Document:

<PAGE>   1
                                                                 EXHIBIT 10.(i)

                                    AGREEMENT

     This Agreement is made and entered on March 13, 2000, by and between
Charlotte G. Fischer ("Fischer") and Paul Harris Stores, Inc., an Indiana
corporation (the "Company").

                                    RECITALS

     A. Pursuant to an Employment Agreement made as of February 1, 1998 by and
between Fischer and the Company (the "Employment Agreement"), Fischer was
employed as the Chief Executive Officer of the Company.

     B. Fischer and the Company desire to fully resolve certain matters related
to the termination of Fischer's employment with the Company, including but not
limited to the respective rights and obligations of the parties under the
Employment Agreement, to cancel the Employment Agreement and their respective
rights and obligations thereunder, and to otherwise finally settle and resolve
all other matters outstanding between them.

     NOW, THEREFORE, in consideration of the foregoing and the other agreements
contained herein, the parties hereto agree as follows:

                              TERMS AND CONDITIONS

     1. Cancellation of Employment Agreement and Termination of Employment.
Fischer's employment by the Company is terminated and the Employment Agreement
is cancelled effective as of the close of business on March 13, 2000 (the
"Effective Time"). From and after the Effective Time, (a) Fischer shall not be
required to perform any duties for the Company or be bound by any restrictive
covenants other than as set forth herein, (b) Fischer shall have no further
rights with respect to her employment relationship with the Company other than
as set forth herein and (c) neither Fischer (on the one hand) nor the Company
(on the other hand) shall have any further rights or obligations under the
Employment Agreement. Fischer hereby resigns from all corporate offices held
with the Company and any subsidiary or affiliate of the Company, and as a member
of the Board of Directors of the Company and each of its subsidiaries and
affiliates, as of the Effective Time.

     2. Payments to Fischer.

        (a) In consideration of the covenants contained in this Agreement
including but not limited to the cancellation of the obligations of the Company
to Fischer under the Employment Agreement, and subject to the condition that
Fischer shall not have exercised her right to rescind this Agreement as provided
in Section 24, the Company shall:

            (i) Pay to Fischer the following amounts on the Company's regularly
scheduled paydays:

                                       1

<PAGE>   2

     ----------------------------------------------------------------------
          Pay Period         Amount           Pay Period          Amount
     ----------------------------------------------------------------------
      March 22, 2000        $32,692.31     September 5, 2001     $35,576.92
     ----------------------------------------------------------------------
      April 5, 2000         $32,692.31     September 19, 2001    $35,576.92
     ----------------------------------------------------------------------
      April 19, 2000        $32,692.31     October 3, 2001       $35,576.92
     ----------------------------------------------------------------------
      May 3, 2000           $32,692.31     October 17, 2001      $35,576.92
     ----------------------------------------------------------------------
      May 17, 2000          $32,692.31     October 31, 2001      $35,576.92
     ----------------------------------------------------------------------
      May 31, 2000          $32,692.31     November 14, 2001     $35,576.92
     ----------------------------------------------------------------------
      June 14, 2000         $32,692.31     November 28, 2001     $35,576.92
     ----------------------------------------------------------------------
      June 28, 2000         $32,692.31     December 12, 2001     $35,576.92
     ----------------------------------------------------------------------
      July 12, 2000         $32,692.31     December 26, 2001     $35,576.92
     ----------------------------------------------------------------------
      July 26, 2000         $32,692.31     January 9, 2002       $35,576.92
     ----------------------------------------------------------------------
      August 9, 2000        $32,692.31     January 23, 2002      $35,576.92
     ----------------------------------------------------------------------
      August 23, 2000       $32,692.31     February 6, 2002      $38,461.54
     ----------------------------------------------------------------------
      September 6, 2000     $32,692.31     February 20, 2002     $38,461.54
     ----------------------------------------------------------------------
      September 20, 2000    $32,692.31     March 6, 2002         $38,461.54
     ----------------------------------------------------------------------
      October 4, 2000       $32,692.31     March 20, 2002        $38,461.54
     ----------------------------------------------------------------------
      October 18, 2000      $32,692.31     April 3, 2002         $38,461.54
     ----------------------------------------------------------------------
      November 1, 2000      $32,692.31     April 17, 2002        $38,461.54
     ----------------------------------------------------------------------
      November 15, 2000     $32,692.31     May 1, 2002           $38,461.54
     ----------------------------------------------------------------------
      November 29, 2000     $32,692.31     May 15, 2002          $38,461.54
     ----------------------------------------------------------------------
      December 13, 2000     $32,692.31     May 29, 2002          $38,461.54
     ----------------------------------------------------------------------
      December 27, 2000     $32,692.31     June 12, 2002         $38,461.54
     ----------------------------------------------------------------------
      January 10, 2001      $32,692.31     June 26, 2002         $38,461.54
     ----------------------------------------------------------------------
      January 24, 2001      $32,692.31     July 10, 2002         $38,461.54
     ----------------------------------------------------------------------
      February 7, 2001      $35,576.92     July 24, 2002         $38,461.54
     ----------------------------------------------------------------------
      February 21, 2001     $35,576.92     August 7, 2002        $38,461.54
     ----------------------------------------------------------------------
      March 7, 2001         $35,576.92     August 21, 2002       $38,461.54
     ----------------------------------------------------------------------
      March 21, 2001        $35,576.92     September 4, 2002     $38,461.54
     ----------------------------------------------------------------------
      April 4, 2001         $35,576.92     September 18, 2002    $38,461.54
     ----------------------------------------------------------------------
      April 18, 2001        $35,576.92     October 2, 2002       $38,461.54
     ----------------------------------------------------------------------
      May 2, 2001           $35,576.92     October 16, 2002      $38,461.54
     ----------------------------------------------------------------------
      May 16, 2001          $35,576.92     October 30, 2002      $38,461.54
     ----------------------------------------------------------------------
      May 30, 2001          $35,576.92     November 13, 2002     $38,461.54
     ----------------------------------------------------------------------
      June 13, 2001         $35,576.92     November 27, 2002     $38,461.54
     ----------------------------------------------------------------------
      June 27, 2001         $35,576.92     December 11, 2002     $38,461.54
     ----------------------------------------------------------------------
      July 11, 2001         $35,576.92     December 25, 2002     $38,461.54
     ----------------------------------------------------------------------
      July 25, 2001         $35,576.92     January 8, 2003       $38,461.54
     ----------------------------------------------------------------------
      August 8, 2001        $35,576.92     January 22, 2003      $38,461.54
     ----------------------------------------------------------------------
      August 22, 2001       $35,576.92
     ----------------------------------------------------------------------

