Document:

Exhibit

EXHIBIT 10.26e
	
	
	2015
PERFORMANCE-BASED RESTRICTED STOCK UNIT GRANT
Terms

TIFFANY & CO.
a Delaware Corporation
(the “Parent”)
AMENDED AND RESTATED
TERMS OF PERFORMANCE-BASED RESTRICTED STOCK UNIT GRANT
(Non-Transferable)
under the  
  2014 EMPLOYEE INCENTIVE PLAN
(the “Plan”)
Terms Effective January 14, 2015

1.  Introduction and Terms of Grant.  Participant has been granted (the “Grant”) Stock Units which shall be settled by the issuance and delivery of Shares of the Parent’s Common Stock.  The Grant has been made under the Plan by the Stock Option Subcommittee of the Parent Board (the “Committee”).  The name of the “Participant”, the “Grant Date”, the number of “Stock Units” granted, the “Performance Period”, the “Earnings Threshold”, the “Earnings Target”, the “Earnings Maximum” and the “ROA Target” are stated in the attached “Notice of Grant”.  The other terms and conditions of the Grant are stated in this document and in the Plan.  Certain initially capitalized words and phrases used in this document are defined in the Definitions Appendix attached and elsewhere in this document or in the Plan.  Reference to Stock Units in this document is reference to all or part of the Stock Units which are subject to the Grant, and not to other Stock Units that have been granted or that may be granted in the future.  

2.  Grant and Adjustment.  Subject to the terms and conditions stated in this document, Participant has been granted Stock Units by the Parent.  As of the Grant Date, each Stock Unit has a Settlement Value of one Share, but the number of Shares which shall be issued and delivered pursuant to the Grant on the settlement of each Stock Unit (the “Settlement Value”) shall be subject to adjustment as provided in Section 4.2(c) of the Plan, to adjust for, among other corporate developments, stock splits and stock dividends. References to Settlement Values in this document shall be deemed reference to Settlement Values as so adjusted.  As anticipated in Section 4.7 of the Plan, Shares that have not been issued and delivered to a Participant shall be represented by Stock Units.

3.   Performance Vesting.  Unless otherwise provided in section 4 or 5 below, the Performance Portion (as defined below) of the Stock Units will vest three business days following the public announcement of the Parent’s audited, consolidated financial results for the last fiscal year in the Performance Period (the “Maturity Date”).  A Stock Unit that has vested is herein referred to as a “Vested Unit.”  Within thirty (30) days following the Maturity Date, but in no event later than December 31 of the calendar year in which the last day of the Performance Period occurs, the Settlement Value of each Vested Unit shall be issued and delivered to or for the account of Participant in Shares.  As provided for in Section 7 below, the Parent may make such delivery to a Service Provider.  In all circumstances, a Stock Unit which fails to vest on or before the Maturity Date shall be void and shall not confer upon the owner of such Stock Unit any rights, including any right to any Share.  In the event that any provision of this document would otherwise result in the issuance of a fractional Share, the Parent will not be obligated to issue such fractional Share.   

The “Performance Portion” shall be a percentage of the Stock Units calculated as hereinafter provided (provided that the Performance Portion shall never exceed 100% of the Stock Units):
    

		
	(a)
	The Performance Portion shall be 0% of the Stock Units if the Earnings Threshold is not attained over the Performance Period.  

		
	(b)
	Subject to reduction pursuant to subsection (c) below, if the Earnings Threshold has been attained over the Performance Period, the Performance Portion shall be 100% of the Stock Units.   

		
	(c)
	If the Earnings Threshold has been attained over the Performance Period the Committee shall, in its sole discretion, have the right to reduce the Performance Portion to 0% of the Stock Units or any percentage of the Stock Units less than 100%.  The Committee may exercise such discretion on any date that occurs following the close of the Performance Period and prior to the Maturity Date.  The Committee has provided guidance to Participant with respect to factors, including the Earnings Target, the Earnings Maximum and the ROA Target, that the Committee intends to apply in effecting such a reduction, but the Committee shall not be limited in its discretion to those factors.

“Earnings” means the Company’s consolidated earnings per share on a diluted basis, as reported in the Company’s Annual Report on Form 10-K, aggregated over the Performance Period and as adjusted by the Committee as provided for below and in the Plan. 

The “Earnings Threshold”, “Earnings Target” and “Earnings Maximum” are expressed in the Notice of Grant as functions of Earnings, as so defined.

“ROA” means the Company’s consolidated return on average assets in each of the fiscal years in the Performance Period, expressed as a percentage, and then averaged over the entire Performance Period.  In each of the fiscal years average assets will be computed by averaging total assets at the beginning and at the end of the fiscal year; net earnings for such fiscal years shall be divided by average assets.  Both total assets and net earnings shall be as reported in the Company’s Annual Report on Form 10-K.

The “ROA Target” is expressed in the Notice of Grant as a function of ROA, as so defined.

Each of Earnings and ROA is a “Performance Goal”.   In determining whether the Earnings Threshold has been met the Committee shall appropriately adjust any evaluation of attainment of a Performance Goal to exclude any of the following events that occurs during a Performance Period:  (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) accruals for reorganization and restructuring programs, and (v) extraordinary non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations appearing in said Annual Report for the applicable year.

