (“Stock Options”) based upon the achievement by the Company
and its subsidiaries of performance goals under the Equity Plan for each such
Fiscal Year established by the Compensation Committee.  The Compensation Committee shall establish
objective criteria to be used to determine the extent to which such performance
goals have been satisfied.  Stock Options
for each whole Fiscal Year during the Employment Term will be granted at a
grant-date Black-Scholes value of 50% of the Executive’s Base Salary for such
Fiscal Year (i.e., $400,000 for fiscal 2008). 
Stock Options granted in any particular Fiscal Year will be subject to
the standard vesting schedule established by the Compensation Committee for Stock
Option grants in that year (the current vesting schedule is a 4-year vesting
schedule).  After the expiration of the
Equity Plan, Executive’s right to receive future grants of Stock Options is
subject to approval by the stockholders of the Company of a similar successor
plan under which such awards may be granted.

 5
 

(d)                                 DISCRETIONARY GRANTS.  In addition to the employment inducement
Restricted Stock, Performance Share and Stock Option Awards under Section 5(a),
(b) and (c) above, at the sole discretion of the Board or the Committee, the
Executive shall be eligible to participate throughout the Employment Term in
such long-term incentive plans and programs as may be in effect from time to
time in accordance with the Company’s compensation practices and the terms and
provisions of any such plans or programs.

6.                                       EMPLOYEE BENEFITS.

(a)                                  BENEFIT PLANS.  The Executive shall be entitled to
participate in all employee benefit plans of the Company including, but not
limited to, equity, pension, thrift, Section 401(k), profit sharing, medical
coverage, education, or other retirement (including without limitation
supplemental executive retirement plans) or welfare benefits that the Company
has adopted or may adopt, maintain or contribute to for the benefit of its senior
executives at a level commensurate with the Executive’s positions subject to
satisfying the applicable eligibility requirements.  The Executive shall at all times during the
Employment Term be entitled to participate in the Guess?, Inc. Supplemental Executive
Retirement Plan, as in effect on January 1, 2006, and any deferred
compensation plan which may be maintained by the Company from time to time.

(b)                                 VACATION. 
The Executive shall be entitled to accrue annual paid vacation in
accordance with the Company’s policy applicable to senior executives, but in no
event less than twenty business days per calendar year (as prorated for partial
years), which vacation may be taken at such times as the Executive elects with
due regard to the needs of the Company.  Executive
shall not be permitted to accrue more than a total of twenty five (25) vacation
days at any time.  Once Executive reaches
the maximum accrual, Executive shall not accrue any additional vacation days
until a portion of Executive’s accrued vacation time is used.

(c)                                  AUTOMOBILE.  The
Company shall continue to provide the Executive with an automobile or an
automobile allowance during the Employment Term in a manner consistent with its
past practice.

(d)                                 PERQUISITES.  The Company shall provide to the Executive,
at the Company’s cost, all perquisites which other senior executives of the
Company are generally entitled to receive in accordance with Company policy as
set by the Board from time to time.

(e)                                  BUSINESS AND ENTERTAINMENT EXPENSES.  Upon presentation of appropriate
documentation, the Executive shall be reimbursed in accordance with the Company’s
expense reimbursement policy for all reasonable and necessary business and
entertainment expenses incurred in connection with the performance of the Executive’s
duties hereunder.

7.                                       TERMINATION.  The
Executive’s employment and the Employment Term shall terminate on the first of
the following to occur:

(a)                                  DISABILITY. 
Upon written notice by the Company to the Executive of termination due
to Disability, while the Executive remains Disabled.  For purposes of this Agreement, “Disabled”
and “Disability” shall (i) have
the meaning defined under the Company’s

 6
 

then-current long-term disability insurance plan,
policy, program or contract as entitles the Executive to payment of disability
benefits thereunder, or (ii) if there shall be no such plan, policy, program or
contract, mean permanent and total disability as defined in Section 22(e)(3) of
the Internal Revenue Code of 1986, as amended (the “Code”).

(b)                                 DEATH. 
Automatically on the date of death of the Executive.

(c)                                  CAUSE. 
Immediately upon written notice by the Company to the Executive of a
termination for Cause.  “Cause” shall mean (i) Executive’s
conviction or plea of nolo contendere to a felony or any crime involving moral
turpitude; (ii) a willful act of theft, embezzlement or misappropriation from
the Company; or (iii) a determination by a two-thirds majority of the members
of the Board (excluding the Executive from such vote and the denominator) that
Executive has willfully and continuously failed to perform substantially the
Executive’s duties (other than any such failure resulting from the Executive’s
Disability or incapacity due to bodily injury or physical or mental illness),
after (A) a written demand for substantial performance is delivered to the
Executive by the Board which specifically identifies the manner in which the
Board believes that the Executive has not substantially performed the Executive’s
duties and provides the Executive with the opportunity to correct such failure
if, and only if, such failure is capable of cure; and (B) the Executive’s
failure to correct such failure which is capable of cure within 30 days of
receipt of the demand for performance. 
For the avoidance of doubt, the parties expressly agree that only Cause
pursuant to Section 7(c)(iii) shall be deemed capable of cure.  Notwithstanding the foregoing, “Cause” shall
not include any act or omission that the Executive believes in good faith to
have been in or not opposed to the interest of the Company (without intent of
Executive to gain therefrom, directly or indirectly, a profit to which he was
not legally entitled).  In the event that
the Board has so determined in good faith that Cause exists, the Board shall
have no obligation to terminate the Executive’s employment if the Board
determines in its sole discretion that such a decision not to terminate the
Executive’s employment is in the best interest of the Company.

(d)                                 WITHOUT CAUSE.  Upon written notice by the Company to the
Executive of an involuntary termination without Cause and other than due to
death or Disability prior to age sixty-five.