        Notwithstanding the preceding provisions, in no event shall the
payments set forth in this Section 2(a)(i) continue beyond Fischer's death.

                                        2

<PAGE>   3

            (ii)  On or before March 21, 2000, pay to Fischer $392,017.44.

            (iii) Reimburse to Fischer all business expenses incurred by her on
behalf of the Company prior to the Effective Time upon the presentation of
expense vouchers that are in sufficient detail to identify the nature, amount
and date of the expense, and the person to whom payment was made.

            (iv)  Reimburse to Fischer the amount of legal fees and expenses
paid by her to Baker & McKenzie with respect to its representation of Fischer
during the period beginning October 1, 1999, and ending at the Effective Time,
subject to (A) the submission to the Company of its statements for those fees
and expenses (without the identification of the specific services performed) and
(B) the limitation that the obligation of the Company under this subparagraph
shall not exceed $50,000. The Company shall reimburse Fischer under this Section
2(a)(iv) within 30 days of Fischer's submission to the Company of Baker &
McKenzie's statements for fees and expenses.

            (v)   On or before March 21, 2000, pay to Fischer $13,489 for club
dues and $12,267.23 for her waiver of group health coverage beyond the coverage
required by Section 6.

        (b) In the event Fischer obtains a final judgment in her favor, from a
court of competent jurisdiction from which no appeal may be taken, whether
because the time to do so has expired or otherwise, on any claim for payments
owed by the Company under Section 2 herein, or in the event any such claim is
settled by the Company prior to the rendering of such a judgment, the Company
shall pay the reasonable legal fees and expenses and court costs incurred by
Fischer in bringing such claim.

     3. Stock Options.

        (a) At or prior to the Effective Time, the Company will deliver to
Fischer an agreement evidencing the grant to her as of January 31, 2000, of a
fully vested and immediately exercisable option to purchase 25,000 shares of the
Company's Common Stock, at an exercise price equal to the fair market value of
the Company's Common Stock at the close of business on January 31, 2000, which
option will expire on the tenth anniversary of the grant date, in satisfaction
of the obligation of the Company set forth in Section 3(c)(ii) of the Employment
Agreement. The option may be exercised in any manner permitted under the
Company's 1996 Stock Option and Incentive Plan. No additional options will be
issued to Fischer.

        (b) Notwithstanding anything to the contrary contained in any stock
option plan of the Company or any stock option agreement between Fischer and the
Company, Fischer (or in the event of her death, the person to whom the stock
option is transferred by will or the laws of descent and distribution) may
exercise the stock options heretofore granted to her by the Company at any time
on or before the expiration date for each such stock option set forth on the
attached Exhibit A.

                                       3

<PAGE>   4

     4. Restricted Stock Awards.

        (a) On or before March 21, 2000, and subject to the condition that
Fischer shall not have exercised her right to rescind this Agreement as provided
in Section 24 hereof, the Company will grant to Fischer a stock award for 25,000
shares of the Company's Common Stock, in satisfaction of the obligation of the
Company set forth in Section 3(d)(ii) of the Employment Agreement. The Company
will cause a stock certificate for such 25,000 shares to be delivered to Fischer
on or before April 21, 2000. No additional restricted stock awards will be
issued to Fischer.

        (b) All shares of the Company's Common Stock that have been the subject
of a restricted stock award granted to Fischer under Section 3(d) of the
Employment Agreement shall become fully vested as of the Effective Time. The
Company will cause a stock certificate for such vested shares (that is, for
10,000 shares of the Company's Common Stock) to be delivered to Fischer on or
before April 21, 2000.

