Document:

reynoldscollaboration.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    COLLABORATION
AGREEMENT

    

    The Agreement is by and between
Reynolds Innovations Inc. (hereinafter “RII”) and Ecology Coatings Inc.
(hereinafter “Supplier”).  The effective date of this Agreement
is April 1st,
2009.

    

    Whereas RII is a manufacturer and
seller of tobacco products, including cigarettes, snus, and other smokeless
tobacco products;

    

    Whereas Supplier has expertise and
capabilities regarding coatings, including UV curable products;

    

    Whereas RII and Supplier desire to
discuss with one another projects, products, needs and ideas of RII relating to
coatings having application as components of tobacco products;

    

    Whereas RII and Supplier deem it
desirable to collaborate on a project directed toward Supplier’s development for
RII of coatings and associated technologies for RII’s use in tobacco
products;

    

    Now therefore, RII and Supplier deem it
mutually beneficial to engage in collaborative activities with one another, to
become parties to this Agreement, and to agree as follows:

    

    SECTION
1.                           DEFINITIONS

    

    1.1           Defined Terms.  The
following terms have the following meanings:

    

    "Affiliate" means, as to a party to
this Agreement, any corporation, company, partnership, joint venture or other
entity which controls, is controlled by, or is under common control with, such
party.  For purposes of this definition, the term “control” shall mean
the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a person or entity, whether through
ownership of voting securities, by contract, or otherwise.

    

    "Confidential Information" means (i)
any proprietary information of either party or of a third party with whom either
party has an obligation of confidence, (ii) any other information or data
relating to any aspect of the collaboration or any research project, work in
progress, tests, scientific information, technical information, engineering
information, manufacturing information, marketing plan, business plan, proposal,
financial or personnel matter relating to either party or to a third party with
whom either party has an obligation of confidence, or (iii) the present or
future products, sales, suppliers, customers, employees, investors or business
of either party or a third party with whom either party has an obligation of
confidence; whether any of the foregoing is observed or in oral, written,
graphic or electronic form.

    

    “Coatings” means materials capable of
being applied to components of tobacco products, and including materials and
formulations.

    

    “Intellectual Property” means
information, concepts, ideas, discoveries, inventions (whether conceived or
reduced to practice, and whether or not patentable), specifications,
requirements, prototypical products, prototypical product components, data,
codes, programs, designs, blueprints, sketches, graphics, drawings, photographs,
developments, processes, methods, know-how, trade secrets, patent applications,
patents, and other intellectual property of any type, and enhancements and
improvements of the foregoing.

    

    “Receiving Party” has the meaning set
forth in Section 5.2.

    

    SECTION
2.                           COLLABORATION

    

    2.1           Collaboration.  RII
and Supplier will cooperate towards engaging in research and development efforts
for the purpose of developing Coatings and evaluating tobacco product components
having Coatings applied thereto.  Details of the types and
specifications of Coatings intended to be produced by Supplier pursuant to the
collaboration, are set forth in Attachment A, (Collaboration
Activities including Descriptions of Coatings), which is attached hereto and
becomes part of this Agreement.  The content of Attachment A may be amended in
writing, by mutual consent of the Parties.

    

    2.2           RII’s
Responsibilities.  RII shall have primary responsibility for
identifying the overall goals of the collaboration, and for evaluating Coatings
provided to it by Supplier.  RII shall disclose to Supplier
information, concepts, ideas, specifications, and requirements (to the extent
available and at RII’s sole discretion) regarding RII’s needs relating to the
Coatings.

    

    2.3           Supplier’s
Responsibilities.  Supplier shall have primary responsibility
for designing, manufacturing and supplying to RII Coatings that meet
specifications and requirements set by RII and are acceptable to
RII.  Supplier shall have the responsibility of providing adequate
non-commercial quantities of Coatings to RII solely for the purpose of allowing
RII to conduct evaluation of the Coatings for research and development
purposes.  Supplier shall have the responsibility of providing to RII
information regarding: (i) Coatings and the components of those Coatings, (ii)
all process conditions regarding preparation of those Coatings.

    

    2.4           Periodic
Meetings.  Supplier and RII shall arrange periodic meetings, to
be held periodically at mutually agreeable times and locations to discuss with
one another the status of the project, project timing, design review, changes
relating to the Coatings, and other relevant topics relating to the
collaboration and the Coatings.

    

    2.5           Visit of
Facilities.  Representatives of either party may, upon
reasonable notice and at times reasonably acceptable to the other party, (i)
visit the facilities where the activities relating to the collaboration are
being conducted; and (ii) consult informally, during such visits and by
telephone, with personnel of the other party performing such
activities.  Each party shall bear its own expenses with regard to any
such visits, unless otherwise agreed upon in writing by the
parties.  If requested by the other party, the parties each shall
cause appropriate individuals working on the activities relating to the
collaboration to be available for meetings at the location of the facilities
where such individuals are employed at times reasonably convenient to each
party.

    

    2.6           Supplier’s Limited Exclusivity of
Efforts.  Supplier represents and warrants that, as of the
effective date of this Agreement, it is not in any way conducting any activities
with any third party relating to the development, manufacture, supply, or sale
of any Coatings for use in connection with tobacco products or for use within
the tobacco industry.  Until the later of December 1st, 2011 or future
date that the parties enter into a Commercial Agreement of the type set forth in
Attachment B (Detailed
Project Stages, Compensation, and Success Criteria), which is attached
hereto and becomes part of this Agreement, Supplier shall not, without
RII’s prior written approval, solicit orders, initiate any orders, cooperate in
the fulfillment of orders, or conduct any activities with any third party
relating to the development, manufacture, supply, or sale of any Coatings for
use in connection with tobacco products or for use within the tobacco
industry.

    

    2.7           RII’s Non-Exclusivity of
Efforts.  RII makes no representation or warranty that, it has
not entered into any agreement with any third party (or that it will not enter
into any agreement with any third party) that obligates RII to (i) collaborate
with any third party towards the development, manufacture, supply or sale of
Coatings (or coatings of any type) to RII, or (ii) purchase Coatings (or
coatings of any type) from any third party.  During the collaboration
period, RII shall remain entitled to place orders or conduct any activities with
any third party relating to the development, manufacture, supply, or sale of any
type of coatings (including Coatings).  Nothing contained in this
Agreement shall be construed as requiring RII to (i) use any Coatings or
associated technology resulting from this Agreement or from the efforts of
Company, or (ii) stop obtaining any types of coatings from other sources,
including RII’s current source of coatings or coated papers for use associated
with tobacco product manufacture.

    

    SECTION
3.                           COMMERCIAL ASPECTS OF
COLLABORATION

    

    3.1           Acceptance.  Provided
that the Coatings perform in accordance with the specifications, meets those
qualifications, and performs in accordance with the general criteria set forth
in Attachments A, which
is attached hereto and becomes part of this Agreement, RII shall notify Supplier
of its acceptance of the Coatings.

    

    3.2           Delivery.  Supplier
shall supply RII with Coatings for evaluation pursuant to Suppliers’ consent,
which is attached hereto as Attachment B and becomes part
of this Agreement.  The party may mutually agree in writing to amend
each element of Attachment B
during the term of this Agreement.

    

    3.3           Payment
Terms.  Payment terms shall be those set forth in Attachment B.  In no
event shall RII be responsible for payment of more that those amounts set forth
in Attachment B, without
its prior written consent.

    

    3.4           Costs of
Collaboration.  Direct costs associated with the collaboration
during the development and application of Coatings shall be but limited to the
extent set forth in Attachment
B.

    

    3.5           Further Commercial
Relationship.  In the event that RII, in its sole discretion,
determines that any Coatings provided by Supplier are satisfactory for use in
applications in conjunction with any tobacco product component, the parties each
shall negotiate in good faith towards arriving at terms and conditions of a
separate Commercial Agreement to exclusively license Supplier’s
Coatings.  This Commercial Agreement would provide for RII’s or its
Affiliates ability to employ for commercial purposes any and all formulations
and technologies associates with Coatings provided by Supplier and for
Supplier's ability to be reasonably compensated for RII's commercial use of such
formulations, technologies and materials.  The ranges of Commercial
costs have been estimated by the parties in accordance set forth in, Attachment C. (Proposed
Commercial Terms of Collaboration).  Nothing contained in this
Agreement shall be construed as obligating RII to employ Coatings in commercial
applications or to enter into any type of commercial agreement with Supplier;
and any commercial relationship with Supplier shall be at RII’s sole
discretion.

    

    SECTION
4.                           INTELLECTUAL PROPERTY
RIGHTS

    

    4.1           Ownership.

    

    (a)  All
Intellectual Property resulting solely from RII or its representatives shall be
solely owned by RII.  All Intellectual Property resulting from
activities of RII unrelated to the Coatings, this Agreement or the collaboration
contemplated thereby, whether or not those activities involved a third party,
shall be owned (as between RII and Supplier) by RII.  Disclosure of
Intellectual Property of RII to Supplier by RII shall not in any way affect
RII’s ownership rights with respect to RII’s Intellectual Property, absent a
written agreement to the contrary.

    

    (b)                           All
Intellectual Property relating to the Coatings resulting solely from Supplier or
its representatives, whether or not those activities involved a third party,
shall be owned (as between RII and Supplier) by Supplier. provided that, all such
Intellectual Property results from activities of Supplier related to the
Coatings, this Agreement or the collaboration contemplated thereby.

    

    (c) With regards to 4.1 (b)
Supplier agrees to license to RII and its Affiliates such Intellectual Property
on both a non-exclusive and exclusive basis, subject to mutually acceptable
commercial terms.

    

    4.2           Intellectual Property from Joint
Activities.

    

    (a) Intellectual Property
that results from the joint activities of the parties by their respective
employees or representatives shall be owned by (i) Supplier if the Intellectual
Property relates to the Coatings, and (ii) RII if the Intellectual Property
relates to any product resulting from the use of the Coatings and processes
associated with the use of the Coatings for production of any such product
containing tobacco components.  (iii) both parties if the Intellectual
Property relates to any product resulting from the use of the Coatings and
processes associated with the application of the Coatings for production of any
such product other than those containing tobacco components.