(e)                                  GOOD REASON.  Upon written notice by the Executive to the
Company of termination for Good Reason unless the reasons for any proposed
termination for Good Reason are remedied in all material respects by the
Company within thirty (30) days following written notification by the Executive
to the Company.  “Good Reason” means the occurrence of any one or more of the
following events prior to age sixty-five unless Executive specifically agrees
in writing that such event shall not be Good Reason:

(i)                                     Any
material breach of this Agreement by the Company, including:

(A)                              the
failure of the Company to pay the compensation and benefits set forth in
Sections 3 through 6 of this Agreement;

 7
 

(B)                                any
material adverse change in the Executive’s status, position or responsibilities
as President and Chief Operating Officer of the Company;

(C)                                causing
or requiring the Executive to report to anyone other than the Board, the
Chairman of the Board or the Chief Executive Officer; or

(D)                               assignment
of duties materially inconsistent with his position and duties described in
this Agreement;

(ii)                                  the
failure of the Company to assign this Agreement to a successor to all or
substantially all of the business or assets of the Company or failure of such a
successor to the Company to explicitly assume and agree to be bound by this
Agreement;

(iii)                               requiring
the Executive to be principally based at any office or location outside of the
Los Angeles metropolitan area;

(iv)                              purported
termination of the Executive’s employment for “Cause” in a bad faith violation
of the substantive and procedural requirements of Section 7(c); or

(v)                                 a
termination of employment by the Executive for any reason or no reason during
the 30-day period commencing 6 months after a Change in Control.

(f)                                    BY EXECUTIVE WITHOUT GOOD REASON. 
Upon thirty (30) days’ prior written notice by the Executive to the
Company of the Executive’s termination of employment without Good Reason (which
the Company may, in its sole discretion, make effective earlier than any notice
date).

8.                                       CONSEQUENCES OF TERMINATION. 
Any termination payments made and benefits provided under this Agreement
to the Executive shall be in lieu of any termination or severance payments or
benefits for which the Executive may be eligible under any of the plans,
policies or programs of the Company or its affiliates.  Except to the extent otherwise provided in
this Agreement, all benefits and awards under the Company’s compensation and
benefit programs shall be subject to the terms and conditions of the plan or
arrangement under which such benefits accrue, are granted or are awarded.  The following amounts and benefits shall be due
to the Executive:

(a)                                  DISABILITY. 
Upon such termination, the Company shall pay or provide the Executive
(i) any unpaid Base Salary through the date of termination and any accrued
vacation in accordance with Company policy; (ii) any unpaid Bonus earned with
respect to any Fiscal Year ending on or preceding the date of termination;
(iii) reimbursement for any unreimbursed business expenses incurred through the
date of termination; and (iv) all other payments, benefits or perquisites to
which the Executive may be entitled under the terms of any applicable
compensation arrangement or benefit, equity or perquisite plan or program or
grant or this Agreement (collectively, “Accrued
Amounts”).  The Executive will
also be paid a pro-rata portion of the Executive’s Bonus for the performance
year in which the Executive’s termination occurs, payable at the time that
annual Bonuses are paid to other senior executives (determined by multiplying
the amount the Executive would have received based upon target performance

 8
 

had employment continued through the end of the
performance year by a fraction, the numerator of which is the number of days
during the performance year of termination that the Executive is employed by
the Company and the denominator of which is 365).

(b)                                 DEATH. 
In the event the Employment Term ends on account of the Executive’s
death, the Executive’s estate (or to the extent a beneficiary has been
designated in accordance with a program, the beneficiary under such program)
shall be entitled to any Accrued Amounts. 
The Executive’s estate (or beneficiary) will also be paid a pro-rata
portion of the Executive’s Bonus for the performance year in which the
Executive’s termination occurs, payable at the time that annual Bonuses are
paid to other senior executives (determined by multiplying the amount the
Executive would have received based upon target performance had employment
continued through the end of the performance year by a fraction, the numerator
of which is the number of days during the performance year of termination that
the Executive is employed by the Company and the denominator of which is 365).

(c)                                  TERMINATION FOR CAUSE OR BY EXECUTIVE WITHOUT GOOD
REASON.  If the Executive’s
employment should be terminated by the Company for Cause or by the Executive
without Good Reason, the Company shall pay to the Executive any Accrued
Amounts.  In addition, the Company, at
its election, shall have the option in its full and absolute discretion to
retain the Executive as a consultant for a one-year period following the last
day of the Employment Term (the “Consulting Period”), with the terms of such
consultancy to be governed by the terms of the consulting agreement attached as
Appendix A below.

(d)                                 TERMINATION WITHOUT CAUSE OR FOR GOOD REASON.  If the Executive’s employment by the Company
is terminated by the Company other than for Cause (other than a termination due
to Disability or death) or by the Executive for Good Reason, the Company shall
pay or provide the Executive with

(i)                                     the
Accrued Amounts;

(ii)                                  a
pro-rata portion of the Executive’s Bonus for the performance year in which the
Executive’s termination occurs, payable at the time that annual Bonuses are
paid to other senior executives, determined by multiplying the amount the
Executive would have received based upon actual performance had employment
continued through the end of the performance year (but in no event less than
the amount for target performance), by a fraction, the numerator of which is
the number of days during the performance year of termination that the Executive
is employed by the Company and the denominator of which is 365; and

(iii)                               an
amount equal to the sum of the Executive’s Base Salary and the then Target
Bonus; provided, however, that in the event such termination under this Section
8(d), whether by the Company without Cause or by the Executive for Good Reason,
occurs following a Change in Control and prior to the expiration of the
Original Employment Term, the amount payable under this clause (iii) shall be
an amount equal to two times the sum of the Executive’s Base Salary and the
then Target Bonus, in either case payable in a single lump-sum, with such
payment being made on the earliest payroll

 9
 

date that does not result
in adverse tax consequences to the Executive under Section 409A of the Code.

In addition, the Company, at its election, shall have the option in its
full and absolute discretion to retain the Executive as a consultant for a
one-year period following the last day of the Employment Term, with the terms
of such consultancy to be governed by the terms of the consulting agreement
attached as Appendix A below. 
Notwithstanding anything to the contrary contained herein, the Company
shall have no obligation to provide any of the monetary payments and/or benefits
provided for in this Section 8 (other than Accrued Amounts) unless and until
Executive executes an effective general release of all claims in favor of the
Company in a form acceptable to the Company (the “Release”).  For the avoidance of doubt, Executive’s
execution of the Release is a condition precedent to any obligation of the
Company to provide the monetary payments and/or benefits provided for in this
Section 8 (other than Accrued Amounts).