     5. Taxes. With respect to the payments made to Fischer pursuant to Section
2(a)(i), the Company shall withhold from any such payments any and all
applicable federal, state and local ordinary income, capital gains and/or
Fischer's share (but not the Company's share) of employment taxes (collectively,
"Taxes"). With respect to all other payments made to Fischer under Section 2,
Fischer shall be solely responsible for the payment of any and all Taxes that
may be due and owing as a result of the payments by the Company to Fischer made
pursuant to this Agreement or with respect to her status as an employee of the
Company. Except with regard to amounts subject to the withholding of Taxes
(above), Fischer shall indemnify and hold the Company harmless from any loss or
expense that it may incur (including but not limited to Tax liabilities,
interest and penalties) as a result of not withholding any Taxes.

     6. Health Insurance. Simultaneously with the execution of this Agreement,
the Company will deliver to Fischer an election form under the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA"), whereby she may
elect, at her own cost, to continue coverage under the Company's group health
plan for her and her qualified beneficiaries for a period of 18 months or such
other period as required under COBRA.

     7. Automobile. The Company shall pay or reimburse to Fischer, as incurred,
the lease payments for the Company Mercedes currently being used by Fischer as
of the date of this Agreement, until the expiration of the current lease, at
which time she shall return the automobile to the Company.

     8. Merchandise Discount. The Company shall, through January 31, 2003,
continue to provide Fischer with the discount(s) presently available to her on
her purchase of merchandise for her personal use from the Company's stores and
the stores of J. Peterman Co.; provided the Company shall cease to have any
obligation under this Section 8 from and after the date that Fischer becomes
employed by another company in the women's retail clothing industry.

     9. Tax-Qualified Retirement Plans. Simultaneously with the execution of
this Agreement, the Company will deliver to Fischer distribution election forms
whereby she may elect the form, timing and manner of distribution of her
benefits under the Company's tax-qualified retirement plans. The Company shall
cause the Company's tax-

                                       4

<PAGE>   5

qualified retirement plans to distribute Fischer's plan benefits to her in
accordance with her distribution election.

     10. Cooperation. Fischer shall cooperate with the Company, and shall make
herself available to the Company upon reasonable notice at reasonable times and
from time to time as the Company may request, in connection with the defense or
prosecution of any claims made against or by the Company either pending at the
date of this Agreement or made in the future. The Company shall compensate
Fischer at the rate of $250 per hour for the time she spends at the Company's
request, and the Company shall reimburse Fischer for all expenses, including
legal fees and costs, incurred by Fischer in performing her obligations under
this Section 10 of the Agreement.

     11. Indemnification. Fischer shall retain all rights to indemnification to
which she was otherwise entitled under Indiana law and under the terms of the
governing documents of the Company as of the date of this Agreement.

     12. Releases and Covenants Not to Sue.

         (a) Of the Company by Fischer. Fischer, for herself and her personal
representatives, heirs and assigns, RELEASES AND FOREVER DISCHARGES the Company,
and its subsidiaries, affiliates (and the current or former officers, directors,
employees and agents of the Company and any former chief executive officer of
the Company and his or her spouse), and any and all employee benefit plans (and
all fiduciaries of those plans) sponsored by any of them, and the successors and
assigns of all of the foregoing (collectively, the "Company Affiliates"), from
any and all claims (including, but not limited to, claims for attorneys' fees),
demands, losses, damages, agreements, actions, promises or causes of action
(known or unknown) that she now has or may later discover or that may hereafter
exist against them, or any of them, in connection with or arising directly or
indirectly out of, or in any way related to, any and all matters, agreements,
transactions, events or other things occurring prior to the date hereof,
including but not limited to matters arising out of or in connection with (i)
the employment of Fischer by the Company, the Employment Agreement and the
termination of her employment, (ii) any events, facts or circumstances that
either preceded the cessation of her employment or which occurred during the
course of her employment with Company or incidental thereto, or (iii) any other
matter or claim of any kind whatsoever (including but not limited to ownership
of shares of the Company) and whether pursuant to common law, statute,
ordinance, regulation or otherwise and including claims of fraud or
misrepresentation in the making, negotiation or execution of this Agreement,
excepting only the obligations created by this Agreement. Claims or actions
released and/or waived hereby include, but are not limited to, those based on
allegations of wrongful discharge and/or breach of contract; those arising under
the National Labor Relations Act; those alleging discrimination on the basis of
race, color, sex, religion, national origin, age or disability under Title VII
of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of
1967 ("ADEA"), the Rehabilitation Act of 1973, the Equal Pay Act of 1963, the
Americans with Disabilities Act of 1990, the Civil Rights Act of 1991, the
Family and Medical Leave Act, the Indiana Civil Rights Law (all as amended) or
any other federal, state or local law, ordinance, rule or regulation; and those
arising under ERISA. The parties agree that Fischer's release does not include
rights or claims she may have under the

                                       5

<PAGE>   6

ADEA which may arise after the execution of this Agreement. Fischer acknowledges
that (i) she may be giving up possible future legal and/or administrative
claims, and (ii) the Company has advised her to consult with an attorney prior
to executing this Agreement and she has done so.