    

    (b) For inventions (whether or
not patentable), inventorship shall be determined in accordance with the rules
of inventorship under the laws of the United States of America), and inventions
that are jointly invented by the parties shall be owned by (i) Supplier if the
inventions relate to the Coatings and processes associated with the manufacture
of the Coatings, and (ii) RII if the inventions relate to any product resulting
from the use of the Coatings and processes associated with the use of the
Coatings for production of any such product containing tobacco components.
(iii) both parties if the inventions relate to any product resulting from the
use of the Coatings and processes associated with the application of the
Coatings for production of any such product other than those containing
tobacco components.  The parties each shall enter into (or shall
have entered into) agreements with their respective employees and
representatives providing that, to the extent permitted by applicable law, such
employees and representatives shall assign (or be obligated to assign) to the
party hereto which acts as their employer or applicable contracting party, the
ownership and control of all inventions conceived or reduced to practice by such
employees and representatives in the course of their employment for, or within
the scope of the relevant relationship with, each party hereto.

    

               (c) From the effective date of
this Agreement and for a period of 3 years thereafter, Supplier shall
grant to RII an exclusive license under the Intellectual Property that arises
from Joint Activities owned by the Supplier in accordance with Section 4.2
(a).and a non-exclusive license under the Intellectual Property that arises from
Joint Activities owned by the Supplier in accordance with Section 4.2 (a),
thereafter subject to mutually acceptable commercial terms.

    

    4.3           Prosecution of
Patents.  Supplier shall be solely responsible for preparing,
filing, prosecuting and maintaining (at its discretion) patents and or patent
applications for inventions for which it has ownership rights pursuant to Sub-Section
4.1(b).  RII shall be solely responsible for preparing, filing,
prosecuting and maintaining (at its discretion) patents and patent applications
for inventions for which it has ownership rights pursuant to Sub-Sections 4.1(a) and 4.2
(b).  Each party shall cooperate with the other with regard to
the preparation, filing, and prosecution of patent applications directed toward
inventions that name at least one inventor of Supplier and/or that otherwise
result from activities of Supplier pursuant to this Agreement.  The
parties shall ensure that their respective employees and representative who are
named as on patent applications as inventors on jointly owned patent
applications have executed assignments to the appropriate party.

    

    4.4           Infringement
Actions.  If a party receives any notice, suit or claim
alleging that the conduct or activities of either or both of the parties in
accordance with this Agreement infringes Intellectual Property rights of a third
party, the party receiving such notice shall promptly inform the other, and the
parties shall promptly discuss and decide on an appropriate action and response
to such notice, suit or claim.

    

    4.5           Documents.  RII
shall have sole ownership rights of all documents that originate by or through
it, its employees, or its representatives.  Supplier shall have sole
ownership rights of all documents that originate by or through it, its
employees, or its representatives.

    

    4.6           No Other
Licenses.  Except as expressly set forth in this Agreement or
as required by law, nothing in this Agreement shall be construed to grant any
right or license under any Intellectual Property of either party to the other,
including any patent, trademark or trade secret.

    

    SECTION
5.                                      CONFIDENTIALITY

    

    5.1           Confidentiality
Obligation.  For a period that extends for seven years beyond
termination, each party shall maintain in confidence all Confidential
Information disclosed to it by the other party.  Neither party will
use, disclose or grant the use of such Confidential Information except as
expressly authorized by this Agreement.  To the extent that disclosure
is authorized by this Agreement, the party receiving the Confidential
Information (the "Receiving Party") shall obtain prior agreement from its
employees, representatives and contracting parties to whom disclosure is to be
made to hold in confidence and not make use of such information for any purpose
other than those permitted by this Agreement.  Each party will use at
least the same standard of care as it uses to protect its own proprietary and
trade secret information to ensure that such employees, representatives and
contracting parties do not disclose or make any unauthorized use of such
Confidential Information.  Each party will promptly notify the other
upon discovery of any unauthorized use or disclosure of the Confidential
Information.  The Receiving Party shall be responsible to the other
party for any loss of Confidential Information of the other party or breach of
the provisions of this Section 5 by any
employee, representative or contracting party of the Receiving Party that
received such Confidential Information from the Receiving Party.

    

               5.2           Exceptions.  The
obligations of confidentiality contained in Sub-Section 5.1 will
not apply to the extent that it can be established by the Receiving Party by
competent proof that such Confidential Information:

    

    
      	
               
      

            	
              (i)

            	
              was
      already known to the Receiving Party, other than under an obligation of
      confidentiality, at the time of receipt from the other
    party;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              was
      generally available to the public or otherwise part of the public domain
      at the time of its receipt from the other
party;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              becomes
      generally available to the public or otherwise part of the public domain
      after its disclosure and other than through any act or omission of the
      Receiving Party in breach of this Agreement;
or

            

    

    

    
      	
               
      

            	
              (iv)

            	
              was
      received by the Receiving Party, other than under an obligation of
      confidentiality, by a third party lawfully in possession of the
      information.

            

    

    

    5.3           Authorized
Disclosure.  Each party (and third parties as applicable) may
disclose the Confidential Information to the extent such disclosure is
reasonably necessary in filing or prosecuting patent applications, prosecuting
or defending litigation, complying with court orders, or complying with
applicable governmental regulations, provided that if such party is required to
make any such disclosure of the Confidential Information it will to the extent
practicable give reasonable advance notice to the other party of such disclosure
requirement and, except to the extent inappropriate in the case of patent
applications, will use its best efforts to secure confidential treatment of such
information required to be disclosed.

    

    5.4                           Further Authorized
Disclosure.  In no event shall RII be restricted in its ability
to use any information provided to it by Supplier pursuant to Sub-Section
2.3.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECTION
6.                                      TERM AND
TERMINATION

    

    6.1           Term of
Collaboration.  Unless earlier terminated as provided herein,
the period over which the collaboration set forth in Section 2 extends
shall commence on the effective date of this Agreement and shall continue for a
term that ends on or before December 31, 2011.  The term of the
collaboration may end prior to December 31, 2011 in the event that the parties
agree in writing that collaborative activities are complete.  That
term may be extended by mutual agreement of the parties following written notice
by one party to the other of its desire to extend that term; provided such
notice is received by the other party at least 90 days prior to the date of
expiration of that term.  Upon expiration of such term, this Agreement
shall terminate.

    

    6.2                 Termination.

    

    
      	
               
      

            	
              (a)

            	
              The
      parties may mutually agree in writing at any time to terminate the
      collaboration or terminate this
Agreement.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Each
      party will have the right to terminate this Agreement (i) in the event of
      insolvency or bankruptcy of the other party, or (ii) after appropriate
      written notice to the other that the other is in breach of any material
      term of this Agreement, unless the other party cures the breach before the
      expiration of 60 days from the date of receipt of such
    notice.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Either
      party may elect to terminate the collaboration or this Agreement prior to
      expiration of this Agreement by providing to the other 90 days’ written
      notice to the other.  Such termination of this Agreement shall
      not relieve the parties of any obligation accruing prior to such
      termination, even if such obligation extends beyond such
      termination.

            

    

    

    
      	
               
      

            	
              (d)

            	
              In
      the event that this Agreement is terminated for any reason, the parties
      shall cooperate toward arriving at a final accounting for amounts due by
      one party to the other; including amounts due to Supplier for direct costs
      incurred and non-cancelable commitments made in the performance of this
      Agreement for which RII has agreed to be responsible (not to exceed the
      amount for which RII has agree to be responsible), and amounts due to RII
      for pre-paid amounts to Supplier for activities and expenses not yet
      performed or incurred by Supplier.

            

    

    

    6.3                 Other
Agreements.  Termination of this Agreement for any reason shall
not have any effect upon projects, activities, collaborations, commercial
arrangements, or service arrangements that the parties may have with one another
and that do not relate to the Equipment or this Agreement.

    

    6.4                 Survival.  Section 4, Section 5, Sub-Section 6.2(d),
Sub-Section
7.7, and Sub-Section 7.11
shall survive termination of this Agreement for any reason.

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECTION
7.                           MISCELLANEOUS
PROVISIONS

    

    7.1                 Representation of
Authority.  Each party hereby represents and warrants to the
other party that it is lawfully constituted in accordance with the laws of its
state or country of incorporation and that its signatory to this Agreement has
full power and authority to enter into this Agreement.

    

    7.2                 Notices.

    

    (a)           All
notices sent under this Agreement are to be sent by overnight courier or
facsimile addressed to such party at the address or facsimile number set forth
below or to such other address or facsimile number as either party has
designated by notice given to the other party.

    

    (b)  All notices are
effective when received.  The parties agree that service of any
process, summons, notice, or documents by registered mail in compliance with
this Sub-Section
7.2 shall be effective service of process for any action, suit, or
proceeding brought against a party in any court.  Absent a notice
designating another address or facsimile number, the addresses and facsimile
numbers shall be as follows:

    

    If to
RII, to:

    Reynolds Innovations
Inc.

    401 North Main Street

    Winston-Salem, NC 27102

    Attention:  Dennis
Potter 

    

    If to
Supplier,
to:                                Ecology
Coatings Inc.

    2701 Cambridge Court, Suite
100

    Auburn Hills,
MI  48326

    Attention:  CEO &
General Counsel

    

    

    7.3                 Force
Majeure.  Neither party shall be held liable or responsible to
the other party nor be deemed to have defaulted under or breached this Agreement
for failure or delay in fulfilling or performing any term of this Agreement
(other than payment of monies due) when such failure or delay is caused by or
results from causes beyond reasonable control of the affected party, including
but not limited to acts of God, fire, flood, storm, earthquake, explosion,
epidemic, embargo, war, acts of war (whether war be declared or not),
insurrection, riot, civil commotion, strike, lockout or other labor
disturbances, shortage of labor, shortage of materials, or acts, omissions or
delays in acting by any governmental authority.

