Document:

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                                                                   Exhibit 10.28

EMPLOYMENT AGREEMENT

                  EMPLOYMENT AGREEMENT (the "Agreement") made effective as of
the 1st day of January, 2000, by and between Polo Ralph Lauren Corporation, a
Delaware corporation (the "Corporation"), and Douglas L. Williams (the
"Executive").

                  WHEREAS, the Executive has been employed by the Corporation as
its President, Global Licensing and New Business Development;

                  WHEREAS, the Company has offered to Executive the position of
Group President, Global Business Development, and Executive wishes to accept
such position; and

                  WHEREAS, the Corporation and the Executive wish to enter into
an employment agreement effective as of the date hereof and intend this
Agreement to supersede all prior agreements between the Corporation and
Executive;

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

                  1. Employment/Prior Agreement. The Corporation hereby agrees
to employ the Executive, and the Executive hereby agrees to serve the
Corporation, on the terms and conditions set forth herein. From and after the
date hereof, the terms of this Agreement shall supersede in all respects the
terms of any prior arrangement or agreement, if any, dealing with the matters
herein.

                  2. Term. The employment of the Executive by the Corporation as
provided in Section 1 pursuant to this Agreement will be effective on the date
hereof. The term of the Executive's employment under this Employment Agreement
shall continue until the close of business of the fifth anniversary of the date
of this Agreement, subject to earlier termination in accordance with the terms
of this Agreement (the "Term"). The Term shall be automatically extended for
successive one year periods thereafter unless either party notifies the other in
writing of its intention not to so extend the Term at least 180 days prior to
the commencement of the next scheduled one year extension.

                  3. Position and Duties. The Executive shall serve as Group
President, Global Business Development, with oversight responsibility for the
Corporation's European operations, its product and international licensing group
and for development of strategic business initiatives, along with such other
responsibilities and duties as may be assigned to Executive from time to time.
The Executive shall devote substantially all of Executive's working time and
efforts to the business and affairs of the Corporation.

                  4. Compensation and Related Matters.

                           (a) Salary and Incentive Bonus

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                                    (i) Salary. For fiscal 2000, Executive's
annual salary shall be at the rate of $500,000 until September 13, 1999 and
thereafter during the term of this Agreement at a rate of not less than
$700,000. Such salary shall be paid in substantially equal installments on a
basis consistent with the Corporation's payroll practices and shall be subject
to annual increases, if any, as may be determined in the sole discretion of the
Corporation.

                                    (ii) Incentive Bonus. Executive shall
participate in the Corporation's Executive Incentive Plan (the "EIP"), and any
substitute therefor, and be eligible to earn an annual cash bonus for each
fiscal year during the term of this Agreement (the "Bonus"). For fiscal year
2000 Executive's Bonus opportunity shall range from 50% to 100% of Executive's
annual salary based upon the extent to which corporate performance goals (and
those of the product licensing/international division) established by the
Compensation Committee (the "Compensation Committee") of the Corporation's Board
of Directors (the "Board") are achieved. For fiscal 2001 and for each fiscal
year thereafter Executive's Bonus opportunity shall range from 75% to 150% of
Executive's annual salary. Executive's bonus in each year shall be subject to
upward or downward adjustment based upon achievement of any strategic goals set
or approved by the Compensation Committee for Executive's operating unit in
accordance with the EIP. The Bonus, if any, payable to the Executive in respect
of each fiscal year will be paid at the same time that bonuses are paid to other
executives under the EIP. Notwithstanding any provision of this Agreement to the
contrary, Executive's entitlement to payment of an annual incentive bonus during
any period when the compensation payable to the Executive pursuant to this
Agreement is subject to the deduction limitations of section 162(m) of the
Internal Revenue Code of 1986, as amended (the "Code"), shall be subject to
shareholder approval of a plan or arrangement evidencing such annual incentive
bonus opportunity that complies with the requirements of section 162(m) of the
Code.

                           (b) Expenses. During the term of the Executive's
employment hereunder, the Executive shall be entitled to receive prompt
reimbursement for all reasonable and customary expenses incurred by the
Executive in performing services hereunder, including all expenses of travel and
living expenses while away from home on business or at the request of and in the
service of the Corporation, provided that such expenses are incurred and
accounted for in accordance with the policies and procedures established by the
Corporation.