4.  Effect of Termination of Employment on Vesting.  Except as expressly provided in this Section 4, no Stock Units shall vest if the Participant’s Date of Termination occurs before the conclusion of the Performance Period:

		
	(a)
	If the Participant’s Date of Termination occurs by reason of Retirement during any fiscal year of the Performance Period, Stock Units shall vest as provided in Section 3 above (subject to the Participant’s compliance with Section 12 and to all of the terms and conditions set forth in Section 3 above, including, without limitation, the Committee’s exercise of discretion under Section 3(c)) as though the Participant’s Date of Termination had not occurred before the conclusion of the Performance Period; provided, however, that notwithstanding anything herein to the contrary, the Shares or Settlement Value to which Participant may be entitled under 

Section 3 in respect of such Stock Units shall be determined by applying a fraction, the numerator of which shall be the number of full months in the Performance Period during which the Participant was actively employed with Employer, and the denominator of which shall be 36, to that number of Shares or that Settlement Value which Participant may have otherwise been entitled to receive pursuant to Section 3 if Participant’s Date of Termination had not occurred before the conclusion of the Performance Period;

		
	(b)
	if the Participant’s Date of Termination occurs by reason of death or Disability within the last fiscal year of the Performance Period, Stock Units shall vest as provided in Section 3 above (subject to all of the terms and conditions thereof, including, without limitation, the Committee’s discretion in Section 3(c) as though the Participant’s Date of Termination had not occurred before the conclusion of the Performance Period;    

		
	(c)
	if the Participant’s Date of Termination occurs by reason of death or Disability within the second fiscal year of the Performance Period, 34% of Stock Units shall vest on the date of such death or Disability;

		
	(d) 
	if the Participant’s Date of Termination occurs by reason of death or Disability within the first fiscal year of the Performance Period, 17% of Stock Units shall vest on the date of such death or Disability;

		
	(e)
	if the Participant’s Date of Termination occurs by reason of Cause, no Stock Units shall vest;

		
	(f)
	if the Participant’s Date of Termination occurs by reason of Participant’s voluntary resignation (other than as contemplated by Section 4(a) hereof), no Stock Units shall vest; and

		
	(g)
	if the Participant’s Date of Termination occurs at the initiative of the Participant’s employer (but not for Cause) the Committee reserves the right to vest the Stock Units as follows, but may condition such vesting upon Participant’s release of the Parent and its affiliates from all claims, Participant’s agreement to reasonable non-competition covenants or both:

		
	(i)
	If the Date of Termination occurs in the last fiscal year of the Performance Period, the percentage of the Stock Units the Committee may elect to vest will be based on the Company’s cumulative performance during the first and second fiscal year of the Performance Period, as compared to the Earnings Threshold, Earnings Target, and Earnings Maximum expressed in the Notice of Grant.  For purposes of this Section 4(g)(i), the Earnings Threshold, Earnings Target, and Earnings Maximum shall be pro-rated for the cumulative two-year period (66.67%), and applied in a manner consistent with the guidance provided by the Committee as referenced in Section 3(c) above.  Achievement of the ROA Target shall not be considered as a factor in determining the number of units to vest.

		
	(ii)
	If the Date of Termination occurs in the second fiscal year of the Performance Period, the percentage of the Stock Units the Committee may elect to vest will be based on the Company’s cumulative performance during the first fiscal year of the Performance Period, as compared to the Earnings Threshold, Earnings Target, and Earnings Maximum expressed in the Notice of Grant.  For purposes of this Section 4(g)(ii), the Earnings Threshold, Earnings Target, and Earnings Maximum shall be pro-rated for the cumulative two-year period (33.33%), and 

applied in a manner consistent with the guidance provided by the Committee as referenced in Section 3(c) above.  Achievement of the ROA Target shall not be considered as a factor in determining the number of units to vest.

In the event of vesting pursuant to subsections (c) through (g) above, the Settlement Value of each Vested Unit shall, within 30 days after vesting, be issued and delivered to or for the account of Participant in Shares.  As provided for in Section 7 below, the Parent may make such delivery to a Service Provider.  For the avoidance of doubt, no Stock Units shall vest if the Participant’s Date of Termination occurs before the start of the Performance Period, or, solely with respect to 4(g), during the first fiscal year of the Performance Period.

5.  Effect of Change in Control on Vesting.  

		
	(a)
	All Stock Units shall vest upon a Change in Control Date for a Terminating Transaction unless such Change of Control Date occurs before the start of the Performance Period in which case none of the Stock Units shall vest.

		
	(b)
	In the event of a Change in Control that is not a Terminating Transaction, Stock Units will convert to Time-Based Restricted Stock Units as follows: 

		
	(i)
	If the Change in Control occurs in the first or second fiscal year of the Performance Period, then 55% of Stock Units shall convert to Time-Based Restricted Stock Units; 

		
	(ii)
	If the Change in Control occurs in the last fiscal year of the Performance Period, the percentage of the Target award number of Stock Units to convert to Time-Based Restricted Stock Units will be based on the Company’s cumulative performance during the first and second fiscal year of the Performance Period, as compared to the Earnings Threshold, Earnings Target, and Earnings Maximum expressed in the Notice of Grant.  For purposes of this Section 5(b)(ii), the Earnings Threshold, Earnings Target, and Earnings Maximum shall be pro-rated for the cumulative two-year period (66.67%), and applied in a manner consistent with the guidance provided by the Committee as referenced in Section 3(c) above.  Achievement of the ROA Target shall not be considered as a factor in determining the number of units converted to Time-Based Restricted Stock Units.

		
	(c)
	The vesting of the Time-Based Restricted Stock Units converted as described in Section 5(b): 

		
	(i)
	Will be accelerated to the Date of Termination if the Participant is subject to Involuntary Termination prior to the Maturity Date. 

 
		
	(ii)
	Will occur on the Maturity Date, if Vesting has not otherwise been accelerated as provided above.

		
	(d)
	For the avoidance of doubt no conversion or vesting shall occur pursuant to Sections 5(b) or 5(c) above if the Change of Control Date occurs before the start of the Performance Period.

		
	(e)
	In the event of vesting pursuant to this Section 5, the Settlement Value of each Vested Unit shall, within thirty days after vesting, be issued and delivered to or for the account of Participant in Shares.  As provided for in Section 7 below, the Parent may make such delivery to a Service Provider.