(e)                                  NON-RENEWAL.  Upon a
termination as a result of a Non-Renewal at the expiration of the Employment
Term, the Company shall pay to the Executive any Accrued Amounts.  In addition, the Company, at its election,
shall have the option in its full and absolute discretion to retain the
Executive as a consultant for a one-year period following the last day of the
Employment Term, with the terms of such consultancy to be governed by the terms
of the consulting agreement attached as Appendix A below.

9.                                       CONFIDENTIALITY; NON-COMPETITION; NON-SOLICITATION.

(a)                                  CONFIDENTIALITY.  The
Executive agrees that the Executive shall not, directly or indirectly, use,
make available, sell, disclose or otherwise communicate to any person, other
than in the course of the Executive’s employment and for the benefit of the
Company, either during the period of the Executive’s employment or at any time
thereafter, any nonpublic, proprietary or confidential information, knowledge
or data relating to the Company, any of its subsidiaries, affiliated companies
or businesses, which shall have been obtained by the Executive during the
Executive’s employment by the Company. 
The foregoing shall not apply to information that (i) was known to the
public prior to its disclosure to the Executive; (ii) becomes known to the
public subsequent to disclosure to the Executive through no wrongful act of the
Executive or any representative of the Executive; or (iii) the Executive is
required to disclose by applicable law, regulation or legal process (provided
that the Executive provides the Company with prior notice of the contemplated
disclosure and reasonably cooperates with the Company at its expense in seeking
a protective order or other appropriate protection of such information).  Notwithstanding clauses (i) and (ii) of the
preceding sentence, the Executive’s obligation to maintain such disclosed
information in confidence shall not terminate where only portions of the
information are in the public domain.

(b)                                 NON-COMPETITION. 
During the Executive’s employment with the Company and during the
Consulting Period, if any, the Executive shall not, directly or indirectly,
whether as owner, consultant, employee, partner, venturer, agent, through stock
ownership, investment of capital, lending of money or property, rendering of
services, or otherwise, compete with the Company or any of its affiliates or
subsidiaries in any business in which any of them is engaged while the
Executive is employed with Company, including, without limitation, the

 10
 

design, marketing, distribution and licensing of
apparel, accessories and related consumer products (such businesses are
hereinafter referred to as the “Business”), or assist, become interested in or
be connected with any corporation, firm, partnership, joint venture, sole
proprietorship or other entity which so competes with the Business.  During the Consulting Period, if any, the
restrictions imposed by this Section 9(b) shall not apply to any business in
which the Company or its affiliates and subsidiaries were not engaged at the
time of termination of the Executive’s employment hereunder or to any
geographic area in which the Company or its affiliates and subsidiaries were
not engaged in the Business at the time of termination.

(c)                                  NON-SOLICITATION OF CUSTOMERS AND SUPPLIERS.  During the Executive’s employment with the
Company and during the Consulting Period, if any (and, in the event of a
termination by the Company for Cause or by the Executive other than for Good
Reason, for a period of twenty-four (24) months following the date of
such termination), the Executive shall not, directly or indirectly, influence
or attempt to influence customers or suppliers of the Company or any of its
subsidiaries or their affiliates to divert their business to any business,
individual, partner, firm, corporation or other entity that is then a direct
competitor of the Company or its subsidiaries or their affiliates (each such
competitor, a “Competitor of the Company”); provided, however, that if the
Executive is employed by customers or suppliers of the Company following his
termination of employment and such employment does not violate Section 9(b)
hereof, the normal execution of his duties in connection with such employment
shall not constitute a violation of this Section 9(c).

(d)                                 NON-SOLICITATION OF EMPLOYEES.

(i)                                     The
Executive recognizes that he will possess confidential information about other
employees of the Company and its subsidiaries or their affiliates relating to
their education, experience, skills, abilities, compensation and benefits, and
interpersonal relationships with customers of the Company and its subsidiaries
or their affiliates.

(ii)                                  The
Executive recognizes that the information he will possess about these other
employees is not generally known, is of substantial value to the Company and
its subsidiaries in developing their business and in securing and retaining customers,
and has been and will be acquired by him because of his business position with
the Company and its subsidiaries.

(iii)                               The
Executive agrees that, during the Executive’s employment with the Company and
for a period of twenty-four (24) months following the date of
termination, he will not, directly or indirectly, solicit or recruit any
employee of the Company or its subsidiaries or their affiliates for the purpose
of being employed by him or by any Competitor of the Company on whose behalf he
is acting as an agent, representative or employee and that he will not convey
any such confidential information or trade secrets about other employees of the
Company and its subsidiaries or their affiliates to any other person.

(e)                                  REMEDIES.  In the
event of a breach or threatened breach of this Section 9, the Executive agrees
that the Company shall be entitled to apply for injunctive relief in a court

 11
 

of appropriate jurisdiction to remedy any such breach
or threatened breach, the Executive acknowledging that damages would be
inadequate and insufficient.  Without
limiting the foregoing and in addition to whatever other rights and remedies
the Company may have at equity or in law, if the Executive breaches any of the
provisions contained in this Section 9, all benefits and payments payable
pursuant to Section 8 hereof shall cease.

10.                                 NO ASSIGNMENT.

(a)                                  This
Agreement is personal to each of the parties hereto.  Except as provided in Section 10(b) below, no
party may assign or delegate any rights or obligations hereunder without first
obtaining the written consent of the other party hereto.

(b)                                 The
Company may assign this Agreement to any successor to all or substantially all
of the business and/or assets of the Company provided the Company shall require
such successor to expressly assume and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place and shall deliver a copy of
such assignment to the Executive.

11.                                 NOTICE.  For the
purpose of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
(a) on the date of delivery if delivered by hand, (b) on the date of
transmission, if delivered by confirmed facsimile, (c) on the first business
day following the date of deposit if delivered by guaranteed overnight delivery
service, or (d) on the fourth business day following the date delivered or
mailed by United States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

If to the Executive:

At the address (or to the
facsimile number) shown

on the records of the Company

If to the Company:

Guess?, Inc.