                           (c) Other Benefits. During the term of the
Executive's employment hereunder, the Executive shall be entitled to participate
in or receive benefits under any medical, pension, profit sharing or other
employee benefit plan or arrangement generally made available by the Corporation
now or in the future to its executives and key management employees (or to their
family members), subject to and on a basis consistent with the terms, conditions
and overall administration of such plans and arrangements. Nothing paid to the
Executive under any plan or arrangement presently in effect or made available in
the future shall be deemed to be in lieu of the salary payable to the Executive
pursuant to paragraph (a) of this Section.

                           (d) Vacations. The Executive shall be entitled to
reasonable vacations consistent with past practice.

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                           (e) Options. For fiscal 2000, Executive has been
granted in June 1999 options to purchase 142,000 shares of the Corporation's
Class A Common Stock pursuant to the terms of the Corporation's 1997 Long-Term
Stock Incentive Plan. Executive was also granted with effect from October 1,
1999 additional options to purchase 58,000 shares. Executive shall thereafter,
during at least fiscal year 2001, be eligible to receive grants of additional
options at the level of a Group President, the determination whether to make
such grants, individually and/or as a group, and the amount thereof being in the
sole discretion of the Compensation Committee. Options granted to the Executive
pursuant to the foregoing will vest and become exercisable ratably over three
(3) years on each of the first three anniversaries of the date of grant, subject
to the Executive's continued employment through each vesting date, and will have
an exercise price equal to the fair market value per share as of the date of
grant.

                  5. Termination.

                           (a) Termination by Corporation. The Executive's
employment hereunder may be terminated at any time with or without Cause.

                           (b) Termination by the Executive. The Executive may
terminate his employment hereunder with or without Good Reason. For purposes of
this Agreement, "Good Reason" shall mean (A) a material diminution in or adverse
alteration to Executive's title, position or duties, (B) a reduction in the
Executive's salary or annual incentive bonus opportunity or the Corporation's
electing to eliminate the EIP without substituting therefor a plan which
provides for a reasonably comparable annual incentive bonus opportunity or the
Executives ceasing to be entitled to the payment of an annual incentive bonus as
a result of the failure of the Corporation's shareholders to approve a plan or
arrangement evidencing such annual incentive bonus in a manner that complies
with the requirements of section 162(m) of the Code, (C) the relocation of
Executive's principal office outside of the area which comprises a fifty (50)
mile radius from New York City or (D) a failure of the Corporation to comply
with any material provision of this Agreement; provided that the events
described in clauses (A), (B), (C) and (D) above shall not constitute Good
Reason unless and until such diminution, change, reduction or failure (as
applicable) has not been cured within thirty (30) days after notice of such
noncompliance has been given by the Executive to the Corporation.

                           (c) Any termination of the Executive's employment by
the Corporation or by the Executive (other than termination pursuant to Section
6(d)(i) hereof) shall be communicated by written Notice of Termination to the
other party hereto in accordance with Section 10 hereof. If termination is
pursuant to Sections 6(d)(ii)-(iii) or 5(b) hereof, the "Notice of Termination"
shall mean a notice which shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated.

                  6. Compensation Upon Termination.

                           (a) If the Corporation shall terminate the
Executive's

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employment for any reason other than an Enumerated Reason as set forth in
Section 6(d) hereof and other than due to the Corporation's election not to
extend the Term of this Agreement as contemplated by Section 2, or if the
Executive resigns for Good Reason pursuant to Section 5(b) hereof, then so long
as the Executive complies with Section 8 hereof the Executive shall be entitled
to the following:

                           (i) an amount equal to the greater of:

                                    (A) the sum of (I) two (2) times the
         Executive's salary at the rate in effect on such date (unless
         employment is terminated by the Executive for Good Reason pursuant to
         Section 5(b) hereof as a result of a salary reduction, in which case,
         at the rate in effect prior to such reduction), plus (II) the average
         of the annual incentive bonuses paid to the Executive over the
         preceding two years; plus a pro rata annual incentive bonus for the
         year of termination (based on the average of the annual incentive
         bonuses paid to the Executive over the preceding two years and based
         upon the percentage of the calendar year in which such termination
         occurs that shall have elapsed through the date of termination (a "Pro
         Rata Annual Incentive Bonus")); and

                                    (B) the sum of (I) (five (5) minus the
         number of years (including fractions thereof) that shall have elapsed
         from the date of this Agreement times the Executive's salary at the
         rate in effect on such date (unless employment is terminated by the
         Executive for Good Reason pursuant to Section 5(b) hereof as a result
         of a salary reduction, in which case, at the rate in effect prior to
         such reduction), plus (II) the average of the annual incentive bonuses
         paid to the Executive over the preceding two (2) years; plus a Pro Rata
         Annual Incentive Bonus for the year of termination.