    

    7.4                 Assignment.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective legal successors and assigns.

    This
Agreement may not be assigned or otherwise transferred, nor, except as expressly
provided hereunder, may any right or obligations hereunder be assigned or
transferred by either party without the written consent of the other party;
provided, however, that either party may, without such consent, assign this
Agreement and its rights and obligations hereunder (i) in connection with the
transfer or sale of all or substantially all of its business, if such assets
include substantially all of the assets relating to its performance of its
respective obligations hereunder, (ii) to a wholly owned subsidiary or, (iii) in
the event of its merger or consolidation with another company at any time during
the term of this Agreement.  Any permitted assignee shall assume all
obligations of its assignor under this Agreement.

    

    7.5                 Publicity.  Except
for a press release announcing this Agreement, Exhibit 3, (Approved Press
Release Announcing Collaboration Agreement) that shall require the written
approval of the other party, neither party shall originate any news release or
other public announcement, written or oral, or otherwise make any disclosure
relating to the existence or terms of or performance under this Agreement
without the prior written approval of the other party, except as may otherwise
be required by law.

    

    7.6                 Export Laws.  No
technology or information licensed from the other, and no product thereof, will
be made available or re-exported, directly or indirectly, except in compliance
with all applicable export laws and regulations.

    

    7.7                 Applicable
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Virginia, without regard to its
choice of law provisions, and any applicable laws of the United
States.  The parties also agree that any suit concerning the subject
matter of this Agreement shall be filed in the Commonwealth of
Virginia.

    

    7.8                 Compliance with
Laws.  RII and Supplier shall comply with, and shall ensure
that their respective employees and Affiliates shall comply with, all laws,
regulations, agreements, licenses and consents applicable to or otherwise
relating to the subject matter of this Agreement.

    

    7.9                 Waiver.  No waiver
by either party of any of the provisions of this Agreement will be effective
unless explicitly set forth in writing and executed by that
party.  Any waiver by either party of a breach of this Agreement will
not operate or be construed as a waiver of any subsequent breach.

    

    7.10                 Severability.  If
any provision of this Agreement shall be held to be unlawful, the same shall be
deemed to be deleted from this Agreement, but this Agreement shall remain in
full force and effect as if the deleted provision had never been contained in
it.  The parties shall negotiate in good faith as to the terms of a
mutually acceptable and satisfactory provision in place of any deleted
provision, and if such terms shall be agreed, this Agreement shall be amended
accordingly.

    

    7.11Entire Agreement;
Amendment.  This Agreement contains the entire understanding of
the parties with respect to the subject matter hereof.  All express or
implied agreements and understandings, either oral or written, heretofore made
are expressly merged in and made a part of this Agreement.  The
parties shall remain bound by their previous Confidentiality Agreement # 5212,
dated May 5, 2008 and Ingredient and Formula Confidentiality Agreement #
08-33740-074, dated September 5, 2008, which incorporated herein by reference in
its entirety, and except as expressly amended by this Agreement all the terms
and conditions thereof remain in full force and effect.  This
Agreement may be amended, or any term hereof modified, only by a written
instrument duly executed by both parties hereto.

    

    7.12                 Independent
Contractors.  RII and Supplier are independent contractors, and
that the relationship between them shall not constitute a partnership,
franchise, joint venture or agency of any kind.  Neither party shall
have the authority to make any statements, representations nor commitments of
any kind (whether express or implied), or to take any action, which shall be
binding on the other or create any liability or obligation on behalf of the
other, without the prior written authorization of the other party to do
so.

    

    7.13                 Warranties.  Each
party warrants that it has the right and capacity to enter into this Agreement
and that it has no obligation to any third party that affects its ability to
enter into or to perform its obligations of this Agreement.

    

    7.14                 Further
Assurances.  Each of the parties agrees to enter into or
execute, or procure the entering into or execution of such agreements,
assignments or further assurances, or do such other acts as the other party may
reasonably request to carry out the terms and conditions of this
Agreement.

    

    7.15                 Counterparts.  This
Agreement and any amendment thereto may be executed in multiple counterparts,
each of which is an original and all which constitute one agreement or
amendment, as the case may be, notwithstanding that all of the parties are not
signatories to the original or the same counterpart, or that signature pages
from different counterparts are combined, and the signature of any party to any
counterpart in a signature to and may be appended to any other
counterpart.

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    In
Witness Whereof, the parties hereto have duly executed this
Agreement.

    

    

    Reynolds
Innovations
Inc.                                                                     Ecology
Coatings

    

    

    By:  /s/
Dennis
Potter                                                                             By:  /s/ Robert G.
Crockett

    
 

    Title:  VP                                                                           Title:  CEO

    

    Date:  8/18/2009                                                                               Date:
8/21/2009

    

    Attachments:  Attachment
A, Attachment B, and Attachment C

    

    Attachment
A

    

    Collaboration
Activities including Descriptions of Coatings

    

    
      	
              Project
      Name:

            	
              Ecology
      Coatings FSC Cigarette Development

            
	
              Project
      Manager:

            	
              Matt
      Reddick

            
	
              Project
      Objective:

            	
              Develop
      a process whereby Ecology Coatings proprietary Coatings can be
      applied in an online method for use in the commercial manufacture of
      FSC cigarettes.

            
	
              Descriptions
      of types and specifications of coatings intended to be provided by
      Supplier:

            	
              Coating
      criteria includes but is not limited to:

              · Passes
      SRA stewardship requirements

              · Does
      not impart off tastes or odors

              · Successfully
      passes FSC requirements

              · Has
      capability to be applied on-line and at full machine speed without
      excessive loss in productivity

              · Is
      cost effective

              · Meets
      operational health and safety requirements

              · Exceeds
      benefits of alternative
solutions

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Attachment
B

    

    Detailed
Project Stages, Compensation, and Success Criteria

    

    
      	
              Stage
      1) Formula Release to RJRT Product Integrity & Legal
      Review

            	
              August
      2009

            	
              No
      Cost

            
	
              Success: Collaboration
      Agreement negotiated and signed

            
	
              Stage
      2) Product Integrity & Legal Approval  to Make & Test
      Cigarettes

            	
              August
      2009

            	
              $25,000

            
	
              Success: S&RA
      reviews the formulations and gives the approval to make cigarettes in the
      pilot plant to be tested for chemical, sensory, and FSC
      analysis

            
	
              Stage
      3) Cigarettes Made & Tested (FSC, Chemistry, Sensory)

               

            	
              Late
      September  2009

            	
              $25,000

            
	
              Success: Cigarettes are
      made, tested, and have passed the following minimum testing
      requirements:

              · Testing
      of cigarettes that have been manufactured with Coatings shall be conducted
      pursuant to the American Society of Testing and Materials Standard ASTM
      E2187-04, "Standard Test Method for Measuring the Ignition Strength of
      Cigarettes " and fully meet the performance requirements of the
      standard.

               

              · Chemistry
      – Using RJRT’s internal document, “Mainstream Smoke Target Compound List”,
      cigarettes that have been manufactured with Coatings will have specific
      cigarette deliveries reviewed to determine if they are within one standard
      deviation of permissible limits to be acceptable relative to control*
      (does not include full stewardship testing requirements) Exhibit 1

               

              · Sensory
      – Using RJRT’s internal scorecard, “Unstructured Time Ballot with Revised
      Breaks”, cigarettes that have been manufactured with Coatings will be
      scored to determine if they remain at parity or better by internal expert
      smoking panels relative to control* Exhibit 2

               

              Step
      3 may include iterative testing before final testing is
      complete

            
	
              Stage
      4) Approval to Proceed To Prototype Online Machine

               

            	
              Earliest
      Start Date:

              October
      2009

            	
              Latest
      Completion Date:

              December
      1, 2009

            	
              $50,000

            
	
              Success:  Business
      case analysis determines that the proposal to use Coatings for the
      manufacture of FSC compliant cigarettes meets preliminary ROI hurdle(s)
      with respect to CapEx, machine de-rate, engineering feasibility
      assessment, footprint impact, etc.

              Success:  Commercial
      Agreement for the use of Coatings is Signed

            
	
              Stage
      5) Prototype System Operational & Online Testing Begins

               

               

               

               

               

               

            	
              Earliest
      Start Date:

              August
      2010

            	
              Latest
      Completion Date:

              December
      1, 2010

            	
              $250,000

            
	
              Success: Prototype system
      has been installed on a production cigarette complex and performance
      testing proves that the use of Coatings in an online band application
      meets the success criteria as outlined in the business case proposal (Step
      4)

              Success: Quality
      Control’s evaluation of cigarette performance through statistical
      sampling (product quip) begins and cigarettes manufactured with Coatings
      to produce FSC compliant cigarettes are approved by Product
      Integrity as acceptable for sale.

            
	
              Stage
      6) Production Approval

            	
              Earliest
      Start Date:

              August
      2011

            	
              Latest
      Completion Date:

              December
      1, 2011

            	
              $350,000

            
	
              Success: Quality
      Control’s evaluation of cigarette performance through statistical
      sampling is complete; Stewardship requirements are fully met; and FSC
      compliant cigarettes manufactured with Coatings have been sold to a
      cigarette wholesaler.

            
	
              *Control
      – cigarettes that reflect current market product format (i.e. Camel
      Lights) that meet internal guidelines and/or specifications for all areas
      of testing.

            
	
              Payment
      Terms:

            	
              Net
      30 Days post-Stage Success

            
	
              Payment
      Release Date:

            	
              Completion
      of success criteria as identified in each Stage or the inception of work
      on a subsequent Stage begins and the parties have mutual agreement
      that progress towards completion of current Stage has been effectively
      achieved.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     Attachment
C

    

    Proposed
Commercial Licensing Agreement Terms

    

    
      	
              Assumptions
      for arriving at a fixed Price per Unit of Coatings:

            	
              RJRT
      has made some assumptions when formulating our initial valuation but feel
      confident the royalty fee we are offering remains competitive to the
      existing FSC paper alternatives.

