Document:

Second Amendment to the Second Amended and Restated Credit Agreement

 EXHIBIT 10.1 
 Loan Nos. 04 2508 01 
 93-0909703 

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT 

AGREEMENT 
 THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (“Amendment”) is entered into as of November 1, 2012, by and among FAMOUS DAVE’S OF AMERICA, INC., a
Minnesota corporation, D&D OF MINNESOTA, INC., a Minnesota corporation, LAKE & HENNEPIN BBQ AND BLUES, INC., a Minnesota corporation, FAMOUS DAVE’S RIBS, INC., a Minnesota corporation, FAMOUS DAVE’S RIBS-U, INC., a Minnesota
corporation, and FAMOUS DAVE’S RIBS OF MARYLAND, INC., a Minnesota corporation (each, individually, a “Borrower” and, collectively, the “Borrowers”), the lenders from time to time a party hereto (each, a
“Lender” and, collectively, the “Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”), as Administrative Agent and L/C Issuer. 

R E C I T A L S 
 A. Borrowers, Wells Fargo, as Administrative Agent and L/C Issuer, and the Lenders a party thereto have entered into that certain Second Amended and Restated Credit Agreement dated as of March 4,
2010, as amended by that certain letter agreement dated February 1, 2011 and that certain First Amendment to Second Amended and Restated Credit Agreement dated as of July 5, 2011 (the “Credit Agreement”). 

B. As of the date hereof, Wells Fargo is the only Lender under the Credit Agreement. 

C. The parties desire to amend the Credit Agreement to modify certain provisions of the Credit Agreement, all subject to the terms and
conditions hereinafter set forth. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Borrowers and Lenders hereby covenant and agree as follows: 
 1. Definitions. Capitalized terms
used herein and not defined herein shall have the meanings provided therefor in the Credit Agreement. 
 2. Amendment Closing
Date. As used in this Amendment, the term “Amendment Closing Date” shall mean the first date that all the conditions precedent set forth in this Amendment are satisfied or waived in accordance herewith. 

3. Amendments to Credit Agreement. Effective as of the Amendment Closing Date: 

 (a) The following definitions in Section 1.01 of the Credit
Agreement shall be amended and restated in their entirety as follows: 
 “Adjusted Leverage Ratio” means, as of
any date of determination, the ratio of (a) Consolidated Rental Expense for the Reference Period ending on such date (less the amount of any non-cash pre-opening rent included in such Consolidated Rental Expense) multiplied by eight (8), plus
(without duplication) Consolidated Funded Indebtedness outstanding on such date to (b) Consolidated EBITDAR for the Reference Period ending on such date. 
 “Applicable Margin” means, for all Loans for each period commencing on an Adjustment Date through the date immediately preceding the next Adjustment Date (each a “Rate Adjustment
Period”), the applicable percentage set forth below corresponding to the Adjusted Leverage Ratio, as determined for the most recent Reference Period ending immediately prior to the applicable Rate Adjustment Period: 

 

															
	 Level
	  	Adjusted
Leverage Ratio	  	Applicable Margin
for LIBOR Loans
(bps)	 	 	Applicable Margin
for Base Rate
Loans	 	 	Applicable
Margin for
Revolving Credit
Commitment
Fees	 
	 I
	  	  3 3.50:1.00	  	 	2.50	% 	 	 	1.00	% 	 	 	0.375	% 
	 II
	  	  < 3.50:1.00 and
   3 3.25:1.00
	  	 	2.25	% 	 	 	0.75	% 	 	 	0.375	% 
	 III
	  	  < 3.25:1.00 and
   3 3.00:1.00
	  	 	2.00	% 	 	 	0.50	% 	 	 	0.375	% 
	 IV
	  	  < 3.00:1.00 and
   3 2.75:1.00
	  	 	1.75	% 	 	 	0.25	% 	 	 	0.25	% 
	 V
	  	  < 2.75:1.00	  	 	1.50	% 	 	 	0.00	% 	 	 	0.25	% 

 Notwithstanding the foregoing, (a) for the period commencing on the Amendment Closing Date through
the Adjustment Date immediately following the date of delivery by the Borrowers to the Administrative Agent of a Compliance Certificate for the fiscal period ending on or about September 30, 2012, the Applicable Margin shall be the percentage
set forth in Level I in the table above; and (b) if the Borrowers fail to deliver any Compliance Certificate pursuant to Section 6.01 hereof, then for the period commencing on the date after the day on which such Compliance
Certificate was due until the Adjustment Date, the Applicable Margin shall be that percentage corresponding to Level I in the table above. 
 “Fee Letter” means the letter agreement, dated as of November 1, 2012 by and between the Borrowers and the Administrative Agent, as the same may be amended, restated, modified or
otherwise supplemented from time to time. 

  
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 “Incurrence Ratio” means, as of any date of determination, the maximum
Adjusted Leverage Ratio permitted under Section 14.01 as of the end of the most recently ended Reference Period for which the Borrowers have delivered a Compliance Certificate, less 0.25. 

(b) The Credit Agreement is hereby amended by amending and restating Section 7.06 thereof to read as follows: 

7.06 Restricted Payments. 
 Directly or indirectly, declare, or pay or make any Restricted Payment, or set aside or otherwise deposit or invest any sums for such purpose, or agree to do any of the foregoing; provided, however, that
(a) Restricted Payments from one Borrower to another Borrower (only to the extent that the same may lawfully be made by such Borrower in accordance with applicable Laws), and (b) Restricted Payments consisting of Permitted Stock
Repurchases, shall be permitted so long as, in the case of each of the foregoing clauses (a) and (b), (1) no Default or Event of Default shall have occurred and be continuing or would result after giving effect to such Restricted Payment,
(2) Borrowers will be in pro forma compliance with the financial covenants set forth in Article XIV hereof as of the most recently ended Reference Period for which financial statements were delivered hereunder on a pro forma basis both
before and after giving effect to such Restricted Payment; (3) both before and after giving effect to such Restricted Payment, the Adjusted Leverage Ratio is, or would be, greater than the Incurrence Ratio, and (4) the aggregate
consideration for any such Permitted Stock Repurchase shall be paid in cash and the aggregate amount paid in connection with all of such Permitted Stock Repurchases made hereunder shall not exceed (A) $10,000,000 in the aggregate in any twelve
(12) month period, (B) in the aggregate in any fiscal year, an amount which, when added to the aggregate amount of all Growth Capital Expenditures made or incurred by Borrowers and their Subsidiaries in the aggregate during such fiscal
year exceeds the dollar amount for such fiscal year set forth in the table in Section 14.03 (i.e. $12,500,000 (or, to the extent provided for in the paragraph following that table, $15,000,000) in any fiscal year), or (C) $30,000,000 in
the aggregate from and after July 5, 2011. 
 (c) The Credit Agreement is hereby amended by amending and restating
Section 14.01 to read as follows: 
 14.01 Adjusted Leverage Ratio. 

As of the end of any fiscal quarter referenced in the table below, the Adjusted Leverage Ratio for the Reference Period then ended shall
not exceed the ratio set forth opposite such fiscal quarter in such table: 

  
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	 Fiscal Quarter
	  	Ratio	 
	 FQ4 2009
	  	 	3.50:1.00	  
	 FQ1 2010 through FQ3 2011
	  	 	3.75:1.00	  
	 FQ4 2011 through FQ2 2012
	  	 	3.50:1.00	  
	 FQ3 2012 and each FQ thereafter
	  	 	4.00:1.00	  

 (d) The Credit Agreement is hereby amended by amending and restating Section 14.02 to read
as follows: 
 14.02 Consolidated Cash Flow Ratio. 

As of the end of any fiscal quarter referenced in the table below, the Consolidated Cash Flow Ratio for the Reference Period then ended
shall not be less than the ratio set forth opposite such fiscal quarter in such table: 
  

					
	 Fiscal Quarter
	  	Ratio	 
	 FQ4 2009 through FQ2 2012
	  	 	2.00:1.00	  
	 FQ3 2012 and each FQ thereafter
	  	 	1.75:1.00	  

 (e) The Credit Agreement is hereby amended by amending and restating Section 14.03 to read
as follows: 
 14.03 Capital Expenditures; Permitted Stock Repurchases. 