                  Any amounts paid pursuant to either clause (A) or clause (B)
         above shall be paid in equal monthly installments from the date of
         termination for a period two (2) years in the case of clause (A) above
         and for a period of up to five (5) years less the fraction of a year
         which shall have elapsed from the date of this Agreement in the case of
         clause (B) above (such periods, whichever is applicable, hereinafter
         referred to as the "Severance Period"), except that the Pro Rata Annual
         Incentive Bonus shall be paid in a lump sum in cash within thirty (30)
         days following the date of the Executive's termination of employment.

                                    (ii) Continued participation in the
         Corporation's health benefit plans during the Severance Period;
         provided that if the Executive is provided with coverage by a successor
         employer, any such coverage by the Corporation shall cease;

                                    (iii) Continued use of the Corporation
         automobile or payment of Executive's automobile allowance, as
         applicable, until expiration of the Severance Period or until Executive
         secures new employment, whichever first occurs;

                                    (iv) Waiver of collateral interest securing
         return to the Corporation of premiums paid by the Corporation for the
         Executive's

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         existing split dollar life insurance policy;

                                    (v) If a Change of Control shall have
         occurred prior to the date of termination, the Executive shall be
         entitled at his option, exercisable in writing within fifteen days of
         the date of termination, to receive the equivalent of the salary and
         bonus payments pursuant to subsection (i) above in two equal lump sum
         installments, the first payable within 30 days of the date of
         termination and the second on the first anniversary of the date of
         termination. As used herein, the term "Change of Control" shall mean
         Ralph Lauren or members of his family (or trusts or entities created
         for their benefit) no longer control 50% or more of the voting power of
         the then outstanding securities of the Corporation entitled to vote for
         the election of the Corporation's directors; and

                                    (vi) Except as provided above, the
         Corporation will have no further obligations to the Executive under
         this Agreement following the Executive's termination of employment
         under the circumstances described in this Section 6(a). The Corporation
         anticipates that health benefits made available pursuant to clause (ii)
         above will be provided in accordance with applicable COBRA provisions.
         The Corporation shall waive or pay for any COBRA premiums otherwise
         payable by Executive. In the event COBRA coverage expires, Corporation
         shall in lieu of such coverage at its option provide alternative
         coverage or reimburse Executive for the actual costs incurred by
         Executive for alternative coverage, for the remaining portion of the
         Severance Period during which Executive would otherwise be entitled to
         continued health benefits.

                           (b) If the Executive's employment is terminated by
his death or by the Corporation due to the Executive's Disability (as defined
below), the Corporation shall pay any amounts due to the Executive through the
date of his death or the date of his termination due to Disability, including a
Pro Rata Annual Incentive Bonus for the year of termination. The Corporation
will have no further obligations to the Executive under this Agreement.

                           (c) If the Executive's employment shall be terminated
by the Corporation pursuant to Section 6(d) (iii) for Cause or by the Executive
for other than Good Reason, the Corporation shall pay the Executive his full
salary through the date of termination at the rate in effect prior to such
termination and the Corporation shall have no further obligations to the
Executive under Section 6 of this Agreement or otherwise but the Executive shall
be bound by Section 8 hereof as applicable.

                           (d) The term "Enumerated Reason" with respect to
termination by the Corporation of the Executive's employment shall mean any one
of the following reasons:

                                    (i) Death. The Executive's employment
         hereunder shall terminate upon his death.

                                    (ii) Disability. If, as a result of the
         Executive's incapacity due to physical or mental illness, the Executive
         shall have been absent from his duties hereunder on a full-time basis
         for the entire period of

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         six consecutive months, and within thirty (30) days after written
         Notice of Termination is given (which may occur before or after the end
         of such six month period) shall not have returned to the performance of
         his duties hereunder on a full-time basis (a "Disability"), the
         Corporation may terminate the Executive's employment hereunder.