              · RJRT
      possesses an intimate working knowledge of the FSC paper
      market.  We routinely demonstrate mastery in negotiating with
      our existing supply chain base of FSC paper providers.

              · RJRT
      analyzed the Ecology Coatings standard Royalties fee structure which is
      based on a 30/70 net total benefit (NTB) formula where 30% of NTB paid to
      Ecology Coatings, and 70% NTB retained by customer and concluded that by
      using our market intelligence and the projections listed
      below.

            
	
              RJRT
      FSC Projections:

            	
              2010

            	
              2011

            	
              2012

            	
              2013

            	
              2014

            	
              2015

            
	
              72.3
      bil/yr

            	
              67.2
      bil/yr

            	
              63.9
      bil/yr

            	
              60.9
      bil/yr

            	
              58.5
      bil/yr

            	
              56.5
      bil/yr

            
	
              FSC
      Paper $

              Projections:

            	
              $60/100K

            	
              $45/100K

            	
              $40/100K

            	
              $35/100K

            	
              $30/100K

            	
              $??/100K

            
	
              RJRT
      Initial Valuation of Royalty Fee:

            	
              Actual
      results from project phases 1-3 will form the basis for the RJRT Business
      Case to justify the project which will include a detailed value analysis
      and plan for conversion to the new process.  The conversion plan
      will entail a phased machine conversion and implementation of the process
      which may span over several quarters.

              Based
      on the business, as we know it today RJRT has arrived at the valuation of
      the royalty fee to be $0.02/TH cigarettes.

              Finally,
      RJRT will recapture all success dollars paid out to Ecology Coatings
      through the write down of the first few years’ royalty
    fees.

            
	
              EC
      Initial Valuation of Royalty Fee:

            	
              Ecology’s
      coatings are disruptive, game changing technologies exclusively available
      to RJRT.  Ecology Coatings has analyzed industry cost
      information associated with currently available FSC solutions and has
      determined that RJRT has an opportunity to achieve significant NTB cost
      savings over traditional off-line FSC processes.  Ecology
      believes the total savings to be as much as $0.01/cigarette or $60 million
      annual NTB based on projected 2011 cigarette sales.  EC’s
      benefit sharing model is consistent with other industries where disruptive
      patented inventions succeed in changing the manufacturing process
      resulting in significant cost savings.  A successful
      collaboration will ensure very large savings is enjoyed by RJRT (70%) with
      the remainder (30%) paid to EC in licensing royalties.  In this
      application, EC analysis estimates the royalties to be as much as
      $0.003/cigarette, approximately $18.0 million annually.

            
	
              Finalization
      of Further Commercial Agreement – Royalties

            	
              A
      full commercial license agreement is to be approved as part of Stage 4,
      attachment B.  Success at this stage includes RJR management
      approval of the initial business case and preliminary ROI with both
      parties approval of royalty fees.

            

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
1

     

     

    Mainstream Smoke Target
Compound List

     

    

    
      	
              Chemical

            	
              Short
      Term Exposure

            	
              Long
      Term Exposure

            
	
              Aromatic
      Amines

            	 
      	 
      
	
              2-Aminonaphthalene

            	 
      	
              X

            
	
              4-Aminobiphenyl

            	 
      	
              X

            
	
              Volatile
      Carbonyls

            	 
      	 
      
	
              Formaldehyde

            	
              X

            	
              X

            
	
              Acetaldehyde

            	
              X

            	
              X

            
	
              Acrolein

            	
              X

            	
              X

            
	
              Trace
      metals

            	 
      	 
      
	
              Cadmium

            	 
      	
              X

            
	
              Arsenic

            	 
      	
              X

            
	
              N-Nitrosamines

            	 
      	 
      
	
              N-Nitrosonornicotine
      (NNN)

            	 
      	
              X

            
	
              4-(N-Nitrosomethylamino)-1-(3-pyridinyl)-1-butanone
      (NNK)

            	 
      	
              X

            
	
              N-Nitrosoanatabine
      (NAT)

            	 
      	
              X

            
	
              Semi-Volatiles

            	 
      	 
      
	
              Quinoline

            	 
      	
              X

            
	
              Phenols

            	 
      	 
      
	
              Hydroquinone

            	
              X

            	
              X

            
	
              Catechol

            	
              X

            	
              X

            
	
              Phenol

            	
              X

            	
              X

            
	
              m+p-Cresol

            	
              X

            	
              X

            
	
              o-Cresol

            	
              X

            	
              X

            
	
              Volatiles

            	 
      	 
      
	
              1,3-butadiene

            	 
      	
              X

            
	
              Isoprene

            	 
      	
              X

            
	
              Acrylonitrile

            	 
      	
              X

            
	
              Benzene

            	 
      	
              X

            
	
              Polyaromatic
      Hydrocarbons (PAHs)

            	 
      	 
      
	
              Benzo[a]pyrene

            	 
      	
              X

            
	
              Benzo[a]anthracene

            	 
      	
              X

            
	
              Benzo[b]fluoranthene

            	 
      	
              X

            
	
              Benzo[j]fluoranthene

            	 
      	
              X

            
	
              Benzo[k]fluoranthene

            	 
      	
              X

            
	
              Dibenz[a,h]anthracene

            	 
      	
              X

            
	
              Indeno[1,2,3-cd]pyrene

            	 
      	
              X

            
	
              Fluorene

            	 
      	
              X

            
	
              Acenaphthylene

            	 
      	
              X

            
	
              Fluoranthene

            	 
      	
              X

            
	
              Acenaphthene

            	 
      	
              X

            
	
              Naphthalene

            	 
      	
              X

            
	
              Others

            	 
      	 
      
	
              Tar

            	
              X

            	
              X

            
	
              Nicotine

            	
              X

            	
              X

            
	
              CO

            	
              X

            	
              X

            
	
              HCN

            	
              X

            	
              X

            
	
              NOx

            	
              X

            	
              X

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
2

     

    Unstructured Time Ballot
with Revised Breaks

     

    
      
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
2 cont.

    
      
      

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
2 cont.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
      

    

    Exhibit
2 final

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
      

    

    Exhibit
3

    

    Approved Press Release
Announcing Collaboration Agreement

    

    
    

    
      

      
      

    

    

    

    

    Investor
and Media Relations

    McCloud
Communications, LLC

    Marty
Tullio, Managing Member 

    949.553.9748

    Marty@McCloudCommunications.com

    

    

    

    Ecology
Coatings Signs Development Agreement with Major U.S. Tobacco
Company

    

            Market
Size (2007):  Five Trillion Cigarettes Produced
Worldwide;

                                                330
Billion Cigarettes Produced Within the U.S.
(1)

    

    Auburn Hills, MI – August 24,
2009 – Ecology Coatings,
Inc. (OTCBB:ECOC), a leader in the discovery and development of
nanotechnology-enabled, ultraviolet-curable advanced coatings, today announced
that it has signed a collaboration agreement with a major tobacco company for
the application of its technology for producing “fire standard compliant” (FSC)
cigarettes. FSC cigarettes are designed to meet government reduced ignition
propensity testing standards. Ecoloiogy has filed a patent application with the
U.S. Patent and Trademark Office for its technology.

    

    The
agreement establishes the framework under which the two companies plan to test
and commercialize FSC cigarettes using Ecology Coatings’ unique paper coating
technology. Milestone payments will be made to Ecology Coatings as predefined
development and testing milestones are met. If those payments are met, royalty
payments will commence with market introduction and product sales.

    

    “The goal
of our collaboration with this tobacco company is to meet government
requirements for FSC cigarettes while at the same time allowing the manufacturer
to produce at full production speeds,” said Ecology Coatings CEO Bob Crockett.
“Our solution has the potential to allow manufacturers to be self-reliant and
eliminate the need for specialty paper. Our uniqueness resides in our ability to
cure UV coatings at high speeds at substantial cost savings.”

    

    Crockett
continued, “This application is an outgrowth of our patented disruptive paper
barrier coating technologies. By designing the solution as part of the
manufacturing process, manufacturers can reduce their costs. We believe this is
an exciting opportunity that could be very rewarding to our company and its
shareholders.”

    

    The
Coalition for Fire-Safe Cigarettes reports that approximately 40 states in the
U.S. and Washington, D.C., have passed legislation calling for the production of
FSC cigarettes (http://firesafecigarettes.org/).
The Coalition’s goal is to save lives and prevent injuries due to
cigarette-induced fires. The Coalition reports that 99.8 percent of the U.S.
population is now or soon will be governed by state fire-safe cigarette
legislation.

    

    (1)  The source of this information is the
U.S. Department of Agriculture

     

    

     

    About Ecology Coatings,
Inc.

    Ecology
Coatings, Inc. (OTCBB:ECOC) is a world leader in the development and licensing
of cleantech ultra-

    

    - more
-

    Ecology Coatings Signs Development
Agreement with Major U.S. Tobacco Company

    Page
2

    

    

    violet
(UV) curable coatings — coatings that improve the products we use daily.
Ecology’s technology platform allows manufacturers to enhance the durability and
performance of their products, while significantly reducing energy costs and
increasing manufacturing throughput. The company produces solid coatings which
eliminate the escape of harmful solvents into the atmosphere during application.
Headquartered in Auburn Hills, Michigan, Ecology Coatings has a development and
prototype lab in Akron, Ohio. For additional information, visit the company's
website at http://www.ecologycoatings.com.

    

    Forward-looking
Statements

    Except
for the historical information contained herein, the matters discussed are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, as amended. These statements
involve risks and uncertainties which are specified in Ecology's filings with
the Securities and Exchange Commission. These risks and uncertainties could
cause actual results to differ materially from any forward-looking statements
made herein.