No Borrower shall, nor shall any Borrower permit any Subsidiary to, directly or indirectly make or become legally obligated to make any
Growth Capital Expenditures costing in excess of an amount equal to (a) the applicable amount listed in the table below in the aggregate for the Borrowers and their Subsidiaries during each applicable fiscal year, minus (b) in each case,
an amount equal to the aggregate consideration paid in connection with all Permitted Stock Repurchases made during the applicable fiscal year: 
  

					
	 Fiscal Year
	  	Amount	 
	 FY2009 through FY 2011
	  	$	25,000,000	  
	 FY 2012 and each FY thereafter
	  	$	12,500,000	  

 Notwithstanding the foregoing, the $12,500,000 amount set forth above may be increased by not more than
$2,500,000 (to a maximum of $15,000,000) only if the following conditions are satisfied: (1) Consolidated EBITDA for both the current Reference Period and the immediately preceding Reference Period shall have equaled or exceeded $17,000,000;
and (2) either (A) as of the last day of the current Reference Period the Maximum Revolving Credit Loan Commitment shall exceed the Total Revolving Credit Outstandings by $10,000,000 or more, or (B) as of the last day of both the
current Reference Period and the immediately preceding Reference Period, the Maximum Revolving Credit Loan Commitment shall have equaled or exceeded the Total Revolving Credit Outstandings by $7,500,000 or more. 

  
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 In addition and without limiting the foregoing, no Borrower shall, nor shall any Borrower
permit any Subsidiary to, at any time, directly or indirectly (a) become legally obligated to make any Growth Capital Expenditures, or (b) make any Growth Capital Expenditures which any Borrower or any such Subsidiary was not previously
legally obligated to make, if, in either case, after giving effect thereto, the Adjusted Leverage Ratio is, or would be, greater than the Incurrence Ratio. 
 (f) The Credit Agreement is hereby amended by amending and restating each of Schedules 5.05, 5.06, 5.13, 5.22, 5.24, 7.01 and 15.02 and Exhibits B
and C in the respective forms attached to this Amendment. 
 4. Term Loan. The parties hereto hereby acknowledge
and agree that the outstanding principal balance of the Term Loan and the Term Loan Commitment have been reduced to $5,439,999.97 as of November 1, 2012. 
 5. Conditions Precedent to Effectiveness of this Amendment. The effectiveness of this Amendment is subject to satisfaction of the following conditions precedent: 

 (a) The Administrative Agent’s receipt of the following, unless waived by the Administrative Agent, each of
which shall be originals or facsimiles (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Borrower, each dated the Amendment Closing Date (or, in the case of certificates of
governmental officials, a recent date before the Amendment Closing Date) and each in form and substance satisfactory to the Administrative Agent and its legal counsel: 
 (i) two (2) executed counterparts of this Amendment; 
 (ii) two
(2) executed counterparts of the Fee Letter; 
 (iii) two (2) executed counterparts of a Supplement Grant of Security
Interest in United States Trademarks; 
 (iv) such certificates of resolutions or other action, incumbency certificates and/or
other certificates of Responsible Officers of each Borrower as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with
this Amendment and the other Loan Documents executed in connection herewith to which such Borrower is a party; 
 (v) such
documents and certifications as the Administrative Agent may reasonably require to evidence that each Borrower is duly organized or formed, and that each Borrower executing this Amendment and any other Loan Documents executed in connection herewith
is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification; 

  
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 (vi) a favorable opinion or opinions (or an update of any existing opinion or opinions
given on or about the Closing Date) of counsel to the Borrowers, addressed to the Administrative Agent and each Lender, as to such matters concerning the Loan Parties and this Amendment and the Loan Documents as the Administrative Agent may
reasonably request; 
 (vii) a certificate of each Borrower signed by a Responsible Officer either (A) attaching copies of
all consents, licenses and approvals required in connection with the execution, delivery and performance by, and the validity against, such Borrower of this Amendment and the other Loan Documents to which it is a party, which consents, licenses and
approvals shall be in full force and effect, or (B) stating that no such consents, licenses or approvals are so required; 

(viii) a certificate signed by a Responsible Officer of each Borrower certifying that (A) the representations and warranties of the
Borrowers contained in Article V of the Credit Agreement or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct on and as of the
Amendment Closing Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes hereof, the
representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.01 of the Credit Agreement, (B) no Default or Event of Default shall exist, or would result from the execution of this Amendment or the effectiveness hereof, and (C) that there has been no event or circumstance since
the date of the Audited Financial Statements that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect; 
 (ix) such other assurances, certificates, documents, consents or opinions as the Administrative Agent reasonably may require; 

 (b) The Borrowers shall have paid to the Administrative Agent for the account of each applicable Lender all fees
required to be paid hereunder or under the Fee Letter by Borrowers on the Amendment Closing Date; and 

  
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 (c) Unless waived by the Administrative Agent, the Borrowers shall have paid
all Attorney Costs of the Administrative Agent to the extent invoiced prior to or on the Amendment Closing Date, plus such additional amounts of Attorney Costs as shall constitute its reasonable estimate of Attorney Costs incurred or to be incurred
by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrowers and the Administrative Agent). 

6. Ratification. The Credit Agreement, as amended by this Amendment, is hereby ratified and remains in full force and effect.
Nothing contained herein shall be deemed to be a novation of any Note or otherwise affect the priority of the lien of any Loan Documents. 
 7. Release. In consideration of the Administrative Agent’s and the Lenders’ entering into this Amendment, each Borrower hereby fully and unconditionally releases and forever discharges
each of the Administrative Agent and the Lenders, and their respective directors, officers, employees, subsidiaries, branches, affiliates, attorneys, agents, representatives, successors and assigns and all persons, firms, corporations and
organizations acting on any of their behalves (collectively, the “Released Parties”), of and from any and all claims, allegations, causes of action, costs or demands and liabilities, of whatever kind or nature, from the beginning of
the world to the date on which this Amendment is executed, whether known or unknown, liquidated or unliquidated, fixed or contingent, asserted or unasserted, foreseen or unforeseen, matured or unmatured, suspected or unsuspected, anticipated or
unanticipated, which any Borrower or any Subsidiary has, had, claims to have or to have had or hereafter claims to have or have had against the Released Parties by reason of any act or omission on the part of the Released Parties, or any of them,
occurring prior to the date on which this Amendment is executed, including all such loss or damage of any kind heretofore sustained or that may arise as a consequence of the dealings among the parties up to and including the date on which this
Amendment is executed, including the administration or enforcement of the Credit Agreement (collectively, all of the foregoing are the “Claims”). Each Borrower represents and warrants that it has no knowledge of any claim by it or
by any Subsidiary against the Released Parties or of any facts or acts or omissions of the Released Parties which on the date hereof would be the basis of a Claim by it or by any Subsidiary or any other Loan Party against the Released Parties which
is not released hereby, and each Borrower represents and warrants that the foregoing constitutes a full and complete release of all Claims by or on behalf of each Borrower and any Subsidiary. The inclusion of a release provision in this Amendment
shall not give rise to any inference that but for such release, any Claim otherwise would exist. 
 8. Counterparts. This
Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all such counterparts together shall constitute one and the same instrument. 

  
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 EXHIBIT 10.1 
 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written. 