                                    (iii) Cause. The Corporation shall have
         "Cause" to terminate the Executive's employment hereunder upon (1) the
         willful and continued failure by the Executive to substantially perform
         his duties hereunder after demand for substantial performance is
         delivered by the Corporation that specifically identifies the manner in
         which the Corporation believes the Executive has not substantially
         performed his duties, or (2) Executive's conviction of, or plea of nolo
         contendere to, a crime (whether or not involving the Corporation)
         constituting any felony or (3) the willful engaging by the Executive in
         gross misconduct relating to the Executive's employment that is
         materially injurious to the Corporation, monetarily or otherwise
         (including, but not limited to, conduct that constitutes competitive
         activity, in violation of Section 8) or which subjects, or if generally
         known, would subject the Corporation to public ridicule or
         embarrassment. For purposes of this paragraph, no act, or failure to
         act, on the Executive's part shall be considered ?willful? unless done,
         or omitted to be done, by him not in good faith and without reasonable
         belief that his action or omission was in the best interest of the
         Corporation. Notwithstanding the foregoing, the Executive shall not be
         deemed to have been terminated for Cause without (x) reasonable written
         notice to the Executive setting forth the reasons for the Corporation's
         intention to terminate for Cause, (y) the opportunity to cure (if
         curable) within 10 days of such written notice of the event(s) giving
         rise to such notice, and (z) an opportunity for the Executive, together
         with his counsel, to be heard.

                           (e) If the Executive's employment with the
Corporation shall terminate due to the Corporation's election not to extend the
Term of this Agreement as contemplated by Section 2, Executive shall be entitled
to receive an amount, payable in equal monthly installments over a one year
period, equal to the sum of (x) his annual salary, plus (y) the average of the
annual incentive bonuses paid to Executive over the two years preceding the date
of termination. Except as provided in the foregoing sentence and in Section
6(f), the Corporation shall have no further obligations to the Executive under
this Agreement following the Executive's termination of employment under the
circumstances described in this Section 6(e).

                           (f) If the Executive's employment with the
Corporation shall terminate due to either the Corporation's or Executive's
election not to extend the Term of this Agreement as contemplated by Section 2,
Executive shall be entitled to receive his full salary through the date of
termination plus the Bonus, if any, that Executive would have been entitled to
receive had he remained in the Corporation's employment through the end of its
fiscal year, prorated to the date of termination. Such prorated Bonus shall be
payable at the same time as the Corporation pays bonuses to other executives
under the EIP.

                           (g) As a condition precedent to receipt of the
payments provided for in Sections 6(a) and 6(e), Executive shall be required to
execute a

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general release in favor of the Corporation, excluding only the payments
remaining to be made pursuant to such Sections.

                  7. Mitigation. The Executive shall have no duty to mitigate
the payments provided for in Section 6(a) or 6(e) by seeking other employment or
otherwise and such payment shall not be subject to reduction for any
compensation received by the Executive from employment in any capacity following
the termination of the Executive's employment with the Corporation.

                  8. Noncompetition.

                           (a) The Executive agrees that for the duration of his
employment and for a period two (2) years from the date of termination thereof
and during any Severance Period, he will not, on his own behalf or on behalf of
any other person or entity, hire, solicit, or encourage to leave the employ of
the Corporation or its subsidiaries, affiliates or licensees any person who is
an employee of any of such companies.

                           (b) The Executive agrees that for the duration of his
employment and for a period of two (2) years from the date of termination
thereof and during any Severance Period, the Executive will take no action which
is intended, or would reasonably be expected, to harm (e.g. making public
derogatory statements or misusing confidential Corporation information, it being
acknowledged that the Executive's employment with a competitor in and of itself
shall not be deemed to be harmful to the Corporation for purposes of this
Section 8(b)) the Corporation or any of its subsidiaries, affiliates or
licensees or their reputation.

                           (c) The Executive agrees that during the duration of
his employment and;

                                    (i) in the event of the Executive's
         termination of employment due to the Executive's resignation without
         Good Reason, until the later of (x) three (3) years from the date of
         this Agreement and (y) twelve (12) months from the date of such
         termination of employment; and

                                    (ii) in the event of the Executive's
         termination of employment by the Corporation without Cause or the
         Executive's resignation for Good Reason pursuant to Section 5(b), for
         twelve (12) months from the date of such termination of employment; and

                                    (iii) in the event of the Executive's
         termination of employment by the Corporation for Cause, at the election
         of the Corporation in consideration for the payment to the Executive of
         an amount equal to one twelfth (1/12) the Executive's annual salary and
         annual incentive bonus (equal to the average of the annual incentive
         bonuses paid to the Executive over the preceding two years) for each
         month within such period, for a period of up to twelve (12) months from
         the date of such termination of employment,

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then, during the period specified in clause (i), (ii) or (iii) above, as
applicable, the Executive shall not, directly or indirectly, (A) engage in any
"Competitive Business" (as defined below) for his own account, (B) enter into
the employ of, or render any services to, any person engaged in a Competitive
Business, or (C) become interested in any entity engaged in a Competitive
Business, directly or indirectly as an individual, partner, shareholder,
officer, director, principal, agent, employee, trustee, consultant, or in any
other relationship or capacity; provided that the Executive may own, solely as
an investment, securities of any entity which are traded on a national
securities exchange if the Executive is not a controlling person of, or a member
of a group that controls such entity and does not, directly or indirectly, own
2% or more of any class of securities of such entity.

