Document:

Exhibit 10.154

Exhibit 10.154

SENIOR EXECUTIVE EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (this “Agreement”) is made [with Effective Date of March 10,
2011] by and between Frederic Cumenal (“Employee” or “FC”), Tiffany and Company, a
New York corporation (“Employer”) and Tiffany & Co., a Delaware corporation whose shares
are traded on The New York Stock Exchange (“Parent”).

WITNESSETH:

WHEREAS, Employer is a wholly-owned subsidiary of Parent;

WHEREAS, the terms of this Agreement have been approved by the Compensation Committee (the
“Compensation Committee”) of Parent’s board of directors (the “Parent Board”);

WHEREAS, Employer wishes to employ FC as a senior officer of Employer and Parent with the
title of Executive Vice President and with responsibility for the retail and trade operations of
Tiffany Affiliates that sell and otherwise distribute TIFFANY & CO. brand products in all markets
other than those in North and South America (“Tiffany International Operations”); and

WHEREAS, Employee is capable of and willing to provide services in the foregoing capacities
and to relocate his abode, family and place of employment from France to the United States;

NOW, THEREFORE, in consideration of the above premises, the mutual covenants herein contained,
the Definitional Appendix attached as Schedule I and incorporated herein, and for the consideration
set forth herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, it is agreed as follows:

1. Contingent Nature. Employer and Employee agree and acknowledge that the
Commencement Date (as defined below) is wholly contingent upon:

(a) Employee’s satisfactory completion of a drug-screening test and other background checks
required of all new hires of Employer;

(b) Employee’s procurement of proper authorization to work in the United States (in respect to
which Employer will provide assistance and meet related costs as set out in this Agreement); and

(c) Employee’s written representation that he will be able to begin employment with Employer
as of the Commencement Date and that, except for such covenants set forth in Schedule 1(c)
attached, he is not otherwise subject to any covenants against competition or similar covenants
that would limit or restrict his employment with Employer under this Agreement.

 

 

 

Should the conditions described in this Section 1 not be met to Employer’s reasonable satisfaction
by June 15, 2011, this Agreement shall be null and void with no obligations, duties or rights
outstanding to any party provided that Employer, in its sole discretion, may waive in writing any
one or more of conditions (a), (b) and (c).

2. Employment. Employer agrees to employ FC, and FC agrees to remain in the employ of
Employer, during the Term (as defined below) and on the other terms and conditions set forth
herein. Employee shall work primarily at Employer’s corporate headquarters in New York City
subject to reasonable business travel as required to fulfill his duties under this Agreement.

3. Term.

(a) Subject to Section 1 above, the term of this Agreement shall commence within ten (10)
business days after the later of (i) Employee obtaining authorization to work in the United States;
and (ii) Employee being released from employment or any non-compete obligations to any other
employer (except as set forth in Schedule 1(c) attached) (the “Commencement Date”) and
shall terminate at the close of business on the third anniversary of the Commencement Date (such
period, the “Initial Term”). The term of this Agreement shall be automatically extended
for successive one-year periods from and after the end of the Initial Term (each an “Extension
Period”); provided, however, that either Employer or Employee may elect not to
extend this Agreement by giving written notice to the other party at least 120 days prior to the
end of the Initial Term or any succeeding Extension Period. Notwithstanding the foregoing, this
Agreement and Employee’s employment hereunder may be earlier terminated in accordance with Section
7 hereof, subject to Section 8 hereof. The period of time between the Commencement Date and the
termination of Employee’s employment hereunder shall be referred to herein as the “Term”.

(b) In the event that a Change in Control should occur during the Initial Term at such time
that the Initial Term has less than two years to run or during any Extension Period, Employee’s
period of employment under this Agreement shall be automatically extended through the second
anniversary of such Change in Control.

(c) Unless otherwise instructed, Employee shall report to work in New York City and the
Commencement Date shall not be deemed to have occurred unless he has done so.

(d) No party to this Agreement shall make any public announcement of this Agreement or of FC’s
employment hereunder, and neither Employer nor Parent, shall make any internal announcement of this
Agreement or of FC’s employment hereunder to the employees of any Tiffany Affiliate, unless and
until the Commencement Date has occurred. The forgoing sentence shall not prevent Employer or
Parent from conducting confidential discussions concerning this Agreement and FC’s employment
hereunder with officers of Parent and with employees of Tiffany Affiliates concerned with Tiffany
International Operations. Prior to the Commencement Date Employer shall prepare and FC shall have
an opportunity to review and comment upon the text of a press release announcing FC’s employment
with Employer.

 

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4. Positions and Responsibilities.

(a) Except as set forth herein, throughout the Term, FC agrees to remain in the employ of
Employer, and Employer agrees to employ FC, as and with the title of “Executive Vice
President”. Employee shall report directly to the chief executive officer of the Parent (the
“CEO”), to the chair of the Parent Board or to both the CEO and such chair.

(b) Employee’s primary job responsibility shall be to manage Employer International
Operations.

(c) Employee shall serve as a director and officer of Employer and as an executive officer of
Parent (although, for the avoidance of doubt, Employee shall not serve as a director or employee of
Parent). As an officer of Parent, Employee shall be subject to Section 16 of the Exchange Act.
Employee acknowledges his reporting responsibilities (which reports shall be prepared and filed on
behalf of Employee by Parent or its counsel at Parent’s sole expense) and his potential liability
for “short-swing” trading in Parent’s securities under said Section 16.

(d) In addition to performing his primary job responsibility, Employee shall participate in
worldwide strategic planning for the Tiffany Affiliated Group.

(e) Employee shall, at the request of the CEO or the Parent Board, serve as a director, an
officer or both a director and an officer of various Tiffany Affiliates, including Tiffany
Affiliates that are engaged in Tiffany International Operations and those which are not. For the
avoidance of doubt, no Tiffany Affiliate, other than Employer or Parent, shall compensate Employee
for his service as a director or officer of any Tiffany Affiliate and Employee’s compensation for
such services is included in the compensation provided for in this Agreement.

(f) During the Term Employee shall serve the Tiffany Affiliated Group on an exclusive basis
and shall devote substantially all his business time, attention, skill and efforts to the
advancement of the business and interests of the Tiffany Affiliated Group and to the discharge of
Employee’s duties and responsibilities hereunder; provided, however, that nothing
herein shall preclude Employee:

(i) from managing Employee’s and his family’s personal investments;

(ii) from serving in any capacity with respect to any civic, educational,
professional or charitable organization; or

(iii) subject to the prior approval of the Parent Board, which may be
unreasonably withheld, from serving on any board of directors of any for-profit
company;

provided that any such activities, individually or in the aggregate, do not create a conflict of
interest, interfere with the performance of Employee’s duties hereunder or conflict with Section
10.

 

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5. Compensation. For all services rendered by Employee to the Tiffany Affiliated
Group in any capacity during the Term, and for his covenants and agreements hereunder, including
those with respect to confidential and proprietary information set forth in Section 9 and the
restrictive covenants set forth in Section 10, Employee shall be entitled to the following:

(a) Base Salary. During the Term Employer shall pay Employee a “Base Salary” at the
annual rate of $850,000 in bi-weekly installments in accordance with Employer’s usual payroll
practices. The Base Salary shall be subject to increase in the Compensation Committee’s sole
discretion, but shall not be decreased.

(b) Incentive Awards.

(i) Employee shall be eligible to earn annual cash incentive awards
(“Incentive Awards”) during the Term as described in this Section 5(b).

(ii) Incentive Awards will be paid, if at all, under the Employee Incentive
Plan. All awards made under the Employee Incentive Plan are controlled (A) by the
terms of the Employee Incentive Plan and (B) by the terms of the individual
Incentive Award, which terms shall govern in the event of any conflict with the
terms of this Agreement.

(iii) Incentive Awards will be paid, if at all, on the basis of Performance
Goals achieved in respect of a Fiscal Year.

(iv) The maximum Incentive Award established for Employee by the Compensation
Committee for each Fiscal Year will be in excess of the Target Incentive Award
referred to in Section 5(b) (v) below.

(v) During the Term but subject to Sections 5(b) (vi) and 5(b) (vii) below,
Employee’s target Incentive Award for each Fiscal Year shall be $595,000 (the
“Target Incentive Award”). The Target Incentive Award shall be subject to
increases in the Compensation Committee’s sole discretion (but shall not be
decreased).

(vi) The amount actually paid as an Incentive Award for any Fiscal Year may be
higher or lower than the Target Incentive Award. If a Performance Goal is achieved,
the Compensation Committee is allowed to pay the maximum Incentive Award but retains
the discretion to reduce the Incentive Award below the maximum; this discretion
includes the discretion to reduce the Incentive Award below the Target Incentive
Award and the discretion to pay no Incentive Award in respect of the Fiscal Year in
question. Payment of the Incentive Award, if any, shall be made during the calendar
year in which the applicable Fiscal Year ends.

(vii) In the event the Commencement Date does not occur on or before May 2,
2011 Employee’s Target Incentive Award for the Fiscal Year ending

 

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January 31, 2012 shall be reduced on a pro rata basis by multiplying the Target
Incentive Award by a fraction, the numerator of which is the number of days during
such Fiscal Year that Employee is employed by Employer and the denominator of which
is 365; provided, however that if the Commencement Date does not occur on or before
October 31, 2011 then Employee’s Target Incentive Award for such Fiscal Year shall
be nil.

(viii) For each Incentive Award for which Employee is eligible, Employee shall
be required to sign a written award agreement acknowledging the Performance Goals
established, the maximum Incentive Award and the Compensation Committee’s
discretion, as described in Section 5(b)(vi) above.

(c) Benefits.

(i) Except as stated in Sections 5(c) (ii) and (iii) below, during the Term and
subject to any contribution therefore generally required of executives of Employer,
Employee shall be entitled to participate in all Employer health care, insurance,
disability, retirement, and other employee benefit plans in effect from time to time
on the same basis as such benefits are generally made available to other executives
of Employer at the level of “Executive Vice President” and to their dependents.
Such participation shall be subject to the terms of the applicable plan documents,
generally applicable policies as determined by Employer or Parent, and the direction
of any administrative or other committee contemplated by such plan. Employer or
Parent may alter, modify, add to or delete its employee benefit plans and equity
compensation plans and their respective terms at any time as, in its sole discretion
and judgment, it determines to be appropriate, subject to the terms and conditions
of such plans. For the avoidance of doubt Employer’s contributions to the life
insurance policy referenced in Section 5(c)(iii) below is in lieu of Employee’s
participation in life insurance benefit offered to employees below the level of
“Senior Vice President”.

(ii) Employee is not eligible to participate in any Defined Benefit Pension
Plan because such plans have been closed to new employees of Employer.

(iii) During the Term, Employer will pay a maximum of $150,000 per calendar
year (inclusive of withholding taxes on any premium payments made) towards the
premium on a whole-life policy owned by Employee and insuring Employee’s life in
accordance with Employer’s executive officer life insurance program, a summary of
which is incorporated by reference from Exhibit 10.137 to the Parent’s Current
Report on Form 8-K, filed with the Securities and Exchange Commission on February 2,
2009. Employer may pay less than the maximum stated above if the funding
assumptions set forth in such summary may be attained by payment of a lesser amount.
Employer will assist Employee in the procurement of a policy that is consistent
with the referenced funding assumptions. For the avoidance of doubt Employer’s
obligation to make the payments contemplated in this Section 5(c) (iii) may be
discontinued during the

 

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Term if the Compensation Committee in its discretion discontinues the executive
officer life insurance program for all executive officers.

(d) Equity Awards.

(i) Time-Vested Restricted Stock Unit Grant. Prior to, and to be effective on,
the Commencement Date (which will be deemed the “grant date” for this grant), the
Compensation Committee will approve a grant to Employee, as a one-time award, of
restricted stock units (the “Time Based RSUs”) convertible into
 shares of Parent’s Common Stock, $.01 par value (“Common Stock”). The Time
Based RSUs shall have a total grant date value of $1,700,000. The Time Based RSUs
shall be granted pursuant to the terms attached as Exhibit 5(d)(i). The number of
 shares of Common Stock underlying the Time Based RSUs shall be determined by
dividing the grant date value by the Grant Date Market Price.