6.  No Dividends or Interest.  No dividends or interest shall accrue or be payable upon any Stock Unit.   Until a Share is issued and delivered it shall not be registered in the name of the Participant.

7.  Withholding for Taxes.   All distributions of Shares shall be subject to withholding of all applicable taxes as computed by the finance department, and the Participant shall make arrangements satisfactory to the Parent to provide the Parent (or any Related Company) with funds necessary for such withholding before the Shares are delivered. Without limitation to the Parent’s right to establish other arrangements, the Parent may: (i) designate a single broker or other financial services provider (“Services Provider”) to establish trading accounts for Participants (each a “Participant’s Trading Account”); (ii) deliver Shares to Participant’s Trading Account; (iii) provide Services Provider with information concerning the applicable tax withholding rates for Participant; (iv) cause Services Provider to sell, on behalf of Participant, sufficient Shares to  cover  the Parent’s tax withholding obligations with respect to any delivery of Shares to Participant (a “Covering Sale”); and (v) cause Services Provider to remit funds resulting from such Covering Sale to Parent or any Related Company that is the employer of Participant.  As a condition to distribution the Parent may require the Participant to provide the Services Provider with such signed applications, authorizations, powers and other documents necessary to accomplish the foregoing.  Participant may, by written notice to the Parent addressed to the Parent’s Secretary, and given no less than ten (10) business days before the Maturity Date or other applicable vesting date, elect to avoid such a Covering Sale by delivering with such notice a bank-certified check payable to the Parent (or other type of check or draft payable to the Parent and acceptable to the Secretary) in the estimated amount of any such withholding required, such estimate to be provided by the Tiffany and Company finance department. The Committee may approve other methods of withholding, as provided for in the Plan, before the Shares are delivered.

8.  Transferability. The Stock Units are not transferable otherwise than by will or the laws of descent and distribution, and shall not be otherwise transferred, assigned, pledged, hypothecated or otherwise disposed of in any way, whether by operation of law or otherwise, nor shall it be subject to execution, attachment or similar process. Upon any attempt to transfer the Stock Units otherwise than as permitted herein or to assign, pledge, hypothecate or otherwise dispose of the Stock Units otherwise than as permitted herein, or upon the levy of any execution, attachment or similar process upon the Grant, the Grant shall immediately terminate and become null and void.

9. Definitions.  For the purposes of the Grant, certain words and phrases are defined in the Definitional Appendix attached.  Except where the context clearly implies or indicates the contrary, a word, term or phrase used in the Plan shall have the same meaning in this document.

10.  Heirs and Successors.  The terms of the Grant shall be binding upon, and inure to the benefit of, the Parent and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Parent’s assets and business.  Participant may designate a beneficiary of his/her rights under the Grant by filing written notice with the Secretary of the Parent.  In the event of the Participant’s death prior to the full maturity of the Grant, the Shares will be delivered to such Beneficiary to the extent that it was matured on the Participant’s Termination Date.  If the 

Participant fails to designate a Beneficiary, or if the designated Beneficiary dies before the Participant, any Shares issuable hereunder will be delivered to the Participant’s estate.

11.  Administration.  The authority to manage and control the operation and administration of the Grant shall be vested in the Committee, and the Committee shall have all powers with respect to the Grant as it has with respect to the Plan.  Any interpretation of the Grant by the Committee and any decision made by it with respect to the Grant is final and binding.

12. Compliance with Post-Employment Covenants.  Notwithstanding any other provisions in these terms to the contrary, no Stock Units will vest pursuant to Section 4(a) with respect to a Participant if the Committee determines that such Participant has materially breached the terms and conditions of any applicable post-employment non-competition, non-solicitation, confidentiality or other restrictive covenants on or prior to the Maturity Date of such Stock Units.

13.  Clawback Provisions .Notwithstanding any other provisions in these terms to the contrary, each Vested Unit hereunder, which has been issued and delivered to or for the account of Participant, shall be subject to deductions and clawback as may be required under any applicable law, government regulation or stock exchange listing requirement, or any policy adopted by the Company, including but not limited to the Policy for Recovery of Incentive-based Compensation Erroneously Awarded to Executive Officers, adopted by the Parent Board on September 18, 2013.

14.  Plan Governs.  Notwithstanding anything in this Agreement to the contrary, the terms of the Grant shall be subject to the terms of the Plan, a copy of which may be obtained by the Participant from the office of the Secretary of the Parent.

15.  Section 409A.    Notwithstanding anything herein to the contrary, any benefits and payments provided hereunder that are payable or provided to Participant in connection with a termination of employment that constitute deferred compensation within the meaning of Code Section 409A shall not commence in connection with Participant’s termination of employment unless and until Participant has also incurred a Separation from Service, and unless Employer reasonably determines that such amounts may be provided to Participant without causing Participant to incur additional tax obligations under Code Section 409A.  For the avoidance of doubt, it is intended that payments hereunder comply with or satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A.  However, if Employer determines that these payments constitute deferred compensation and Participant is, on the termination of his service, a “specified employee” of Employer, as such term is defined in Code Section 409A(a)(2)(B)(i), then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Code Section 409A, the timing of the payments shall be delayed until the earlier to occur of: (i) the date that is six months and one day after Participant’s Separation from Service or (ii) the date of Participant’s death that occurs after Participant’s Separation from Service. This Section 14 shall be administered, construed and interpreted in a manner consistent with the requirements of Code Section 409A.  In no event shall Employer have any liability or obligation with respect to taxes for which Participant may become liable as a result of the application of Code Section 409A. 