                  For purposes of this Agreement the term "Competitive Business"
shall mean a business which competes with the Corporation or its subsidiaries,
affiliates or licensees, and shall include, without limitation, those brands and
companies that the Corporation and the Executive have jointly designated in
writing on the date hereof as being in competition with the Corporation as of
the date hereof. The term Competitive Business is not intended to include the
business of a competitor of a licensee whose business does not involve or
compete with the licensed businesses of the Corporation or its subsidiaries and
affiliates.

                           (d) The Executive will not at any time (whether
during or after his employment with the Corporation) disclose or use for his own
benefit or purposes or the benefit or purposes of any other person, entity or
enterprise, other than the Corporation or any of its subsidiaries or affiliates,
any trade secrets, information, data, or other confidential information relating
to customers, development programs, costs, marketing, trading, investment, sales
activities, promotion, credit and financial data, manufacturing processes,
financing methods, plans or the business and affairs of the Corporation
generally, or any subsidiary, affiliate or licensee of the Corporation; provided
that the foregoing shall not apply to information which is not unique to the
Corporation or which is generally known to the industry or the public other than
as a result of the Executive's breach of this covenant. The Executive agrees
that upon termination of his employment with the Corporation for any reason, he
will return to the Corporation immediately all memoranda, books, papers, plans,
information, letters and other data, and all copies thereof or therefrom, in any
way relating to the business of the Corporation or its subsidiaries or
affiliates or licensees.

                           (e) If the Executive breaches, or threatens to commit
a breach of, any of the provisions of this Section 8 (the "Restrictive
Covenants"), the Corporation shall have the following rights and remedies, each
of which rights and remedies shall be independent of the other and severally
enforceable, and all of which rights and remedies shall be in addition to, and
not in lieu of, any other rights and remedies available to the Corporation under
law or equity:

                                    (i) The right and remedy to have the
         Restrictive Covenants specifically enforced by any court having equity
         jurisdiction, it being acknowledged and agreed that any such breach or
         threatened breach will cause irreparable injury to the Corporation and
         that money damages will not provide an adequate remedy to the
         Corporation;

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                                    (ii) The right and remedy to require the
         Executive to account for and pay over to the Corporation all
         compensation, profits, monies, accruals, increments or other benefits
         (collectively, "Benefits") derived or received by the Executive as the
         result of any transactions constituting a breach of any of the
         Restrictive Covenants, and the Executive shall account for and pay over
         such Benefits to the Corporation; and

                                    (iii) The right to discontinue the payment
         of any amounts owing to the Executive under the Agreement. To the
         extent Executive disputes the discontinuance of any payments hereunder,
         such payments shall be segregated and deposited in an interest bearing
         account pending resolution of the dispute.

                           (f) If any court determines that any of the
Restrictive Covenants, or any part thereof, is invalid or unenforceable, the
remainder of the Restrictive Covenants shall not thereby be affected and shall
be given full effect, without regard to the invalid portion. In addition, if any
court construes any of the Restrictive Covenants, or any part thereof, to be
unenforceable because of the duration of such provision or the area covered
thereby, such court shall have the power to reduce the duration or area of such
provision and, in its reduced form, such provision shall then be enforceable and
shall be enforced.

                  9. Successors; Binding Agreement.

                           (a) The Corporation will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to
all or substantially all of the business and/or assets of the Corporation to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Corporation would be required to perform it if no such
succession had taken place. As used in this Agreement, "Corporation" shall mean
the Corporation as hereinbefore defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in
this Section 9 or which otherwise becomes bound by all the terms and provisions
of this Agreement by operation of law.

                           (b) This Agreement and all rights of the Executive
hereunder shall inure to the benefit of and be enforceable by the Executive's
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive should die while any
amounts are payable to him hereunder all such amounts unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to the
Executive's devisee, legatee, or other designee or, if there be no such
designee, to the Executive's estate.