(ii) Time Vested Option Grant. Prior to, and to be effective on, the
Commencement Date (which will be deemed the “grant date” for this grant), the
Compensation Committee will approve a grant to Employee of an option (the
“Sign-On Option”) to purchase shares of the Common Stock. The per-share
value of the shares of Common Stock subject to the Sign-On Option shall be
determined by the Black-Scholes pricing model; on this basis the total grant date
value of the shares of Common Stock underlying the Sign-On Option shall be equal to
$850,000. The “strike price” (option exercise price) will be the grant date Market
Price. The Sign-On Option shall be granted pursuant to the terms attached as
Exhibit 5(d)(ii). For the avoidance of doubt, unless otherwise determined by the
Compensation Committee, the Sign-On Option grant shall be the only grant of stock
options made to Employee in calendar years 2010 or 2011.

(iii) Performance-Based Restricted Stock Unit Grant. At the meeting during
which it approves grants of performance-based restricted stock units convertible
into shares of Common Stock for other executive officers of Employer for the
three-year performance period ending January 31, 2014 (the “2014 Performance
Period”), the Compensation Committee will grant Employee, such grant to be
effective on the Commencement Date if such meeting occurs prior thereto,
performance-based restricted stock units which shall be convertible into a number of
 shares of Common Stock having the total grant date value of $850,000 and which shall
otherwise be subject to the same terms as those granted to other executive officers
of Employer for the 2014 Performance Period (the “2014 LTIP”). The number
of shares of Common Stock underlying the 2014 LTIP shall be determined by dividing
the grant value of the shares of Common Stock by the Grant Date Market Price.
Conditions to this Grant: (A) this grant will not be made unless the
Commencement Date occurs on or before May 2, 2011; and (B) this grant will not be
made unless grants of performance-based restricted stock units for the 2014
Performance Period are made to other executive officers of Employer.

 

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(iv) Should Employee breach his obligations under Sections 10 (a)(i), (ii) or
(iv) below, Employee shall:

(A) Forfeit and lose all rights under any Equity Award, whether or
not such Equity Award shall have vested, and such Equity Award shall
thereupon become null and void; and

(B) Immediately pay to Employer the Proceeds of Equity Award for (i)
each grant of stock option or stock appreciation right that was
exercised and (ii) each grant of restricted stock or stock units that
has vested, in both cases (i) and (ii), within the following period
(the “Claw-back Period”): the period beginning 180 days
prior to Employee’s Termination Date and ending upon the first to
occur of the following: (a) the 18-month anniversary of Employee’s
Termination Date; (b) a Change in Control; or (c) Employee’s
60th birthday, provided that in no circumstance shall the
Claw-back Period end less than six months after Employee’s
Termination Date.

For the purposes of this Section 5(d) (iv) only, the defined term “Change in
Control” shall be deemed to include any event or circumstance that is defined to be
a Change in Control in the standard covenants which employees of Employer at the
level of vice president are required to sign as a condition to receiving or keeping
in effect an Equity Award as of the Commencement Date.

(v) For the purposes of this Agreement, any grant made as anticipated in
Sections 5 (d) (i) —(iii) above or any other grant of stock, stock options or items
convertible into stock made under the Employee Incentive Plan shall be referred to
as an “Equity Award”. For the avoidance of doubt, any Equity Award granted
whose grant date is deemed to be the Commencement Date shall be deemed void and of
no force or effect if the Commencement Date does not occur.

(vi) Employee acknowledges receipt of the Share Ownership Policy for Executive
Officers and Directors attached as Exhibit 5(d)(vi) to which he is subject.

(vii) In Fiscal Years that commence during the Term, Employee will be
considered by the Compensation Committee for additional Equity Awards on the same
basis that the Compensation Committee considers Equity Awards to other officers of
Employer that have the title “Executive Vice President”.

(e) Special Cash Payment. Within thirty (30) days of the Commencement Date, if the
Commencement Date occurs, Employer will make the following one-time payment to Employee as an
inducement for Employee to enter into this Agreement, resign his present employment and relocate to
New York from France; this payment is a gross amount, subject to tax withholding where applicable,
and Employer will not “gross-up” or otherwise satisfy the taxes on these payments; such taxes shall
be Employee’s responsibility: a lump-sum payment of

 

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$650,000 in lieu of reimbursement of relocation expenses, it being understood that this
payment is intended to account for the cost of shipment of household goods; home-hunting expenses;
home-finding services; temporary housing; losses on car-sales; pet relocation; and miscellaneous
relocation expenditures. For the avoidance of doubt, Employer’s relocation reimbursement policies
and practices will not apply to Employee because this lump-sum payment has been made in lieu
thereof and, except as provided in Section 6(c) below, Employee shall not be obligated to reimburse
Employer in the event that his relocation expenses are less than the amount of such payment.

(f) Special Retirement Account. In addition to participation in defined contribution
retirement savings programs covered by Section 5(c) (i) above, Employee will be provided the
retirement benefit described in this Section 5(c) (f).

(i) For the purposes of this Section 5(c) (f), the term “Special
Account” refers to a liability account to be maintained on the books of
Employer. Employer shall be the debtor on the Special Account and Employee shall be
the creditor. The Special Account shall not be funded or held in trust by any third
person and shall be subject to the claims of Employer’s general creditors; provided
that upon the occurrence of a Change in Control, the Special Account and all amounts
held therein shall be transferred promptly to a “Rabbi Trust” arrangement to be held
in trust by an independent third party trustee, subject to the claims of Employer’s
general creditors, and any subsequent contributions and credits to the Special
Account shall be made to such trust arrangement.

(ii) Provided that Employee remains employed by Employer on January 31, 2012,
Employer will credit the Special Account with the sum of $365,000 effective on that
date; provided such Annual Credit Amount shall be increased on January 31, 2012 and
each anniversary of that date thereafter (but not decreased once increased) by an
amount necessary to adjust for any increase in COLA during the immediate prior year
(as so adjusted the “Annual Credit Amount”). On January 31 of each year
thereafter, provided that Employee remains employed by Employer on such date,
Employer will credit the Special Account with the Annual Credit Amount. Subject to
the foregoing conditions, such annual credits will be made for a period of up to ten
years and thereafter no further credits will be made pursuant to this Section 5(f)
(ii). For the avoidance of doubt, Employer’s obligation under this Section 5(f)
(ii) shall continue after the expiration of the Term.

(iii) For so long as any balance remains in the Special Account, on January 31,
2012 and on each January 31 thereafter (each an “Interest Credit Date”)
Employer will credit interest on the balance in the Special Account at the Interest
Rate. For this purpose, the term “Interest Rate” means the annual coupon
rate payable on 10-year U.S. treasury notes for notes issued in the most recent
auction of such notes completed prior to the Interest Credit Date in question.
Interest shall be compounded annually.

 

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(iv) Employee shall have no vested or other interest in amounts credited to the
Special Account unless and until the Vest Date occurs. For this purpose, the term
“Vest Date” shall mean the earliest to occur of the following: (A) the
termination of Employee’s employment with Employer by reason of death or disability,
or, in the case of termination by Employee, for Good Reason, or, in the case of
termination by Employer, without Cause; or (B) the expiration of the Initial Term.
If the Vesting Date has not occurred and Employee’s employment terminates by reason
of voluntary resignation by Employee without Good Reason or Termination by Employer
with Cause, Employee shall have no interest in the Special Account and no right to
any payment from the Special Account.

(v) If Employee’s employment with Employer terminates for any reason on or
after the expiration of the Initial Term, Employer will pay to Employee the entire
balance in the Special Account, including the additional interest credited on
subsequent Interest Credit Dates, in ten installments. The first such payment shall
be made on the 30th day following the one-year anniversary of Employee’s
Termination Date and subsequent payments will be made on the 30th day
following each of the following nine anniversary dates. Payments shall be made in
the following fractions of the balance in the Special Account as of each anniversary
date:

	 	•	 	Payment One: 1/10
	 
	 	•	 	Payment Two: 1/9
	 
	 	•	 	Payment Three: 1/8
	 
	 	•	 	Payment Four: 1/7
	 
	 	•	 	Payment Five: 1/6
	 
	 	•	 	Payment Six: 1/5
	 
	 	•	 	Payment Seven: 1/4
	 
	 	•	 	Payment Eight: 1/3
	 
	 	•	 	Payment Nine: 1/2
	 
	 	•	 	Payment Ten: 1/1 (100% of the balance).

(vi) If Employee’s employment with Employer terminates by reason of death or
disability, or, in the case of termination by Employee, for Good Reason, or, in the
case of termination by Employer, without Cause, prior to the expiration of the
Initial Term, Employer will pay to Employee or, if Employee is deceased, to his
estate, the entire balance in the Special Account in a single lump sum installment
as soon as practicable provided that the timing of such payment may be delayed
pursuant to the provisions of Section 8(f) below.

(vii) For the purposes of this Section 5(f), the terms “Cause”, “Good Reason”
and “disability” are defined in Section 7 below.

(g) Participation in French Pension Schemes. In order to maintain and to further constitute
Employee’s rights to pension benefits under French social security and

 

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complementary pension schemes, Employee shall be affiliated during the Term to the following
French institutions:

(i) for the social security pension: Caisse des français de l’étranger (CFE),
located at 12, rue de la Boétie — 75008 Paris — France; and

(ii) for the complementary pension: CRE-IRCAFEX, located at 5, rue de Dunkerque
 — 75477 Paris cedex 10 — France.

Employer agrees to make, on Employee’s behalf, contributions to these French institutions based on
the Base Salary of Employee, capped at the maximum amount taken into account by the CRE-IRCAFEX to
calculate the contributions. For the avoidance of doubt, the salary to be taken into account for
these purposes will be capped at the upper amount of the “C ceiling” (i.e., tranche C), that is
276,960 Euros in 2010. This amount will be revised to take into account the Commencement Date under
this Agreement.

(h) Tax Withholding. All payments to be made by Employer under this Agreement shall be
subject to the withholding of such amounts as Employer may determine it is required to withhold
under the laws or regulations of any governmental authority, whether foreign, federal, state or
local. To the extent that Employee acquires a right to receive payments from Employer under this
Agreement, such right shall be no greater (except as otherwise required by law) than the right of
an unsecured general creditor of Employer. All payments to be made hereunder shall be paid from
the general funds of Employer and no special or separate fund shall be established and no
segregation of assets shall be made to assure payment of any amount hereunder.

6. Reimbursable or Employer-Paid Expenses.

(a) Employee will be entitled to reimbursement or direct payment of the expenses described in
this Section 6. If the Commencement Date fails to occur through the fault of Employee, then
Employee shall promptly reimburse Employer for all expenditures made by it under Section 6 (ii)
below.

(i) Tax Consultation: Employer will provide or reimburse income tax
preparation assistance to Employee for the calendar year in which the Commencement
Date occurs and the subsequent calendar year, in each case taking into account
Employee’s dual U.S./France tax issues. To the extent expenses incurred by Employee
and described in this Section 6(a) (i) exceed in total $30,000, Employer shall not
reimburse or bear such excess amounts, and Employee shall remain solely responsible
for any amounts incurred in excess of $30,000.

(ii) Work Authorization: Employer will make the appropriate application to
obtain work authorization for Employee and will pay related expenses, or reimburse
Employee for any Employer pre-authorized reasonable expenses that he may incur
directly. In seeking work authorization Employee shall use the firm of Proskauer
Rose LLP.

 

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(iii) Legal Review of Agreement: Employer shall pay for the legal costs
incurred by Employee to engage U.S. and French legal counsel, as necessary, to
review and finalize this Agreement and any related documents.

(b) Expense payment and reimbursement available under this Section 6 shall be available upon
satisfaction of Employer’s reasonable substantiation and document requirements, and shall in each
case be reimbursed to Employee or paid directly by Employer within thirty (30) calendar days of
receipt of such documentation. All expense reimbursements under item Section 6 (a) (i) must be
submitted within twenty-four (24) months of the Commencement Date. Reimbursement of expenses
incurred or submitted outside of these guidelines will be reimbursed at Employer’s discretion.