1444 South Alameda Street

Los Angeles, California 90021

Attention:  General Counsel

Facsimile No.:   (213) 744-7821

or
to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

12.                                 SECTION HEADINGS; INCONSISTENCY.  The section headings used in this Agreement
are included solely for convenience and shall not affect, or be used in
connection with, the interpretation of this Agreement.  In the event of any inconsistency between
this Agreement and any other agreement (including but not limited to any
option, stock, long-term incentive or other equity award agreement), plan,
program, policy or practice (collectively,

 12
 

“Other
Provision”) of the Company, the terms of this Agreement shall control
over such Other Provision to the extent that the terms of this Agreement are
more beneficial to the Executive.

13.                                 SEVERABILITY.  The
provisions of this Agreement shall be deemed severable and the invalidity of
unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

14.                                 COUNTERPARTS.  This
Agreement may be executed in several counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the
same instruments.  One or more
counterparts of this Agreement may be delivered by facsimile, with the
intention that delivery by such means shall have the same effect as delivery of
an original counterpart thereof.

15.                                 DISPUTE RESOLUTION. 
In the event of any controversy, dispute or claim between the parties
under, arising out of or related to this Agreement (including but not limited
to, claims relating to breach, termination of this Agreement, or the
performance of a party under this Agreement), other than with respect to relief
sought by the Company at its option in a court of appropriate jurisdiction
pursuant to Section 9(e) hereof, whether based on contract, tort, statute or
other legal theory (collectively referred to hereinafter as “Disputes”), the
parties shall follow the dispute resolution procedures set forth below.  Any Dispute shall be settled exclusively by
arbitration, conducted before a single arbitrator in Los Angeles, California,
administered by the American Arbitration Association (“AAA”) in accordance with its Commercial Arbitration Rules then in
effect.  The parties agree to (i) appoint
an arbitrator who is knowledgeable in employment and human resource matters
and, to the extent possible, the industry in which the Company operates, and
instruct the arbitrator to follow substantive rules of law; (ii) require the
testimony to be transcribed; and (iii) require the award to be accompanied by
findings of act and a statement of reasons for the decision.  The arbitrator shall have the authority to
permit discovery, to the extent deemed appropriate by the arbitrator, upon
request of a party.  The arbitrator shall
have no power or authority to add to or detract from the written agreement of
the parties.  If the parties cannot agree
upon an arbitrator within ten (10) days after demand by either of them, either
or both parties may request the American Arbitration Association name a panel
of five (5) arbitrators.  The Company
shall strike the names of two (2) off this list, the Executive shall also
strike two (2) names, and the remaining name shall be the arbitrator.  The parties shall stipulate that arbitration
shall be completed within ninety (90) days. 
The decision of the arbitrator will be final and binding upon the
parties hereto.  Judgment may be entered
on the arbitrator’s award in any court having jurisdiction.  The Company shall bear the costs of the
arbitrator and any related forum fee.

16.                                 INDEMNIFICATION.  The
Company hereby agrees to indemnify the Executive in accordance with the indemnification
provisions set forth in the Company’s Restated Certificate of Incorporation and
Amended and Restated Bylaws, in each case as amended.

17.                                 LIABILITY INSURANCE. 
The Company shall cover the Executive under directors and officers
liability insurance both during and, while potential liability exists, after
the term of this Agreement in the same amount and to the same extent as the
Company covers its other officers and directors.

 13
 

18.                                 MISCELLANEOUS.  No
provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by the
Executive and such officer or director as may be designated by the Board.  No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.  This
Agreement together with all exhibits hereto sets forth the entire agreement of
the parties hereto in respect of the subject matter contained herein.  No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not expressly set forth in this
Agreement.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of California without regard to its conflicts of law principles.  Notwithstanding the foregoing, the Company’s
rights pursuant to any confidentiality, proprietary information, assignment of
inventions or similar agreement shall survive and continue in effect.

19.                                 PAYMENT OF COMPENSATION.  Notwithstanding anything in this
Agreement or elsewhere to the contrary:

(a)                                  If
payment or provision of any amount or other benefit that is “deferred
compensation” subject to Section 409A of the Code at the time otherwise
specified in this Agreement or elsewhere would subject such amount or benefit
to additional tax pursuant to Section 409A(a)(1)(B) of the Code, and if payment
or provision thereof at a later date would avoid any such additional tax, then
the payment or provision thereof shall be postponed to the earliest date on
which such amount or benefit can be paid or provided without incurring any such
additional tax.  In the event that
deferred payment is required in order to comply with Section 409A, such payment
shall be accumulated and paid in a single lump sum on such earliest date
together with interest for the period of delay, compounded annually, equal to
the prime rate (as published in The Wall Street Journal), and in effect as of
the date the payment should otherwise have been provided.

(b)                                 If
any payment or benefit permitted or required under this Agreement, or
otherwise, is reasonably determined by either party to be subject for any
reason to a material risk of additional tax pursuant to Section 409A(a)(1)(B)
of the Code, including when final regulations and issued thereunder, then the
parties shall promptly agree in good faith on appropriate provisions to avoid
such risk without materially changing the economic value of this Agreement to
either party.

20.                                 FULL SETTLEMENT. 
Except as set forth in this Agreement, the Company’s obligation to make
the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any circumstances, including
without limitation, set-off, counterclaim, recoupment, defense or other claim,
right or action which the Company may have against the Executive or others,
except to the extent any amounts are due the Company or its subsidiaries or
affiliates pursuant to a judgment against the Executive.  In no event shall the Executive be obliged to
seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement,
nor shall the amount of any payment hereunder be reduced by any compensation
earned by the Executive as a result of employment by another employer, except
as set forth in this Agreement.

 14
 

21.                                 REPRESENTATIONS. 
Except as otherwise disclosed to the Company in writing, the Executive
represents and warrants to the Company that the Executive has the legal right
to enter into this Agreement and to perform all of the obligations on the
Executive’s part to be performed hereunder in accordance with its terms and
that the Executive is not a party to any agreement or understanding, written or
oral, which could prevent the Executive from entering into this Agreement or
performing all of the Executive’s obligations hereunder.

22.                                 WITHHOLDING.  The
Company may withhold from any and all amounts payable under this Agreement such
federal, state and local taxes as may be required to be withheld pursuant to
any applicable law or regulation.