         (b) Of Fischer by the Company. The Company RELEASES AND FOREVER
DISCHARGES Fischer and her personal representatives, heirs and assigns, from any
and all claims (including, but not limited to, claims for attorneys' fees),
demands, losses, damages, agreements, actions, promises or causes of action
(known or unknown) that it now has or may later discover or that may hereafter
exist against them in connection with or arising directly or indirectly out of,
or in any way related to, any and all matters, agreements, transactions, events
or other things occurring prior to the date hereof, including but not limited to
matters arising out of or in connection with (i) the employment of Fischer by
the Company, the Employment Agreement and the termination of her employment,
(ii) any events, facts or circumstances that either preceded the cessation of
her employment or which occurred during the course of her employment with
Company or incidental thereto, or (iii) any other matter or claim of any kind
whatsoever (including but not limited to ownership of shares of the Company) and
whether pursuant to common law, statute, ordinance, regulation or otherwise and
including claims of fraud or misrepresentation in the making, negotiation or
execution of this Agreement, excepting only the obligations created by this
Agreement.

         (c) Covenants Not to Sue. Neither Fischer, on the one hand, nor the
Company, on the other hand, shall file or otherwise institute any litigation or
other adversarial proceeding against the other (or, in the case of Fischer, any
Company Affiliate), seeking to assert any claim or demand that is within the
scope of the matters covered by the releases contained in subsections (a) and
(b) above, respectively.

         (d) Recovery of Amounts Paid. The Company shall be entitled to
recoupment and/or restitution of the lesser of (i) all sums paid to Fischer
pursuant to this Agreement or (ii) the amount recovered by Fischer from the
Company, in the event that Fischer (A) successfully challenges the validity of
the release granted in subsection (a), or (B) breaches her covenant contained in
subsection (c).

     13. Confidential Information.

         (a) Fischer shall keep confidential and shall not make any
unauthorized use or disclosure of, or use for her own benefit or the benefit of
others, any financial information, sales and marketing information or plans,
cost and pricing data, customer or supplier lists, computer programs or trade
secrets of the Company or its affiliates which are known to her as a result of
her employment by the Company (hereafter "Proprietary Information"); provided,
however, that nothing herein shall be construed to prevent Fischer from using
her general education, knowledge, skill and experience, whether acquired prior
to or during her employment by the Company, as long as such use does not result
in the actual disclosure of Proprietary Information. The term "trade secrets" as
used herein shall mean any information owned by the Company, including a
formula, pattern, compilation, program, device, method, technique or process,
that (1) is sufficiently secret to derive independent economic value, actual or
potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons

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<PAGE>   7

who can obtain economic value from its disclosure or use; and (2) is the subject
of efforts that are reasonable under the circumstances to maintain its secrecy
and confidentiality.

         (b) Proprietary Information does not include information that: (i) is,
or later becomes, available to the public (other than as a result of a breach of
this Agreement); or (ii) is available to Fischer from a source other than the
Company.

         (c) The Company shall designate James Morris as the person responsible
for responding to any inquiries from third parties regarding Fischer, the
Company's relationships with Fischer or the termination of those relationships,
including inquiries from Fischer's prospective employers, and James Morris, in
responding to such inquires, shall not disparage or deprecate Fischer. Fischer
and the Company further agree that the Company shall issue a press release in
substantially the form attached hereto as Exhibit B.

     14. No Solicitation of Employees. Fischer shall not, individually or
together with others, directly or indirectly (i) solicit or encourage any
employee of the Company to cease acting as an employee, or (ii) solicit,
contract with, or attempt to contract with, any employee of the Company. This
covenant shall expire and be of no further force or effect after September 21,
2000.

     15. Acknowledgment by the Company. The Company acknowledges that it has not
reached this Agreement with the intent to hinder, delay or defraud creditors.
The Company further acknowledges that this Agreement confers significant
benefits upon it, including but not limited to a release by Fischer of the
Company's obligations under the Employment Agreement, an agreement by Fischer
not to solicit the Company's employees, and an agreement by Fischer to resign
from the Company's Board of Directors.

     16. No Reliance. Fischer represents and warrants to the Company that, in
the making, negotiation and execution of this Agreement, she has not relied upon
any representation, statement or assertion of fact or opinion made by any
persons being released herein. Fischer hereby waives any right to rely upon all
prior agreements and/or oral representations made by any person being released
hereby even though made for the purpose of inducing her to enter into this
Agreement.

     17. Severability. If any provision in this Agreement shall for any reason
be determined to be invalid or unenforceable, the balance of that provision and
the remaining provisions of this Agreement shall nevertheless continue to be
valid and enforceable as though the invalid or unenforceable provision had not
been a part hereof.