(c) In the event Employee voluntarily resigns without Good Reason within eighteen (18) months
of the Commencement Date, Employee will promptly repay to the Company $250,000. Employee hereby
gives the Company an express lien on all salaries, wages and other sums payable to Employee by the
Company for the purposes of securing Company for the payment of any amount which may become due
from Employee under this paragraph. Employee hereby expressly authorizes the Company to deduct
said amount from any sums payable to Employee under Sections 5, 6, 8, and 10(c) to the extent
permitted by applicable law and to the extent such amounts do not constitute “deferred
compensation” within the meaning of Section 409A of the Internal Revenue Code (the
“Code”) and the regulations and other guidance thereunder (collectively “Code Section
409A”). For the avoidance of doubt, the Employee shall not be required to repay any sums in
the event that he terminates his employment for Good Reason.

7. Termination of Employment.

(a) Disability of Employee.

(i) Parent Board may terminate the Term if Parent Board has determined, after
due consideration of an opinion of a qualified physician: that Employee has become
disabled because of a mental or physical illness or incapacity; that Employee
remains so disabled; and that the nature of Employee’s disability is such that
Employee is unable to perform, on a full-time basis, services of the character
contemplated by this Agreement.

(ii) The Parent Board may not make such determination in (i) above unless and
until Employee shall have, because of a mental or physical illness or incapacity,
failed to render for 120 or more successive days or for shorter periods aggregating
120 days or more during any 365-day period (with or without reasonable
accommodation) services of the character contemplated by this Agreement.

(iii) When the Parent Board has made each of the determinations set forth in
(i) above, the Term shall be deemed to have been terminated effective as of the last
day of the calendar month in which a Parent Board resolution evidencing such
determination is adopted.

 

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(iv) In the event of such termination, Employer shall pay or provide to
Employee the following: (A) the portion of his Base Salary accrued but unpaid
through the effective date of termination, (to be paid in accordance with Employer’s
usual payroll practices); (B) outstanding but unreimbursed expenses incurred
pursuant to Section 6 and Section 11 (to be paid in accordance with Sections 6, 11
and 15(d), as applicable); (C) payment for accrued but untaken vacation (to be paid
within 15 business days of such termination); and (D) any other amounts or benefits
required to be paid or provided by law or under any plan, program, policy or
practice of Employer applicable to employees in general (exclusive of amounts or
benefits to which Employee is entitled solely by virtue of the other provisions of
this Agreement), which shall be paid or provided in accordance with applicable law
or the terms of the applicable plan, program, policy or practice ((A)-(D)
collectively, the “Accrued Amounts”).

(v) Except for the payments specified in (iv) above and (viii) below, and
payments, if any, to which Employee is entitled under disability insurance, Employee
shall not be entitled to receive any other compensation or remuneration hereunder at
the time of or based on his termination for disability.

(vi) Nothing stated in this Section 7(a) shall be construed to permit Employer
to withhold salary or benefits during any period prior to an employment termination
permitted by this Section 7(a).

(vii) Nothing stated in this Section 7(a) shall be deemed to limit or otherwise
preclude any right by Employee to challenge the aforesaid determination of the
Parent Board.

(viii) If the Term is terminated under this Section 7(a) or under Section 7(b)
below, then (A) in respect of the Fiscal Year completed immediately prior to
termination, Employee shall be paid an Incentive Award when such Incentive Award
would otherwise have been paid had Employee remained employed in the same amount, if
any, that would have been paid had Employee remained in employment on such payment
date and (B) in respect of a Fiscal Year uncompleted as of termination, Employee
shall be paid an Incentive Award when such Incentive Award would otherwise have been
paid had Employee remained in employment on such payment date in the same amount, if
any, that would have been paid based on actual performance of the applicable
Performance Goals had Employee remained in employment on such payment date, but such
award shall be paid pro rata (based on the number of days employed in the Fiscal
Year of termination).

(ix) For the further avoidance of doubt, if the Term is terminated under this
Section 7(a), Employees rights under any Equity Award shall be determined by the
terms of such Equity Award.

(b) Death of Employee. The Term shall terminate effective immediately upon the death
of Employee. Upon such termination, Employer shall pay or provide to the estate of

 

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Employee the Accrued Amounts and any other amounts or benefits to which such estate is
entitled by law and the payments, if any, determined under Sections 5(f) and 7(a) (viii) above.
Except for such payments, the estate of Employee shall not be entitled to receive any other
compensation or remuneration hereunder at the time of or based on the death of Employee other than
life insurance proceeds. For the further avoidance of doubt, if the Term is terminated under this
Section 7(b), the rights of Employee’s estate under any Equity Award shall be determined by the
terms of such Equity Award.

(c) By Employer With Cause. Parent Board may terminate the Term and Employee’s
Employment with Cause, as defined below. In the event that Parent Board determines in good faith
that grounds exist to terminate the Term early with Cause, the Parent Board shall provide written
notice to Employee specifying in reasonable detail the actions, omissions or events supporting such
determination. At the request of Employee, the Parent Board shall meet with Employee no later than
15 business days after Employee’s receipt of such notice at which meeting Employee may, with
assistance of counsel or other representation, present evidence to refute or mitigate such alleged
actions, omissions or events and/or make a proposal to cure such breach or violation. Within five
business days after such meeting, the Parent Board shall furnish a written statement to Employee
that such determination has either been confirmed or rescinded. Nothing stated in this Section
7(c) shall be deemed to limit or otherwise preclude any right by Employee to challenge the
aforesaid determination of the Parent Board. Upon such termination, Employer shall pay or provide
to Employee the Accrued Amounts and, except for such payments, Employer shall not be required to
pay any further compensation to Employee, including any portion of any unpaid Incentive Award. For
the further avoidance of doubt, if the Term is terminated under this Section 7(c), Employee’s
rights under any Equity Award shall be determined by the terms of such Equity Award. The
provisions of the foregoing sentence shall be in addition to, and not in lieu of, any other rights
and remedies Employer may have at law or in equity or under any other provision of this Agreement
in respect of such termination of employment or the actions, omissions or events underlying such
termination. Employee and Employer agree that the following events shall constitute
“Cause”:

(i) Employee’s conviction or plea of nolo contendere to a felony or any other
crime involving moral turpitude which would tend to subject Employer, Parent or any
Tiffany Affiliate to public criticism or to materially interfere with Employee’s
continued service to Employer or Parent;

(ii) Employee’s willful and material violation of Employer’s Business Conduct
Policy — Worldwide, as it may be amended from time to time;

(iii) Employee’s willful failure, or willful refusal to attempt, to perform
substantially all such proper and achievable directives issued by the CEO or the
Parent Board (other than any such failure resulting from incapacity due to physical
or mental illness, or any such refusal made in good faith because Employee believes
such directives to be illegal, unethical or immoral) after a written demand for
substantial performance is delivered to Employee on behalf of Employer, which demand
specifically identifies the manner in which Employee has not substantially performed
his duties, and which performance is not

 

-13-

 

substantially corrected by Employee within ten (10) business days of receipt of
such demand;

(iv) Employee’s fraud or theft with regard to Parent or any Tiffany Affiliate;

(v) Employee’s willful failure to reasonably cooperate in any investigation of
alleged misconduct by Employee or by any other employee of Parent, Employer or any
Tiffany Affiliate;

(vi) Employee’s willful and material breach of any of the covenants set forth
in Section 9 or Section 10;

(vii) Employee’s alcoholism or illicit drug use that materially interferes with
Employee’s job performance or his ability to perform his services hereunder or that
has a material adverse effect on the reputation of Employer, Parent or any Tiffany
Affiliate or their respective products, trademarks or goodwill.

No act or failure to act on Employee’s part will be considered “willful” for the purposes of this
Section 7(c) unless done, or omitted to be done, by Employee not in good faith and without
reasonable belief that his action or omission was in the best interests of Employer.
Notwithstanding the foregoing, Employee shall not be deemed to have been terminated for Cause
unless and until there shall have been delivered to Employee a copy of a resolution duly adopted by
the affirmative vote of not less than three-fourths (3/4th) of the entire membership of
the Parent Board at a meeting called and held for such purpose (after reasonable notice to Employee
and an opportunity for Employee, together with Employee’s counsel, to be heard before the Parent
Board), finding that, in the good faith opinion of the Parent Board, Cause exists as set forth
above.

(d) By Employer without Cause. The Term and Employee’s employment hereunder may be
terminated by Employer without Cause on thirty (30) days’ written notice or payment in lieu
thereof. For the avoidance of doubt, if the Term is terminated under this Section 7(d), Employee’s
rights under any Equity Award shall be determined by the terms of such Equity Award.

(e) By Employee without Good Reason. The Term and Employee’s employment hereunder may
be terminated by Employee without Good Reason (as defined below) on ninety (90) days’ written
notice. Upon such termination, Employer shall pay or provide to Employee the Accrued Amounts.
Except for such payments, Employer shall not be required to pay any further compensation to
Employee. For the avoidance of doubt, if the Term is terminated under this Section 7(e),
Employee’s rights under any Equity Award shall be determined by the terms of such Equity Award.

(f) By Employee for Good Reason. The Term and Employee’s employment hereunder may be
terminated by Employee for Good Reason. For purposes of this Agreement, “Good Reason”
shall mean any one or more of the following actions taken without Employee’s consent:

 

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(i) a material adverse change in Employee’s duties, authority or
responsibilities;

(ii) a material adverse change in Employee’s reporting responsibility;

(iii) a failure of any successor to Employer or Parent (whether direct or
indirect and whether by merger, acquisition, consolidation, asset sale or otherwise)
to assume in writing any obligations arising out of this Agreement or any other
agreement between Employer or Parent and Employee;

(iv) any other action or inaction that constitutes a material breach by
Employer or Parent of this Agreement or any other agreement between Employee and
Employer (for this purpose, a “material breach” by Employer or Parent shall
include any reduction in Employee’s Base Salary or in his Target Incentive Award
(but, for the avoidance of doubt, any actual pay-out of an Incentive Award for a
given Fiscal Year which is less than the Target Incentive Award shall not constitute
Good Reason, provided that such lower pay-out is based upon the failure to meet
Performance Goals or a good faith determination by the Compensation Committee that
Parent’s financial performance or Employee’s personal performance did not warrant a
pay-out equal to or greater than the Target Incentive Award));

(v) Parent’s failure to comply with the terms of any Equity Award or failure to
grant any of the Equity Awards provided for under Section 6 (d);

(vi) Employer requires Employee to be based at an office or location other than
one located in New York, New York;

(vii) The expiration of the Term following an election by Employer not to
extend the Term in accordance with Section 3 (a)

Notwithstanding any provision in this Agreement to the contrary, termination of employment by
Employee will not be for Good Reason unless (y) Employee notifies Employer in writing of the
existence of the condition which Employee believes constitutes Good Reason within ninety (90) days
of the initial existence of such condition, and (z) Employer fails to remedy such condition within
thirty (30) days after the date on which it receives such notice, provided that Employee’s right to
terminate under Section 7 (f) (vii) must be exercised within ninety (90) days following the
expiration of Term as set forth in Section 7 (f) (vii).

(g) Non-Renewal by Employer. A termination of Employee’s employment by Employer
without Cause within one year following the expiration of the Term following an election by
Employer not to extend the Term in accordance with Section 3(a) shall be treated for all purposes
hereunder as a termination by Employer under Section 7(d).

8. Severance Obligations.

(a) In the event the employment of Employee is terminated during the Term pursuant to Sections
7(d) or 7(f), Employer shall pay or provide to Employee the Accrued

 

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Amounts and Employee’s severance damages will be limited to the following if a Change in
Control has not occurred prior to the effective date of such termination:

(i) a lump sum equal to the sum of the following, paid as soon as practicable,
but in no event later than the 60th day following the date of termination
of the Term:

(A) Base Salary that would have been payable for the balance of the
Term, with a minimum amount equal to 100% of annual Base Salary and up to
maximum amount equal to 200% of annual Base Salary; plus

(B) the actual Incentive Award for the last completed Fiscal Year prior
to termination, as determined by the Compensation Committee, if such
Incentive Award remains unpaid; plus

(C) $605,000 (provided that the aforesaid amount shall be increased on
January 31, 2012 and each anniversary of that date thereafter (but not
decreased once increased) by an amount necessary to adjust for any increase
in COLA during the immediate prior year).