23.                                 NON-EXCLUSIVITY OF RIGHTS.  Nothing in this Agreement shall prevent or
limit the Executive’s continuing or future participation in any benefit, bonus,
incentive or other plan or program provided by the Company and for which the
Executive may qualify, nor shall anything herein limit or otherwise affect such
rights as the Executive may have under any restricted stock unit or other
agreement with the Company or any of its affiliated companies.  Except as otherwise provided herein, amounts
and benefits which are vested benefits or which the Executive is otherwise
entitled to receive under any plan, program, agreement or arrangement of the
Company at or subsequent to the date of termination shall be payable in
accordance with such plan or program.

24.                                 SURVIVAL. 
The respective obligations of, and benefits afforded to, the Company and
Executive that by their express terms or clear intent survive termination of
Executive’s employment with the Company, including, without limitation, the
provisions of Sections 8, 9, 10, 15, 16, 17, 19, 20 and 22 of this Agreement,
will survive termination of Executive’s employment with the Company, and will
remain in full force and effect according to their terms.

25.                                 AGREEMENT OF THE PARTIES.  The language used in this Agreement will be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction will be applied against any party
hereto.  Neither Executive nor the
Company shall be entitled to any presumption in connection with any
determination made hereunder in connection with any arbitration, judicial or
administrative proceeding relating to or arising under this Agreement.

 15

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first written
above.

	
  

  	
  GUESS?, INC.

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   /s/ Paul Marciano

  	
   

  	 

	
   

  	
  Name:

  	
   Paul Marciano

  	
   

  
	
   

  	
  Its:

  	
   Chief Executive Officer

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  CARLOS ALBERINI

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
    /s/ Carlos Alberini

  	
   

  	 

								

 

 S-1

APPENDIX A

CONSULTING AGREEMENT

CONSULTING AGREEMENT dated this    th day of              
20     by and between
Guess?, Inc. (the “Company”) and Carlos Alberini (“Alberini”).

WITNESSETH:

WHEREAS, Alberini has served as the Company’s
President and Chief Operating Officer;

WHEREAS, Alberini will no longer serve as the Company’s
President and Chief Operating Officer (the effective date of such termination
of service is referred to as the “Termination Date”) but has agreed to provide
consulting services to the Company as the Board of Directors of the Company
(the “Board”) may reasonably consider appropriate; and

WHEREAS, the parties desire to set forth their
respective rights and obligations regarding Alberini’s consulting arrangement.

NOW, THEREFORE, in consideration of the covenants set
forth herein and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties, intending to be legally
bound, agree as follows:

1.                                       Consulting
Period.  The Company agrees to retain
Alberini as a consultant to provide the services described in Section 2 below
from the Termination Date until the first anniversary of the Termination Date
(the “Consulting Period”), as provided in this Consulting Agreement.

2.                                       Consulting
Services.  Alberini shall provide
such consulting services to the Company as reasonably requested by the Board
from time to time.  These services may
include but are not limited to performing any transition and integration services
related to the Company’s business and cooperating with the Company regarding
any litigation initiated involving matters of which Alberini has particular
knowledge.  Alberini agrees to be
available up to seven days per month during the Consulting Period to perform
the Consulting Services.  The Consulting
Services will be performed at such times as are reasonably requested by the
Company after reasonable consultation with Alberini.  Alberini shall provide these services in Los
Angeles, California, provided that Alberini shall be required to travel for
business and client meetings as reasonably requested by the Company.

3.                                       Fees.  As compensation for the Consulting Services,
the Company shall pay Alberini fifty percent of Alberini’s Base Salary as of
the Termination Date per annum during the Consulting Period.  Fees shall be paid monthly in arrears by the
15th day of the following month.  Alberini shall not be entitled to
participate, and shall not participate in any employee benefit plan
providing benefits to Company employees, whether presently in force or adopted
subsequent to this Consulting Agreement, with respect to his Consulting
Services.  Notwithstanding the

foregoing,
Alberini shall retain all compensation and benefits that continue past his
Termination Date pursuant to the terms of his Employment Agreement with the
Company dated August 5, 2007 or otherwise. 
All reasonable and necessary business expenses incurred by Alberini in
the performance of the Consulting Services shall be promptly reimbursed by the
Company in accordance with the Company’s standard expense reimbursement
policies applicable to independent contractors.

4.                                       Status.  Alberini acknowledges and agrees that his
status at all times during the Consulting Period shall be that of an
independent contractor.  Alberini hereby
waives any rights to be treated as an employee or deemed employee of the
Company or any of its affiliates for any purpose following his termination of
employment at the Termination Date except as provided under his Employment
Agreement.  The parties hereby acknowledge
and agree that the compensation provided for in Section 3 shall represent fees
for Consulting Services provided by Alberini as an independent contractor, and
shall be paid without any deductions or withholdings for taxes.

5.                                       Retained
Property.  During the Consulting
Period, Alberini shall retain all property of the Company in his possession,
including, but not limited to, credit cards, security key cards, telephone
cards, car service cards, computer software or hardware, Company identification
cards, Company records and copies of records, correspondence and copies of
correspondence and other books or manuals issued by the Company.

6.                                       Assignability.  Alberini may not assign or transfer this
Consulting Agreement or any of Alberini’s rights, duties or obligations
hereunder.  The Company may assign this
Consulting Agreement to any person or entity acquiring all or substantially all
of the assets (by merger or otherwise) of the Company so long as such person,
entity or affiliate assumes the Company’s obligations hereunder.

7.                                       Entire
Agreement.  This Consulting Agreement
constitutes the full and complete understanding and agreement of the parties
hereto with respect to engaging Alberini as a consultant to the Company.  This Consulting Agreement may not be changed
or amended orally, but only by an agreement in writing signed by the party
against whom enforcement of any waiver, change, modification or discharge is
sought.

8.                                       Divisibility.  If
any one or more of the provisions of this Consulting Agreement or any
application thereof shall be invalid, illegal or unenforceable in any respect,
the validity, legality or enforceability of the remaining provisions and other
application thereof shall not in any way be affected or impaired.

9.                                       Applicable
Law.  This Consulting Agreement shall be governed by, and the rights and
obligations of the parties determined in accordance with, the laws of the State
of California as in effect for contracts made and to be performed in the State
of California.

10.                                 Survival.  All of the Company’s obligations hereunder
shall survive the termination of this Consulting Agreement.

 2
 

11.                                 Counterparts.  This Consulting
Agreement may be executed in counterparts, each of which shall be deemed
an original, all of which shall together constitute one and the same Consulting
Agreement.