     18. Entire Agreement. This Agreement constitutes the entire agreement
between the parties as to the subject matter hereof and this Agreement
supersedes all previous or contemporaneous agreements, written or oral, relating
to the subject matter of this Agreement to the extent that they are inconsistent
herewith. No provision of this Agreement shall be waived, altered or canceled
except in writing signed by the party against whom the waiver, alteration or
cancellation is asserted. Any waiver shall be limited to the particular instance
and the particular time when and for which it is given.

                                       7

<PAGE>   8

     19. Remedies. No breach of this Agreement shall be cause to set this
Agreement aside or to revive any of the claims being released herein.

     20. Choice of Law. This Agreement shall be governed by the laws of the
State of Indiana, its rules of conflict of laws notwithstanding.

     21. Expenses. Except as otherwise specifically stated herein, each of the
parties shall pay all costs and expenses incurred by it in connection with the
negotiation, preparation and performance of this Agreement or in any dispute
arising hereunder except as set forth in Section 2 herein, and neither shall
have any liability to the other with respect thereto.

     22. Assignment. This Agreement shall be binding upon, and inure to the
benefit of, the parties and their respective legal representatives, heirs,
administrators, successors and permitted assigns. The Company may freely assign
its rights under this Agreement; provided, however, the Company may not delegate
its duties under the Agreement without the written consent of Fischer. Except as
otherwise provided herein, Fischer may freely assign her rights under this
Agreement without the consent of the Company.

     23. Construction of the Agreement. The parties acknowledge that they have
read this Agreement, have consulted with counsel regarding its terms, and agree
with those terms as though the party had drafted this Agreement. The parties
agree that, although the Agreement was, by necessity, printed and assembled by
one party, the Agreement reflects the terms agreed to by both parties and that
the party that printed and assembled this Agreement shall be considered only as
the scrivener of the document. In the event a term of this Agreement is found to
be ambiguous, neither party shall be considered the draftsperson for the purpose
of causing the terms of this Agreement to be construed against that party.

     24. Rescission Rights. The parties hereby acknowledge and agree that
Fischer has seven calendar days from and after the date hereof in which to
consider and rescind this Agreement by written notice given as prescribed in
Section 27 together with a copy thereof sent by facsimile to the Company at
(312) 857-1055 (attention: John Peters) with a copy by facsimile to Berkley W.
Duck at (317) 592-4642.

     25. Headings Descriptive. The headings of the several sections of this
Agreement are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Agreement.

     26. Execution in Counterparts. This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed an original, but
all of which shall together constitute one and the same instrument.

     27. Notices. Any notice required or permitted to be given under the terms
of this Agreement shall be deemed to have been duly given if in writing and if
served by personal delivery upon the party for whom it is intended, if delivered
by registered or certified mail, return receipt requested, or by a national
courier service:

                                       8

<PAGE>   9

         To the Company:

                  Paul Harris Stores, Inc.
                  6003 Guion Road
                  Indianapolis, Indiana 46254
                  Attention: President

         with a copy to:

                  Ice Miller Donadio & Ryan
                  (for express deliveries)
                  One American Square
                  Suite 3400
                  Indianapolis, Indiana 46204
                  (for mail)
                  One American Square
                  Box 82001
                  Indianapolis, Indiana 46282
                  Attention:  Berkley W. Duck

         To Fischer:

                  Charlotte G. Fischer
                  3791 Bay Creek Drive
                  Bonita Springs, FL 34134

         with a copy to:

                  Baker & McKenzie
                  One Prudential Plaza
                  130 East Randolph Drive
                  Chicago, Illinois 60601
                  Attn: Maura Ann McBreen

         Either party (or such party's attorney) may change its or her address
for the purpose of this Section by written notice similarly given.

                                       9

<PAGE>   10

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

                                   /s/ CHARLOTTE G. FISCHER
                                   --------------------------------------------
                                   Charlotte G. Fischer

                                   The Company

                                   Paul Harris Stores, Inc.

                                   By: /s/ SALLY M. TASSANI
                                       ----------------------------------------
                                   Its: Executive Vice President
                                        ---------------------------------------

                                       10

<PAGE>   11

                                    Exhibit A

                              Fischer Stock Options

-------------------------------------------------------------------------------
     GRANT DATE          DATE           NUMBER         PRICE       EXPIRATION
                        VESTED          GRANTED       GRANTED         DATE
-------------------------------------------------------------------------------
       08/23/93         07/23/94          5,000        $ 4.75      07/23/2003
-------------------------------------------------------------------------------
       09/15/93         09/15/94          6,000        $ 4.75      09/15/2003
-------------------------------------------------------------------------------
       04/29/94         04/29/95        100,000        $ 5.68      04/29/2004
-------------------------------------------------------------------------------
       04/29/94         04/29/96        116,666        $ 5.68      04/29/2004
-------------------------------------------------------------------------------
       04/29/94         04/29/97        116,667        $ 5.68      04/29/2004
-------------------------------------------------------------------------------
       04/29/94         04/29/98         16,667        $ 5.68      04/29/2004
-------------------------------------------------------------------------------
       10/17/95         10/17/96         75,000        $ 1.31      10/17/2005
-------------------------------------------------------------------------------
       03/08/96         03/08/96        100,000        $2.125      03/08/2006
-------------------------------------------------------------------------------
       11/22/96         11/22/96        100,000        $17.50      11/22/2006
-------------------------------------------------------------------------------
       01/30/98         01/30/98         50,000        $ 8.63      01/30/2008
-------------------------------------------------------------------------------
       03/02/98         03/02/98        100,000        $8.875      03/02/2008
-------------------------------------------------------------------------------
       01/30/99         01/30/99         25,000        $ 7.63      01/30/2009
-------------------------------------------------------------------------------
       08/24/99         08/24/99         20,000        $ 5.00      08/24/2009
-------------------------------------------------------------------------------
       08/24/99         08/24/99         20,000        $ 5.00      08/24/2009
-------------------------------------------------------------------------------
     01/29/2000       01/29/2000         25,000        $ 3.03      01/29/2010
-------------------------------------------------------------------------------