(ii) Subject to Section 8(e), Employer shall maintain in full force and effect
all insured and self-insured employee medical and dental welfare benefit plans in
which Employee was entitled to participate immediately prior to
termination, for the
continued benefit of Employee and his eligible dependents for a maximum period of
one (1) year following the date of termination.

(b) In the event the employment of Employee is terminated during the Term pursuant to Sections
7(d) or 7(f), Employer shall pay or provide to Employee the Accrued Amounts and Employee’s
severance damages will be limited to a lump sum equal to the sum of the following if a Change in
Control has occurred prior to the effective date of such termination:

(i) a lump sum equal to the sum of the following, paid as soon as practicable,
but in no event later than the 10th day following the date of termination
of the Term:

(A) 200% of Base Salary; plus

(B) the actual Incentive Award for the last completed Fiscal Year prior
to termination, as determined by the Compensation Committee, if such
Incentive Award remains unpaid; plus

(C) 200% of the amount stated in Section 8(a)(i)(C) above, as adjusted
for COLA.

(ii) Subject to Section 8(e), Employer shall maintain in full force and effect
all insured and self-insured employee medical and dental welfare benefit plans in
which Employee was entitled to participate immediately prior to

 

-16-

 

termination, for the continued benefit of Employee and his eligible dependents
for a maximum period of two (2) years following the date of termination.

(c) For the further avoidance of doubt, if the Term is terminated pursuant to Section 7(d) or
7(f), Employee’s rights under any Equity Award shall be determined by the terms of such Equity
Award.

(d) Except as noted in this Section 8 or pursuant to rights under Equity Grants, Employee
shall have no further rights to any compensation or any other benefits under this Agreement if the
employment of Employee is terminated during the Term pursuant to Sections 7(d) or 7(f).

(e) Employer’s obligation under Sections 8(a)(ii) or 8(b)(ii) is subject to the following:

(i) Employee and his eligible dependents’ continued participation is possible
under the general terms and provisions of such employee benefit plans (and under the
terms of any applicable funding media); and

(ii) Employee continues to pay an amount equal to his regular contribution
under such plans for such participation.

Employee and his eligible dependents’ continued participation in such plans shall
also be subject to the following additional conditions:

(A) In the event that Employee’s participation in any employee benefit
plan is barred, Employer shall, at its sole cost and expense, arrange to
have issued for the benefit of Employee and his eligible dependents
individual policies of insurance providing benefits substantially similar
(on an after-tax basis) to those which Employee otherwise would have been
entitled to receive under such employee benefit plan pursuant to Section
8(a)(ii) or 8(b)(ii) for the applicable benefit continuation period.

(B) In lieu of the benefits provided above, if, in the reasonable
opinion of Employer, such insurance is not available at a reasonable cost to
Employer, Employer shall directly provide Employee and his eligible
dependents with equivalent benefits (on an after-tax basis).

(C) In either of the circumstances described in (A) or (B), Employee
shall not be required to pay any premiums or other charges in an amount
greater than that which he would have paid in order participate in such
employee benefit plan had his termination not occurred.

(D) If at the end of the applicable benefit continuation period
Employee has not reached age sixty-five and he has not previously received
or is not then receiving equivalent benefits from a new employer, Employer
shall arrange to enable Employee to convert his and his eligible dependents’
coverage under Employer’s employee benefit plans to

 

-17-

 

individual policies or programs upon the same terms as employees of
Employer may apply for such conversions. Employer shall bear the cost of
making such conversions available to Employee; Employee shall bear the cost
of coverage under such converted policies or programs.

(E) For the purposes of Sections 8(a)(ii) or 8(b)(ii) and this Section
8(e), a dependent will be deemed “eligible” if, at the time in question,
Employee would, if an employee of Employer, be entitled to cover such
dependent under the plan in question.

(f) Notwithstanding anything herein to the contrary, any benefits and payments provided under
this Agreement that are payable or provided to Employee in connection with a termination of
employment that constitute deferred compensation within the meaning of Code Section 409A shall not
commence in connection with Employee’s termination of employment unless and until Employee has also
incurred a “separation from service” (as such term is defined in Treasury Regulation Section
1.409A-1(h) (“Separation from Service”), unless Employer reasonably determines that such
amounts may be provided to Employee without causing Employee to incur additional tax obligations
under Code Section 409A. For the avoidance of doubt, it is intended that payments under Section 8
and/or Section 10(c) comply with or satisfy, to the greatest extent possible, the exemptions from
the application of Code Section 409A. However, if Employer determines that these payments
constitute deferred compensation and Employee is, on the termination of his service, a
“specified employee” of Employer, as such term is defined in Code Section 409A(a)(2)(B)(i)
of the Code, then, solely to the extent necessary to avoid the incurrence of the adverse personal
tax consequences under Code Section 409A, the timing of the payments shall be delayed until the
earlier to occur of: (i) the date that is six months and one day after Employee’s Separation from
Service) or (ii) the date of Employee’s death that occurs after Employee’s Separation from Service.
This Section 8 shall be administered, construed and interpreted in a manner consistent with the
requirements of Code Section 409A. In no event shall Employer have any liability or obligation
with respect to taxes for which Employee may become liable as a result of the application of Code
Section 409A.

(g) Employee shall not be required to mitigate the amount of any payment provided for in this
Section 8 by seeking other employment or otherwise, and no such payment shall be offset or reduced
by the amount of any compensation provided to Employee in any subsequent employment.

(h) Notwithstanding anything in this Agreement to the contrary, If Employee becomes entitled
to any payments and/or benefits that constitute “parachute payments” within the meaning of Section
280G(b)(2) of the Code, and as a result becomes subject to the excise tax under Section 4999 of the
Code, Employee’s entitlement to any such payment or benefit shall be limited (reduced) to the
extent necessary so that no such payment to be made to Employee will be subject to the excise tax
imposed by Section 4999 of the Code, but only if, by reason of such limitation, Employee’s Net
After Tax Benefit shall exceed his Net After Tax Benefit if such reduction were not made.
“Net After Tax Benefit” means (x) the sum of all payments and benefits that Employee is
entitled to receive under this Agreement or under any other plan or agreement that would constitute
a “parachute payment” within the meaning of Section 280G of the Code, less (y) the amount of
federal income tax payable with respect to the payments and

 

-18-

 

benefits described in clause (x) above calculated at the maximum marginal income tax rate for
each year in which such payments and benefits shall be paid or provided to Employee (based upon
the rate in effect for such year as set forth in the Code at the time of the first payment of the
foregoing), less (z) the amount of excise tax imposed with respect to the payments and benefits
described in clause (y) above by Section 4999 of the Code.

9. Confidential and Proprietary Information. In consideration of payment to Employee
of the compensation specified in Sections 5 and 6, Employee hereby covenants and agrees as follows:

(a) During the Term and thereafter Employee shall treat either as trade secrets or
confidential and proprietary information of the Tiffany Affiliated Group any data or information
acquired during the course of or as a result of his employment by Employer, which is not available
to Employee except by reason of his employment, including, but not limited to, contemplated new
products and services, marketing and advertising campaigns, sales projections, creative campaigns
and themes, financial information, budgets and projections, system designs, employees, management
procedures and systems, employee training materials, equipment, production plans and techniques,
product and materials specifications, product designs and proposals and design techniques, client
information (including purchase history and client identifying information), vendor information
(including the identity of vendors, suppliers, designers, and other contractors and information
concerning the capacity of or products or designs or pricing provided by said parties),
distribution information, and any other data or information designated by Employer, Parent, or
their affiliates s confidential or proper; notwithstanding the foregoing, “Confidential
Information” shall not include information that is or becomes generally publicly available other
than as a result of a disclosure by Employee or that becomes available to Employee on a
non-confidential basis from a Person that to Employee’s knowledge, after due inquiry, is not bound
by a duty of confidentiality.

(b) During the Term and thereafter, Employee agrees to refrain, except as properly required in
the business of Employer, or as authorized in writing by Employer or as required by law (including
if required by court order, subpoena or other government process), (i) from using for Employee’s
own benefit any matters to be treated as trade secrets or as confidential or proprietary
information under Section 9(a) above; (ii) from using any such matters for the benefit of any other
person, firm or corporation; (iii) from disclosing any such matters to any other person, firm or
corporation; and (iv) from authorizing or permitting such disclosure;

(c) During the Term and thereafter, all designs and all improvements, discoveries, processes,
innovations, and inventions or products conceived, designed, devised, made, developed or perfected
by Employee during the term of this Agreement shall be fully and promptly disclosed to Employer and
the same shall be the sole and absolute property of Employer. Upon request of Employer, Employee
will execute all documents reasonably deemed appropriate by Employer to secure the foregoing rights
and for obtaining the grant of trademarks, patents, copyrights or registered design rights, both
domestic and foreign, with respect to such designs, improvements, discoveries, processes,
innovations and inventions and for vesting title to such trademarks, patents or copyrights in
Employer; provided, however, that Employee shall not

 

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be required to incur any costs or legal expenses in conjunction with the compliance of any
such request;

(d) Employee agrees to surrender to Employer at any time during the Term and thereafter upon
request and in any event upon the termination or expiration of the term of this Agreement, except
as Employer may otherwise consent in writing, all designs, written documents, sketches, records or
information whether copyrighted or patented or not, and any copies or imitations thereof, whether
made by Employee or not, which embody, contain or describe in any way those matters to be treated
as trade secrets or as confidential or proprietary information under this Section 9 created while
Employee is employed by Employer. Employer shall not unreasonably withhold authorization for
Employee to retain any matters covered by this Section 9, the continued possession of which by
Employee will not, in Employer’s sole but reasonable opinion, be detrimental to the best interest
of Employer.

(e) No provision of Section 9 is intended to limit Employee’s right to use or disclose
information which is in the public domain or a matter of common knowledge, which he knew before the
Commencement Date, or which is generally known in the industry, or acquired by Employee from a
third party not prohibited from making such disclosure; nor is it intended to limit Employee’s
obligation to comply with lawful subpoenas or other lawful process.

10. Restrictive Covenants.

(a) Employee agrees that, immediately following the end of his employment with Employer, for
the periods described below, he will not directly or indirectly (whether as director, officer,
consultant, principal, owner, member, partner, advisor, financier, employee or agent or in any
other capacity):

(i) for a period of six months (the “Non-Compete Period”), engage in,
assist, have any interest in or contribute Employee’s knowledge and abilities to,
any business or entity in the Retail Jewelry Trade or in the Wholesale Jewelry Trade
or seeking to enter or about to become engaged in the Retail Jewelry Trade or the
Wholesale Jewelry Trade (provided that this subsection shall not prohibit an
investment by Employee not exceeding five percent of the outstanding securities of a
publicly traded company);

(ii) for a period of eighteen months, employ, attempt to employ, or assist
anyone in employing a Covered Employee (including by influencing any Covered
Employee to terminate his/her employment with Employer or to accept employment with
any Person);

(iii) for a period of eighteen months, with respect to any vendor, supplier,
contractor, or designer of any Tiffany Affiliate with whom Employee, or employees
reporting to Employee, has had personal contact or dealings on behalf of any Tiffany
Affiliate, employ, solicit, attempt to employ or solicit, or encourage the
termination of such party’s relationship with Employer or its affiliates;

 

-20-

 

(iv) for a period of one year, attempt in any manner to solicit jewelry
purchases by any client of any Tiffany Affiliate or persuade any client of any
Tiffany Affiliate to cease doing business or reduce the amount of business that such
client has customarily done with any Tiffany Affiliate.

Employer acknowledges and agrees that the foregoing restrictions shall not be violated by Employee
through general advertising or by serving as a reference upon request. In addition, the provisions
of Section 10(a) (i) above shall not apply if Employee’s employment is terminated (x) by Employer
for reasons other than Cause, (y) by Employee with Good Reason or (z) if, having reached age 65,
Employee voluntarily resigns.

(b)

	 	(i)	 	The Non-Compete Period may be early terminated
by Employer in its sole discretion by delivery of a written notice to
Employee (“Non-Compete Early Termination”).
	 