 

			
	 FAMOUS DAVE’S OF AMERICA, INC.,
 a Minnesota corporation

		
	By:	 	/s/ Diana Purcel
	Name: Diana Purcel
	Title: Chief Financial Officer

  

			
	 D&D OF MINNESOTA, INC.,

a Minnesota corporation

		
	By:	 	/s/ Diana Purcel
	 Name: Diana Purcel

Title: Chief Financial Officer

  

			
	 LAKE & HENNEPIN BBQ AND BLUES, INC.,

a Minnesota corporation

		
	By:	 	/s/ Diana Purcel
	 Name: Diana Purcel

Title: Chief Financial Officer

  

			
	 FAMOUS DAVE’S RIBS, INC.,

a Minnesota corporation

		
	By:	 	/s/ Diana Purcel
	 Name: Diana Purcel

Title: Chief Financial Officer

 
			
	 FAMOUS DAVE’S RIBS-U, INC.,

	 a Minnesota corporation

		
	 By:
	 	/s/ Diana Purcel
	 Name:
	 	Diana Purcel
	 Title:
	 	Chief Financial Officer
	
	FAMOUS DAVE’S RIBS OF MARYLAND, INC., a Minnesota corporation
		
	 By:
	 	/s/ Christopher O’Donnell
	 Name:
	 	Christopher O’Donnell
	 Title:
	 	President

 
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent
		
	 By:
	 	/s/ Darcy McLaren
	 Name:
	 	 Darcy McLaren 

	 Title:
	 	 Vice President

		
	 By:
	 	/s/ Maureen S. Malphus
	 Name:
	 	 Maureen S. Malphus 

	 Title:
	 	Vice PresidentEmployment Agreement

 Exhibit 10.1 

RALPH LAUREN CORPORATION 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the
“Agreement”) is made effective as of the 24th day of September, 2012 (the “Effective Date”), by and between Ralph Lauren Corporation, a Delaware corporation (the “Corporation”), and Christopher Peterson (the
“Executive”). 
 WHEREAS, the Corporation has presented Executive with an offer letter dated August 22, 2012
(“Offer Letter”), which, along with its attachments, is attached to and incorporated into this Agreement as Exhibit 1; 
 NOW THEREFORE, in consideration of the mutual covenants and premises contained herein, the parties hereby agree as follows: 
 ARTICLE I 
 EMPLOYMENT 

1.1 Employment Term. The Corporation hereby agrees to employ the Executive, and the Executive hereby agrees to serve the
Corporation, on the terms and conditions set forth herein and pursuant to the terms of the Offer Letter. The employment of the Executive by the Corporation shall be effective as of the date hereof and continue until April 2, 2016 (the
“Term”), unless terminated earlier in accordance with Article II hereof. 
 1.2 Position and Duties. During the
Term the Executive shall faithfully, and in conformity with the directions of the Board of Directors of the Corporation and any Committee thereof (the “Board”) or the management of the Corporation (“Management”), perform the
duties of his employment, and shall devote to the performance of such duties his full time and attention. During the Term the Executive shall serve in such position as the Board or Management may from time to time direct. During the Term, the
Executive may engage in outside activities provided those activities do not conflict with the duties and responsibilities enumerated hereunder, and provided further that the Executive receives written approval in advance from Management for any
outside business activity that may require significant expenditure of the Executive’s time in which the Executive plans to become involved, whether or not such activity is pursued for profit. The Executive shall be excused from performing any
services hereunder during periods of temporary incapacity and during vacations in accordance with the Corporation’s disability and vacation policies. 
 1.3 Place of Performance. The Executive shall be employed at the principal offices of the Corporation located in New York, New York, except for required travel on the Corporation’s business.

 1.4 Compensation and Related Matters. 
 (a) Base Compensation. In consideration of his services during the Term, the Corporation shall pay the Executive cash compensation at an annual rate of not less than

  
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eight hundred thousand dollars ($800,000) (“Base Compensation”), less applicable withholdings. Executive’s Base Compensation shall be subject to such increases as may be approved
by the Board or Management. The Base Compensation shall be payable as current salary, in installments not less frequently than monthly, and at the same rate for any fraction of a month unexpired at the end of the Term. 

(b) Bonus. During the Term, the Executive shall have the opportunity to earn an annual bonus in accordance with any annual bonus
program the Corporation maintains that would be applicable to the Executive and consistent with the provisions of the Offer Letter. 
 (c) Stock Awards. During the Term, the Executive shall be eligible to participate in the Ralph Lauren Corporation 2010 Long-Term Stock Incentive Plan (the “Incentive Plan”). All grants to
the Executive of stock options and restricted performance share units (“RPSUs”), if any, are governed by the terms of the Incentive Plan and are subject, in all cases, to approval by the Compensation & Organizational Development
Committee of the Board of Directors in its sole discretion. 
 (d) During the Term, the Corporation shall pay Executive a car
allowance in the amount of one thousand five hundred dollars ($1,500) per month, less applicable withholdings. 
 (e)
Expenses. During the Term, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in performing services hereunder, including all reasonable expenses of travel and living while
away from home, provided that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Corporation. 
 (f) Vacations. During the Term, the Executive shall be entitled to the number of vacation days in each fiscal year, and to compensation in respect of earned but unused vacation days, determined in
accordance with the Corporation’s vacation program. The Executive shall also be entitled to all paid holidays given by the Corporation to its employees. 
 (g) Other Benefits. The Executive shall be entitled to participate in all of the Corporation’s employee benefit plans and programs in effect during the Term as would by their terms be
applicable to the Executive, including, without limitation, any life insurance plan, medical insurance plan, dental care plan, accidental death and disability plan, and sick/personal leave program. The Corporation shall not make any changes in such
plans or programs that would adversely affect the Executive’s benefits thereunder, unless such change occurs pursuant to a plan or program applicable to other similarly situated employees of the Corporation and does not result in a
proportionately greater reduction in the rights or benefits of the Executive as compared with other similarly situated employees of the Corporation. Except as otherwise specifically provided herein, nothing paid to the Executive under any plan or
program presently in effect or made available in the future shall be in lieu of the Base Compensation or any bonus payable under Sections 1.4(a) and 1.4(b) hereof. 

  
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 ARTICLE II 
 TERMINATION OF EMPLOYMENT 
 2.1 Termination of Employment. The
Executive’s employment may terminate prior to the expiration of the Term under the following circumstances: 
 (a)
Without Cause. The Executive’s employment shall terminate upon the Corporation notifying the Executive that his services will no longer be required. 
 (b) Death. The Executive’s employment shall terminate upon the Executive’s death. 
 (c) Disability. If, as a result of the Executive’s incapacity due to physical or mental illness, the Executive shall have been absent and unable to perform the duties hereunder on a full-time
basis for an entire period of six consecutive months, the Executive’s employment may be terminated by the Corporation following such six-month period. 
 (d) Cause. The Corporation may terminate the Executive’s employment for Cause. For purposes hereof, “Cause” shall mean: 

(i) failure by the Executive to perform the duties of the Executive hereunder (other than due to disability as defined in 2.1(c)),
provided that the conduct described in this Section 2.1(d)(i) shall not constitute Cause unless and until such failure by Executive to perform his duties hereunder has not been cured to the satisfaction of the Corporation, in its sole
discretion, within fifteen (15) days after notice of such failure has been given by the Corporation to Executive; or 

(ii) an act of fraud, embezzlement, theft, breach of fiduciary duty, dishonesty, or any other misconduct or any violation of law (other
than a traffic violation) committed by the Executive; or 
 (iii) any action by the Executive causing damage to or
misappropriation of Corporation assets; or 
 (iv) the Executive’s wrongful disclosure of confidential information of the
Corporation or any of its affiliates; or 
 (v) the Executive’s breach of Section 5.7 herein or the Executive’s
engagement in any competitive activity which would constitute a breach of this Agreement and/or of the Executive’s duty of loyalty; or 
 (vi) the Executive’s breach of any employment policy of the Corporation, including, but not limited to, conduct relating to falsification of business records, violation of the Corporation’s code
of business conduct & ethics, harassment, creation of a hostile work environment, excessive absenteeism, insubordination, violation of the Corporation’s policy on drug & alcohol use, or violent acts or threats of violence; or

 (vii) performance by the Executive of his employment duties in a manner deemed by the Corporation, in its sole discretion,
to be grossly negligent; or 

  
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 (viii) the commission of any act by the Executive, whether or not performed in the
workplace, which subjects or, if publicly known, would be likely to subject the Corporation to public ridicule or embarrassment, or would likely be detrimental or damaging to the Corporation’s reputation, goodwill, or relationships with its
customers, suppliers, vendors, licensees or employees. 
 (e) Voluntary Termination. The Executive may voluntarily
terminate the Executive’s employment with the Corporation at any time, with or without Good Reason. For purposes of this Agreement, “Good Reason” shall mean a termination of employment by the Executive within sixty (60) days
following the occurrence of (A) a material diminution in or adverse alteration to Executive’s title, base salary, position or duties, (B) the relocation of the Executive’s principal office outside the area which comprises a fifty
(50) mile radius from New York City, or (C) a failure of the Corporation to comply with any material provision of this Agreement provided that the events described in clauses (A), (B), and (C) above shall not constitute Good Reason
(1) until the Executive provides written notice to the Corporation of the existence of such diminution, change, reduction, relocation or failure within thirty (30) days of its occurrence and (2) unless such diminution, change,
reduction or failure (as applicable) has not been cured within thirty (30) days after written notice of such noncompliance has been given by the Executive to the Corporation. 