                                       11

<PAGE>   12
                                   EXHIBIT B

                                                              [PAUL HARRIS LOGO]

                                                          6003 GUION ROAD
                                                          P.O. BOX 68162
                                                          INDIANAPOLIS, IN 46268
                                                          (317) 293-3900

CONTACT:     DAVID SEASE
             SEASE, GERIG AND ASSOCIATES                FOR IMMEDIATE RELEASE
             (317) 634-1171                                MARCH 14, 2000

                       FISCHER LEAVES PAUL HARRIS STORES,
                          COMPANY HIRES NEW PRESIDENT

INDIANAPOLIS - Paul Harris Stores Inc. (Nasdaq: PAUH) today announced that
Charlotte G. Fischer, chairman, president and CEO, has left the Company,
effective immediately, to pursue other interests. The Company and Fischer have
reached a settlement of Fischer's rights under her employment contract. This
settlement will result in a one-time charge against earnings for the quarter
ending April 30, 2000, in the amount of approximately 18 cents per share.

The Company is pleased to announce that Glenn S. Lyon of Livingston, N. J., has
been hired as president and general merchandising manager.  Responsibility for
management of the Company will rest with Sally M. Tassani, executive vice
president, Lyon and Keith L. Himmel Jr., the Company's vice president of finance
and controller. The board of directors intends to move with deliberation in
selecting a new chief executive officer.

The board in a statement said, "We are excited to welcome Mr. Lyon and believe
that the depth and breadth of his background combined with Ms. Tassani's
knowledge of the Company and management expertise will provide a seamless
transition. In addition, the Company is supported by an experienced management
team and dedicated associates who are fully focused on the long-term success of
Paul Harris."

Additionally, Gerald Paul, one of the founders of the Company and its former
chairman and chief executive officer, has been retained as a consultant to the
management team and the board on an interim basis. Paul retired from the Company
in 1995.

Lyon brings to his post a quarter-century of experience in retailing. Since
1998, he has been president of Modern Woman Inc., a division of Charming Shoppes
Inc. He was senior vice president from 1995 to 1998. Modern Woman, based in New
York City, is a 150-store specialty chain dedicated to the large-size female
customer.

From 1990 to 1994, Lyon was executive vice president of Ormond Shops Inc., a New
Jersey-based 200-store chain specializing in budget and moderate women's
apparel. From 1986 to 1990 he was executive vice president of Hit or Miss Stores
Inc., a nationwide chain of more than 500 stores with annual sales of over $400
million - from 1982 to 1986, he was senior vice president and general
merchandise manager. Prior to that, he was vice president and merchandise
administrator for R.H. Macy and Co.

Tassani became a board member of Paul Harris in 1995 and joined the Company as
executive vice president in 1998 while continuing as a director. Her
responsibilities include marketing, real estate, construction and management of
the company's legal issues.

From 1995 to 1997, Tassani was senior vice president of Leo Burnett Company
Inc., one of the country's largest advertising agencies headquartered in
Chicago. Earlier, she was founder and CEO of Tassani & Paglia Inc., a
Chicago-based marketing and communications firm, which she headed from 1980 to
1995. Prior to that, she was executive vice president/creative director at
Dimensional Marketing Inc. and was executive vice president and managing
director at Jack O'Grady Graphics Inc.

Paul Harris Stores Inc. (www.paulharris.com) is a specialty retailer known for
its coordinated and versatile women's apparel and accessories. The Company
currently operates 319 Paul Harris stores located in 29 states. The Company also
operates 11 J. Peterman (www.jpeterman.com) stores located in 9 states, known
for its eclectic and timeless assortment of merchandise.<PAGE>   1
                                                                   Exhibit 10.11

                              EMPLOYMENT CONTRACT

THIS AGREEMENT is made the 19th day of August 1997 BETWEEN CAYMAN WATER COMPANY
LIMITED, a Cayman Islands company having its registered office at Trafalgar
Place, West Bay Road, P.O. Box 1114, George Town, Grand Cayman, B.W.I. ("the
Company")

AND

PETER D. RIBBINS of P.O. Box 1114, George Town, Grand Cayman, B.W.I. ("The
President")

IT IS AGREED as follows:-

Employment

1        The President is engaged as President and Chief Operating Officer ("the
         Capacities") of the Company for three (3) years commencing on the 19 of
         August 1997 but subject to the extension provisions set out in clause
         19 and subject to the termination provisions set out in clauses 16 and
         17.