IN
WITNESS WHEREOF, the undersigned have duly executed this Consulting Agreement
as of the day and year first above written.

	
  

  	
  CARLOS ALBERINI

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  

 

 3Exhibit
10.3

RESTRICTED
STOCK AGREEMENT

This
RESTRICTED STOCK AGREEMENT (the “Agreement”),
dated as of August 6, 2007 (the “Date of
Grant”), is entered into by and between GUESS?, INC., a Delaware
corporation (the “Company”), and Carlos Alberini
(the “Grantee”).

RECITALS

WHEREAS, the Company maintains
the Guess?, Inc. 2004 Equity Incentive Plan (the “Plan”).

WHEREAS, the Compensation Committee of the
Company’s Board of Directors (the “Committee”) has determined to grant a
restricted stock award (the “Award”) to the Grantee under the Plan in
order to increase Grantee’s participation in the success of the Company and as
an inducement to enter into the Executive Employment Agreement dated as of
August 6, 2007 by and between the Company and the Grantee (the “Employment
Agreement”);

NOW, THEREFORE, the parties hereto agree as
follows:

1.                                       Definitions;
Incorporation of Plan Terms. 
Capitalized terms used herein without definition shall have the meanings
assigned to them in the Plan.  The Award
and all rights of the Grantee under this Agreement are subject to, and the
Grantee agrees to be bound by, all of the terms and conditions of the Plan,
incorporated herein by this reference. 
In the event of any conflict or inconsistency between the Plan and this
Award Agreement, the Plan shall govern.

2.                                       Grant
of Restricted Stock.  The Grantee
shall be entitled to purchase 150,000
restricted shares of the Company’s common stock, par value $0.01 per share (the
“Common Stock”), pursuant to the terms and conditions of this Agreement
(the “Restricted Stock”).

3.                                       Purchase
Price.  The Grantee shall pay to the
Company, in cash, an aggregate purchase price of $1,500
(the “Purchase Price”), which amount is equal to the aggregate amount of
the par value of the Restricted Stock. 
Such payment of the Purchase Price shall be made to the Company within
30 days after the date hereof.

4.                                       Restricted
Period.  Subject to Section 7 below,
the Award shall vest and restrictions shall lapse as follows (the period from
the date hereof through each applicable vesting date, the “Restricted Period”):

A.                                   If,
for the third and fourth fiscal quarters of the Company’s 2008 fiscal year,
considered together as one period (the “Second Half of Fiscal 2008”), or
for any one of the four whole fiscal years of the Company (“Fiscal Year”)
commencing on or after February 3, 2008 during the Original Employment Term (as
defined in the Employment Agreement), the Company shall record earnings per
share (“Earnings per Share”) growth of greater than the Applicable
Annual Target (as defined below) as

                                                compared
to the same fiscal period from the immediately preceding Fiscal Year, then 20%
of the Restricted Stock shall become vested as of the first business day
following the issuance of the Company’s financial statement for such period,
provided the Grantee is then employed by the Company.  If the Earnings per Share growth requirement
is not met for any such period, all of the shares of the Restricted Stock
eligible for vesting for that period shall vest on the first business day following
the issuance of the Company’s financial statement for any subsequent Fiscal
Year during the Original Employment Term (as defined in the Employment
Agreement) if the cumulative compounded average Earnings per Share growth from
the Second Half of Fiscal 2008 through such subsequent Fiscal Year is more than
the Applicable Cumulative Target (as defined below) for such subsequent Fiscal
Year.  The “Applicable Annual Target”
for each of the Second Half of Fiscal 2008 and the first and second whole
Fiscal Years that commences on or after February 3, 2008 is a growth in
Earnings per Share of 15% or more as compared to the same fiscal period from
the immediately preceding Fiscal Year. 
The “Applicable Cumulative Target” for each of the Second Half of
Fiscal 2008 and the first and second whole Fiscal Years that commences on or
after February 3, 2008 is a 15% rate of cumulative compounded average Earnings
per Share growth.  For the avoidance of
doubt, the Applicable Cumulative Target for the first whole fiscal year
commencing on February 3, 2008 shall be calculated by multiplying the sum of
(A) the Company’s actual Earnings per Share for the first and second fiscal
quarters of the Company’s 2008 Fiscal Year and (B) the Applicable Annual Target
of Earnings per Share for the Second Half of Fiscal 2008, by 1.15.  The “Applicable Annual Target” and the “Applicable
Cumulative Target” for each of the third and fourth whole Fiscal Years that
commences on or after February 3, 2008 will be a rate of Earnings per Share
growth and cumulative compounded average Earnings per Share growth,
respectively, determined by the Compensation Committee of the Board in its sole
discretion not later than the end of the first quarter of such Fiscal Year;
provided that the outcome is substantially uncertain at the time the
Compensation Committee actually establishes each such target.  The parties acknowledge and agree that the
grant of Restricted Stock made hereby is intended to qualify as performance-based
compensation that is exempt from the deductibility limitations of Section
162(m) of the Internal Revenue Code.

B.                                     For
purposes of this Agreement, Earnings per Share shall be equal to the basic
earnings per share calculated in accordance with accounting principles
generally accepted in the United States and as reported in the Company’s
financial statements as filed with the Securities and Exchange Commission,
except that certain adjustments may be made for certain non-recurring or
unusual non-cash items recognized in accordance with accounting principles
generally accepted in the United States including, but not limited to, any
write-offs of unamortized deferred financing costs

 2
 

                                                and
any asset impairment write-downs, which the Committee determines in its sole
discretion to exclude for purposes of this Agreement.

5.                                       Rights
of a Stockholder.  From and after the
Date of Grant and for so long as the Restricted Stock is held by or for the
benefit of the Grantee, the Grantee shall have all the rights of a stockholder
of the Company with respect to the Restricted Stock, including but not limited
to the right to receive dividends, if applicable, and the right to vote such
shares.