In addition to the provisions regarding Code Section 409A set forth above, the following shall apply:

If Participant notifies Employer that Participant believes that any provision of this Agreement (or of any award of compensation or benefit, including equity compensation or benefits provided herein or at any time during his employment with Employer) would cause Participant to incur any additional tax or interest under Code Section 409A or Employer independently makes such determination, Employer shall, after consulting with Participant, reform such provision (or award of compensation or benefit) to attempt to comply with or be exempt from Code Section 409A through good faith modifications to the minimum 

extent reasonably appropriate.  To the extent that any provision hereof (or award of compensation or benefit) is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Participant and Employer without violating the provisions of Code Section 409A.

Appendix I -- Definitions
    
“Affiliate” shall mean any Person that controls, is controlled by or is under common control with, any other Person, directly or indirectly.
    
“Cause” shall mean a termination of Participant’s employment which is the result of:

		
	(i)
	Participant’s conviction or plea of nolo contendere to a felony or any other crime involving financial impropriety or which would tend to subject Employer or any of its Affiliates to public criticism or materially interfere with Participant’s continued service to Employer;

		
	(ii)
	Participant’s willful violation of the Code of Conduct;

		
	(iii)
	Participant’s willful failure or refusal to perform substantially all such proper and achievable directives issued by Participant’s superior (other than any such failure resulting from Participant’s incapacity due to physical or mental illness, any such actual or anticipated failure resulting from a resignation by Participant for Good Reason, or any such refusal made by Participant in good faith because Participant believes such directives to be illegal, unethical or immoral) after a written demand for substantial performance is delivered to Participant on behalf of Employer, which demand specifically identifies the manner in which Participant has not substantially performed Participant’s duties, and which performance is not substantially corrected by Participant within ten (10) days of receipt of such demand;

		
	(iv)
	Participant’s gross negligence in the performance of Participant’s duties and responsibilities materially injurious to the Employer;

		
	(v)
	Participant’s willful breach of any material obligation that Participant has to Parent or Employer under any written agreement that Participant has with either Parent or Employer;

		
	(vi)
	Participant’s fraud or dishonesty with regard to Employer or any of its Affiliates; or

		
	(vii)
	Participant’s failure to reasonably cooperate in any investigation of alleged misconduct by Participant or by any other employee of Parent, Employer or any Affiliate of Parent or Employer.

For purposes of the previous sentence, no act or failure to act on Participant’s part shall be deemed “willful” unless done, or omitted to be done, by Participant in bad faith toward, or without reasonable belief that Participant’s action or omission was in the best interests of, Parent, Employer or an Affiliate of Parent or Employer.  Notwithstanding the foregoing, Participant shall not be deemed to have been terminated for Cause with respect to items (i) through (vii) 

unless and until there shall have been delivered to Participant a copy of a resolution duly adopted by the affirmative vote of not less than three-fourths (3/4th) of the entire membership of the Employer Board at a meeting called and held for such purpose (after reasonable notice to Participant and an opportunity for Participant, together with Participant’s counsel, to be heard before such Board), finding that, in the good faith opinion of such Board, Cause exists as set forth in any of  items (i) through (vii) above.

“Change in Control.” A Change in Control shall be deemed to have occurred if:

		
	(i)
	any Person, or any syndicate or group deemed to be a person under Section 14(d)(2) of the Exchange Act, excluding Parent or any of its Affiliates, a trustee or any fiduciary holding securities under an employee benefit plan of Parent or any of its Affiliates, an underwriter temporarily holding securities pursuant to an offering of such securities or a corporation owned, directly or indirectly by stockholders of Parent in substantially the same proportion as their ownership of Parent, is or becomes the “beneficial owner” (as defined in Rule 13d-3 of the General Rules and Regulations under the Exchange Act), directly or indirectly, of securities of Parent representing Thirty-five percent  (35%) or more of the combined voting power of Parent’s then outstanding securities entitled to vote in the election of directors of Parent;

		
	(ii)
	if the Incumbent Directors cease to constitute a majority of the Parent Board; provided, however, that no person shall be deemed an Incumbent Director if he or she was appointed or elected to the Parent Board after having been designated to serve on the Parent Board by a Person who has entered into an agreement with Parent to effect a transaction described in clauses (i) through (iv) of this definition;

		
	(iii)
	there occurs a reorganization, merger, consolidation or other corporate transaction involving Parent, in each case with respect to which the stockholders of Parent immediately prior to such transaction do not, immediately after such transaction, own more than Fifty percent (50%) of the combined voting power of the Parent or other corporation resulting from such transaction, as the case may be; or

		
	(iv)
	all or substantially all of the assets of Parent or Employer are sold, liquidated or distributed, except to an Affiliate of Parent;

Provided, that an event shall not constitute a Change in Control unless such event also constitutes a “change in control event” under Treasury Regulation Section 1.409A-3(i)(5).

     “Change in Control Date” shall mean the date on which a Change in Control occurs.

    

“Code” shall mean the Internal Revenue Code of 1986, as amended, and any successor provisions thereto.

“Code Section 409A” shall mean Section 409A of the Code, and the regulations and guidance promulgated thereunder.

“Code of Conduct” shall mean Parent’s (i) Code of Business and Ethical Conduct for Directors, the Chief Executive Officer, the Chief Financial Officer and All Other Officers of the Parent and (ii) Business Conduct Policy - Worldwide, as amended from time to time prior to the Change of Control Date and as in effect as of the Change of Control Date.

“Common Stock” shall mean the common stock of Parent.