	 	(ii)	 	Should Employee wish to obtain a determination
that any proposed employment, disclosure, arrangement or association
(each a “Proposed Transaction”) is not prohibited under Section
10(a) above, Employee shall direct a written request to the Parent
Board. Such request shall fully describe the Proposed Transaction.
Within 30 days after receipt of such request, the Parent Board may (i)
issue such a determination in writing, (ii) issue its refusal of such
request in writing, or (iii) issue a written request for more written
information concerning the Proposed Transaction. In the event that
alternative (iii) is elected (which election may be made on behalf of
the Parent Board by the Legal Department of Employer without action by
the Board), any action on Employee’s request will be deferred for ten
(10) days following receipt by said Legal Department of the written
information requested. Failure of the Parent Board to act within any
of the time periods specified in this Section 4 shall be deemed a
determination that the Proposed Transaction is not prohibited under
Section 10(a) above. A determination made or deemed made under this
Section 10(b) shall be limited in effect to the Proposed Transaction
described in the submitted materials and shall not be binding or
constitute a waiver with respect to any other Proposed Transaction,
whether proposed by Employee or any other Person. In the event that
Employee wishes to seek a determination that employment with a
management consulting firm, an accounting firm, a law firm or some
other provider of consulting services to a wide variety clients will
not be prohibited hereunder should such firm, at some unspecified time,
provide services to a firm in the Retail Jewelry Trade or the Wholesale
Jewelry Trade, Employee may seek a determination hereunder; in
submitting such a Proposed Transaction, the Employee should specify the
extent that

 

-21-

 

	 	 	 	Employee will be involved in or can be excluded from involvement in
the provision of such services. In a making any determination under
this Section 10(b), the Parent Board shall not be deemed to be acting
as a fiduciary with respect to Employee or any beneficiary of
Employee and shall be under no obligation to issue a determination
that any Proposed Transaction is not prohibited under Section 10(a)
above.

(c) In addition to the other amounts specified in this Agreement, Employer shall pay to
Employee a lump sum of $200,000 (provided that the aforesaid amount shall be increased on January
31, 2012 and each anniversary of that date thereafter (but not decreased once increased) by an
amount necessary to adjust for any increase in COLA during the immediate prior year) less
withholding and deductions (as so adjusted the “Non-Compete Payment”), on the
10th day following the expiration of the Non-Compete Period as additional consideration
for the restrictive covenants of Employee set forth in Section 10(a)(i), provided,
however, that Employer shall not be required to make the Non-Compete Payment (but may in
its sole discretion elect to do so) if: (i) this Agreement was terminated pursuant to Sections 7(a)
or 7(c), (ii), if the covenants set forth in Section 10(a)(i) are waived by Employer, or (iii)
Employee has materially breached any of the covenants set forth in Section 9 or 10(a).
Notwithstanding anything to the contrary set forth in this Agreement, the covenants set forth in
Section 10(a)(i) shall be valid and binding on Employee notwithstanding Employee’s refusal to
accept the Non-Compete Payment. In the event of a Non-Compete Early Termination, the Non-Compete
Payment shall be proportionally reduced to reflect the portion of the Non-Compete Period foregone
by Employer.

(d) No act or failure to act shall be a waiver of any right conveyed under Section 9 or this
Section 10, except an express waiver in writing and Employer may condition a waiver under Section
10(a)(i) above with respect to any single prohibited engagement upon Employee’s written
acknowledgement that (i) Section 10(a)(i) shall continue to apply to subsequent prohibited
engagements, (ii) any payments under Section 10(c) above shall be offset by payments received
pursuant to a prohibited engagement to which such a waiver applies or (iii) both of (i) and (ii)
apply. The rights reserved to Employer under Section 9 and this Section 10 are necessarily of a
special and unique character, which gives them an unusual and extraordinary value, the loss of
which cannot reasonably or adequately be compensated for in damages in an action at law, and the
breach by Employee of any of the provisions in Section 9 or this Section 10 will cause Employer
irreparable injury. Therefore, in addition to any other available remedies, Employer shall be
entitled to an injunction to restrain any violation of Section 9 or this Section 10 by Employee,
his agents, servants or employees and all persons, firms, or corporations acting for or with her.
The obligations of Employee under the covenants contained in Section 9 or this Section 10 shall not
cease upon termination of the term of this Agreement, except where otherwise limited in time above.

(e) The covenants contained in Section 9 and this Section 10 on the part of Employee shall
each be construed as an agreement independent of any other provision in this Agreement, and the
existence of any claim or cause of action of Employee against Employer, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of such
covenants.

 

-22-

 

(f) Employee specifically and expressly represents and warrants that: (i) he has reviewed and
agreed to the covenants contained in Section 9 and this Section 10 and their contemplated operation
after receiving the advice of counsel of his choosing; (ii) he believes, after receiving such
advice, that the restrictive covenants and their contemplated operation are fair and reasonable;
and (iii) he will not seek or attempt to seek to have the restrictive covenants declared invalid
unless Employer commits a material breach of this Agreement, and, after receiving the advice of
counsel, expressly waives any right to do so. Employee recognizes and agrees that the restrictions
on his activities contained in Section 9 and this Section 10 are required for the reasonable
protection of Employer and its investments and that the restriction on his activities set forth in
Section 9 or this Section 10 will not deprive Employee of the ability to earn a livelihood.

(g) It is the intention of both parties to make the covenants of Section 9 and this Section 10
binding only to the extent that it may be lawfully done under existing applicable laws. In the
event that any part of any covenant of Section 9 and this Section 10 is determined by a court of
law to be overly broad thereby making the covenant unenforceable, the parties hereto agree, and it
is their desire, that such court shall substitute lawful restrictions in place of the offensive
part of the covenant, and that as so modified the covenant shall be as fully enforceable as set
forth herein by the parties themselves.

(h) During the Non-Compete Period, Employee shall inform any prospective or future employer of
the restrictions contained in Section 10(a)(i) of this Agreement and provide such employer with a
copy of such restrictions (but no other terms of this Agreement), prior to the commencement of that
employment. During the eighteen (18) month period following the Term, Employee shall inform any
prospective or future employer of any restrictions contained in Section 10(a)(ii)-(iv) of this
Agreement that have not yet expired and provide such employer with a copy of such restrictions (but
no other terms of this Agreements), prior to the commencement of that employment.

(i) Notwithstanding any provision in this Section 10, in the event that Employer commits a
material breach of this Agreement, the restrictive covenants set forth in Section 10 shall not be
enforceable. The Non-Compete Period will be deemed to expire as of the date of such material
breach and Employee will, accordingly, be entitled to receive the payment provided in accordance
with Section 10(c).

11. Expenses. Employer shall pay or reimburse Employee for all reasonable and
necessary expenses incurred or paid by Employee in connection with the performance of his services
under this Agreement in accordance with the policies of Employer applicable to Executive Vice
Presidents, as such are established and amended from time to time, concerning expense reimbursement
and accounting therefor.

12. Vacation. Employee shall be entitled to annual vacation equivalent to that
granted by Employer to its employees having the title “Executive-President” which equates to
twenty-five (25) days’ paid vacation days each year, plus Employer holidays, floating holidays, and
personal days. Vacation time shall be accrued in accordance with Employer’s standard policies, as
such are established from time to time.

 

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13. Indemnification Agreement. Promptly following the Commencement Date Parent will
enter into an Indemnification Agreement in the form attached as Exhibit 13 with Employee. Employer
will cover Employee under its directors and officers liability insurance policy both during the
Term and, while potential liability exists, after Employee’s termination of employment. The
provisions of this Section 13 shall survive the termination of Employee’s employment with Employer.

14. Severability; Survival.

(a) In the event that any provision of this Agreement shall be determined to be invalid or
unenforceable for any reason, the remaining provisions of this Agreement not so invalid or
unenforceable shall be unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law.

(b) Any provision of this Agreement which may for any reason be invalid or unenforceable in
any jurisdiction shall remain in effect and be enforceable in any jurisdiction in which such
provision shall be valid and enforceable.

(c) The provisions of Sections 5, 6, 7, 8, 9, 10, 13, 15 and 16 of this Agreement, and any
other provision of this Agreement which is intended to apply, operate or have effect after the
expiration or termination of the Term, or at a time when the term of this Agreement may have
expired or terminated, shall survive the expiration or termination of the Term.

15. Code Section 409A of the Code. In addition to the provisions regarding Code
Section 409A set forth in Section 8(f) above, the following shall apply:

(a) Notwithstanding anything herein to the contrary, this Agreement is intended to be
interpreted and applied so that the payments and benefits set forth herein either shall either be
exempt from the requirements of Code Section 409A, or shall comply with the requirements of Code
Section 409A, and, accordingly, to the maximum extent permitted, this Agreement shall be
interpreted to be exempt from or in compliance with Code Section 409A.

(b) If Employee notifies Employer that Employee believes that any provision of this Agreement
(or of any award of compensation or benefit, including equity compensation or benefits provided
herein or at any time during his employment with Employer) would cause Employee to incur any
additional tax or interest under Code Section 409A or Employer independently makes such
determination, Employer shall, after consulting with Employee, reform such provision (or award of
compensation or benefit) to attempt to comply with or be exempt from Code Section 409A through good
faith modifications to the minimum extent reasonably appropriate. To the extent that any provision
hereof (or award of compensation or benefit) is modified in order to comply with Code Section 409A,
such modification shall be made in good faith and shall, to the maximum extent reasonably possible,
maintain the original intent and economic benefit to Employee and Employer without violating the
provisions of Code Section 409A.

 

-24-

 

(c) If under this Agreement, an amount is to be paid in two or more installments, for purposes
of Code Section 409A, each installment shall be treated as a separate payment.

(d) To the extent any reimbursement of costs and expenses provided for under this Agreement
constitutes taxable income to Employee for Federal income tax purposes, such reimbursements shall
be made no later than December 31 of the calendar year next following the calendar year in which
the expenses to be reimbursed are incurred.

(e) With regard to any provision herein that provides for reimbursement of expenses or in-kind
benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind
benefits is not subject to liquidation or exchange for another benefit, and (ii) the amount of
expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall
not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any
other taxable year, provided that the foregoing clause (ii) 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.

(f) Whenever a payment under this Agreement specifies a payment period with reference to a
number of days, the actual date of payment within the specified period shall be within the sole
discretion of Employer.

16. General Provisions.

(a) Notices. All notices, requests and other communications to any party hereunder shall be
in writing and shall be effective when given (i) by personal delivery or reliable overnight courier
service to the appropriate address as set forth below (or at such other address for the party as
shall have been previously specified in writing to the other party), or (ii) by email or facsimile
transmission to the appropriate email address or facsimile number set forth below (or at such other
facsimile number for the party as shall have been previously specified in writing to the other
party) with follow-up copy by personal delivery or reliable overnight courier service the next
business day:

If to Employee, to:

Mr. Frederic Cumenal

105 Rue De Longchamp

Neuilly Sur Seine, 92200

France

With a copy to:

James E. Gregory, Esq.

Proskauer

1585 Broadway

New York, NY 10036-8299

 

-25-

 

Facsimile: 212-969-2900

Email: jgregory@proskauer.com

If to Employer or Parent, to:

Tiffany and Company

600 Madison Avenue

New York, NY 10022

Attention: Legal Department

Facsimile: 212-230-5323

Email: patrick.dorsey@tiffany.com

(b) Amendments and Waivers. This Agreement may not be modified or amended except by
an instrument in writing signed by Employee and by an officer of Employer authorized by the Parent
Board. Except as otherwise provided in this Agreement, any failure of any of the parties to comply
with any obligation, covenant, agreement or condition herein may be waived by the party entitled to
the benefits thereof only by a written instrument signed by or on behalf of the party granting such
waiver, but such waiver or failure to insist upon strict compliance with such obligation, covenant,
agreement or condition shall not operate as a waiver of, or estoppel with respect to, any
subsequent or other failure.

(c) Assignment. Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder or by reason hereof shall be assignable by either party hereto without the
written consent of the other party and any attempt to assign without such consent will be void.

(d) Headings. The article, section, paragraph and other headings contained in this
Agreement are inserted for convenience of reference only and shall not affect in any way the
meaning or interpretation of this Agreement.