2.2 Date of Termination. The date of termination shall be: 

(a) if the Executive’s employment is terminated by the Executive’s death, the date of the Executive’s death; 

(b) if the Executive’s employment is terminated by reason of Executive’s disability pursuant to Section 2.1(c) or by the
Corporation pursuant to Sections 2.1(a) or 2.1(d), the date specified by the Corporation; and 
 (c) if the
Executive’s employment is terminated by the Executive, the date on which the Executive notifies the Corporation of his termination. 
 2.3 Effect of Termination of Employment. 
 (a) If the Executive’s
employment is terminated by the Corporation pursuant to Section 2.1(a), or if the Executive resigns for Good Reason pursuant to Section 2.1(e), the Executive shall only be entitled to the following: 

(i) Severance. Subject to Section 2.3(a)(v) and Section 4.1(a) hereof, the Corporation shall:
(a) beginning with the first payroll period following the 30th day following the date of termination of Executive’s employment, continue to pay the Executive, in accordance with the Corporation’s normal payroll practice, his Base Compensation, as in effect
immediately prior to such termination of employment, for the one-year period commencing on the date of such termination (the “Severance Period”), provided that the initial payment shall include Base Compensation amounts for all payroll
periods from the date of termination through the date of such initial payment; and (b) pay to the Executive, on the last business day of the Severance Period, an amount equal to the Executive’s target bonus as determined by the terms of
the Corporation’s Executive Incentive Plan as in effect at the time of termination of Executive’s 

  
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employment. Under no circumstances shall the Executive be entitled to any bonus payment for the fiscal year in which his employment is terminated. Notwithstanding the foregoing, in order to
receive any severance benefits under this Section 2.3(a)(i), the Executive must sign and not timely revoke a release and waiver of claims against the Corporation, its successors, affiliates, and assigns, in a form acceptable to the Corporation
on or prior to the 30th day following the date of
termination of Executive’s employment. 
 (ii) Stock Awards. The Executive’s rights with respect to any stock
options and RPSUs provided to the Executive by the Corporation shall be governed by the provisions of the Corporation’s Incentive Plan and the respective award agreements, if any, under which such awards were granted, except as provided in
Section 4.1(a). 
 (iii) Welfare Plan Coverages. The Executive shall continue to participate during the Severance
Period in any group medical or dental insurance plan he participated in prior to the date of his termination, under substantially similar terms and conditions as an active employee; provided that participation in such group medical or dental
insurance plan shall only continue for as long as permitted under COBRA and further, shall correspondingly cease at such time as the Executive (a) becomes eligible for a future employer’s medical and/or dental insurance coverage (or would
become eligible if the Executive did not waive coverage) or (b) violates any of the provisions of Article III as determined by the Corporation in its sole discretion. Notwithstanding the foregoing, the Executive may not continue to participate
in such plans on a pre-tax or tax-favored basis. 
 (iv) Retirement Plans. Without limiting the generality of the
foregoing, it is specifically provided that the Executive shall not accrue additional benefits under any pension plan of the Corporation (whether or not qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended) during the
Severance Period. 
 (v) Section 409A. Notwithstanding any provision in this Agreement to the contrary, no amounts
shall be payable pursuant to Section 2.3(a) or Section 4.1(a) unless the Executive’s termination of employment constitutes a “separation from service” within the meaning of Section 1.409A-1(h) of the Department of
Treasury Regulations. If the Executive is determined to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Internal Revenue Code, as amended, and the rules and regulations issued thereunder (the
“Code”), then no payment that is payable under Sections 2.3(a)(i) or 4.1(a) hereof (the “Severance Payment”) on account of Executive’s “separation from service” shall be made before the date that is at least six
months after the Executive’s “separation from service” (or if earlier, the date of the Executive’s death), but rather all such payments shall be made on the date that is five business days after the expiration of that six month
period, if and to the extent that the Severance Payment constitutes deferred compensation (or may be nonqualified deferred compensation) under Section 409A of the Code and such deferral is required to comply with the requirements of
Section 409A of the Code. For the avoidance of doubt, no portion of the Severance Payment shall be delayed for six months after the Executive’s “separation from service” if such portion (x) constitutes a “short term
deferral” within the meaning of Section 1.409A-1(a)(4) of the Department of Treasury Regulations, or (y) (A) it is being paid due to the Corporation’s termination of the Executive’s employment without Cause or the
Executive’s termination of employment for Good Reason; (B) it does not exceed two times the lesser of (1)

  
 5 

 
the Executive’s annualized compensation from the Corporation for the calendar year prior to the calendar year in which the termination of the Executive’s employment occurs, or
(2) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which the Executive’s employment terminates; and (C) the payment is required under this
Agreement to be paid no later than the last day of the second calendar year following the calendar year in which the Executive incurs a “separation from service.” For purposes of Section 409A of the Code, the Executive’s right to
receive installment payments pursuant to Section 2.3(a) shall be treated as a right to receive a series of separate and distinct payments. To the extent that any reimbursement of any expense under Section 1.4(e) or in-kind benefits
provided under this Agreement are deemed to constitute taxable compensation to the Executive, such amounts will be reimbursed or provided no later than December 31 of the year following the year in which the expense was incurred. The amount of
any such expenses reimbursed or in-kind benefits provided in one year shall not affect the expenses or in-kind benefits eligible for reimbursement or payment in any subsequent year, and the Executive’s right to such reimbursement or payment of
any such expenses will not be subject to liquidation or exchange for any other benefit. The determination of whether the Executive is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of
the Executive’s separation from service shall be made by the Corporation in accordance with the terms of Section 409A of the Code and applicable guidance thereunder (including without limitation Treasury Regulation Section 1.409A-1(i)
and any successor provision thereto). 
 (b) If the Executive’s employment is terminated by reason of the Executive’s
death or disability, pursuant to Sections 2.1(b) or 2.1(c), the Executive (or the Executive’s designee or estate) shall only be entitled to whatever welfare plans benefits are available to the Executive pursuant to the welfare plans the
Executive participated in prior to such termination, and whatever stock awards may have been provided to the Executive by the Corporation the terms of which shall be governed by the provisions of the Corporation’s Incentive Plan and the
respective award agreements, if any, under which such stock awards were provided. 
 (c) If the Executive’s employment is
terminated by the Corporation for Cause or by the Executive without Good Reason (as defined in Section 2.1(e)), the Executive shall receive only that portion of the Executive’s then current Base Compensation payable through the
Executive’s termination date. The Executive’s rights with respect to any stock awards provided to the Executive by the Corporation shall be governed by the provisions of the Corporation’s Incentive Plan and the respective award
agreements, if any, under which such stock awards were provided. 
 ARTICLE III 

COVENANTS OF THE EXECUTIVE 
 3.1 Non-Compete. 
 (a) The Corporation and the Executive acknowledge that:
(i) the Corporation has a special interest in and derives significant benefit from the unique skills and 