6.                                       Adjustments Upon Specified Events.  Upon the occurrence of certain events
relating to the Company’s Common Stock contemplated by Section 16(b) of the
Plan, the Committee will make adjustments, if appropriate, in the number and
kind of securities subject to the Award. 
If any adjustment is made under Section 16(b) of the Plan, the restrictions
applicable to the shares of Restricted Stock shall continue in effect with
respect to any consideration or other securities (the “Restricted Property”
and, for the purposes of this Award Agreement, “Restricted Stock” shall include
“Restricted Property,” unless the context otherwise requires) received in
respect of such Restricted Stock.  Such
Restricted Property shall vest at such times in such proportion as the shares
of Restricted Stock to which the Restricted Property is attributable.  To the extent that the Restricted Property
includes any cash (other than regular cash dividends provided for in Section 5
hereof), such cash shall be invested, pursuant to policies established by the
Committee, in interest bearing, FDIC-insured (subject to applicable
insurance limits) deposits of a depository institution selected by the
Committee, the earnings on which shall be added to and become a part of the
Restricted Property.

7.                                       Effect
of Cessation of Employment.

A.                                   The
shares of the Restricted Stock not yet vested or forfeited shall become 100%
vested in the event that there is a Change in Control (as defined below), while
the Grantee is employed by the Company or an affiliate during the Employment
Term (as defined in the Employment Agreement). 
For this purpose, the term “Change in Control” is used as defined
in the Plan except that in no event shall a “Change in Control” be triggered
pursuant to clause (A) of such term as so defined unless the Acquiring Person
becomes the Beneficial Owner of twenty percent (20%) or more of the then
outstanding shares of Common Stock or the Combined Voting Power of the Company
(except pursuant to an offer for all outstanding shares of Common Stock at a
price and upon such terms and conditions as a majority of the Continuing
Directors determine to be in the best interests of the Company and its
shareholders (other than an Acquiring Person on whose behalf the offer is being
made)) in one or more bona fide transactions and such level of ownership of
such Common Stock or Combined Voting Power, as applicable, exceeds the aggregate
level of ownership of the Marcianos (as defined below) of such Common Stock or
Combined Voting Power, respectively.  For
purposes of the preceding sentence, “Marcianos” means Maurice Marciano,
Paul Marciano, and any trust established in whole or in part for the benefit of
one or more of

 3
 

                                                them
or their family members, or any other entity controlled by one or more of them,
and any other capitalized term used in such sentence is used as defined in the
Equity Plan if not otherwise defined in this Agreement.  If the Grantee terminates his employment with
the Company for “Good Reason” (as defined in Section 7(e) of the Employment
Agreement), or is terminated by the Company without “Cause” (as defined in
Section 7(c) of the Employment Agreement), the shares of the Restricted Stock
not yet vested or forfeited shall become 100% vested.

B.                                     In
all events other than those previously addressed in Section 7(A) herein, if the
Grantee ceases to be an employee of the Company or an affiliate, the Grantee
shall be vested only as to that percentage of shares of the Restricted Stock
which are vested at the time of the termination of his employment and the
Grantee shall forfeit the right to the shares of the Restricted Stock which are
not yet vested on the termination date. 
Further, any Restricted Stock which is unvested at the conclusion of the
Original Employment Term (after the final vesting determination is made as
described in Section 4(A) herein) shall be forfeited and terminate.

C.                                     Upon
the occurrence of any forfeiture of shares of Restricted Stock hereunder, such
unvested, forfeited shares and related Restricted Property shall be
automatically transferred to the Company, without any other action by the
Grantee, or the Grantee’s beneficiary or personal representative, as the case
may be, and the Company shall refund the Purchase Price to the Grantee (or the
Grantee’s beneficiary or personal representative); no additional consideration
shall be paid by the Company with respect to such transfer.  No interest shall be credited with respect to
nor shall any other adjustments be made to the Purchase Price for fluctuations
in the fair market value of the Common Stock either before or after the
transfer date.  The Company may exercise
its powers under Section 10(D) hereof and take any other action necessary or
advisable to evidence such transfer.  The
Grantee, or the Grantee’s beneficiary or personal representative, as the case
may be, shall deliver any additional documents of transfer that the Company may
request to confirm the transfer of such unvested, forfeited shares and related
Restricted Property to the Company.

8.                                       Reserved.

9.                                       Restrictions
on Transfer.  Prior to the lapse of
the Restricted Period, neither the Restricted Stock, nor any interest therein,
amount payable in respect thereof or Restricted Property shall be sold,
transferred, pledged, hypothecated or otherwise disposed of by the Grantee;
provided, however, that such transfer restrictions shall not apply to (i)
transfers to the Company or (ii) transfers by will or descent and
distribution.  Grantee agrees that the
Restricted Stock will not be sold or otherwise disposed of in any manner that
would constitute a violation of any applicable federal or state securities
laws.

 4
 

10.                                 Stock
Certificates.

A.                                   Book Entry Form.  The Company shall, in its
discretion, issue the shares of Restricted Stock subject to the Award either:
(i) in certificate form as provided in Section 10(B) below; or (ii) in book
entry form, registered in the name of the Grantee with notations regarding the
applicable restrictions on transfer imposed under this Agreement.

B.                                     Certificates to be Held by Company; Legend.  Any certificates representing shares of Restricted Stock that may be
delivered to the Grantee by the Company prior to the lapse of restrictions
shall be immediately redelivered by the Grantee to the Company to be held by
the Company until the restrictions on such shares shall have lapsed and the
shares shall thereby have become vested or the shares represented thereby have
been forfeited hereunder.  Such
certificates shall bear the following legend:

“The ownership of this certificate
and the shares of stock evidenced hereby and any interest therein are subject
to substantial restrictions on transfer under an Agreement entered into between
the registered owner and Guess?, Inc.  A
copy of such Agreement is on file in the office of the Secretary of Guess?,
Inc.”

C.                                     Delivery of Certificates Upon Lapse of Restricted Period.  Promptly after the lapse of the Restricted
Period as to any shares of Restricted Stock pursuant to Section 4 and the
satisfaction of any and all related tax withholding obligations pursuant to
Section 11, the Company shall, as applicable, either remove the notations on
any shares of Restricted Stock issued in book entry form which have vested or
deliver to the Grantee a certificate or certificates evidencing the number of
shares of Restricted Stock which have vested (or, in either case, such lesser
number of shares as may be permitted pursuant to Section 11).  The Grantee (or the Beneficiary or Personal
Representative of the Grantee in the event of the Grantee’s death or
incapacity, as the case may be) shall deliver to the Company any
representations or other documents or assurances as the Company may deem
necessary or reasonably desirable to ensure compliance with all applicable
legal and regulatory requirements.  The
shares so delivered shall no longer be restricted shares hereunder.