    

    

    # #
#Employment Agreement between the Company and Roger N. Farah.

 Exhibit 10.1 
 EXECUTION COPY 
 AMENDED AND RESTATED 

EMPLOYMENT AGREEMENT 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) made effective as of the 14th day of October 2009, by and between Polo Ralph Lauren Corporation, a Delaware corporation (the
“Corporation”), and Roger N. Farah (the “Executive”). 
 WHEREAS, the Executive is serving as President and
Chief Operating Officer of the Corporation pursuant to an Amended and Restated Employment Agreement made as of July 23, 2002, as amended (the “2002 Employment Agreement”); and 
 WHEREAS, the Corporation and the Executive wish to amend and restate such 2002 Employment Agreement effective as of the date hereof;

 NOW, THEREFORE, intending to be bound the parties hereby agree as follows with effect from the date first above written.

 1. Employment/Prior Agreement. 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. From and after the date hereof, the terms of this Agreement shall, except as provided herein, supersede in all respects the terms of any prior arrangement or agreement, if any,
dealing with the matters herein, including the 2002 Employment Agreement. 
 2. Term. The employment of the Executive by
the Corporation as provided in Section 1 pursuant to this Agreement will be effective on the date hereof. The term of the Executive’s employment under this Agreement shall continue until the close of business on March 30, 2013,
subject to earlier termination in accordance with the terms of this Agreement (the “Term”). The Term shall be automatically extended so as to end on the last day of each subsequent fiscal year thereafter unless either party notifies the
other in writing of its intention not to extend the Term at least 180 days prior to the commencement of the next scheduled extension (a “NonExtension Notice”). 
 3. Position and Duties. The Executive shall serve as President and Chief Operating Officer. The Executive shall report to Ralph Lauren (as Chairman of the Board of Directors of the Corporation (the
“Board”) and Chief Executive Officer) and the Board, and shall have responsibilities and duties for the oversight of the Corporation’s operations and such other responsibilities and duties, that are (a) not inconsistent with the
usual duties of a president and chief operating officer of an enterprise such as the Corporation, as may be assigned to Executive from time to time, and (b) no less comprehensive than have been the duties and responsibilities of the Executive
during the period of his employment with the Corporation prior to the date hereof. The Executive shall devote all of Executive’s working time and efforts to the business and affairs

 
of the Corporation; provided, however, that the Executive may serve on such boards of directors as he may be asked to serve on from time to time, with the Corporation’s approval. It is
further understood and agreed that nothing herein shall prevent the Executive from managing his personal investments so long as such activities do not interfere in more than an insignificant manner with the Executive’s performance of his duties
hereunder and do not conflict with the provisions of Section 8. 
 4. Compensation and Related Matters. 

(a) Salary and Incentive Bonus. 
 (i) Salary. During the Term, Executive’s annual salary shall be at the rate of $900,000. Such salary shall be
paid in substantially equal installments on a basis consistent with the Corporation’s payroll practices and shall be subject to annual increases, if any, as may be determined in the sole discretion of the Corporation. Executive’s salary as
in effect from time to time is hereinafter referred to as the “Salary”. 
 (ii) Incentive Bonus.
Executive shall participate in the Corporation’s Executive Officer Annual Incentive Plan (the “EOAIP”), and any substitute therefor, and be eligible to earn an annual cash bonus for each fiscal year during the Term of this Agreement
(the “Annual Incentive Bonus”). With respect to each fiscal year during the Term commencing with the Corporation’s 2010 fiscal year (i.e., commencing March 29, 2009), Executive’s Annual Incentive Bonus opportunity
shall range, subject to achieving pre-established performance goals, from $3 million upon obtaining threshold performance targets established by the Compensation Committee (the “Compensation Committee”) of the Board (i.e., the EOAIP
bonus schedule threshold) to a maximum of $9 million upon obtaining maximum performance targets established by the Compensation Committee (i.e., the EOAIP bonus schedule maximum) based upon the extent to which performance goals established by
the Compensation Committee are achieved. At target performance (i.e., the EOAIP bonus schedule target), Executive’s Annual Incentive Bonus shall be $6 million (the “Target Annual Incentive Bonus”). The Annual Incentive Bonus,
if any, payable to the Executive in respect of each fiscal year will be paid at the same time that annual bonuses are paid to other executives under the EOAIP. Notwithstanding any provision of this Agreement to the contrary, the Executive’s
entitlement to payment of an Annual Incentive Bonus during any period when the compensation payable to the Executive pursuant to this Agreement is subject to the deduction limitations of section 162(m) of the Internal Revenue Code of 1986, as
amended (the “Code”), shall be subject to shareholder approval of a plan or arrangement evidencing such Annual Incentive Bonus opportunity that complies with the requirements of section 162(m) of the Code. 
  

 2 

 (iii) Deferred Compensation. Executive shall
receive an aggregate of $250,000 per year for the fiscal years ending in 2010 through 2013 (the “Deferred Compensation”) in the form of deferred bonus compensation, which shall be credited to a deferred compensation account on the books of
the Corporation in equal monthly installments in a manner substantially consistent with the Corporation’s deferred compensation agreements with other senior executives. Executive shall at all times be fully vested in the Deferred Compensation
credited to such account. Notwithstanding any provision of the Deferred Compensation Agreement, dated September 19, 2002, between the Corporation and Executive to the contrary, Executive’s Deferred Compensation shall be distributed as
follows: (i) the balance credited to the deferred compensation account as of December 31, 2008, less the vested balance credited to such account as of December 31, 2004, will be paid to Executive on or prior to October 31, 2009;
(ii) Deferred Compensation and any earnings credited in calendar 2009 will be paid to Executive (subject to Section 6(h) of this Agreement) on (A) the 45th day following the termination of Executive’s employment if
Executive’s employment terminates before October 31, 2010 and (B) the earlier of January 1, 2017 or the 45th day following the termination of Executive’s employment if Executive’s employment terminates on or after
October 31, 2010; and (iii) Deferred Compensation and any earnings credited after calendar 2009 will be paid to Executive on the 45th day following the termination of Executive’s employment (subject to Section 6(h) of this
Agreement). The vested balance credited to the deferred compensation account as of December 31, 2004 will be paid to Executive as soon as practicable following the termination of Executive’s employment. 
 (b) Expenses. During the term of the Executive’s employment hereunder, the Executive shall be entitled to receive
prompt reimbursement for all reasonable and customary expenses incurred by the Executive in performing services hereunder, including all expenses of travel and living expenses while away from home on business or at the request of and in the service
of the Corporation; provided that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Corporation. 
 (c) Other Benefits. During the term of the Executive’s employment hereunder, the Executive shall be entitled to
participate in or receive benefits under any medical, pension, profit sharing or other employee benefit plan or arrangement generally made available by the Corporation now or in the future to its executives and key management employees (or to their
family members), subject to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements. Moreover, during such term, the Executive shall be entitled to a monthly car allowance of $1,500. Nothing
paid to the Executive under any plan or arrangement presently in effect or made available in the future shall be deemed to be in lieu of the Salary, Annual Incentive Bonuses or Deferred Compensation, payable to the Executive pursuant to paragraph
(a) of this Section. 
  

 3 

 (d) Vacations. The Executive shall be entitled to reasonable
vacations consistent with the Corporation’s past practice. 
 (e) Long Term Incentive Awards.
With respect to each of the three-consecutive-fiscal-year periods beginning, respectively, in fiscal year 2010 (the “First Performance Period”), fiscal year 2011 (the “Second Performance Period”) and fiscal year 2012 (the
“Third Performance Period”) (each such period shall hereinafter be referred to as a “Performance Period”), it is expected that the Executive shall receive a long-term incentive award (each such award shall hereinafter be referred
to as a “LTI Award”) with a value of $7 million, although the determination of the value of the actual LTI Award made to the Executive shall be in the sole discretion, exercised in good faith, of the Compensation Committee. Fifty percent
(50%) of the value of any such LTI Award shall consist of restricted performance share units (“RPSUs”), valued as of the date of grant. Fifty percent (50%) of the value of any such LTI Award shall consist of options to purchase
shares of Class A Common Stock of the Corporation (“LTI Options”), which options shall be valued, as of the date of grant, using the Black-Scholes option-pricing model. The LTI Award for the First Performance Period shall be granted
within ten days of the date that this Agreement is executed by the Corporation and the Executive. The LTI Awards for the Second and Third Performance Periods shall be granted at the same time as long-term incentive awards are granted to the
Corporation’s other senior executives for such Performance Periods, but in no event shall the LTI Awards for the Second and Third Performance Periods be granted later than August 31, 2010 and August 31, 2011, respectively. Subject to
the terms of this Agreement, with respect to the RPSUs granted for the First and Second Performance Periods, the Executive shall become 100 percent vested in such RPSUs as of the last day of the respective Performance Period if he remains
continuously employed with the Corporation through the end of the applicable Performance Period and the performance goals determined by the Compensation Committee are achieved; with respect to the RPSUs granted for the Third Performance Period, the
Executive shall become fully vested in such RPSUs as of March 30, 2013 if he remains continuously employed with the Corporation through such date, with payment with respect to such RPSUs to be made within ten (10) days after the end of the
Corporation’s 2014 fiscal year. Subject to the terms of this Agreement, one-third of the grant of LTI Options with respect to the First Performance Period shall vest and become exercisable on each of the first three anniversaries of the date of
grant, provided the Executive remains continuously employed with the Corporation to the applicable vesting date. With respect to the grant of LTI Options for the Second Performance Period, subject to the terms of this Agreement, (A) one-third
of such grant of LTI Options shall vest and become exercisable on each of the first two anniversaries of the date of grant, provided the Executive remains continuously employed with the Corporation through such date; and (B) the remaining
one-third of such grant of LTI Options shall vest and become exercisable on March 30, 2013, provided the Executive remains continuously employed with the Corporation through such date. With respect to the grant of LTI Options for the Third
Performance Period, subject to the terms of this Agreement, (1) one-third of such grant of LTI Options shall vest and become exercisable on the first anniversary of the date of grant, provided the Executive remains continuously employed with
the Corporation through such date; (2) an additional one-third of such grant of LTI Options shall vest and become

  