  
 6 

 
experience of the Executive; (ii) the Executive will use and have access to proprietary and valuable Confidential Information (as defined in Section 3.2 hereof) during the course of the
Executive’s employment; and (iii) the agreements and covenants contained herein are essential to protect the business and goodwill of the Corporation or any of its subsidiaries, affiliates or licensees. Accordingly, except as hereinafter
noted, the Executive covenants and agrees that during the Term, and for the remainder of such Term following the termination of Executive’s employment, the Executive shall not provide any labor, work, services or assistance (whether as an
officer, director, employee, partner, agent, owner, independent contractor, consultant, stockholder or otherwise) to a “Competing Business.” For purposes hereof, “Competing Business” shall mean any business engaged in the
designing, marketing or distribution of premium lifestyle products, including but not limited to apparel, home, accessories and fragrance products, which competes in any material respects with the Corporation or any of its subsidiaries, affiliates
or licensees, and shall include, without limitation, those brands and companies that the Corporation and the Executive have jointly designated in writing on the date hereof, which is incorporated herein by reference and which is attached as Schedule
A, as being in competition with the Corporation or any of its subsidiaries, affiliates or licensees as of the date hereof. Thus, Executive specifically acknowledges that Executive understands that, except as provided in Section 3.1(b) he may
not become employed by any Competing Business in any capacity during the Term. 
 (b) The non-compete provisions of this Section
shall no longer be applicable to Executive if he has been notified pursuant to Section 2.1(a) hereof that his services will no longer be required during the Term or if the Executive has terminated his employment for Good Reason pursuant to
Section 2.1(e) or if the Corporation elects in its sole discretion not to extend the Term for any reason other than for Cause. 
 (c) It is acknowledged by the Executive that the Corporation has determined to relieve the Executive from any obligation of non-competition for periods after the Term, and/or if the Corporation terminates
the Executive’s employment under Section 2.1(a) or if the Executive has terminated his employment for Good Reason pursuant to Section 2.1(e) or if the Corporation elects in its sole discretion not to extend the Term for any reason
other than for Cause. In consideration of that, and in consideration of all of the compensation provisions in this Agreement (including the potential for the award of stock options and/or RPSUs that may be made to the Executive), Executive agrees to
the provisions of Section 3.1 and also agrees that the non-competition obligations imposed herein are fair and reasonable under all the circumstances. 
 3.2 Confidential Information. 
 (a) The Corporation owns and has developed
and compiled, and will own, develop and compile, certain proprietary techniques and confidential information as described below which have great value to its business (referred to in this Agreement, collectively, as “Confidential
Information”). Confidential Information includes not only information disclosed by the Corporation and/or its affiliates, subsidiaries and licensees to Executive, but also information developed or learned by Executive during the course of, or
as a result of, employment hereunder, which information Executive acknowledges is and shall be the sole and exclusive property of the Corporation. Confidential Information includes all proprietary information that has or could have commercial value
or other utility in the business in which the 

  
 7 

 
Corporation is engaged or contemplates engaging, and all proprietary information the unauthorized disclosure of which could be detrimental to the interests of the Corporation. Whether or not such
information is specifically labeled as Confidential Information by the Corporation is not determinative. By way of example and without limitation, Confidential Information includes any and all information developed, obtained or owned by the
Corporation and/or its subsidiaries, affiliates or licensees concerning trade secrets, techniques, know-how (including designs, plans, procedures, processes and research records), software, computer programs, innovations, discoveries, improvements,
research, development, test results, reports, specifications, data, formats, marketing data and plans, business plans, strategies, forecasts, unpublished financial information, orders, agreements and other forms of documents, price and cost
information, merchandising opportunities, expansion plans, designs, store plans, budgets, projections, customer, supplier and subcontractor identities, characteristics and agreements, and salary, staffing and employment information. Notwithstanding
the foregoing, Confidential Information shall not in any event include (A) Executive’s personal knowledge and know-how relating to merchandising and business techniques which Executive has developed over his career in the apparel business
and of which Executive was aware prior to his employment, or (B) information which (i) was generally known or generally available to the public prior to its disclosure to Executive; (ii) becomes generally known or generally available
to the public subsequent to disclosure to Executive through no wrongful act of any person or (iii) which Executive is required to disclose by applicable law or regulation (provided that Executive provides the Corporation with prior notice of
the contemplated disclosure and reasonably cooperates with the Corporation at the Corporation’s expense in seeking a protective order or other appropriate protection of such information). 

(b) Executive acknowledges and agrees that in the performance of his duties hereunder the Corporation will from time to time disclose to
Executive and entrust Executive with Confidential Information. Executive also acknowledges and agrees that the unauthorized disclosure of Confidential Information, among other things, may be prejudicial to the Corporation’s interests, and an
improper disclosure of trade secrets. Executive agrees that he shall not, directly or indirectly, use, make available, sell, disclose or otherwise communicate to any corporation, partnership, individual or other third party, other than in the course
of his assigned duties and for the benefit of the Corporation, any Confidential Information, either during his Term of employment or thereafter. 
 (c) The Executive agrees that upon leaving the Corporation’s employ, the Executive shall not take with the Executive any software, computer programs, disks, tapes, research, development, strategies,
designs, reports, study, memoranda, books, papers, plans, information, letters, e-mails, or other documents or data reflecting any Confidential Information of the Corporation, its subsidiaries, affiliates or licensees. 

(d) During the Term, Executive shall disclose to the Corporation all designs, inventions and business strategies or plans developed for
the Corporation, including without limitation any process, operation, product or improvement. Executive agrees that all of the foregoing are and shall be the sole and exclusive property of the Corporation and that Executive shall at the
Corporation’s request and cost do whatever is necessary to secure the rights thereto, by patent, copyright or otherwise, to the Corporation. 

  
 8 

 3.3 Non-Solicitation of Employees. The Executive covenants and agrees that during the
Term, and for the remainder of such Term following the termination of Executive’s employment for any reason whatsoever hereunder, the Executive shall not directly or indirectly solicit or influence any other employee of the Corporation, or any
of its subsidiaries, affiliates or licensees, to terminate such employee’s employment with the Corporation, or any of its subsidiaries, affiliates or licensees, as the case may be, or to become employed by a Competing Business. As used herein,
“solicit” shall include, without limitation, requesting, encouraging, enticing, assisting, or causing, directly or indirectly. 
 3.4 Nondisparagement. The Executive agrees that during the Term and thereafter whether or not he is receiving any amounts pursuant to Sections 2.3 and 4.1, the Executive shall not make any
statements or comments that reasonably could be considered to shed an adverse light on the business or reputation of the Corporation or any of its subsidiaries, affiliates or licensees, the Board or any officer of the Corporation or any of its
subsidiaries, affiliates or licensees; provided, however, the foregoing limitation shall not apply to (i) compliance with legal process or subpoena, or (ii) statements in response to an inquiry from a court or regulatory body. 

3.5 Remedies. 
 (a) The Executive acknowledges and agrees that in the event the Corporation reasonably determines that the Executive has breached any provision of this Article III, that such conduct will constitute a
failure of the consideration for which stock awards had been previously granted to the Executive or could be awarded in the future to Executive, and notwithstanding the terms of any stock award agreement, plan document, or other provision of this
Agreement to the contrary, the Corporation may in its sole discretion notify the Executive that all unexercised stock options, RPSUs and restricted stock units that Executive has are forfeited. Further, the Executive shall immediately forfeit the
right to receive any further grants of or vest any further in any unvested stock options, unvested restricted stock units or unvested RPSUs of the Corporation at the time of such notice and Executive waives any right to assert that any such conduct
by the Corporation violates any federal or state statute, case law or policy. 
 (b) If the Corporation reasonably determines
that the Executive has breached any provision contained in this Article III, the Corporation shall have no further obligation to make any payment or provide any benefit whatsoever to the Executive pursuant to this Agreement, and may also recover
from the Executive all such damages as it may be entitled to at law or in equity. In addition, the Executive acknowledges that any such breach is likely to result in immediate and irreparable harm to the Corporation for which money damages are
likely to be inadequate. Accordingly, the Executive consents to injunctive and other appropriate equitable relief upon the institution of proceedings therefor by the Corporation in order to protect the Corporation’s rights hereunder. Such
relief may include, without limitation, an injunction to prevent: (i) the breach or continuation of Executive’s breach; (ii) the Executive from disclosing any trade secrets or Confidential Information (as defined in Section 3.2);
(iii) any Competing Business from receiving from the Executive or using any such trade secrets or Confidential Information; and/or (iv) any such Competing Business from retaining or seeking to retain any employees of the Corporation.

  
 9 

 3.6 The provisions of this Article III shall survive the termination of this Agreement and
Executive’s Term of employment. 
 ARTICLE IV 
 CHANGE IN CONTROL 
 4.1 Change in Control. 