Remuneration

2        The President's salary is fixed until 31st December, 1997 at CI$
         91,774.56 per annum payable monthly in arrears, less deductions (other
         than for Medical Insurance) and other payments which the Company is by
         law entitled or required to deduct from an employee's remuneration.

3        The President's salary will be reviewed as of each January 1st by
         the Company's Board of Directors ("the Board") who may grant an
         increase but shall not reduce the Presidents salary below the level set
         out in Clause 2 hereof.

4         Further, for each completed financial year, beginning with the
          financial year 1997, during which the President serves in the
          Capacities, not later than 28th. February following the end of each
          financial year, the President will be paid a bonus of:-

         (a)      2.5% of the net profits of the Company calculated before
                  charging this bonus and before charging dividends or crediting
                  any amount accruing from the re-valuation of the Company's
                  assets, plus

         (b)      5% of the amount by which the net profits of the Company,
                  determined as aforesaid, for that financial year exceed the
                  highest annual net profit determined in the same manner earned
                  by the Company in any prior financial year.

5        Further, subject to any approvals of Government which may be necessary
         at the time at which the option is exercised, for each of the financial
         years ending after 31st December, 1996, during which the President
         serves for the full year in the capacities, the President shall be
         granted an option to purchase at a price of US$2.50 per share payable
         in cash in full on exercise of the option the lesser of:_

         (a)      20,000 Ordinary shares of the Company, or

<PAGE>   2
         (b)      that number of Ordinary shares which, when added to the then
                  existing number of Ordinary shares which the President then
                  beneficially owns will equal 6% of all Ordinary shares then
                  issued by the Company

6        (1)      The periods for exercise of the options to purchase shares in
                  the Company which have already vested under the President's
                  previous employment contracts with the Company in respect of
                  the years ended 28th February, 1995 and 1996 and the financial
                  year ended 31 December 1996, expire at the close of the
                  Company's business on the ninetieth day after the date of the
                  Auditors Report on the Financial Statements for the year
                  ending 31st December, 1998

         (2)      the options granted pursuant to Clause 5 shall be exercisable
                  by the President as follows :-

                  (a)      Options vested in respect of the financial years
                           ending 31st December, 1997 and 1998 may be
                           exercised at any time after they vest and before the
                           close of the Company's business on the ninetieth day
                           after the date of the Auditors Report on the
                           Financial Statements for the year ending 31st
                           December, 1998.

                  (b)      Options vested in respect of the financial year ended
                           31st December, 1999 and each financial year
                           thereafter may be exercised at any time after they
                           vest and before the close of the Company's business
                           on the day before the third anniversary of the date
                           of the Auditors Report on the Financial Statements
                           for that financial year.

Area

7        The President's work will be performed mainly in West Bay, Grand
         Cayman. The Company reserves the right to transfer the President to any
         other place of business which it may establish in the Cayman Islands.

Responsibilities

8        The President must devote substantially the whole of his time to the
         Company's business and must use his best endeavours to promote the
         Company's interest and welfare. Except where such information is a
         matter of public record or when required to do so by law he must not
         either before or after this Agreement ends disclose to any person any
         information relating to the Company or its customers or any
         confidential information of which he becomes possessed while acting in
         the Capacities.

9        The President must perform the duties commonly performed by a chief
         operating officer and also the duties reasonably required of and
         assigned to him in his position as President and must discharge his
         duties in accordance with the directions of the Board. The President
         must perform his duties under this Agreement during normal business
         hours from Mondays to Fridays inclusive (save on bank holidays) but he
         accepts that his duties, which include travelling on the Company's
         business both within the Cayman Islands and abroad, may from time to
         time require work to be undertaken on Saturdays, Sundays and bank and
         public holidays. The President must report to the Chairman of the
         Board, diligently follow and implement all management policies and
         decisions which the Board communicates to him, prepare and forward in a
         timely manner all reports and accountings the Board requests and
         generally be responsible for the effective operation of the Company in
         accordance with pre-agreed financial and operating budgets. The
         President will not directly or indirectly engage in any activities or
         work which are deemed by the Board to be detrimental to the best
         interests of the Company. Provided however the Company consents to the
         President's

<PAGE>   3

continued involvement in the following activities:-

                  (a)      share holder/director - HW Holdings Ltd.

                  (b)      share holder/director - Eats Limited

                  (c)      share holder/director - Psgetti's Limited

                  (d)      share holder/director - FCM Ltd:-

10       In case of inability to work due to illness or injury, the President
         must notify the Company immediately and produce a medical certificate
         for any absence longer than ten working days. The Company may have the
         President examined by a doctor approved by it. The President agrees to
         submit to any medical examination which the Company requires.

11       The President will be entitled to up to ten (10) days sick leave per
         year without a medical certificate.