 4 

 
exercisable on March 30, 2013, provided the Executive remains continuously employed with the Corporation through such date; and (3) the remaining one-third of such grant of LTI Options
(the “Third Tranche”) shall vest on March 30, 2013 (provided the Executive remains continuously employed with the Corporation through such date), but shall not become exercisable until the last day of the Corporation’s 2014
fiscal year. Except as otherwise provided in this Agreement, LTI Options shall remain exercisable until the seventh anniversary of the date of grant. Subject to the terms of this Agreement, both components of the LTI Award (RPSUs and LTI Options)
shall be granted pursuant to and shall be subject to the terms of the Polo Ralph Lauren Corporation 1997 Long-Term Stock Incentive Plan, as amended and restated as of August 12, 2004 and amended as of June 30, 2006 and May 21, 2009,
or any successor thereto (the “Incentive Plan”). The LTI Award for the First Performance Period shall also be subject to the terms of the Fiscal 2010 - Overview of Stock Options and the Fiscal 2010 - Overview of Cliff Restricted
Performance Share Unit Awards to the extent such Fiscal-2010 Overviews are not inconsistent with the Incentive Plan and the provisions of this Agreement. The LTI Awards for the Second and Third Performance Periods shall be subject to terms and
conditions no less favorable than the terms and conditions governing long-term incentive awards which are granted to other executives and key management employees of the Corporation, provided such terms are not inconsistent with the Incentive Plan
and the provisions of this Agreement. It is understood that the Compensation Committee reserves the right, in its good faith discretion, to change (i) the Performance Period with respect to LTI Awards and/or (ii) the valuation methodology
applicable to LTI Options, provided in any case that the Executive’s LTI Awards are treated in the same manner as similar awards granted to the Corporation’s other senior executives. Except as specifically set forth in this
Section 4(e), the Executive shall not be granted any other long-term incentive awards from the Corporation during the Term. 
 (f) Air Travel. For purposes of security and efficiency, the Executive and his family members, to and only to the extent such family members are traveling with the Executive, shall use the
Corporation’s aircraft or other private aircraft for any travel. To the extent the Executive and his family are unable to use the Corporation’s aircraft or other private aircraft for any travel, the Executive and his family may use
commercial aircraft. For any expense incurred as a result of the Executive’s use of private aircraft (other than the Corporation’s aircraft) or commercial aircraft, the Executive shall be reimbursed by the Corporation (with no tax gross
up). For any such expense, the Executive shall be entitled to reimbursement at the lesser of market rates or Executive’s out-of-pocket cost. 
 5. Termination. 
 (a) Termination by Corporation. The
Executive’s employment hereunder may be terminated at any time with or without Cause. 
 (b) Termination
by the Executive. The Executive may terminate his employment hereunder with or without Good Reason. For purposes of this Agreement, “Good Reason” shall mean (A) a material diminution in or adverse alteration to the
Executive’s title or duties as set forth in Section 3 herein, (B) a reduction in the Executive’s Salary or Annual Incentive Bonus opportunity or Deferred Compensation from those

  

 5 

 
provided herein or the Corporation’s electing to eliminate the EOAIP without substituting therefor a plan which provides for a reasonably comparable Annual Incentive Bonus opportunity or the
Executive’s ceasing to be entitled to the payment of an Annual Incentive Bonus as a result of the failure of the Corporation’s shareholders to approve a plan or arrangement evidencing such Annual Incentive Bonus in a manner that complies
with the requirements of section 162(m) of the Code, (C) the relocation of the Executive’s principal office outside of the area which comprises a fifty (50) mile radius from New York City, (D) a failure of the Corporation to
comply with any material provision of this Agreement, or (E) the Corporation requires Executive to report to other than Ralph Lauren and the Board; provided that the events described in clauses (A), (B), (C), (D) and (E) above shall
not constitute Good Reason (1) until the Executive provides notice to the Corporation of the existence of such diminution, change, reduction, relocation, failure or requirement within ninety (90) days of its occurrence and (2) unless
such diminution, change, reduction, failure or requirement (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. 
 (c) Any termination of the Executive’s employment by the Corporation or by the Executive (other than termination
pursuant to Section 6(d)(i) hereof) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 10 hereof. A “Notice of Termination” shall mean a notice which shall indicate the
specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.

 6. Compensation Upon Termination. The provisions of this Section 6 shall exclusively govern the Executive’s
rights upon termination of employment with the Corporation and its affiliates. Upon termination of the Executive’s employment for any reason, the Executive agrees to resign, as of the date of such termination of employment, from the Board and
any committees of the Corporation or its affiliates on which he serves. 
 (a) If the Corporation shall terminate
the Executive’s employment for any reason other than an Enumerated Reason as set forth in Section 6(d) hereof or if the Executive resigns for Good Reason pursuant to Section 5(b) hereof, subject to the provisions of Section 8
hereof, the Executive shall be entitled to the following: 
 (i) an amount equal to (1) the product of
(x) the greater of two (2) or the number of full and partial years from the date of termination through March 30, 2013 (up to a maximum of three (3)), and (y) the sum of (I) the Executive’s Salary at the rate in effect
on such date (unless employment is terminated by the Executive for Good Reason pursuant to Section 5(b) hereof as a result of a Salary reduction, in which case, at the rate in effect prior to such reduction), plus (II) the amount of the Target
Annual Incentive Bonus described herein; plus (2) a pro rata portion of any Annual Incentive Bonus that the Executive would have been entitled to receive pursuant to Section 4(a)(ii) hereof for the fiscal year in which the Executive’s
employment is terminated based on the actual performance of the Corporation for such fiscal year, such pro rata portion to be based upon a

  

 6 

 
fraction, the numerator of which is the number of days from the first day of the fiscal year in which such termination occurs until the date of termination and the denominator of which is 365 (a
“Pro Rata Annual Incentive Bonus”). 
 Subject to Section 6(h) below, any amounts paid pursuant to
subsection (i)(1) above shall be paid in equal monthly installments commencing on the first day of the month immediately following the date of termination over a period of twenty-four (24) months thereafter or such greater number of months (not
in excess of thirty-six (36)) through March 2013 (such period hereinafter referred to as the “Severance Period”), each of which shall be a separate payment; provided that any amount otherwise payable prior to the Executive’s
execution of a release pursuant to Section 6(f) shall be paid no later than ten (10) days following the execution of a release in accordance with Section 6(f). Subject to Section 6(h) below, the Pro Rata Annual Incentive Bonus
described in subsection (i)(2) above shall be paid in a lump sum when such Annual Incentive Bonus would have otherwise been payable to the Executive pursuant to Section 4(a)(ii) had the Executive’s employment not terminated. 
 (ii) The Executive shall immediately be 100% vested in all then outstanding LTI Awards, each LTI Option shall become fully
exercisable, and (A) any then outstanding RPSUs granted with respect to the First and Second Performance Periods shall remain outstanding through the end of the applicable Performance Period (with the Executive entitled to a payment in respect
of each such RPSU in accordance with the terms and conditions otherwise applicable to such award, including the achievement of specified performance goals), (B) any then outstanding RPSUs granted with respect to the Third Performance Period
shall remain outstanding through the end of the Corporation’s 2014 fiscal year, with payment with respect to such RPSU to be made within ten (10) days following the end of such fiscal year, and (C) any then outstanding LTI Options
shall be exercisable by him until the earlier to occur of (I) the first anniversary of the date of such termination of employment and (II) the expiration of the original LTI Option term. 
 (iii) Continued participation in the Corporation’s health benefit plans during the Severance Period; provided that if
the Executive is provided with coverage by a successor employer, any such coverage by the Corporation shall cease; 
 (iv) Continued payment of Executive’s automobile allowance until expiration of the Severance Period or until Executive secures new employment, whichever first occurs; provided, however, that any such automotive allowance shall not be
paid to the Executive during the first six months of the Severance Period and any amounts otherwise payable to the Executive as an automobile allowance pursuant to Section 4(c) during such

  

 7 

 
six-month period shall be paid to him in a lump sum on the day following the six-month anniversary of the date of termination of Executive’s employment; 
 (v) If a Change of Control that is also a change in the ownership, effective control or a change in the ownership of a
substantial portion of the assets (in each case, within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder (“Section 409A”)) of the Corporation shall have occurred
within two (2) years prior to the date of termination, subject to Section 6(g) and 6(h) below, the Executive shall (A) in lieu of the timing of payments otherwise provided for in subsection (i)(1) above, be entitled to receive the
equivalent of the Salary and Target Annual Incentive Bonus payments pursuant to subsection (i)(1) above in two equal lump sum installments, the first payable within forty-five (45) days of the date of termination and the second on the first
anniversary of the date of termination, each of which shall be a separate payment; and (B) in lieu of the Pro Rata Annual Incentive Bonus otherwise provided for in subsection (i)(2) above, the Executive shall be entitled to receive a pro rata
Annual Incentive Bonus for the year of termination (equal to the Target Annual Incentive Bonus times the percentage of the fiscal year in which such termination occurs that shall have elapsed through the date of termination) (a “Pro Rata Target
Annual Incentive Bonus”), with such Pro Rata Target Annual Incentive Bonus payable in a lump sum in cash within forty-five (45) days following the date of the Executive’s termination of employment. As used herein, the term
“Change of Control” shall mean Ralph Lauren or members of his family (or trusts or entities created for their benefit) no longer control 50% or more of the voting power of the then outstanding securities of the Corporation entitled to vote
for the election of the Corporation’s directors; and 
 (vi) Except as provided in this Section 6(a),
the Corporation will have no further obligations to the Executive under this Agreement following the Executive’s termination of employment under the circumstances described in this Section 6(a). The Corporation anticipates that health
benefits made available pursuant to clause (iii) above will be provided in accordance with applicable COBRA provisions. The Corporation shall waive or pay for any COBRA premiums otherwise payable by the Executive. In the event the COBRA
coverage expires, the Corporation shall reimburse the Executive for any premium costs paid by the Executive for health care coverage for any portion of the Severance Period during which the Executive would otherwise be entitled to continued health
benefits. Any reimbursement for such health care coverage premiums shall be made no later than the end of the calendar year following the calendar year in which such costs were incurred by the Executive. The Executive shall not be entitled to
reimbursement under this Section 6(a) during any portion of the six month period following his termination of employment to the extent such reimbursement is prohibited by Section