“Date of Termination”  shall mean, with respect to any Participant, the first day occurring on or after the Grant Date on which Participant’s employment with Employer terminates for any reason; provided that a termination of employment shall not be deemed to occur by reason of a transfer of the employment of Participant between Employers; and further provided that the Participant’s employment shall not be considered terminated while the Participant is on a leave of absence from the Employer approved by Employer or required by applicable law; and further provided that a termination of employment shall not be deemed to occur unless such termination of employment is also a Separation from Service.  If, as a result of a sale or other transaction, Employer ceases to be an Affiliate of Parent, the occurrence of such transaction shall be treated as the Participant’s Date of Termination caused by the Participant being discharged by Employer.
    
“Disability” shall mean Participant’s incapacity due to physical or mental illness which causes Participant to be absent from the full-time performance of Participant’s duties with Employer for six (6) consecutive months provided, however, that Participant shall not be determined to be subject to a Disability for purposes of this Award unless Participant fails to return to full-time performance of Participant’s duties with Employer within thirty (30) days after written Notice of Termination due to Disability is given to Participant; provided, that in no event shall Participant be deemed to have a Disability, unless such Disability constitutes a “disability” within the meaning of Code Section 409A(a)(2)(C).

“Employer” shall mean the Affiliate of Parent that employs Participant from time to time, and any successor to its business and/or assets by operation of law or otherwise.

“Employer Board” shall mean the board of directors (or other highest governing authority other than the shareholders) of Employer.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and any successor provisions thereto.

“Good Reason” means Participant’s resignation from employment with Employer as a result of any of the following:

		
	(i)
	a meaningful and detrimental alteration in Participant’s position or the nature or status of Participant’s responsibilities (including reporting responsibilities) from those in effect immediately before the Change in Control Date;

		
	(ii)
	a material failure by Employer to pay Participant a bonus or incentive award commensurate with the bonus paid others at Participant’s job level (expressed as a percentage of target bonus) unless such failure is justified by clear and objective deficiencies of the business units for which Participant is responsible; 

		
	(iii)
	the relocation of the office of Employer where Participant was employed immediately prior to the Change in Control Date to a location which is more than 50 miles away or should Employer require Participant to be based more than 50 miles away from such office (except for required travel on the Employer’s business to an extent substantially consistent with Participant’s customary business travel obligations in the ordinary course of business prior to the Change in Control Date); or

		
	(iv)
	a Substantial Change.

        
“Incumbent Directors” shall mean those individuals who were members of the Parent Board as of January 15, 2009 and those individuals whose later appointment to such Board, or whose later nomination for election to such Board by the stockholders of Parent, was approved by a vote of at least a majority of those members of such Board who either were members of such Board as of January 15, 2009, or whose election or nomination for election was previously so approved.

“Involuntary Termination” means (i) Participant’s termination of employment by Employer without Cause or (ii) Participant’s resignation of employment with the Employer for Good Reason.  

“Notice of Termination” shall mean a written notice indicating the specific termination provision in this Agreement relied upon and setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Participant’s employment under the provision so indicated. 

“Parent” shall mean Tiffany & Co., a Delaware corporation, and any successor to its business and/or assets by operation of law or otherwise.

“Parent Board” shall mean the Board of Directors of Parent.
    
“Person” shall mean any individual, firm, corporation, partnership, limited partnership, limited liability partnership, business trust, limited liability company, unincorporated association or other entity, and shall include any successor (by merger or otherwise) of such entity.

“Retirement”  shall mean the occurrence of the Participant’s Date of Termination, on a voluntary basis, after age 65 or the occurrence of the Participant’s Date of Termination after age 55 pursuant to the retirement practices of Employer. 

“Separation from Service” shall have the meaning defined in Treasury Regulation Section 1.409A-1(h).

“Substantial Change” means any material change in the terms or conditions of Participant’s employment (including in salary or target bonus) following a Change of Control Date that is less favorable to Participant than those in effect previous to the Change of Control Date other than (i) a change that has been made on an across-the-board basis for substantially all of Employer’s employees or (ii) a change in equity-based compensation (including the reduction or elimination thereof) resulting from the Change in Control.

“Terminating Transaction” shall mean a Change in Control in which any one of the following occurs:

		
	(i)
	the dissolution or liquidation of the Parent;

		
	(ii)
	a reorganization, merger or consolidation of the Parent with one or more Persons as a result of which the Parent goes out of existence or becomes a subsidiary of another Person; or 

		
	(iii)
	upon the acquisition of substantially all of the property or more than eighty percent (80%) of the then outstanding stock of the Parent by another Person;

provided that none of the foregoing transactions (i) through (iii) will be deemed to be a Terminating Transaction, if as of a date at least fourteen (14) days prior to the date scheduled for such transaction provisions have been made in writing in connection with such transaction for the assumption of the Stock Unit or the substitution for the Stock Unit of a new stock unit covering the publicly-traded stock of a successor Person, with appropriate adjustments as to the number and kind of shares.

“Time-Based Restricted Stock Unit” means a stock unit that shall not mature, and which shall be deemed to have “expired,”  upon the Participant’s Date of Termination, if the Participant’s Date of Termination occurs before the Maturity Date, provided, however, that if such Date of Termination occurs pursuant to an Involuntary Termination or by reason of death or Disability,  in which case the Time-Based Restricted Stock Units will “mature” and vest on the Date of Termination, and the Settlement Value of the Time-Based Restricted Stock Unit in Shares shall be issued and delivered within thirty (30) days of the Date of Termination to or for the account of Participant.Exhibit

EXHIBIT 10.29

September 7, 2016
                
By E-mail
Mr. Mark Erceg
c/o Egon Zehnder

                                        
Dear Mark,

We are pleased to extend you an offer to join Tiffany and Company, a New York corporation (“Tiffany” or the “Company”) and to confirm the terms of your employment in this letter.  Tiffany is a wholly-owned subsidiary of Tiffany & Co., a Delaware corporation (NYSE: TIF) (along with any successor to its business and/or assets by operation of law or otherwise, “Parent”).  If you accept this offer, subject to its terms, you will be employed by Tiffany and you will be an executive officer of both Tiffany and Parent. For more information about our executive compensation program, please read Parent’s Proxy Statement dated April 8, 2016 (the “Proxy Statement”).  All compensation discussed below, including equity compensation, is subject to withholding for state and federal taxes and for other deductions pursuant to our benefit plans, if applicable.  