(a) Effect of a Change in Control. Notwithstanding anything contained herein to the contrary, if the Executive’s employment
is terminated within twelve (12) months following a Change in Control (as defined in Section 4.1(b) hereof) during the Term by the Corporation for any reason other than Cause, or by the Executive for Good Reason, then: 

(i) Severance. The Corporation shall pay to the Executive, in lieu of any amounts otherwise due to him under Section 2.3(a)
hereof, within fifteen (15) days of the Executive’s termination of employment, or within the timeframe required by Section 2.3(a)(v) hereof if applicable, a lump sum amount equal to two (2) times the sum of: (A) the
Executive’s Base Compensation, as in effect immediately prior to such termination of employment; and (B) the bonus paid to the Executive for the most recently completed fiscal year prior to the fiscal year in which his employment is
terminated. Notwithstanding the foregoing, solely to the extent necessary to comply with Section 409A of the Code, a portion of such lump sum payment will not be payable at such time if the duration of the Severance Period that would have
otherwise applied under Section 2.3(a)(i) (had a Change in Control not occurred during the twelve-month period prior to such termination of employment) would have extended beyond the end of the second calendar year following the calendar year
in which such termination of employment occurs (any such period beyond the end of such second calendar year is the “Extended Severance Payment Period”). In addition, such other amounts that otherwise would have been payable to the
Executive under Section 2.3(a)(i) had a Change in Control not occurred during the twelve (12) month period prior to such termination of employment, and that would have constituted nonqualified deferred compensation subject to
Section 409A of the Code, will also not be included as part of such lump sum payment. In such event, an amount equal to the aggregate installment payments that would have been payable during the Extended Severance Payment Period, and the
amounts described in the preceding sentence, shall be deducted from the amount otherwise payable in a lump sum in accordance with the first sentence hereof. Such deducted amount shall, instead, be payable at the same time that, and in the same
manner as, such payments would have been paid if the Executive’s employment had been terminated pursuant to Section 2.3(a) hereof rather than within a twelve-month period following a Change in Control. 

(ii) Stock Awards. Subject to Section 2.3(a)(v), the Executive shall immediately become vested in any unvested stock options
granted to the Executive by the Corporation prior to the Change in Control and Executive will have six (6) months from the date of termination under this circumstance to exercise all vested options (but in no event later than the expiration
date of such options). In addition, subject to Section 2.3(a)(v), any awards of RPSUs and restricted shares which are unvested shall be deemed vested immediately prior to such Change in Control. 

  
 10 

 (b) Definition. For purposes hereof, a “Change in Control” shall mean the
occurrence of any of the following: 
 (i) the sale, lease, transfer, conveyance or other disposition, in one or a series of
related transactions, of all or substantially all of the assets of the Corporation to any “person” or “group” (as such terms are used in Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act of 1934 (“Act”))
other than Permitted Holders; 
 (ii) any person or group is or becomes the “beneficial owner” (as defined in Rules
13d-3 and 13d-5 under the Act, except that a person shall be deemed to have “beneficial ownership” of all shares that any such person has the right to acquire, whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of more than 50 percent of the total voting power of the voting stock of the Corporation, including by way of merger, consolidation or otherwise; provided, however, that for purposes of this Agreement, the following
acquisitions shall not constitute a Change in Control: (I) any acquisition by the Corporation or any affiliate, (II) any acquisition by any employee benefit plan sponsored or maintained by the Corporation or any affiliate, (III) any acquisition
by one or more of the Permitted Holders, or (IV) any acquisition which complies with clauses (A), (B) and (C) of subsection (v) below; 
 (iii) during any period of twelve (12) consecutive months, Present and/or New Directors cease for any reason to constitute a majority of the Board; 

(iv) the Permitted Holders’ beneficial ownership of the total voting power of the voting stock of the Corporation falls below 30
percent and either Ralph Lauren is not nominated for a position on the Board of Directors, or he stands for election to the Board of Directors and is not elected; 
 (v) the consummation of a reorganization, recapitalization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Corporation that requires the approval of
the Corporation’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (A) more than 50% of the total
voting power of (x) the entity resulting from such Business Combination (the “Surviving Company”), or (y) if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of sufficient voting
securities eligible to elect a majority of the members of the board of directors (or the analogous governing body) of the Surviving Company (the “Parent Company”), is represented by the shares of voting stock of the Corporation that were
outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which the shares of voting stock of the Corporation were converted pursuant to such Business Combination), and such voting power among the
holders thereof is in substantially the same proportion as the voting power was among the holders of the shares of voting stock of the Corporation that were outstanding immediately prior to the Business Combination, (B) no person (other than
any employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company, or one or more Permitted Holders), is or becomes the beneficial owner, directly or indirectly, of 50% or more of the total voting power of the
outstanding voting securities eligible to elect members of the board of directors of the Parent Company (or the analogous 

  
 11 

 
governing body) (or, if there is no Parent Company, the Surviving Company) and (C) at least a majority of the members of the board of directors (or the analogous governing body) of the
Parent Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Business Combination were Board members at the time of the Board’s approval of the execution of the initial agreement providing for such
Business Combination; or 
 (vi) the stockholders of the Corporation approve a plan of complete liquidation or dissolution of
the Corporation. 
 For purposes of this Section 4.1(b), the following terms have the meanings indicated: “Permitted Holders”
shall mean, as of the date of determination: (A) any and all of Ralph Lauren, his spouse, his siblings and their spouses, and descendants of them (whether natural or adopted) (collectively, the “Lauren Group”); and (B) any trust
established and maintained primarily for the benefit of any member of the Lauren Group and any entity controlled by any member of the Lauren Group. “Present Directors” shall mean individuals who at the beginning of any one year period were
members of the Board. “New Directors” shall mean any directors whose election by the Board or whose nomination for election by the shareholders of the Corporation was approved by a vote of a majority of the directors of the Corporation
who, at the time of such vote, were either Present Directors or New Directors but excluding any such individual whose initial assumption of office occurs solely as a result of an actual or threatened proxy contest with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board. 
 ARTICLE V 
 MISCELLANEOUS 

5.1 Notice. For the purposes of this Agreement, notices, demands and all other communications provided for in the Agreement shall
be in writing and shall be deemed to have been duly given when delivered by hand or by facsimile or mailed by United States registered mail, return receipt requested, postage prepaid, addressed as follows: 

 

			
	If to the Executive:	  	Christopher Peterson
		  	7805 Hartford Hill Lane
		  	Cincinnati, Ohio 45242
		
	If to the Corporation:	  	Ralph Lauren Corporation
		  	650 Madison Avenue
		  	New York, New York 10022
		  	Attn: Mitchell A. Kosh
		  	Senior Vice President - Human Resources
		  	Fax: (212) 318-7277

 or to such other address as any 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 

 5.2 Modification or Waiver; Entire Agreement; End of Term. No provision of this
Agreement may be modified or waived except in a document signed by the Executive and the Corporation. This Agreement, along with any documents incorporated herein by reference, including but not limited to the Offer Letter, constitutes the entire
agreement between the parties regarding their employment relationship and supersedes all prior agreements, amendments, promises, covenants, representations or warranties. To the extent that this Agreement is in any way inconsistent with any prior or
contemporaneous stock award agreements between the parties, and to the extent that this Agreement is inconsistent with the Offer Letter, this Agreement shall control. No agreements or representations, oral or otherwise, with respect to the subject
matter hereof have been made by either party that are not set forth expressly in this Agreement. Any extensions or renewals of this Agreement must be in writing and must be agreed to by both the Corporation and the Executive. Absent such extensions
or renewals, this Agreement and all of its terms and conditions, except for those provisions in Article III as specified therein, shall expire upon the end of the Term. If Executive continues to be employed by the Corporation beyond the Term, such
employment shall be “at will.” 
 5.3 Governing Law. The validity, interpretation, construction, performance,
and enforcement of this Agreement shall be governed by the laws of the State of New York without reference to New York’s choice of law rules. In the event of any dispute, the Executive agrees to submit to the jurisdiction of any court sitting
in Manhattan in New York State. 
 5.4 No Mitigation or Offset. In the event the Executive’s employment with the
Corporation terminates for any reason, the Executive shall not be obligated to seek other employment following such termination and there shall be no offset of the payments or benefits set forth herein. 

5.5 Withholding. All payments required to be made by the Corporation hereunder to the Executive or the Executive’s estate or
beneficiaries shall be subject to the withholding of such amounts as the Corporation may reasonably determine it should withhold pursuant to any applicable law. 
 5.6 Attorney’s Fees. Each party shall bear its own attorney’s fees and costs incurred in any action or dispute arising out of this Agreement and/or the employment relationship.