  

 8 

 
409A, in which case any amounts he would be entitled to be reimbursed shall be paid to him in a lump sum on the day following the six-month anniversary of the date of termination of the
Executive’s employment. 
 (b) If the Executive’s employment is terminated by his death or by the
Corporation due to the Executive’s Disability (as defined below), the Corporation shall pay any amounts due to the Executive through the date of his death or the date of his termination due to Disability, including a Pro Rata Target Annual
Incentive Bonus (as such term is defined in Section 6(a)(v)), in a lump sum within forty-five (45) days following such termination of employment, and the treatment of any then outstanding LTI Awards shall be as set forth in
Section 6(a)(ii) hereof; provided that any then outstanding LTI Options shall be exercisable by the Executive (or, in the case of death, his estate) until the earlier to occur of (I) the third anniversary of the date of such termination of
employment and (II) the expiration of the original LTI Option term. Except as provided in this Section 6(b), the Corporation will have no further obligations to the Executive under this Agreement following the Executive’s termination of
employment under the circumstances described in this Section 6(b). 
 (c) If the Executive’s employment
shall be terminated by the Corporation pursuant to Section 6(d)(iii) for Cause or by the Executive other than for Good Reason (excluding termination at the end of the Term as a result of the Executive’s delivery of a NonExtension Notice as
contemplated by Section 2, with respect to which Section 6(e) shall apply, but including a termination of employment by the Executive that qualifies as an early retirement), (1) the Corporation shall pay the Executive his full Salary
through the date of termination at the rate in effect prior to such termination, in a lump sum within forty-five (45) days following such termination of employment, (2) any then outstanding unvested LTI Awards shall be forfeited and
cancelled, (3) in the event such termination of employment is the result of the Executive’s early retirement, any then outstanding vested LTI Options shall be exercisable by the Executive until the earlier of (I) the first anniversary
of the date of such termination of employment and (II) the expiration of the original LTI Option term, and in the event of a termination of employment by the Corporation for Cause, such vested LTI Options shall be forfeited and cancelled, and
(4) except as provided in this Section 6(c), the Corporation will have no further obligation to the Executive under this Agreement following the Executive’s termination of employment under the circumstances described in this
Section 6(c). 
 (d) The term “Enumerated Reason” with respect to termination by the Corporation
of the Executive’s employment shall mean any one of the following reasons: 
 (i) Death. The
Executive’s employment hereunder shall terminate upon his death. 
 (ii) Disability. If, as a result
of the Executive’s incapacity due to physical or mental illness, the Executive shall have been absent from his duties hereunder on a full-time basis for the entire period of six consecutive months, and within thirty (30) days after written
Notice of Termination is given (which Notice of Termination may be given before or after the end of

  

 9 

 
such six month period; provided that the termination would not be effective until the end of such six month period) shall not have returned to the performance of his duties hereunder on a
full-time basis (a “Disability”), the Corporation may terminate the Executive’s employment hereunder. 
 (iii) Cause. The Corporation shall have “Cause” to terminate the Executive’s employment hereunder upon (1) the willful and continued failure by the Executive to substantially perform his duties hereunder after
demand for substantial performance is delivered to him by the Corporation that specifically identifies the manner in which the Corporation believes the Executive has not substantially performed his duties, (2) Executive’s conviction of, or
plea of nolo contendere to, a crime (whether or not involving the Corporation) constituting any felony or (3) the willful engaging by the Executive in gross misconduct relating to the Executive’s employment that is materially injurious to
the Corporation, monetarily or otherwise (including, but not limited to, conduct that constitutes competitive activity, in violation of Section 8) or which subjects, or if generally known would subject, the Corporation to public ridicule. For
purposes of this paragraph, no act, or failure to act, on the Executive’s part shall be considered “willful” unless done, or omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in
the best interest of the Corporation. Notwithstanding the foregoing, the Executive’s employment may be terminated for Cause only by act of the Board and, in any event, the Executive’s employment shall not be deemed to have been terminated
for Cause without (x) reasonable written notice to the Executive setting forth the reasons for the Corporation’s intention to terminate for Cause, (y) the opportunity to cure (if curable) within 30 days of such written notice of the
event(s) giving rise to such notice and (z) an opportunity for the Executive, together with his counsel, to be heard by the Board. 
 (iv) Nonrenewal. The Executive’s employment hereunder shall terminate at the end of the Term if either party elects not to extend the Term of this Agreement by delivery of a NonExtension
Notice as contemplated by Section 2. 
 (e) Termination by Reason of NonExtension Notice. If the
Executive’s employment terminates at the end of the Term as a result of delivery by either party of a NonExtension Notice as contemplated by Section 2, then subject to Section 8 hereof, (i) the treatment of any then outstanding
LTI Awards shall be as set forth in Section 6(a)(ii) hereof, except that, if such termination occurs on March 30, 2013 as a result of the Executive’s delivery of a NonExtension Notice, the Third Tranche shall not become exercisable
until the end of the Corporation’s 2014 fiscal year and, once exercisable, shall thereafter remain exercisable for one year; (ii) the Executive shall be entitled to any Annual Incentive Bonus payable with respect to the Corporation’s
fiscal year in which the Term ends, such Annual Incentive Bonus to be payable when such Annual Incentive Bonus would have otherwise been paid pursuant to Section 4(a)(ii) had the Executive’s

  

 10 

 
employment not terminated; and (iii) except as set forth in this sentence, Executive’s rights shall otherwise be as set forth in Section 6(c) hereof. If the Executive’s
employment terminates at the end of the Term as a result of the Corporation’s delivery of a NonExtension Notice as contemplated by Section 2, the Executive shall also be entitled to receive an amount, payable in equal monthly installments
over a one-year period, equal to the sum of (x) his Salary, plus (y) the Target Annual Incentive Bonus, provided that any such monthly installments attributable to months prior to the Executive’s execution of a release pursuant to
Section 6(f) shall be paid no later than ten (10) days following the execution of a release in accordance with Section 6(f). 
 (f) As a condition precedent to receipt of the payments provided for by Section 6(a) and 6(e), Executive shall be required to execute a general release (in a form customarily utilized by the
Corporation) in favor of the Corporation, excluding only the payments remaining to be made pursuant to such Section; but in no later than thirty (30) days following the date of termination of the Executive’s employment. 
 (g) Notwithstanding the foregoing, (A) in the event the Corporation (or its successor) and the Executive both determine,
based upon the advice of the independent public accountants for the Corporation, that part or all of the consideration, compensation or benefits to be paid to the Executive under this Agreement constitute “parachute payments” under
Section 280G(b) (2) of the Internal Revenue Code of 1986, as amended, then, if the aggregate present value of such parachute payments, singularly or together with the aggregate present value of any consideration, compensation or benefits
to be paid to the Executive under any other plan, arrangement or agreement which constitute “parachute payments” (collectively, the “Parachute Amount”) exceeds 2.99 times the Executive’s “base amount”, as defined
in Section 280G(b) (3) of the Code (the “Executive Base Amount”), the amounts constituting “parachute payments” which would otherwise be payable to or for the benefit of the Executive shall be reduced to the extent
necessary so that the Parachute Amount is equal to 2.99 times the Executive Base Amount (the “Reduced Amount”); provided that such amounts shall not be so reduced if the Executive determines, based upon the advice of an independent
nationally recognized public accounting firm (which may, but need not be the independent public accountants of the Corporation), that without such reduction the Executive would be entitled to receive and retain, on a net after tax basis (including,
without limitation, any excise taxes payable under Section 4999 of the Code), an amount which is greater than the amount, on a net after tax basis, that the Executive would be entitled to retain upon his receipt of the Reduced Amount.

 (B) If the determination made pursuant to clause (A) above results in a reduction of the payments that
would otherwise be paid to the Executive except for the application of this Section 6(g), then the entitlement by the Executive to any payments of cash under Section 6(a)(i) shall be eliminated or reduced to the extent necessary so that
the Parachute Amount is equal to 2.99 times the Executive Base Amount. Within ten days following such determination hereunder, the Corporation shall pay or distribute to or for the benefit of the Executive such amounts as are then due to the
Executive under this Agreement and shall promptly pay or distribute to or for the benefit of the Executive such amounts as become due to the Executive under, and in accordance with the terms of, this Agreement. 
  

 11 

 (C) As a result of the uncertainty in the application of Section 280G
of the Code at the time of a determination hereunder, it is possible that payments will be made by the Corporation which should not have been made under clause (A) of this Section 6(g) (“Overpayment”) or that additional payments
which are not made by the Corporation pursuant to clause (A) of this Section 6(g) should have been made (“Underpayment”). In the event that there is a final determination by the Internal Revenue Service, a final determination by
a court of competent jurisdiction or a change in the provisions of the Code or regulations pursuant to which an Overpayment arises, any such Overpayment shall be treated for all purposes as a loan to the Executive which the Executive shall repay to
the Corporation together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code. In the event that there is a final determination by the Internal Revenue Service, a final determination by a court of
competent jurisdiction or a change in the provisions of the Code or regulations pursuant to which an Underpayment arises under this Agreement, any such Underpayment shall be promptly paid by the Corporation to or for the benefit of the Executive,
together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code; but in no event later than the Executive’s taxable year following the year in which such final determination or change is made.

 (h) Notwithstanding any provision of this Agreement to the contrary, the following rules shall apply:

 (i) The distribution of any amounts that constitute “deferred compensation” payable to the Executive
due to his “separation from service” within the meaning of Section 409A, shall not be made before six months after such separation from service or the Executive’s death, if earlier (the “Six Month Limitation”), if the
Executive is a Key Employee (as defined below). At the end of such six-month period, payments that would have been made but for the Six Month Limitation shall be paid in a lump sum. For purposes hereof, Key Employee shall mean an employee treated as
a “specified employee” under Code Section 409A(a)(2)(B)(i), i.e., a key employee of the Corporation (as defined in Code Section 416(i), without regard to paragraph (5) thereof). The Corporation shall determine which
employees shall be deemed Key Employees using December 31st as an identification date. 
 (ii) All
reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A to the extent that such reimbursements or in-kind benefits are subject to Section 409A.