(e) Entire Agreement. This Agreement, the Definitional Appendix and the Exhibits and
each of the documents referenced herein sets forth the entire agreement and understanding between
the parties as to the subject matter hereof and supersedes all prior oral and written and all
contemporaneous oral discussions, agreements and understandings of any kind or nature.

(f) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed in the
State of New York, without regard to choice of law principles applied by the courts of the State of
New York.

(g) Binding Nature; Third-Party Beneficiaries. This Agreement shall be binding upon
and inure solely to the benefit of the parties hereto and their respective successors and permitted
assigns. Nothing in this Agreement is intended to confer upon any other person or persons any
rights, benefits or remedies of any nature whatsoever.

 

-26-

 

(h) Arbitration. In the event of any dispute concerning the validity, interpretation,
breach or enforcement of this Agreement, the parties agree to mediate any such dispute. In the
event of any such dispute, the parties, within thirty (30) days of a written request for mediation,
shall attend a mediation to be conducted in New York, New York in order to make a good faith
reasonable effort to resolve such dispute. The parties shall attempt, in good faith, to agree to a
mediator. If the parties are unable to agree to a mediator, the parties shall submit the matter to
JAMS or another alternative dispute resolution provider located in New York, New York to appoint a
mediator and conduct the mediation. If this good faith mediation effort fails to resolve the
dispute arising under this Agreement, then, the dispute shall be resolved by arbitration within
City of New York, State of New York, in accordance with the Employment Arbitration Rules of the
American Arbitration Association, and judgment upon any arbitration award may be entered by any
state or federal court having jurisdiction thereof. There shall be a sole arbitrator who shall be
an attorney experienced in the practice of employment law. The Arbitrator’s decision in any such
arbitration shall be final and binding on the parties. The Arbitrator’s authority and jurisdiction
shall be limited to determining the dispute in arbitration in conformity with law, to the same
extent as if such dispute were determined as to liability and any remedy by a court. The
Arbitrator shall render an award which shall include a written statement of opinion setting forth
the arbitrator’s findings of fact and conclusions of law. The parties intend this arbitration
provision to be valid, enforceable, irrevocable and construed as broadly as possible. Employer
will pay the forum fees and the costs of the arbitrator, and, except as provided in Section 16(i)
below, each party shall bear its own respective aggregate costs and expenses of such arbitration,
including without limitation, all legal fees and disbursements, travel expenses and other out of
pocket expenses. Notwithstanding any other provision of this Agreement or this clause, each party
shall have the right, at any time either before or after the commencement of an arbitration
proceeding hereunder and prior to entry of judgment on any award rendered hereunder, to apply to
any court of competent jurisdiction for preliminary relief, including a preliminary injunction to
enforce the provisions of Sections 9 and/or 10 above.

(i) Legal Fees and Expenses Necessary to Enforce Agreement. Upon and following a
Change in Control, Employer shall pay or reimburse Employee for all costs and expenses (including,
without limitation, court costs and reasonable legal fees and expenses which reflect common
practice with respect to the matters involved) incurred by Employee as a result of any claim,
action or proceeding (y) contesting, disputing or enforcing any right, benefits or obligations
under this Agreement or which Employee reasonably claims to have or to be owed to him by Employer
or (z) arising out of or challenging the validity, advisability or enforceability of this Agreement
or any provision hereof.

(j) Signature in Counterparts. This Agreement may be signed in counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon
the same instrument. The parties hereto confirm that any facsimile copy of another party’s executed
counterpart of this Agreement (or its signature page thereof) will be deemed to be an executed
original thereof.

17. Parent’s Responsibility. Although Parent is not Employee’s employer under this
Agreement, as a material inducement to Employee to execute and perform his obligations pursuant to
this Agreement, Parent hereby guarantees the full performance and payment of all obligations
hereunder of Employer to Employee. The officer signing this Agreement on behalf

 

-27-

 

of Parent represents and warrants to Employee that he has been duly authorized by all
requisite corporate action or approvals of Parent to execute and deliver this Agreement on behalf
of Parent and that this Agreement constitutes the valid and binding obligations of Parent,
enforceable against Parent in accordance with its terms, subject only to bankruptcy or other
insolvency laws relating to creditors’ rights generally.

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

	 	 	 	 	 	 	 
	 	 	EMPLOYEE:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/
 

Frederic Cumenal
	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYER:	 	 
	 
	 	 	 	 	 	 
	 	 	TIFFANY AND COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/
 

Name: Michael J. Kowalski
	 	 
	 

	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PARENT:	 	 
	 
	 	 	 	 	 	 
	 	 	TIFFANY & CO.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: Michael J. Kowalski
	 	 
	 

	 	 	 	Title: Chief Executive Officer	 	 

List of Schedules and Exhibits

	 	 	 
	Schedule I —

	 	Definitional Appendix
	 
	 	 
	Schedule 1(c) —

	 	Covenants with Prior Employer
	 
	 	 
	Exhibit 5(d)(i) —

	 	Time Based RSU Terms — Filed as Exhibit 10.161 to Tiffany & Co. Form 8-K dated March 21, 2011
	 
	 	 
	Exhibit 5(d)(ii) —

	 	Sign-On Option Terms
	 
	 	 
	Exhibit 5(d)(vi) —

	 	Share Ownership Policy for Executive Officers and Directors — Filed as Exhibit 10.152 to Tiffany & Co. Form 8-K dated March 22, 2007 and

 

-28-

 

	 	 	 
	 

	 	incorporated by reference to Tiffany & Co. Annual Report on Form 10-K dated March 30, 2010
	 
	 	 
	Exhibit 13 —

	 	Indemnification Agreement — Filed as Exhibit 10.49a to Tiffany & Co. Form 8-K dated
May 23, 2005 and incorporated by reference to Tiffany & Co. Annual Report on Form 10-K dated
March 30, 2010

 

-29-

 

Schedule I

DEFINITIONAL APPENDIX

“Business Conduct Policy — Worldwide” means Parent’s (i) Code of Business
and Ethical Conduct for Directors, the Chief Executive Officer, the Chief Financial
Officer and All Other Officers of the Parent and (ii) Business Conduct Policy —
Worldwide, as either (i) or (ii) may be amended from time to time.

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

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

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

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

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

“COLA” means the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
selected areas (NY-NJ-CT), all items index published by the Bureau of Labor Statistics of the
United States Department of Labor.

“Covered Employee” means (i) any person who is an employee of any Tiffany Affiliate or (ii)
was, at any date during the Term, an employee of any Tiffany Affiliate unless the employment of
such person with such Tiffany Affiliate has been terminated for at least six (6) months.

 

-30-

 

“Defined Benefit Pension Plan” means any of the following: the Tiffany and Company Pension
Plan, the Tiffany and Company Un-funded Retirement Plan to Recognize Compensation in Excess of
Internal Revenue Code Limits and the Tiffany and Company Supplemental Retirement Income Plan.

“Employee Incentive Plan” means the Parent’s 2005 Employee Incentive Plan, as amended from
time to time and as approved by Parent’s stockholders.

“Employee’s Termination Date” means the date Employee ceases to be an employee of Employer
or any Tiffany Affiliate.

“Exchange Act” means the United States Securities Exchange Act of 1934.

“Fiscal Year” means a 12-month period ending on January 31; as used in this Agreement,
Fiscal Years are identified by reference to the calendar year ended in the December immediately
prior to the close of the Fiscal Year; thus Fiscal Year 2011 refers to the Fiscal Year ending
January 31, 2012.

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

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

“Jewelry” means jewelry (including but not limited to precious metal or silver jewelry or
jewelry containing gemstones) and watches

“Performance Goals” means financial goals established for each Fiscal Year by the
Compensation Committee by reference to Performance Measures. Performance Goals and maximum awards
are established by the Compensation Committee within 90 days after the start of a Fiscal Year.

“Performance Measures” mean those Performance Measures permitted under the Employee
Incentive Plan. Performance Measures may be based on Parent’s consolidated financial results as
publically reported for the Fiscal Year in question, or on net sales for any channel of
distribution for the Fiscal Year in question.

“Proceeds of Equity Award” means, in U.S. dollars, (i) with respect to an Equity Award of
restricted stock or stock units, the value the shares on the date the Equity Award vests, and, (ii)
with respect to an Equity Award that is an option to purchase or a stock appreciation right, the
spread between the strike price and the market value for the underlying shares on the exercise
date, in each of cases (i) and (ii) measured by the simple average of the high and low selling

 

-31-

 

prices on the principal market on which the shares are traded as of vesting or exercise date, as
the case may be, if such vesting or exercise date is a trading date; if such vesting or exercise
date is not a trading date, then as of trading date next following the vesting or exercise date.

“Retail Jewelry Trade” means the operation of one or more retail outlets (including
stores-within-stores, leased departments or concessions) selling Jewelry in any city in the world
in which a TIFFANY & CO. store is located at the date on which Employee’s employment terminates;
for the purpose of this definition, a retail outlet will not be deemed engaged in the Retail
Jewelry Trade if less than 5% of the items displayed for sale in such outlet are Jewelry, so that,
by way of example, an apparel store that offers Jewelry as an incidental item would not be deemed
engaged in the Retail Jewelry Trade.

“Tiffany Affiliated Group” means those business entities, including Employer, who are
controlled by Parent, directly or indirectly, and the term “Tiffany Affiliate” refers to a
member of the Tiffany Affiliated Group.

“Wholesale Jewelry Trade” means the sale of Jewelry or gemstones to the Retail Jewelry
Trade, the development or design of Jewelry for sale to the Retail Jewelry Trade or the production
of Jewelry for sale to the Retail Jewelry Trade regardless of where in the world such activities
are conducted.

 

-32-

 

Schedule 1(c)

Covenants with Prior Employer

	•	 	A one-year non-compete covenant following termination of employment that restricts Employee
from working in the wine and spirits industry.
	 
	•	 	A two-year non-solicitation/no-hire covenant following termination of employment that
restricts Employee from recruiting or contributing to the recruitment of personnel employed by
Moet Hennessy.
	 
	•	 	Customary confidentiality and non-disclosure covenants that are perpetual in duration.

 

-33-

 

	 	 	 
	 

	 	TRANSFERABLE OPTION
	 

	 	Terms
	 

	 	FC Version
	 

	 	Exhibit 5(d)(ii)

TIFFANY & CO.

a Delaware Corporation

(the “Parent”)

TERMS OF STOCK OPTION AWARD

(Transferable Non-Qualified Option)

under the

2005 EMPLOYEE INCENTIVE PLAN

(the “Plan”)

Terms Adopted September 2009

1. Introduction and Terms of Option. Participant has been granted a Non-Qualified Stock Option
Award (the “Option”) to purchase shares of the Parent’s Common Stock under the Plan by the
Stock Option Subcommittee of the Parent Board (the “Committee”). The name of the
“Participant”, the “Grant Date”, the number of “Covered Shares” and the
“Exercise Price” per Share are stated in the attached “Notice of Grant”. The
other terms and conditions of the Option are stated in this document and in the Plan.

2. Award and Exercise Price; Option Not An Incentive Stock Option. Subject to the terms and
conditions stated in this document, the Option gives Participant the right to purchase the Covered
Shares from the Parent at the Exercise Price. The Option is not intended to constitute an
“incentive stock option” as that term is used in the Code.

3. Earliest Dates for Exercise — Cumulative Installments. Unless otherwise provided in
paragraphs 4, 5 or 6 below, the Option shall become exercisable (“mature”) in cumulative
installments according to the following schedule:

	 	 	 	 	 
	As of the following	 	 	 
	anniversary of the Grant	 	The Option shall mature with the respect to the following	 
	Date:	 	percentage (“installment”) of the Covered Shares:	 
	One-year anniversary
	 	 	25	%
	Two-year anniversary
	 	 	25	%
	Three-year anniversary
	 	 	25	%
	Four-year anniversary
	 	 	25	%

Once an installment of the Option matures, as provided in the above schedule, it shall continue to
be exercisable with all prior installments on a cumulative basis until the Option expires.