	
			
	Title:

Duties:
	Executive Vice President - Chief Financial Officer

All duties and responsibilities typical of a public-company chief financial officer, including without limitation direct oversight of and responsibility for i) tax, treasury, finance, audit, reporting, accounting, investor relations, and similar functions; ii) information systems; and iii) indirect procurement.

	Current Reporting:
	Frederic Cumenal, Chief Executive Officer

	Commencement Date:
	As soon as possible, but no later than November 15, 2016.  If you fail to commence employment by this date, this offer shall be deemed withdrawn and of no force or effect.  The term “Commencement Date” refers to the date you actually begin employment with Tiffany.

	Base Salary:
	Salary at an initial gross annualized rate of $850,000, payable in periodic installments in accordance with the Company’s customary payroll practices.  The Company may in its sole discretion increase (but not decrease) this rate, but has no obligation to do so.

	Annual Incentive Award:
	Starting in Fiscal 2017 (as defined below), you will be eligible to receive an annual incentive award under the Tiffany & Co. 2014 Employee Incentive Plan (such plan, or any successor plan, the “Incentive Plan”).  Your target annual incentive award will be 80% of your base salary.  You will not be eligible for an annual incentive award for Fiscal 2016.

	
			
	 
	Annual incentive awards are subject to the execution, and governed by the terms, of a Cash Incentive Award Agreement, the current form of which is attached as Exhibit A.  As set forth in that Agreement, the amount actually paid in connection with an annual incentive award may be greater or less than the target, and may be $0.  Annual incentive awards are paid, if at all, on the basis of Fiscal Year performance by the end of April of the following year.  (For instance, the Fiscal 2017 annual incentive award, if paid at all, will be paid on or before April 30, 2018.)   

The terms of the Incentive Plan and the Cash Incentive Award Agreement or any other terms and conditions adopted under the Incentive Plan will control with respect to the annual incentive awards described in this letter.  The Incentive Plan and such terms and conditions are subject to change and may be modified at any time and from time to time.

As used in this letter, “Fiscal” and “Fiscal Year” refers to February 1 of the year in question through January 31 of the following year.

	Long Term Incentive Award:
	Under the current practice of the Compensation Committee (the “Committee”), of the Parent’s Board of Directors, which practice is subject to change without notice in the Committee’s sole discretion, long term equity incentive awards are granted to continuing members of senior management at the Committee’s regularly scheduled January meeting.  Under that current practice, the total target value of long term equity incentive awards is based on a percentage of base salary, to be determined by the Committee in its sole discretion.  The total target value of your long term equity incentive awards has been established as 250% of your base salary. 

The Committee’s current practice (which is subject to change without notice in the Committee’s sole discretion) is to award half of the total target value of long term equity incentive awards as stock options that vest 25% for each year of continuing employment, and half as performance-based restricted stock units that vest following a three-year performance period (the amount of units, if any, that vest being contingent on the Parent’s performance relative to certain performance metrics established by the Committee).  

Stock options, performance-based restricted stock units and other long term equity incentive awards (including the special sign-on recommended awards described below) are subject to the Incentive Plan and terms and conditions adopted by the Committee thereunder, which shall be controlling. The Incentive Plan and such terms and conditions may be modified at any time and from time to time.

	Special Sign-On Long Term Incentive Awards

	At the Committee’s next regularly scheduled meeting following your Commencement Date, the Chief Executive Officer will recommend that the Committee approve the following one-time sign-on awards to you:

	Special Sign-On Time-Vesting Option Grant
	(i)  A stock option award to purchase shares of the Parent’s common stock (“Common Stock”).  The per-share value of the shares of Common Stock subject to such award will be determined by the Black-Scholes pricing model; on this basis, the total grant date value of the shares of 

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	Common Stock underlying the recommended award will be equal to $2,000,000.  The “strike price” (option exercise price) will be the Grant Date Market Price (as defined below).  The stock options will vest over three years in equal installments on the applicable anniversaries of the grant date, and will be subject to the terms attached as Exhibit B, which will be controlling in all respects.

“Grant Date Market Price” means a per share value of the Common Stock determined by Parent’s Corporate Secretary as the higher of (i) the simple arithmetic mean of the high and low sale price of such stock on the New York Stock Exchange on the grant date or (ii) the closing price on such Exchange on the grant date.

	Special Sign-On Time-Vesting Restricted Stock Unit Grant
	(ii)  Restricted stock units (“Units”) that will convert on maturity on a one-to-one basis into shares of Common Stock.  The Units will have an aggregate value of $2,000,000 on the grant date, based on the Grant Date Market Price.  The Units will vest over three years in equal installments on the applicable anniversaries of the grant date, and will be subject to the terms attached as Exhibit C, which will be controlling in all respects.