 5.7 No Conflict. Executive represents and warrants that he is not party to any agreement, contract, understanding,
covenant, judgment or decree or under any obligation, contractual or otherwise, with any other party that in any way restricts or adversely affects his ability to act for the Corporation in all of the respects contemplated hereby, including but not
limited to any obligations to comply with any non-compete or non-solicitation provisions. 
 5.8 Enforceability. Each of
the covenants and agreements set forth in this Agreement are separate and independent covenants, each of which has been separately bargained for and the parties hereto intend that the provisions of each such covenant shall be enforced to the fullest
extent permissible. Should the whole or any part or provision of any such separate covenant be held or declared invalid, such invalidity shall not in any way affect the validity of any other such covenant or of any part or provision of the same
covenant not also held or 

  
 13 

 
declared invalid. If any covenant shall be found to be invalid but would be valid if some part thereof were deleted or the period or area of application reduced, then such covenant shall apply
with such minimum modification as may be necessary to make it valid and effective. The failure of either party at any time to require performance by the other party of any provision hereunder will in no way affect the right of that party thereafter
to enforce the same, nor will it affect any other party’s right to enforce the same, or to enforce any of the other provisions in this Agreement; nor will the waiver by either party of the breach of any provision hereof be taken or held to be a
waiver of any prior or subsequent breach of such provision or as a waiver of the provision itself. 
 5.9 Miscellaneous.
No right or interest to, or in, any payments shall be assignable by the Executive; provided, however, that this provision shall not preclude the Executive from designating in writing one or more beneficiaries to receive any amount that
may be payable after the Executive’s death and shall not preclude the legal representative of the Executive’s estate from assigning any right hereunder to the person or persons entitled thereto. If the Executive should die while any
amounts would still be payable to the Executive hereunder, all such amounts shall be paid in accordance with the terms of this Agreement to the Executive’s written designee or, if there be no such designee, to the Executive’s estate. This
Agreement shall be binding upon and shall inure to the benefit of, and shall be enforceable by, the Executive, the Executive’s heirs and legal representatives and the Corporation and its successors. The section headings shall not be taken into
account for purposes of the construction of any provision of this Agreement. 
 5.10 Meaning of Signing This Agreement.
By signing this Agreement, Executive expressly acknowledges and agrees that (a) he has carefully read it and fully understands what it means; (b) he has been advised in writing to discuss this Agreement with an independent attorney of his
own choosing before signing it and has had a reasonable opportunity to confer with his attorney and has discussed and reviewed this Agreement with his attorney prior to executing it and delivering it to the Corporation; (c) he has had answered
to his satisfaction any questions he has with regard to the meaning and significance of any of the provisions of this Agreement; and (d) he has agreed to this Agreement knowingly and voluntarily of his own free will and was not subjected to any
undue influence or duress, and assents to all the terms and conditions contained herein with the intent to be bound hereby. 

5.11 Compliance with Section 409A. The parties acknowledge and agree that, to the extent applicable, this Agreement shall be
interpreted in accordance with, and the parties agree to use their best efforts to achieve timely compliance with, Section 409A of the Code and the Department of Treasury Regulations and other interpretive guidance issued thereunder
(“Section 409A”), including without limitation any such regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision of this Agreement to the contrary, in the event that the Corporation
determines that any compensation or benefits payable or provided hereunder may be subject to Section 409A, the Corporation reserves the right (without any obligation to do so or to indemnify the Executive for failure to do so) to adopt such
limited amendments to this Agreement and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Corporation reasonably determines are necessary or appropriate to (a) exempt the compensation and
benefits payable under this Agreement from Section 409A and/or preserve the intended tax treatment of the compensation and benefits provided with respect to this Agreement or (b) comply with the requirements of Section 409A.

  
 14 

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

									
	Date:	 	 8/26/12
	 		 	Date:	 	 8/24/12

				
	RALPH LAUREN CORPORATION	 		 		 	
			
	 /s/ MITCHELL KOSH
	 		 	 /s/ CHRISTOPHER H. PETERSON

	By:	 	Mitchell Kosh	 		 	Christopher Peterson
					
	Title:	 	Senior Vice President – Human Resources	 		 		 	

  
 15 

 SCHEDULE A 
 Abercrombie & Fitch Co. 
 Ann Taylor Stores Corp. 

Brooks Brothers 
 Burberry Limited 

Campagnie Financiere Richemont SA 
 Chanel S.A.

 Coach, Inc. 
 Crate & Barrel
(aka Euromarket Designs, Inc.) 
 Dillard’s Inc. 
 Dolce & Gabbana 
 Gap Inc. 
 Giorgio Armani Corp. 
 Hermes International 

Hugo Boss AG 
 J. Crew Group, Inc. 

Jones Apparel Group, Inc. 
 Limited Brands, Inc.

 LVMH Moet Hennessy Louis Vuitton S.A. 

Macy’s Inc. 
 Michael Kors, Inc. 

Neiman Marcus Group, Inc. 
 Nordstrom, Inc.

 Phillips-Van Heusen Corp. 
 PPR Group

 Prada (aka I Pellettieri d’Italia S.P.A.) 
 Saks Inc. 
 Salvatore Ferragamo Italia S.P.A. 

TJX Companies, Inc. 
 Williams-Sonoma, Inc.

  
 16 

 August 22, 2012 
 Christopher Peterson 
 7805 Hartford Hill Lane 

Cincinnati, Ohio 45242 
 Dear Chris: 

We are very pleased to have you join Ralph Lauren Corporation (the “Company”) and extend our congratulations along with a warm welcome. This
letter is a confirmation of our offer to you to join the Company. The details of this offer are outlined below. As you know, this letter constitutes confirmation of an offer of employment only and is not to be construed in any way as an employment
contract. This letter shall be attached as an exhibit to a definitive Employment Agreement to be executed by the parties. 
  

					
	Title:	  	Senior Vice President and Chief Financial Officer
		
	Start Date:	  	To be determined but no later than September 30, 2012
		
	Reports to:	  	Roger Farah, President and Chief Operating Officer
		
	Base Salary:	  	$800,000 annually less all applicable taxes and other deductions. You will regularly receive your pay bi-weekly on Fridays.
		
	Executive Officer Annual Incentive Plan:	  	 You are eligible to participate in the Executive Officer Annual Incentive Plan (EOAIP) for fiscal 2013, which began April 1,
2012, and eligible to earn a bonus which will be prorated based on your Start Date.
  
 Bonus

			
		  	 •      
	  	Under the EOAIP, you are eligible for a bonus opportunity with a target of 150% of your fiscal year salary earnings.
			
		  	 •      
	  	Your total bonus opportunity will be based 100% on total Company performance.
			
		  	 •      
	  	Calculation can flex up or down by -10% to +10% based on achievement of the Strategic Goal established for the EOAIP.
			
		  	 •      
	  	The maximum bonus payable (including Strategic Goal adjustment) is capped at 330% of your fiscal year salary earnings.
		
		  	(At all times your bonus opportunity will be governed by the terms of the Company’s EOAIP and nothing contained herein restricts the Company’s rights to
alter, amend or terminate the EOAIP at any time.)
		
	Annual Equity Award:	  	You are also eligible to participate in the Company stock award program. Stock awards are subject to ratification by the Compensation and Organizational Development
Committee of the Board of Directors (“the Compensation Committee”). In accordance with the terms of the Company Long-Term Stock Incentive Plan, beginning with fiscal 2014, you will be eligible to receive an annual award with a value of
$1,000,000 on the same date that annual grants are made to other senior executives, normally with a portion of the award in each of April and July but may be earlier or later.

  
 17 

					
		
	One-Time Stock Award:	  	 You will receive a one-time stock award with a value of approximately $2,500,000 to be granted 1) with $1,500,000 in the
form of time-based Restricted Stock Units vesting in three equal installments on the anniversary date of the grant in 2013, 2014 and 2015, subject to continued service to each vesting date, pursuant to the terms of the Plan, and each such vested
share shall be settled as soon as practicable but not more than 30 days after the vesting date; and 2) $1,000,000 in the form of stock options vesting in three equal installments on the anniversary date of the grant in 2013, 2014, and 2015, subject
to continued service to each vesting date, pursuant to the terms of the Plan. The One-Time Stock Award will be granted as soon as practicable following your employment date, subject to approval by the Compensation Committee. You shall immediately
vest in any unvested restricted stock units or any unvested stock options granted as part of this One-Time Stock Award on the date of your termination unless your employment is terminated by the Company for Cause or by you without Good Reason, as
defined in the Employment Agreement. Any stock options vested in accordance with the preceding sentence can be exercised for up to three months from your termination date in accordance with the terms of the Plan.

 
 For all equity awards, conversion of values to be based on the Company’s
standard procedure of using the Fair Market Value 10 days before the applicable grant date, as approved by the Compensation Committee.