  

 12 

 (iii) All reimbursements for expenses paid pursuant herewith that constitute
taxable income to the Executive shall in no event be paid later than the end of the calendar year next following the calendar year in which the Executive incurs such expense or pays such related tax. 
 (iv) With regard to any provision in this Agreement that provides for reimbursement of costs and expenses or in-kind
benefits, unless permitted by Code Section 409A, (A) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit and (B) 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, respectively, in any other taxable year; provided that the foregoing clause shall not be violated with
regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect, and (C) such payments shall be made on or
before the last day of the Executive’s taxable year following the taxable year in which the expense occurred. 
 7.
Mitigation. The Executive shall have no duty to mitigate the payments provided for in Section 6 by seeking other employment or otherwise and such payment shall not be subject to reduction for any compensation received by the Executive
from employment in any capacity following the termination of the Executive’s employment with the Corporation. 
 8.
Noncompetition. 
 (a) The Executive agrees that for the duration of his employment and for a period two
(2) years from the date of termination thereof and during any Severance Period, he will not, on his own behalf or on behalf of any other person or entity, hire, solicit, or encourage to leave the employ of the Corporation or its subsidiaries,
affiliates or licensees any person who is an employee of any of such companies. 
 (b) The Executive agrees that
for the duration of his employment and for a period of two (2) years from the date of termination thereof and during any Severance Period, the Executive will take no action which is intended, or would reasonably be expected, to harm
(e.g., making public derogatory statements or misusing confidential Corporation information, it being acknowledged that the Executive’s employment with a competitor in and of itself shall not be deemed to be harmful to the Corporation
for purposes of this Section 8(b)) the Corporation or any of its subsidiaries, affiliates or licensees or their reputation. 
 (c) The Executive agrees that during the duration of his employment and for twelve (12) months from the date of any termination of employment, the Executive shall not, directly or indirectly,
(A) engage in any “Competitive Business” (as defined below) for his own account, (B) enter into the employ of, or render any services to, any person engaged in a Competitive Business, or (C) become interested in any entity
engaged in a Competitive Business, directly or indirectly as an individual, partner, shareholder, officer,

  

 13 

 
director, principal, agent, employee, trustee, consultant, or in any other relationship or capacity; provided that the Executive may own, solely as an investment, securities of any entity which
are traded on a national securities exchange if the Executive is not a controlling person of, or a member of a group that controls such entity and does not, directly or indirectly, own 2% or more of any class of securities of such entity.

 For purposes of this Agreement the term “Competitive Business” shall mean a business which directly competes in any
material respects with the Corporation or its subsidiaries, affiliates or licensees. The term Competitive Business is not intended to include the business of a competitor whose business does not directly involve or compete with the licensed
businesses of the Corporation or its subsidiaries and affiliates. For purposes of this Agreement, the Board shall determine in its sole discretion, exercised in good faith, whether a particular business in which the Executive proposes to engage
constitutes a Competitive Business. 
 (d) The Executive will not at any time (whether during or after his
employment with the Corporation) disclose or use for his own benefit or purposes or the benefit or purposes of any other person, entity or enterprise, other than the Corporation or any of its subsidiaries or affiliates, any trade secrets,
information, data, or other confidential information relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, manufacturing processes, financing methods, plans or the
business and affairs of the Corporation generally, or any subsidiary, affiliate or licensee of the Corporation; provided that the foregoing shall not apply to information which is not unique to the Corporation or which is generally known to the
industry or the public other than as a result of the Executive’s breach of this covenant. The Executive agrees that upon termination of his employment with the Corporation for any reason, he will return to the Corporation immediately all
memoranda, books, papers, plans, information, letters and other data, and all copies thereof or therefrom, in any way relating to the business of the Corporation or its subsidiaries or affiliates or licensees. 
 (e) If the Executive breaches any of the provisions of this Section 8 (the “Restrictive Covenants”), the
Corporation shall have the following rights and remedies, each of which rights and remedies shall be independent of the other and severally enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other
rights and remedies available to the Corporation under law or equity: 
 (i) The right and remedy to have the
Restrictive Covenants specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened breach of such Restrictive Covenants will cause irreparable injury to the Corporation and that
money damages will not provide an adequate remedy to the Corporation; and 
 (ii) The right to discontinue the
payment of any amounts owing to the Executive under the Agreement and the right to forfeit the Executive’s right to vest in any payment or benefit not as yet vested; provided that the Corporation shall have secured a reasoned opinion of counsel
that the Executive’s activities constitute a material breach of the

  

 14 

 
Restrictive Covenants and which shall have been provided to the Executive, the delivery of which shall not be deemed to be a waiver of any applicable privilege. To the extent Executive, by notice
hereunder, disputes the discontinuance of any payments or the forfeiture of any payments or benefits hereunder, such payments or benefits shall be segregated and deposited in an interest bearing account at a major financial center bank in New York
City pending resolution of the dispute. 
 (f) If any court determines that any of the Restrictive Covenants, or
any part thereof, is invalid or unenforceable, the remainder of the Restrictive Covenants shall not thereby be affected and shall be given full effect, without regard to the invalid portion. In addition, if any court construes any of the Restrictive
Covenants, or any part thereof, to be unenforceable because of the duration of such provision or the area covered thereby, such court shall have the power to reduce the duration or area of such provision and, in its reduced form, such provision
shall then be enforceable and shall be enforced. 
 9. Successors; Binding Agreement. 
 (a) The Corporation will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Corporation to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform it if no such succession
had taken place. As used in this Agreement, “Corporation” shall mean the Corporation as hereinbefore defined and any successor to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this
Section 9 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 
 (b) This Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees
and legatees. If the Executive should die while any amounts are payable to him hereunder all such amounts unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or
other designee or, if there be no such designee, to the Executive’s estate. 
 10. Notice. For the purposes of this
Agreement, notices, demands and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered with receipt acknowledged or five business days after having been
mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed as follows: 
 If to
the Executive: 
 Roger Farah 
 [Address Redacted] 
  

 15 

 with a copy to: 
 John M. Callagy, Esq. 
 Kelley Drye & Warren LLP 
 101 Park Avenue 
 New York, New York 10178 
 If to the Corporation: 
 Polo Ralph Lauren Corporation 
 650 Madison Avenue 
 New York, New York 10022 
 Attention: Senior Vice President, Human Resources 
 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. 
 11. Miscellaneous. No provisions of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing signed by the Executive and such officer of the Corporation as may be specifically designated by the Board. No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. The
validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of New York without regard to its conflicts of law principles. 
 12. Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
 13.
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 
 14. Arbitration. Any dispute or controversy arising under or in connection with this Agreement and its enforcement shall be settled
exclusively by arbitration in the City of New York before a single arbitrator who shall be a retired federal judge having sat in the United States District Court for the Southern District of New York in accordance with the then obtaining National
Rules for the Resolution of Employment Disputes or, if such rules are no longer in effect the then obtaining employment rules of the American Arbitration Association. The arbitrator shall be required to permit reasonable discovery, including
document production, deposition, contention interrogatories, damages interrogatories, and requests to admit. Judgment may be entered on the arbitrator’s award in any New York court; provided, however, that the Corporation shall be entitled to
seek a restraining order or injunction in arbitration or in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Section 8 of this Agreement and the Executive hereby consents that such
restraining order or injunction be granted

  

 16 

 
without the necessity of the Corporation’s posting any bond; and provided, further that, notwithstanding Section 8(e)(ii), the Executive shall be entitled to seek specific performance
in arbitration or in any court of competent jurisdiction of his right to be paid during the pendency of any dispute or controversy arising under or in connection with this Agreement. Fees and expenses payable to the American Arbitration Association
and the arbitrator shall be shared equally by the Corporation and by the Executive, but the parties shall otherwise bear their own costs in connection with the arbitration; provided that the arbitrator must determine who is the prevailing party and
include as part of the award to the prevailing party the reasonable legal fees and expenses incurred by such party. 
 15.
Withholding. The Corporation may withhold from any amounts payable under this Agreement such federal, state and local taxes as may be required to be withheld pursuant to applicable law or regulation. 
 16. Entire Agreement. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained
herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties (including, without limitation, the 2002 Employment Agreement), whether oral or written, by any officer, employee or
representative of any party hereto, and any prior agreement of the parties hereto in respect of the subject matter contained herein is hereby terminated and cancelled; provided however, that this Agreement shall have no effect on the terms and
conditions applicable to any equity awards made by the Corporation to the Executive prior to the date of this Agreement, which terms and conditions shall be governed by the provisions of the respective agreements relating to such equity awards and
any relevant provisions of the 2002 Employment Agreement. 
 17. Executive Representation. The Executive hereby
represents to the Corporation that the execution and delivery of this Agreement by the Executive and the Corporation and the performance by the Executive of his duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of
any employment agreement or other agreement or policy to which Executive is a party or otherwise bound. 
 18. Internal
Revenue Code Section 409A. The parties hereto recognize that certain provisions of this Agreement may be affected by Section 409A. This Agreement is intended to comply with Section 409A and any ambiguities should be interpreted in
such a way as to comply with Section 409A. 
  

 17 

 IN WITNESS WHEREOF, the Corporation has caused this Agreement to be duly executed and the
Executive has hereunto set his hand, effective as of the first day written above. 
  

					
	POLO RALPH LAUREN CORPORATION
		
	By:	 	/s/ Ralph Lauren
		 	Name:	 	Ralph Lauren
		 	Title:	 	Chairman and CEO
		 	Date:	 	October 14, 2009

					
		
	By:	 	/s/ ROGER N. FARAH
		 	Executive:	 	ROGER N. FARAH

					
		 	Date:	 	October 14, 2009

  

 18

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