4. Effect of Termination of Employment. An installment of the Option shall not mature if the
Participant’s Date of Termination occurs before the anniversary of the Grant Date on which such
installment was scheduled to mature, unless the Participant’s Date of Termination occurs by reason
of death or Disability, in which case all installments of the Option which have not previously
matured shall mature on said Date of Termination. Installments of the Option which mature on or
prior to Participant’s Date of Termination will remain exercisable, subject to expiration as
provided in paragraph 6 below.

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Transferable Option: Terms of Stock Option Award — Rev. VI
	 	 

 

 

 

5. Effect of Change in Control. All installments of the Option that have not previously matured
or expired shall mature upon (i) the Change of Control Date for a Terminating Transaction, failing
maturity as provided in (i) above, (ii) upon Participant’s Involuntary Termination following a
Change of Control Date.

6. Expiration. The Option, including matured installments thereof, shall not be exercisable in
part or in whole and will be deemed to have “expired” on or after the Expiration Date. The
“Expiration Date” shall be the earliest to occur of:

	a.	 	the ten-year anniversary of the Grant Date;
	 
	b.	 	if the Participant’s Date of Termination occurs by reason of death, Disability or Retirement,
the two-year anniversary of such Date of Termination;
	 
	c.	 	if the Participant’s Date of Termination occurs for reasons other than death, Disability,
Retirement or Termination for Cause, the three month anniversary of such Date of Termination;
	 
	d.	 	if the Participant’s Date of Termination occurs by reason of Termination for Cause, the Date
of Termination.

7. Methods of Option Exercise. The Option may be exercised in whole or in part as to any Shares
that have matured by filing prior to the Expiration Date a written notice of exercise with the
Secretary of the Parent at its corporate headquarters. Such notice shall specify the number of
Shares which the Participant elects to purchase and shall be accompanied by either of the
following:

	a.	 	a bank-certified check payable to the Parent (or other type of check or draft payable to the
Parent and acceptable to the Secretary) in the amount of the Exercise Price for the Shares
being exercised plus any tax withholding resulting from such exercise as computed by Employer;
or
	 
	b.	 	a copy of directions to, or a written acknowledgment from, an Approved Broker that the
Approved Broker has been directed to sell, for the account of the owner of the Option, Shares
(or a sufficient portion of the Shares) acquired upon exercise of the Option, together with an
undertaking by the Approved Broker to remit to the Parent a sufficient portion of the sale
proceeds to pay the Exercise Price for the Shares exercised plus any tax withholding resulting
from such exercise as computed by Employer.

In the case of exercise via method (a), the exercise shall be deemed complete on the Parent’s
receipt of such notice and said check or draft. In the case of exercise via method (b), the
exercise shall be deemed complete on the trade date of the sale. The Committee may approve other
methods of exercise, as provided for in the Plan, before the Option is exercised.

8. Withholding. All distributions on the exercise of the Option are subject to withholding of all
applicable taxes. The method for withholding shall be as provided in paragraph 7 above, unless the
Committee approves other methods of withholding, as provided for in the Plan, before the Option is
exercised.

9. Transferability. The Option is not transferable otherwise than by will or the laws of descent
and distribution or pursuant to a “domestic relations order”, as defined in the Code or Title I of
the Employee

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Transferable Option: Terms of Stock Option Award — Rev. VI
	 	Page 2

 

 

 

Retirement Income Security Act or the rules thereunder, and shall not be otherwise transferred,
assigned, pledged, hypothecated or otherwise disposed of in any way, whether by operation of law or
otherwise, nor shall it be subject to execution, attachment or similar process. Notwithstanding the
foregoing, the Option may be transferred by the Participant to (i) the spouse, children or
grandchildren of the Participant (each an “Immediate Family Member”), (ii) a trust or trusts for
the exclusive benefit of any or all Immediate Family Members, or (iii) a partnership in which any
or all Immediate Family Members are the only partners, provided that (x) there may be no
consideration paid or otherwise given for any such transfer, and (y) subsequent transfer of the
Option is prohibited otherwise than by will, the laws of descent and distribution or pursuant to a
domestic relations order. Following transfer, the Option shall continue to be subject to the same
terms and conditions as were applicable immediately prior to transfer. The provisions of
paragraph 4 above shall continue to be applied with respect to the original Participant following
transfer and the Option shall be exercisable by the transferee only to the extent, and for the
periods specified, herein. Upon any attempt to transfer the Option otherwise than as permitted
herein or to assign, pledge, hypothecate or otherwise dispose of the Option otherwise than as
permitted herein, or upon the levy of any execution, attachment or similar process upon the Option,
the Option shall immediately terminate and become null and void.

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

11. Heirs and Successors. The terms of the Option shall be binding upon, and inure to the benefit
of, the Parent and its successors and assigns, and upon any person acquiring, whether by merger,
consolidation, purchase of assets or otherwise, all or substantially all of the Parent’s assets and
business. Participant may designate a beneficiary of his/her rights under the Option by filing
written notice with the Secretary of the Parent. In the event of the Participant’s death prior to
the full exercise of the Option, the Option may be exercised by such Beneficiary to the extent that
it was exercisable on the Participant’s Termination Date and up until its Expiration Date. If the
Participant fails to designate a Beneficiary, or if the designated Beneficiary dies before the
Participant or before full exercise of the Option, the Option may be exercised by Participant’s
estate to the extent that it was exercisable on the Participant’s Termination Date and up until its
Expiration Date.

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

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

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Transferable Option: Terms of Stock Option Award — Rev. VI
	 	Page 3

 

 

 

Appendix I — Definitions

“Affiliate” shall mean any Person that controls, is controlled by or is under common control
with, any other Person, directly or indirectly.

“Approved Broker” means one or more securities brokerage firms designated by the Secretary of
the Parent from time to time.

“Cause” shall mean a termination of Participant’s employment which is the result of Cause as
defined in Section 7(c) of the Employment Agreement.

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

	 	(i)	 	any Person, or any syndicate or group deemed to be a person
under Section 14(d)(2) of the Exchange Act, excluding Parent or any of its
Affiliates, a trustee or any fiduciary holding securities under an employee
benefit plan of Parent or any of its Affiliates, an underwriter temporarily
holding securities pursuant to an offering of such securities or a corporation
owned, directly or indirectly by stockholders of Parent in substantially the
same proportion as their ownership of Parent, is or becomes the “beneficial
owner” (as defined in Rule 13d-3 of the General Rules and Regulations under the
Exchange Act), directly or indirectly, of securities of Parent representing
Thirty-five percent (35%) or more of the combined voting power of Parent’s then
outstanding securities entitled to vote in the election of directors of Parent;
	 
	 	(ii)	 	if the Incumbent Directors cease to constitute a majority of
the Parent Board; provided, however, that no person shall be deemed an
Incumbent Director if he or she was appointed or elected to the Parent Board
after having been designated to serve on the Parent Board by a Person who has
entered into an agreement with Parent to effect a transaction described in
clauses (i) through (iv) of this definition;
	 
	 	(iii)	 	there occurs a reorganization, merger, consolidation or other
corporate transaction involving Parent, in each case with respect to which the
stockholders of Parent immediately prior to such transaction do not,
immediately after such transaction, own more than Fifty percent (50%) of the
combined voting power of the Parent or other corporation resulting from such
transaction, as the case may be;
	 
	 	(iv)	 	all or substantially all of the assets of Parent or Employer
are sold, liquidated or distributed, except to an Affiliate of Parent.

“Change in Control Date” shall mean the date on which a Change of Control occurs except that a
Change of Control which constitutes a Terminating Transaction will be deemed to have occurred as of
fourteen days prior to the date scheduled for the Terminating Transaction.

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Transferable Option: Terms of Stock Option Award — Rev. VI
	 	Page 4

 

 

 

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

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

“Date of Termination” shall mean, with respect to any Participant, the first day occurring on
or after the Grant Date on which Participant’s employment with Employer terminates for any reason;
provided that a termination of employment shall not be deemed to occur by reason of a transfer of
the employment of Participant between Employers; and further provided that the Participant’s
employment shall not be considered terminated while the Participant is on a leave of absence from
the Employer approved by Employer or required by applicable law. If, as a result of a sale or
other transaction, Employer ceases to be an Affiliate of Parent, the occurrence of such transaction
shall be treated as the Participant’s Date of Termination caused by the Participant being
discharged by Employer without Cause.

“Disability” shall mean termination of Participant’s employment by Parent Board as provided
for under Section 7 (a) of the Employment Agreement.

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

“Employment Agreement” shall mean that certain Senior Executive Employment Agreement made as
of • by and between (FC), Tiffany and Company and Parent.

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

“Good Reason” means Participant’s resignation from employment with Employer for “Good Reason”
as that term is defined in Section 7 (f) of the Employment Agreement.

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

“Involuntary Termination” means (i) Participant’s termination of employment by Employer
without Cause or (ii) Participant’s resignation of employment with the Employer within one (1) year
of the Change of Control Date for Good Reason.

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

			
	 	 	 
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	 	Page 5

 

 

 

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

“Parent Board” shall mean the Board of Directors of Parent.

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

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

“Terminating Transaction” shall mean any one of the following:

	 	(i)	 	the dissolution or liquidation of the Parent;
	 
	 	(ii)	 	a reorganization, merger or consolidation of the Parent with one or more
Persons as a result of which the Parent goes out of existence or becomes a subsidiary
of another Person; or
	 
	 	(iii)	 	upon the acquisition of substantially all of the property or more than eighty
percent (80%) of the then outstanding stock of the Parent by another Person;

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

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Transferable Option: Terms of Stock Option Award — Rev. VI
	 	Page 6Exhibit 10.161

	 	 	 
	 

	 	Exhibit 10.161
	 
	 

	 	TIME-VESTING
	 

	 	RESTRICTED
	 

	 	STOCK UNIT
	 

	 	GRANT Terms
	 

	 	Executive Officers

TIFFANY & CO.

a Delaware Corporation

(the “Parent”)

TERMS OF RESTRICTED STOCK GRANT

(Non-Transferable)

under the

2005 EMPLOYEE INCENTIVE PLAN

(the “Plan”)

Terms Adopted September 2010

[Bracketed terms are deemed superceded by conflicting terms provided for in individual
 written
employment agreements approved by Parent Board that provide for such a grant]

1. Introduction and Terms of Grant. Participant has been granted (the “Grant”) Stock
Units which shall be settled by the issuance and delivery of Shares of Common Stock. The Grant has
been made under the Plan by the Stock Option Subcommittee of the Parent Board (the
“Committee”). The name of the “Participant”, the “Grant Date” and the
number of “Stock Units” granted are stated in the attached “Notice of Grant”. The
other terms and conditions of the Grant are stated in this document and in the Plan. If the
Participant has the title of Vice President, Group Vice President, Senior Vice President, Executive
Vice President, President or Chief Executive Officer this Grant will be void unless the Participant
executes and delivers to the Parent those certain Non-Competition and Confidentiality Covenants in
the form approved by the Committee, such delivery to be made prior to or within 180 days after the
Grant Date.

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

3. Maturity Date — Vesting. Unless otherwise provided in paragraphs 4 or 5 below, 100% of the
Stock Units will “mature” and vest on the third anniversary of the Grant Date (the “Maturity
Date”). Following the Maturity Date, the Settlement Value of the Stock Unit in Shares shall be
issued and delivered within thirty (30) days to or for the account of Participant. As provided for
in Section 7 below, the Parent may make such delivery to a Service Provider. If the Stock Units
fail to mature and vest on or before Participant’s Date of Termination they shall be void and shall
not confer upon the owner of such Stock Unit any rights, including any right to any Share. In the
event that as of the Maturity Date the Settlement Value will result in a fractional Share, the
Parent will not be obligated to issue such fractional Share, and the Parent will not be required to
settle any remaining fractional interest in cash.

4. Effect of Termination of Employment on Vesting. A Stock Unit shall not mature and will be
deemed to have “expired” and shall not be settled for Shares if the Participant’s Date of
Termination occurs before the Maturity Date, unless the Participant’s Date of Termination occurs by
reason of death, Disability, or an Involuntary Termination, in which case 100% of the Stock Units
will “mature” and vest on the Date of Termination and the Settlement Value of the Stock Unit in
Shares shall be issued and delivered within thirty (30) days of the Date of Termination to or for
the account of Participant.