	Special Conditional Sign-On Bonus 
	You will receive a one-time cash payment in the amount of $750,000, to be paid after January 1, 2017 but on or before April 30, 2017 (the “Sign-On Bonus”), provided you remain employed at the time of payment.  Payment of the Sign-On Bonus will be subject to your execution of the Conditional Sign-On Bonus Acknowledgment and Agreement attached hereto as Exhibit D, providing for recoupment by Tiffany of the Sign-On  Bonus as follows, should you resign without Good Reason, or be terminated with Cause (as those terms are defined in the attached Agreement), before January 31, 2020:

	If you resign without Good Reason 
or are terminated With Cause before: 

January 31, 2018
January 31, 2019
January 31, 2020

	Then Tiffany will be entitled to recoup the 
the following portion of the Sign-On Bonus:

100% of the Sign-On Bonus
2/3 of the Sign-On Bonus
1/3 of the Sign-On Bonus

	In addition, if you are required by your current employer to repay any part of the sign-on award previously paid to you by that employer and provide satisfactory documentation of such requirement, the Company will pay you the amount you are required to repay, up to a maximum of $750,000 (the “Repayment Bonus”), within 20 days of presentation of proof that you have made a payment to your current employer.  Payment of the Repayment Bonus will also be subject to your execution of the Conditional Sign-On Bonus Acknowledgment and Agreement, providing for recoupment by Tiffany of the entire amount of the Repayment Bonus should you resign voluntarily without Good Reason, or be terminated with Cause at any time before January 31, 2020.  

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	Notwithstanding the foregoing, you may request within ten days of the date of this letter that the Sign-On Bonus and, if applicable, the Repayment Bonus, be paid to you in the form of Units in lieu of cash.  If you so request, in lieu of any cash payment in respect of the Sign-On Bonus or Repayment Bonus, the Chief Executive Officer will recommend at the next regularly scheduled Committee meeting that the Committee award you Units having an aggregate value on the grant date, based on the Grant Date Market Price, equal to the amount of (i) the Sign-On Bonus, plus (ii) the Repayment Bonus, if any.  Any Units granted pursuant to sub-section (i) of the preceding sentence will vest over three years in equal installments on the applicable anniversaries of the grant date, and will be subject to the terms attached as Exhibit C, which will be controlling in all respects.  Any Units granted pursuant to sub-section (ii) of the preceding sentence will cliff-vest on the third anniversary of the grant date, and will be subject to the terms attached as Exhibit E, which will be controlling in all respects.  

	Retention Agreement:
	Please refer to page PS-59 of the Proxy Statement for a discussion of our current practice of entering into a Retention Agreement with executive officers that provides for severance benefits under certain circumstances following a Change in Control (as defined in the Retention Agreement).

Prior to a Change in Control (as defined above), severance benefits will be payable to you pursuant to this letter only as follows:  in the event that, on or before the second anniversary of the Commencement Date, (i) you are involuntarily terminated without Cause or you resign for Good Reason (as those terms are defined in Exhibit D), and (ii) you sign, return, and do not revoke a release of claims in a form provided by the Company, and the seven-day revocation period expires without revocation of the release prior to the 60th day following the effective date of termination (such effective date, the “Termination Date”) then the following severance benefit will be payable to you:
A.   On the first payroll date following the 60th day after the Termination Date (the “Payroll Date”), you will be paid a lump sum equal to the sum of:

1. One year of base salary (as in effect on the Termination Date);

2. Any actual earned annual incentive award for the last completed Fiscal Year prior to the Termination Date, in the amount, if any, established by the Committee, if such incentive award remains unpaid as of the Payroll Date; provided, however, that if the last completed Fiscal Year prior to the Termination Date is Fiscal 2016, then the amount payable pursuant to this paragraph 2 will be the amount of the Sign-On Bonus, if it remains unpaid as of the Payroll Date; and

3. Reimbursement for the cost of twelve months of continued health care coverage available to you under Company-sponsored medical plans, pursuant to The Consolidated Omnibus Budget Reconciliation Act of 1985 (commonly known as “COBRA”). 

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	B. In addition, you will be paid a pro-rated portion of the short-term annual incentive award for any uncompleted Fiscal Year (the “Pending Year”) in which the Termination Date occurs, calculated by multiplying (1) the number of days you were employed during the performance period, divided by the total number of days in the performance period, by (2) the annual incentive award that would have been payable to you for the Pending Year if the Termination Date had not occurred, assuming the Committee had exercised its discretion to pay such award (a) as if any individual portion of such award had been achieved at target, and (b) based on the extent of Parent’s achievement of the relevant performance measures as certified by the Committee on the basis of Parent’s publicly reported financial results for the Pending Year (with effect given to any adjustments approved by the Committee as permitted by the Incentive Plan for purposes of determining the annual incentive payments, if any, to Parent’s other executive officers). Notwithstanding the foregoing, if the Termination Date takes place during Fiscal 2016, the only amount payable pursuant to this paragraph B will be the pro-rated portion of the Sign-On Bonus, giving effect to the number of days you were employed during Fiscal 2016.  For the avoidance of doubt, you acknowledge that, based on the foregoing calculation, the amount payable to you pursuant to this sub-section B may be greater or less than the pro-rated portion of your target award for the Pending Year, and may be $0.  Such payment, if any, will be made to you in the year following the Pending Year, on or before April 30 of such following year, at the same time that annual incentive payments, if any, are made to Parent’s other executive officers.

For the avoidance of doubt, if you are terminated on or after a Change in Control, the benefits described in the above paragraphs (A) and (B) shall not apply.  Further, following the second anniversary of your Commencement Date, the Company will have no obligation to provide severance payments to you in connection with your termination from employment, other than in connection with a Change in Control to the extent provided in the Retention Agreement described above.  

	Share Ownership Policy:

	As an executive officer of Parent you will be subject to the Share Ownership Policy adopted by the Board, the current version of which is attached as Exhibit F.

	Covenants:
	As a condition of your receipt of equity incentive awards and, if applicable, benefits under certain retirement plans, you will be required to sign Non-Competition and Confidentiality Covenants in a form approved by the Committee.  The current form of the Covenants is attached as Exhibit G.