D.                                    Stock Power; Power of Attorney.  Concurrent with the execution and delivery of
this Agreement, the Grantee shall deliver to the Company an executed stock
power in the form attached hereto as Exhibit A, in blank, with respect to the
Restricted Stock.  The Grantee, by
acceptance of the Award, shall be deemed to appoint, and does so appoint by
execution of this Agreement, the Company and each of its authorized
representatives as the Grantee’s attorney(s) in fact to effect any transfer of
unvested, forfeited shares (or shares otherwise reacquired by the Company
hereunder) to the Company as may be required pursuant to the Plan or this
Agreement and to execute such documents as the Company or such representatives
deem necessary or advisable in connection with any such transfer.

 5
 

E.                                      Postponement of Issuance.  Notwithstanding any other provisions of this
Agreement, the issuance or delivery of any shares of Common Stock (whether
subject to restrictions or unrestricted) may be postponed for such period as
may be required to comply with applicable requirements of any national
securities exchange or any requirements under any law or regulation applicable
to the issuance or delivery of such shares. 
The Company shall not be obligated to issue or deliver any shares of
Stock if the issuance or delivery thereof shall constitute a violation of any
provision of any law or of any regulation of any governmental authority or any
national securities exchange.

11.                                 Withholding
of Tax.  The Company shall reasonably
determine the amount of any federal, state, local or other income, employment,
or other taxes which the Company or any of its affiliates may reasonably be
obligated to withhold with respect to the grant, vesting, making of an election
under Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”),
or other event with respect to the Restricted Stock.  The Company may, in its sole discretion,
withhold and/or reacquire a sufficient number of shares of Restricted Stock in
connection with the vesting of such shares at their then Fair Market Value
(determined either as of the date of such withholding or as of the immediately
preceding trading day, as determined by the Company in its discretion) to
satisfy the amount of any such withholding obligations that arise with respect
to the vesting of such shares.  The
Company may take such action(s) without notice to the Grantee and shall remit
to the Grantee the balance of any proceeds from withholding and/or reacquiring
such shares in excess of the amount reasonably determined to be necessary to
satisfy such withholding obligations. 
The Grantee shall have no discretion as to the satisfaction of tax
withholding obligations in such manner. 
If, however, the Grantee makes an election under Section 83(b) of the
Code with respect to the Restricted Stock, if any other withholding event
occurs with respect to the Restricted Stock other than the vesting of such
stock, or if the Company for any reason does not satisfy the withholding
obligations with respect to the vesting of the Restricted Stock as provided
above in this Section 11, the Company shall be entitled to require a cash
payment by or on behalf of the Grantee and/or to deduct from other compensation
payable to the Grantee the amount of any such withholding obligations.

12.                                 Compliance.  Grantee hereby agrees to cooperate with the
Company, regardless of Grantee’s employment status with the Company, to the
extent necessary for the Company to comply with applicable state and federal
laws and regulations relating to the Restricted Stock.

13.                                 Notices.  Any notice required or permitted under this
Agreement shall be deemed given when personally delivered, or when deposited in
a United States Post Office, postage prepaid, addressed, as appropriate, to the
Grantee either at the address on record with the Company or such other address
as may be designated by Grantee in writing to the Company; or to the Company,
Attention: Stock Plan Administrator, 1444 South Alameda Street, Los Angeles,
California  90021, or such other address
as the Company may designate in writing to the Grantee.

 6
 

14.                                 Failure
to Enforce Not a Waiver.  The failure
of the Company or the Grantee to enforce at any time any provision of this
Agreement shall in no way be construed to be a waiver of such provision or of
any other provision hereof.

15.                                 Governing
Law.  This Agreement shall be
governed by and construed according to the laws of the State of Delaware.

16.                                 Amendments.  This Agreement may be amended or modified at
any time by an instrument in writing signed by both parties.

17.                                 Agreement
Not a Contract of Employment. 
Neither the grant of the Restricted Stock, this Agreement nor any other
action taken in connection herewith shall constitute or be evidence of any
agreement or understanding, express or implied, that the Grantee is an employee
of the Company or any subsidiary of the Company.

18.                                 Committee’s
Powers.  No provision contained in
this Agreement shall in any way terminate, modify or alter, or be construed or
interpreted as terminating, modifying or altering any of the powers, rights or
authority vested in the Committee or, to the extent delegated, in its delegate
pursuant to the terms of the Plan or resolutions adopted in furtherance of the
Plan, including, without limitation, the right to make certain determinations
and elections with respect to the Restricted Stock.

19.                                 Section
83(b) Election.  The Grantee hereby
acknowledged that, with respect to the grant of the Restricted Stock, an
election may be filed by the Grantee with the Internal Revenue Service, within
30 days, of the Date of Grant, electing pursuant to Section 83(b) of the
Code, to be taxed currently on the fair market value of the Restricted Stock on
the Date of Grant.

THE GRANTEE HEREBY
ACKNOWLEDGES THAT IT IS THE GRANTEE’S SOLE RESPONSIBILITY AND NOT THE
RESPONSIBILITY OF THE COMPANY TO TIMELY FILE AN ELECTION UNDER SECTION 83(b) OF
THE CODE, EVEN IF THE GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO
MAKE THIS FILING ON THE GRANTEE’S BEHALF.

20.                                 Termination
of this Agreement.  Upon termination
of this Agreement, all rights of the Grantee hereunder shall cease.

 7
 

IN WITNESS WHEREOF, the Company has caused
this Agreement to be executed on its behalf by a duly authorized officer and
the Grantee has hereunto set his or her hand as of the date and year first
above written.

	
  

  	
  GUESS?, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah
  Siegel

  
	
   

  	
   

  
	
   

  	
  Print Name:
  Deborah Siegel

  
	
   

  	
   

  
	
   

  	
  Its: Secretary

  
	
   

  	
   

  
	
   

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
   /s/ Carlos
  Alberini

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Carlos Alberini

  
	
   

  	
  Print
  Name

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee
  ID

  

 

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]