Holidays

12       The President is entitled during every twelve (12) month period of
         employment to the following holidays during which his remuneration will
         continue to be payable:

         (a)      all public holidays in the Cayman Islands, and

         (b)      four (4) weeks' vacation at a time to be approved by the
                  Chairman of the Board.

Reimbursement of Expenses

13       All expenses for which the President claims reimbursement must be
         within pre-approved budgets. Subject to this, the Company must
         reimburse the President for the cost of entertaining the Company's
         customers and travelling on the Company's business on the production of
         the necessary vouchers or on the President's proving to the Company's
         satisfaction the amount that he has spent for those purposes, even
         though he is unable to produce vouchers.

Non-Solicitation

14       The President must not at any time while he is acting in the Capacities
         or afterwards either on his own account or for any other person, firm
         or company solicit, interfere with or endeavour to entice away from the
         Company any person, firm or company who at any time during or at the
         date when his employment ends were customers of or in the habit of
         dealing with the Company.

Company Documents

15       All books, records, notes, files, memoranda, reports, customer lists
         and other documents, and all copies of them relating to the Company's
         business which the President keeps, prepares or conceives or which
         become known to him or which are delivered or disclosed to or by any
         means come into his possession, and all the Company's property and
         equipment are and will remain the Company's sole and exclusive
         property. If the President's employment is terminated for any reason
         whether voluntarily or involuntarily, or if the Company at any time
         requests, he must promptly deliver to the Company the originals and all
         copies of all relevant documents that are in his possession, custody or
         control, and any other property belonging to the Company.

<PAGE>   4
Termination

16       This Agreement will end and, except to the extent previously accrued,
         all rights and obligations under it of the Company and the President
         shall cease if any of the following events occurs:-

         (a.)     The President dies.

         (b.)     The President is adjudicated bankrupt or makes any composition
                  with his creditors.

         (c.)     The President gives six (6) months written notice to the
                  Company to terminate this Agreement

17       The Company may by notice end this Agreement with immediate effect if:-

         (a.)     The President conducts himself in a manner which would justify
                  immediate dismissal in accordance with the Labour Law

         (b.)     through physical or mental illness the President is unable to
                  discharge his duties for sixty (60) successive days, as to
                  which a certificate by any doctor appointed by the Company
                  shall be conclusive.

         (c)      The Company gives written notice to the President and pays to
                  him a sum equal to twice the President's annual salary as
                  described in clause 2 or as increased in accordance with
                  clause 3, for the year in which such termination takes place.

18       In the event that the Company terminates this agreement in accordance
         with clause 17 (c) hereof:-

         (a)      any unvested options to purchase shares in the Company, as
                  described in clause 5, in respect of the financial year in
                  which the termination takes place shall automatically vest on
                  a pro rata basis proportional to the ratio which the period of
                  employment up to the date of termination bears to that
                  calendar year.

         (b)      the Company shall remain obliged to keep all benefits,
                  including but not limited to medical insurance and pension
                  contributions, to which the President was entitled as at the
                  date of his termination paid and available to the President
                  for a period of two (2) years from the date of termination.

Extension

19       In the absence of a written agreement to the contrary, on 1st. August
         of each year, the term of this Agreement shall be automatically
         extended upon the same terms by a period of one year.

Notices

20       Any notice to be served under this Agreement must be in writing and
         will be deemed duly served if in the case of one addressed to the
         Company it is sent by registered post or left at the Company's
         registered office, or in the case of one sent to the President it is
         handed to him personally or is delivered to his last known residential
         address in the Cayman Islands.

<PAGE>   5

         A notice sent by post will be deemed to be served on the third day
         following the date on which it is posted.

Previous Agreements Superseded

21.      This Agreement supersedes all prior contracts and understandings
         between the parties and may not be changed or terminated orally, and no
         change, termination or attempted waiver of any of its provisions will
         be binding unless in writing and signed by the party against whom it is
         sought to be enforced.

Clause Headings

22.      The clause headings are included for convenience only and have no legal
         effect.

Applicable Law and Jurisdiction

23.      This Agreement will be construed and the legal relations between the
         parties determined in accordance with the laws of the Cayman Islands
         and the parties agree to submit to the jurisdiction of the Cayman
         Islands Courts. Whenever possible, each provision of this Agreement
         will be interpreted in such a manner as to be effective and valid, but
         if any provision of this Agreement or the application of it is
         prohibited or held to be invalid, that prohibition or invalidity will
         not affect any other provision, or the application of any other
         provision which can be given effect without the invalid provision or
         application, and to this end the provisions of this Agreement are
         declared to be severable.

EXECUTED by and on behalf of                CAYMAN WATER COMPANY
CAYMAN WATER COMPANY LIMITED                LIMITED
by
in the presence of

/s/  [illegible]                            Per: /s/ Raymond Whittaker
-----------------------------------              -------------------------------
Witness

EXECUTED by PETER DANIEL RIBBINS
in the presence of:-

/s/ Tracy Beitz                             /s/ Peter Daniel Ribbins
-----------------------------------         ------------------------------------
Witness                                     PETER DANIEL RIBBINS

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