                  10. Notice. For the purposes of this Agreement, notices,
demands and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when personally delivered
with receipt acknowledged or five business days after having been mailed by
United States certified or registered mail, return receipt requested, postage
prepaid, addressed as follows:

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                  If to the Executive:

                           Douglas L. Williams
                           42 Pheasant Run Road
                           Wilton, Connecticut 06897

                  with a copy to:

                           Morrison Cohen Singer & Weinstein, LLP
                           750 Lexington Avenue
                           New York, New York 10022
                           Attention:  Jeffrey P. Englander, Esq.

                  If to the Corporation:

                           Polo Ralph Lauren Corporation
                           650 Madison Avenue
                           New York, New York  10022
                           Attention:  General Counsel

or to such other address as any party may have furnished to the other in writing
in accordance herewith, except that notices of change of address shall be
effective only upon receipt.

                  11. Miscellaneous. No provisions of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing signed by the Executive and such officer of the Corporation
as may be specifically designated by the Board. No waiver by either party hereto
at any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of New York without regard to its conflicts of law principles.

                  12. Validity. The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in
full force and effect.

                  13. Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original but all of
which together will constitute one and the same instrument.

                  14. Arbitration. Any dispute or controversy arising under or
in connection with this Agreement shall be settled exclusively by arbitration in
the City of New York before a single arbitrator who shall be a retired federal
judge in accordance with the then obtaining National Rules for the Resolution of
Employment Disputes or, if such rules are no longer in effect the then obtaining
employment rules of the American Arbitration Association. Judgment may be
entered on the arbitrator's award in any court having jurisdiction; provided,
however, that the Corporation shall

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be entitled to seek a restraining order or injunction in any court of competent
jurisdiction to prevent any continuation of any violation of the provisions of
Section 8 of this Agreement and the Executive hereby consents that such
restraining order or injunction be granted without the necessity of the
Corporation's posting any bond, and provided further that the Executive shall be
entitled to seek specific performance of his right to be paid during the
pendency of any dispute or controversy arising under or in connection with this
Agreement. Fees and expenses payable to the American Arbitration Association and
the arbitrator shall be shared equally by the Corporation and by the Executive,
but the parties shall otherwise bear their own costs in connection with the
arbitration; provided that the arbitrator shall be entitled to include as part
of the award to the prevailing party the reasonable legal fees and expenses
incurred by such party in an amount not to exceed $50,000.

                  15. Withholding. The Corporation may withhold from any amounts
payable under this Agreement such federal, state and local taxes as may be
required to be withheld pursuant to applicable law or regulation.

                  16. Entire Agreement. This Agreement sets forth the entire
agreement of the parties hereto in respect of the subject matter contained
herein and supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto; and any prior agreement
of the parties hereto in respect of the subject matter contained herein is
hereby terminated and cancelled.

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

                          POLO RALPH LAUREN CORPORATION

                                  By:      /s/ Lance Isham
                                           -------------------------------------
                                  Name:    Lance Isham
                                  Title:   President and Chief Operating Officer
                                  Date:    February 2, 2000

                                  /s/ Douglas L. Williams
                                  -------------------------------------
                                  Executive:   Douglas L. Williams

                                  Date:    February 1, 2000_____________________<PAGE>   1
                                                                     EXHIBIT 4.1

                         1999 TD WATERHOUSE GROUP, INC.
                              STOCK INCENTIVE PLAN

1.       PURPOSE OF THE PLAN

                  The purpose of the Plan is to aid the Company and its
Affiliates in recruiting and retaining employees or directors of outstanding
ability and to motivate such employees or directors to exert their best efforts
on behalf of the Company and its Affiliates by providing incentives through the
granting of Awards. The Company expects that it will benefit from the added
interest which such employees or directors will have in the welfare of the
Company as a result of their proprietary interest in the Company's success.

2.       DEFINITIONS

         The following capitalized terms used in the Plan have the respective
meanings set forth in this Section:

                  (a)      Act: The Securities Exchange Act of 1934, as amended,
                           or any successor thereto.

                  (b)      Administrator: The chief executive officer of the
                           Company or any person designated by such chief
                           executive officer.

                  (c)      Affiliate: With respect to the Company, any entity
                           directly or indirectly controlling, controlled by, or
                           under common control with, the Company or any other
                           entity designated by the Board in which the Company
                           or an Affiliate has an interest.

                  (d)      Award: An Option, Stock Appreciation Right or Other
                           Stock-Based Award granted pursuant to the Plan.

                  (e)      Beneficial Owner: A "beneficial owner", as such term
                           is defined in Rule 13d-3 under the Act (or any
                           successor rule thereto).

                  (f)      Board: The Board of Directors of the Company.