 

 

 

5. Effect of Change in Control. 100% of the Stock Units will “mature” and vest upon (i) a Change
of Control Date for a Terminating Transaction, or (ii) failing maturity as provided in (i) above,
(ii) upon Participant’s Involuntary Termination following a Change of Control Date, and the
Settlement Value of the Stock Units in Shares shall be issued and delivered within thirty (30) days
of the Change of Control Date or the Date of Termination, as applicable, to or for the account of
Participant.

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

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

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

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

10. Heirs and Successors. The terms of the Grant shall be binding upon, and inure to the benefit
of, the Parent and its successors and assigns, and upon any person acquiring, whether by merger,
consolidation, purchase of assets or otherwise, all or substantially all of the Parent’s assets and
business.

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

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Restricted Stock Grant: Terms of Stock Grant Award
	 	Page 2

 

 

 

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

13. Section 409A. [Notwithstanding anything herein to the contrary, any benefits and payments
provided under [these Terms] that are payable or provided to Participant in connection with a
termination of employment that constitute deferred compensation within the meaning of Code Section
409A shall not commence in connection with Participant’s termination of employment unless and until
Participant has also incurred a “separation from service” (as such term is defined in Treasury
Regulation Section 1.409A-1(h) (“Separation from Service”), unless Employer reasonably
determines that such amounts may be provided to Participant without causing Participant to incur
additional tax obligations under Code Section 409A. For the avoidance of doubt, it is intended
that payments comply with or satisfy, to the greatest extent possible, the exemptions from the
application of Code Section 409A. However, if Employer determines that these payments constitute
deferred compensation and Participant is, on the termination of his service, a “specified
Participant” of Employer, as such term is defined in Code Section 409A(a)(2)(B)(i) of the Code,
then, solely to the extent necessary to avoid the incurrence of the adverse personal tax
consequences under Code Section 409A, the timing of the payments shall be delayed until the earlier
to occur of: (i) the date that is six months and one day after Participant’s Separation from
Service) or (ii) the date of Participant’s death that occurs after Participant’s Separation from
Service. This Section 13 shall be administered, construed and interpreted in a manner consistent
with the requirements of Code Section 409A. In no event shall Employer have any liability or
obligation with respect to taxes for which Participant may become liable as a result of the
application of Code Section 409A. In addition to the provisions regarding Code Section 409A set
forth above, the following shall apply:

Notwithstanding anything herein to the contrary, these Terms are intended to be interpreted and
applied so that the payments and benefits set forth herein either shall either be exempt from the
requirements of Code Section 409A, or shall comply with the requirements of Code Section 409A, and,
accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be exempt from
or in compliance with Code Section 409A.

If Participant notifies Employer that Employee believes that any provision of this Agreement (or of
any award of compensation or benefit, including equity compensation or benefits provided herein or
at any time during his employment with Employer) would cause Employee to incur any additional tax
or interest under Code Section 409A or Employer independently makes such determination, Employer
shall, after consulting with Employee, reform such provision (or award of compensation or benefit)
to attempt to comply with or be exempt from Code Section 409A through good faith modifications to
the minimum extent reasonably appropriate. To the extent that any provision hereof (or award of
compensation or benefit) is modified in order to comply with Code Section 409A, such modification
shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the
original intent and economic benefit to Employee and Employer without violating the provisions of
Code Section 409A.]

[continued]

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Restricted Stock Grant: Terms of Stock Grant Award
	 	Page 3

 

 

 

Appendix I — Definitions

“Affiliate” shall mean any Person that controls, is controlled by or is under common control
with, any other Person, directly or indirectly.

[“Cause” shall mean a termination of Participant’s employment which is the result of:

	 	•	 	Participant’s conviction or plea of nolo contendere to a felony or any other
crime involving moral turpitude which would tend to subject Employer,
Parent or any Tiffany Affiliate to public criticism or to materially interfere
with Participant’s continued service to Employer or Parent;
	 
	 	•	 	Participant’s willful and material violation of Employer’s Business Conduct
Policy — Worldwide, as it may be amended from time to time;
	 
	 	•	 	Participant’s willful failure, or willful refusal to attempt, to
perform substantially all such proper and achievable directives issued by the CEO
or the Parent Board (other than any such failure resulting from incapacity due to
physical or mental illness, or any such refusal made in good faith because
Participant believes such directives to be illegal, unethical or immoral) after a
written demand for substantial performance is delivered to Participant on behalf
of Employer, which demand specifically identifies the manner in which Participant
has not substantially performed his duties, and which performance is not
substantially corrected by Participant within ten (10) business days of
receipt of such demand;
	 
	 	•	 	Participant’s fraud or theft with regard to Parent or any Tiffany Affiliate;
	 
	 	•	 	Participant’s willful failure to reasonably cooperate in any investigation of
alleged misconduct by Participant or by any other Participant of Parent, Employer
or any Tiffany Affiliate;
	 
	 	•	 	Participant’s willful and material breach of any [non-competition or
confidentiality covenants that Participant has entered into with Employer;
	 
	 	•	 	Participant’s alcoholism or illicit drug use that materially interferes with
Participant’s job performance or his ability to perform his services hereunder or
that has a material adverse effect on the reputation of Employer, Parent or any
Tiffany Affiliate or their respective products, trademarks or goodwill.

No act or failure to act on Participant’s part will be considered “willful” for the purposes of
this definition unless done, or omitted to be done, by Participant not in good faith and without
reasonable belief that his action or omission was in the best interests of Employer.
Notwithstanding the foregoing, Participant shall not be deemed to have been terminated for Cause
unless and until there shall have been delivered to Participant a copy of a resolution duly adopted
by the affirmative vote of not less than three-fourths (3/4th) of the entire membership
of the Parent Board at a meeting called and held for such purpose (after reasonable notice to
Participant and an opportunity for Participant, together with Participant’s counsel, to be heard

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Restricted Stock Grant: Terms of Stock Grant Award
	 	Page 4

 

 

 

before the Parent Board), finding that, in the good faith opinion of the Parent Board, Cause exists
as set forth above.]

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

	 	(i)	 	any Person, or any syndicate or group deemed to be a person
under Section 14(d)(2) of the Exchange Act, excluding Parent or any of its
Affiliates, a trustee or any fiduciary holding securities under an employee
benefit plan of Parent or any of its Affiliates, an underwriter temporarily
holding securities pursuant to an offering of such securities or a corporation
owned, directly or indirectly by stockholders of Parent in substantially the
same proportion as their ownership of Parent, is or becomes the “beneficial
owner” (as defined in Rule 13d-3 of the General Rules and Regulations under the
Exchange Act), directly or indirectly, of securities of Parent representing
Thirty-five percent (35%) or more of the combined voting power of Parent’s then
outstanding securities entitled to vote in the election of directors of Parent;
	 
	 	(ii)	 	if the Incumbent Directors cease to constitute a majority of
the Parent Board; provided, however, that no person shall be deemed an
Incumbent Director if he or she was appointed or elected to the Parent Board
after having been designated to serve on the Parent Board by a Person who has
entered into an agreement with Parent to effect a transaction described in
clauses (i) through (iv) of this definition;
	 
	 	(iii)	 	there occurs a reorganization, merger, consolidation or other
corporate transaction involving Parent, in each case with respect to which the
stockholders of Parent immediately prior to such transaction do not,
immediately after such transaction, own more than Fifty percent (50%) of the
combined voting power of the Parent or other corporation resulting from such
transaction, as the case may be;
	 
	 	(iv)	 	all or substantially all of the assets of Parent or Employer
are sold, liquidated or distributed, except to an Affiliate of Parent.

“Change in Control Date” shall mean the date on which a Change of Control occurs except that a
Change of Control which constitutes a Terminating Transaction will be deemed to have occurred as of
fourteen days prior to the date scheduled for the Terminating Transaction.

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

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

“Date of Termination” shall mean, with respect to Participant, the first day occurring on or
after the Grant Date on which Participant’s employment with Employer terminates for any reason;

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Restricted Stock Grant: Terms of Stock Grant Award
	 	Page 5

 

 

 

provided that a termination of employment shall not be deemed to occur by reason of a transfer of
the employment of Participant from one Employer to another Employer; and further provided that the
Participant’s employment shall not be considered terminated while the Participant is on a leave of
absence from the Employer approved by Employer or required by applicable law. If, as a result of a
sale or other transaction, Employer ceases to be an Affiliate of Parent, the occurrence of such
transaction shall be treated as a Terminating Transaction; provided that such transaction
constitutes a “change in control event” within the meaning of Section 409A of the Code.

[“Disability” shall mean termination of Participant’s employment because Parent Board has
determined, after due consideration of an opinion of a qualified physician: that
Participant has become disabled because of a mental or physical illness or incapacity; that
Participant remains so disabled; and that the nature of Participant’s disability is such that
Participant is unable to perform, on a full-time basis, services of the character contemplated by
his/her employment. The Parent Board may not make such determination in (i) above
unless and until Participant shall have, because of a mental or physical illness or incapacity,
failed to render for 120 or more successive days or for shorter periods aggregating 120 days or
more during any 365-day period (with or without reasonable accommodation) services of the
character contemplated by these Terms.]

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

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

[“Good Reason” means Participant’s resignation from employment with Employer for “Good Reason”
shall mean any one or more of the following actions taken without Participant’s consent:

	 	•	 	a material adverse change in Participant’s duties, authority or
responsibilities;
	 
	 	•	 	a material adverse change in Participant’s reporting responsibility;
	 
	 	•	 	a failure of any successor to Employer or Parent (whether direct or indirect and
whether by merger, acquisition, consolidation, asset sale or otherwise) to assume
in writing any obligations arising out of these Terms or any other agreement
between Employer or Parent and Participant;
	 
	 	•	 	any other action or inaction that constitutes a material breach by Employer or
Parent of these Terms or any other agreement between Participant and Employer (for
this purpose, a “material breach” by Employer or Parent shall include any reduction
in Participant’s Base Salary or in his Target Incentive Award (but, for the
avoidance of doubt, any actual pay-out of an Incentive Award for a given Fiscal
Year which is less than the Target Incentive Award shall not constitute Good
Reason, provided that such lower pay-out is based upon the failure to meet
Performance Goals or a good faith determination by the Compensation Committee that
Parent’s financial performance or Participant’s personal

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Restricted Stock Grant: Terms of Stock Grant Award
	 	Page 6

 

 

 

	 	 	 	performance did not warrant a pay-out equal to or greater than the Target Incentive
Award));
	 
	 	•	 	Parent’s failure to comply with the terms of any equity award granted to or
required by contract to be granted to Participant; and
	 
	 	•	 	Employer requires Participant to be based at an office or location other than
one located in New York, New York.

Notwithstanding any provision of these Terms to the contrary, termination of employment by
Participant will not be for Good Reason unless (y) Participant notifies Employer in writing of the
existence of the condition which Participant believes constitutes Good Reason within ninety (90)
days of the initial existence of such condition, and (z) Employer fails to remedy such condition
within thirty (30) days after the date on which it receives such notice, provided that
Participant’s right to terminate under Section 7 (f) (vii) must be exercised within ninety (90)
days following the expiration of Term as set forth in Section 7 (f) (vii).]

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

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

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

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

“Parent Board” shall mean the Board of Directors of Parent.

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

“Terminating Transaction” shall mean any one of the following:

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

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Restricted Stock Grant: Terms of Stock Grant Award
	 	Page 7

 

 

 

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

provided that none of the foregoing transactions will be deemed to be a Terminating Transaction, if
as of a date at least fourteen (14) days prior to the date scheduled for such transaction
provisions have been made in writing in connection with such transaction for the assumption of the
Grant or the substitution for the Grant of a new grant covering the publicly-traded stock of a
successor Person, with appropriate adjustments as to the number and kind of shares; and further
provided that of the foregoing transactions will be deemed to be a Terminating Transaction unless
such event constitutes a “change in control event” within the meaning of Section 409A of the Code.

			
	 	 	 
	Tiffany & Co. 2005 Employee Incentive Plan	 	 
	Restricted Stock Grant: Terms of Stock Grant Award
	 	Page 8

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