		
	One-Time Payment	  	You will receive a one-time payment of $50,000 (“One-Time Payment”), less applicable deductions, within 30 days of your Start Date. If you terminate your
employment for any reason, or if the Company terminates your employment for Cause within 24 months of your Start Date, then you shall repay the One-Time Payment to the Company within 15 days of the date of termination of your employment. If you
do not repay the One-Time Payment within this time period, the Company has the right to immediately recover the One-Time Payment from you.
		
	Car Allowance:	  	You will receive a car allowance of $18,000 annually ($1,500 per month) less all applicable deductions.
		
	Relocation:	  	You are eligible for relocation assistance as outlined in the attached Relocation Letter and Relocation Agreement.
		
	Vacation:	  	You are eligible for four (4) weeks of vacation annually.
		
	Benefits:	  	You are eligible to participate in the Company’s medical, dental, life, short and long-term disability insurance programs beginning on the first day of the pay
period following thirty (30) days of service. Information regarding Company benefits will be sent to you under separate cover.
		
	Merchandise Discount:	  	You will receive merchandise discounts applicable to employees of the Company.
		
	Commuter Benefits Program:	  	Commuter participants will be eligible to participate in a tax-free Commuter Benefit Program to pay for transit passes and tickets.
		
	401(k):	  	You are eligible to participate in the 401(k) Retirement Savings Plan upon hire. Following completion of 1,000 hours and one (1) year of service you will become eligible
to receive the Company match. Information regarding the Company 401(k) plan will be sent to you under separate cover.
		
	 Financial

Counseling:
	  	 You will be eligible for one-on-one financial counseling. You may choose from two organizations designated by the Company to
provide this service. The annual fee is paid by the Company but will be treated as imputed income to you.

		
	Release from Non-Compete:	  	By signing this letter below, you confirm that you are not subject in any way to any non-competition or non-solicitation obligations or other restrictions with any other
company that restricts or adversely affects your ability to perform services for the Company.

  
 18 

 Please feel free to contact me if you have any questions or require additional information. 

Very truly yours, 
  

 

	
	 /s/ ROGER N. FARAH

	 Roger N. Farah
 President and
Chief Operating Officer

  
 Agreed to: 

 

					
	 /s/ CHRISTOPHER H. PETERSON
	 		 	 8/24/12

	Christopher Peterson	 		 	Date

  
 19 

 August 22, 2012 
 Christopher Peterson 
 7805 Hartford Hill Lane 

Cincinnati, Ohio 45242 
 Dear Chris: 

Congratulations on your new position with Ralph Lauren Corporation. The Company is offering the following relocation package to assist you in your move
to the New York City area. Please review the parameters at your earliest convenience and return the enclosed repayment agreement. 
 Please note
that the relocation benefits described below are contingent upon your relocating to the New York metropolitan area within eighteen (18) months of your start date and are intended to cover reasonable and customary expenses only. If you do not
relocate within such time period, the Company shall not have any obligation to provide the following relocation payments and reimbursements. 

Relocation Allowance: 
 A one-time
payment of $100,000 less all applicable taxes will be paid to you within 30 days of your start date. This payment is intended to cover various expenses incurred during your move that are not otherwise covered by the Company’s relocation policy.

 Temporary Living: 
 The
Company will pay for temporary housing in New York through no later than June 2013. Housing will be arranged for you by our Relocation Department consistent with your position and the size of your family. 

Household Goods: 
 The Company will pay
for the packing, transportation and unpacking of household goods and personal effects. In addition, storage for a period of up to 60 days will be provided if necessary. 
 Home-Finding Trip: 
 The Company will cover customary expenses for up to two house-hunting
trips for you and your family. These trips also include reasonable living expenses. All travel arrangements for these trips will be made through the Ralph Lauren Travel Department. 
 Home Sale/Purchase Assistance: 
 The Company agrees to pay for reasonable and customary
expenses that you are required to pay as a seller or purchaser, respectively, associated with the sale of your current residence and the same for the purchase of your new residence (except as noted below). These amounts will be based on your final
US. Department of Housing and Urban Development Statement (HUD closing statement) for each property involved. Please note this assistance is provided for the sale and purchase of primary residences only. This does not include rental properties, home
businesses (including farms or ranches), vacation homes, mobile homes, etc. 
  

	 	•	 	 Expenses not covered: Mortgage “points” or “buydown,” mortgage origination fees, and pre-paid expenses that would normally be your
responsibility on an ongoing basis (such as pre-paid taxes or interest) are not covered by this policy and will not be reimbursed by the Company. 

  
 20 

 The Company may, at its discretion, use the services of a relocation assistance firm to manage your move and
buy/sell transactions. It is expected that you will cooperate with the firm and reasonably assist them in the marketing and sale of your current home and purchase of your new residence. 
 Tax Information: 
 Some relocation assistance the Company pays on your behalf, or directly
to you, is considered as compensation to be included in your gross annual income. Except as otherwise noted in this letter, any expense subject to tax will be delivered to you on a grossed-up basis using the Company’s standard gross-up formula
for the expected tax liability. This gross-up amount is an estimate and may not reflect your actual tax liability. 
 To the extent that
reimbursement of any expense or relocation benefits provided in this letter are deemed to constitute taxable compensation to you, such amounts will be reimbursed on or before the last day of the calendar year following the calendar year in which the
expense is incurred. 
 Please contact Helene Pliner, Vice President, Benefits and HR Administration (201-531-6864) to review the detailed
parameters of your relocation package or to discuss in advance any expenses anticipated to be above reasonable and customary. Upon receipt of your signed Relocation Agreement, we will expedite the package offered. 

 

	
	Very truly yours,
	
	 /s/ ROGER N. FARAH

	Roger N. Farah
	President and Chief Operating Officer

  
 21 

 Relocation Agreement 

 
  
 I, Christopher Peterson, understand that any relocation benefits that I receive from Ralph Lauren Corporation (the “Company”) are paid by the Company on the condition that I remain with the
Company for at least twenty-four (24) months from the start date of my new position. Relocation benefits include all reasonable and customary relocation expenses paid to me, including direct reimbursements or to a third party on my behalf.

 I hereby acknowledge and agree that if, for any reason, I terminate my employment within twenty-four (24) months from my start date,
other than for Good Reason, as defined in my employment agreement with the Company dated 9/24/12 (“Employment Agreement”), or if the Company terminates my employment for Cause as defined in my Employment Agreement, I shall reimburse the
Company for the full amount of the relocation expenses, paid in accordance with the below described schedule. This repayment includes the one-time payment of $50,000 and the relocation allowance of $100,000 set forth in the Company’s Offer
Letter and Relocation Letter to me dated August 22, 2012, addressing relocation benefits (“Relocation Letter”) as well as all other relocation expenses. 
 I hereby consent to the deduction of all or part of such reimbursements due to the Company under this Agreement from any amount owed to me by the Company on the termination date (i.e., vacation pay, final
pay, expense settlements) in accordance with applicable law. I will be responsible for all subsequent tax consequences. If these deductions are insufficient, I agree to fully reimburse the Company within fifteen (15) days of my termination date
for the balance of such relocation expenses owed under this Agreement. 
 This Agreement, along with any documents incorporated herein by
reference, including but not limited to the Employment Agreement, the Offer Letter and the Relocation Letter, constitutes the entire agreement between the parties regarding any relocation benefits that I receive from the Company and supersedes all
prior agreements, amendments, promises, covenants, representations or warranties addressing such relocation benefits. 
 In the event the
Company commences legal proceedings to enforce its rights under this Agreement and the Company is the prevailing party in such proceedings, it shall be entitled to recover all costs and expenses incurred, including attorney’s fees and costs.

 The validity, interpretation, construction, performance, and enforcement of this Agreement shall be governed by the laws of the State of New
York without reference to New York’s choice of law rules. In the event of any dispute, I agree to submit to the jurisdiction of any court sitting in Manhattan in New York State. 

 

					
	 /s/ CHRISTOPHER H. PETERSON
	 		 	 8/24/12

	Christopher Peterson	 		 	Date
			
	RALPH LAUREN CORPORATION	 		 	
			
	 /s/ ROGER N. FARAH
	 		 	 Aug. 22, 2012

	Roger N. Farah	 		 	Date
	President and Chief Operating Officer	 		 	

  
 22

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