                  (g)      Change in Control: The occurrence of any of the
                           following events:

                           (i) any Person (other than a Person holding
                           securities representing 10% or more of the combined
                           voting power of the Company's outstanding securities
                           as of the Effective Date, the Company, any
<PAGE>   2
                           trustee or other fiduciary holding securities under
                           an employee benefit plan of the Company, or any
                           company owned, directly or indirectly, by the
                           shareholders of the Company in substantially the same
                           proportions as their ownership of stock of the
                           Company), becomes the Beneficial Owner, directly or
                           indirectly, of securities of the Company,
                           representing 35% or more of the combined voting power
                           of the Company's then-outstanding securities and such
                           voting power is greater than the voting power held by
                           Toronto-Dominion Bank;

                           (ii) during any period of twenty-four consecutive
                           months (not including any period prior to the
                           Effective Date), individuals who at the beginning of
                           such period constitute the Board, and any new
                           director (other than a director nominated by any
                           Person (including the Company) who publicly announces
                           an intention to take or to consider taking actions
                           (including, but not limited to, an actual or
                           threatened proxy contest) which if consummated would
                           constitute a Change in Control) whose election by the
                           Board or nomination for election by the Company's
                           shareholders was approved by a vote of at least
                           two-thirds (2/3) of the directors then still in
                           office who either were directors at the beginning of
                           the period or whose election or nomination for
                           election was previously so approved, cease for any
                           reason to constitute at least a majority thereof;

                           (iii) the consummation of any transaction or series
                           of transactions under which the Company is merged or
                           consolidated with any other company, other than a
                           merger or consolidation which would result in (A) the
                           shareholders of the Company immediately prior thereto
                           continuing to own (either by remaining outstanding or
                           by being converted into voting securities of the
                           surviving entity) more than 50% of the combined
                           voting power of the voting securities of the Company
                           or such surviving entity outstanding immediately
                           after such merger or consolidation or (B) Toronto
                           Dominion continuing to hold at least 35% of the
                           combined voting power of the voting securities of the
                           Company or such surviving entity outstanding
                           immediately after such merger or consolidation unless
                           a Person holds a greater percentage of such combined
                           voting power; or

                           (iv) the complete liquidation of the Company or the
                           sale or disposition by the Company of all or
                           substantially all of the Company's assets, other than
                           a liquidation of the Company into a wholly-owned
                           subsidiary.

                  (h)      Code: The Internal Revenue Code of 1986, as amended,
                           or any successor thereto.
<PAGE>   3
                  (i)      Committee: The Management Resources Committee of the
                           Board.

                  (j)      Company: TD Waterhouse Group, Inc., a Delaware
                           corporation.

                  (k)      Effective Date: The date the Board approves the Plan,
                           or such later date as is designated by the Board.

                  (l)      Fair Market Value: with respect to the Shares, means,
                           on any given date, the fair market value of a Share
                           as determined pursuant to subsection (i) or (ii)
                           below:

                           (i) the weighted average of the high and low prices
                           of the Shares as reported on such date on the
                           Composite Tape of the principal national securities
                           exchange on which such Shares are listed or admitted
                           to trading, or, if no Composite Tape exists for such
                           national securities exchange on such date, then on
                           the principal national securities exchange on which
                           such Shares are listed or admitted to trading, or, if
                           the Shares are not listed or admitted on a national
                           securities exchange, the weighted average of the per
                           Share closing bid price and per Share closing asked
                           price on such date as quoted on the National
                           Association of Securities Dealers Automated Quotation
                           System (or such market in which such prices are
                           regularly quoted), or, if there is no market on which
                           the Shares are regularly quoted, the Fair Market
                           Value shall be the value established by the Committee
                           in good faith. If no sale of Shares shall have been
                           reported on such Composite Tape or such national
                           securities exchange on such date or quoted on the
                           National Association of Securities Dealer Automated
                           Quotation System on such date, then the immediately
                           preceding date on which sales of the Shares have been
                           so reported or quoted shall be used.

                           (ii) Notwithstanding the foregoing, Fair Market Value
                           on the First Award Date shall be the initial public
                           offering price of the Shares.

                  (m)      First Award Date: means the date that the
                           registration statement relating to the Company's
                           initial public offering of Shares are declared
                           effective by the Securities and Exchange Commission.

                  (n)      ISO: An Option that is also an incentive stock option
                           granted pursuant to Section 6(d) of the Plan.