	Conditional Offer:
	This is a conditional offer and is subject to your successful completion of the following background investigations, to the extent permitted by applicable law: employment and professional references, credit check, drug screen (for current use of illegal or unauthorized drugs), criminal conviction check, social security trace, education verification (if applicable), and driver’s license history (if applicable). This offer is also contingent on your satisfactory completion of a Conflict of Interest questionnaire (attached as Exhibit H) and your written representation that you are not

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	contractually obligated to any other employer, or subject to any covenants against competition or similar covenants that would affect the full performance of your employment with Tiffany.  

	Employment-at-will:
	Your employment is “At Will.” At Will employment means that you can quit at any time, with or without notice; and Tiffany can end your employment at any time, with or without notice, for any reason permitted by applicable law or for no reason.

	Relocation:
	Relocation benefits will be provided to you as described in Exhibit I.

	Clawback Policy:
	As an executive officer of Parent you will be subject to the Policy for Recovery of Incentive-based Compensation Erroneously Awarded to Executive Officers, in the form adopted by the Board.  The current version attached as Exhibit J.

	Benefits:
	The Company offers a broad range of benefits and amenities for you and your eligible dependents.  All such benefits are subject to the terms of the benefit plans and are available to employees generally.  Health benefits include medical, dental, vision care and prescription drug benefits.  Retirement benefits include a 401(k) plan with an employer match, a defined contribution retirement benefit and a defined contribution excess benefit (for earnings above statutory limits).    

In addition to those programs you will be eligible to participate in a deferred compensation plan which provides tax deferred savings for additional retirement income or for planning for future expenses, such as dependent college tuition.  

We also offer sick days (for your care and that of your family members) and short- and long-term disability benefits, including executive long-term disability benefits. Survivor protection benefits include accidental death and dismemberment insurance and business travel accident insurance. Health and dependent care spending accounts, long term care, adoption assistance, medical, family and bereavement leave, transportation assistance, education assistance, employee assistance, health and fitness program reimbursement, milestone and service recognition programs, employee giving program and a generous employee discount are also offered. 

You will be eligible to participate in these benefit programs subject to the terms under which all such benefits are provided to Tiffany's regular full time employees, and this letter will not afford you additional rights.  The terms of the applicable plan document, if any, will be controlling with respect to any of the benefits described in this letter, and all benefits described may be modified or discontinued without notice in the Company’s sole discretion.

	Vacation Days:
	You will be eligible for five weeks of vacation per Fiscal Year.  You will accrue one-twelfth of your annual vacation at the end of each completed month of service (i.e., 2.08 days per month).  After six months of employment, you may take vacation in excess of the amount you have accrued so far in the year, and then offset the excess by future accruals. All vacation requests are subject to management approval as outlined in the vacation policy or by departmental procedures. 

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	Personal Days:
	For Fiscal 2016, you will be immediately entitled to one personal day.  Thereafter you will be eligible for two personal days per Fiscal Year. 

	Life Insurance:
	The Company currently provides life insurance benefits to executive officers with the following key features:

-  Executive officers own whole life policies on their own lives;
-  The death benefit is three times annual base salary and the target short-term incentive award;
-  The Company pays the premium on such policies in an amount sufficient to accumulate cash value;
-  Premiums are calculated to accumulate a target cash value at age 65;

-  The target cash value will allow the policy to remain in force after age 65 without payment of further premiums with a death benefit equivalent to twice the executive officer’s ending annual base salary and target short-term incentive or bonus amount; and
-  Premiums paid by the Company constitute taxable income to the executive officer; the Company does not pay additional amounts to offset the income tax attributable to the premiums so paid.

The life insurance benefits described herein may be modified or discontinued without notice in the Company’s sole discretion.

	Governing Law
	These terms and conditions shall be construed in accordance with the laws of New York without regard to conflicts of law principles.

	Dispute Resolution
	As a condition of your employment, you will be required to agree to the Company’s Dispute Resolution Agreement, attached as Exhibit K, which will govern the resolution of any disputes regarding this letter.

	Internal Revenue Code Section 409A
	You and the Company agree that this letter shall be interpreted to comply with or be exempt from Section 409A of the Internal Revenue Code and the regulations and guidance promulgated thereunder to the extent applicable (collectively “Code Section 409A”), and all provisions of this letter shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A.  In no event whatsoever will the Company be liable for any additional tax, interest or penalties that may be imposed on you under Code Section 409A or any damages for failing to comply with Code Section 409A.

A termination of employment shall not be deemed to have occurred for purposes of any provision of this letter providing for the payment of any amounts or benefits considered “nonqualified deferred compensation” under Code Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this letter, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  If you are deemed on the date of termination to be a “specified employee” within the meaning of that  

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	term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered nonqualified deferred compensation under Code Section 409A payable on account of a “separation from service,” such payment or benefit shall be made or provided at the date which is the earlier of (i) the expiration of the six (6)-month period measured from the date of such “separation from service,” and (ii) the date of your death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 13.7(b) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed on the first business day following the expiration of the Delay Period to you in a lump sum with interest during the Delay Period at the prime rate, and any remaining payments and benefits due under this letter shall be paid or provided in accordance with the normal payment dates specified for them herein.

With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits, to be provided in any other taxable year, provided, that, this clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Internal Revenue Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect and (iii) such payments shall be made on or before the last day of your taxable year following the taxable year in which the expense occurred.

For purposes of Code Section 409A, your right to receive any installment payments pursuant to this letter shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this letter specifies a payment period with reference to a number of days (for instance, “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

This letter sets forth our entire offer, superseding all prior oral and written offers.

Mark, we look forward to welcoming you soon.  Please sign below and return the letter to me to reflect your acceptance of our offer.  

Sincerely,

/s/ Victoria Berger-Gross 

Victoria Berger-Gross 
Senior Vice President
Global Human Resources

Enclosures
cc: Frederic Cumenal, Chief Executive Officer
       

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/s/ Mark J. Erceg 
    
Mark Erceg

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