                  (o)      LSAR: A limited stock appreciation right granted
                           pursuant to Section 7(d) of the Plan.
<PAGE>   4
                  (p)      Other Stock-Based Awards: Awards granted pursuant to
                           Section 8 of the Plan.

                  (q)      Option: A stock option granted pursuant to Section 6
                           of the Plan.

                  (r)      Option Price: The purchase price per Share of an
                           Option, as determined pursuant to Section 6(a) of the
                           Plan.

                  (s)      Participant: An employee or director who is selected
                           by the Committee to participate in the Plan.

                  (t)      Performance-Based Awards: Certain Other Stock-Based
                           Awards granted pursuant to Section 8(b) of the Plan.

                  (u)      Person: A "person", as such term is used for purposes
                           of Section 13(d) or 14(d) of the Act (or any
                           successor section thereto).

                  (v)      Plan: The 1999 TD Waterhouse Group, Inc. Stock
                           Incentive Plan.

                  (w)      Shares: Shares of common stock of the Company.

                  (x)      Stock Appreciation Right: A stock appreciation right
                           granted pursuant to Section 7 of the Plan.

                  (y)      Subsidiary: A subsidiary corporation, as defined in
                           Section 424(f) of the Code (or any successor section
                           thereto).

3.       SHARES SUBJECT TO THE PLAN

                  Subject to Section 9(a), the total number of Shares which may
be issued under the Plan shall be 32,850,000 Shares, subject to adjustment as
set forth in Section 9. Subject to Section 9(a), the maximum number of Shares
for which Awards may be granted under the plan to any Participant shall not
exceed 5% of the outstanding Shares of the Company and the maximum number of
Shares for which Options and Stock Appreciation Rights may be granted during a
calendar year to any Participant shall be one million. The Shares may consist,
in whole or in part, of unissued Shares or treasury Shares. The issuance of
Shares or the payment of cash upon the exercise of an Award shall reduce the
total number of Shares available under the Plan, as applicable. Shares which are
subject to Awards which terminate or lapse may be granted again under the Plan.

4.       ADMINISTRATION

                  The Plan shall be administered by the Committee, which may
delegate its duties and powers in whole or in part to any subcommittee thereof
consisting solely of at
<PAGE>   5
least two individuals who are intended to qualify as "non-employee directors"
within the meaning of Rule 16b-3 under the Act (or any successor rule thereto)
and "outside directors" within the meaning of Section 162(m) of the Code (or any
successor section thereto). Awards may, in the discretion of the Committee, be
made under the Plan in assumption of, or in substitution for, outstanding awards
previously granted by Affiliates of the Company or a company acquired by the
Company or with which the Company combines. The number of Shares underlying such
substitute awards shall be counted against the aggregate number of Shares
available for Awards under the Plan. The Committee is authorized to interpret
the Plan, to establish, amend and rescind any rules and regulations relating to
the Plan, and to make any other determinations that it deems necessary or
desirable for the administration of the Plan. The Committee may correct any
defect or supply any omission or reconcile any inconsistency in the Plan in the
manner and to the extent the Committee deems necessary or desirable. Any
decision of the Committee in the interpretation and administration of the Plan,
as described herein, shall lie within its sole and absolute discretion and shall
be final, conclusive and binding on all parties concerned (including, but not
limited to, Participants and their beneficiaries or successors). The Committee
shall have the full power and authority to establish the terms and conditions of
any Award consistent with the provisions of the Plan and to waive any such terms
and conditions at any time (including, without limitation, accelerating or
waiving any vesting conditions). The Committee shall require payment of any
amount it may determine to be necessary to withhold for federal, state, local or
other taxes as a result of the exercise of an Award. Unless the Committee
specifies otherwise, the Participant may elect to pay a portion or all of such
withholding taxes by (a) delivery in Shares or (b) having Shares withheld by the
Company from any Shares that would have otherwise been received by the
Participant. The Committee, by specific resolution, may constitute the
Administrator as a committee of one which shall have the authority to grant
Awards equal to a number of Shares established by the Committee in each calendar
year to Participants who are not "covered employees" as defined in Section
162(m) of the Code or expected to be covered employees; provided, however, that
the Administrator shall notify the Committee of any such grants made pursuant to
this Section 4

5.       LIMITATIONS

                  No Award may be granted under the Plan after the tenth
anniversary of the Effective Date, but Awards theretofore granted may extend
beyond that date.

6.       TERMS AND CONDITIONS OF OPTIONS

                  Options granted under the Plan shall be, as determined by the
Committee, non-qualified or incentive stock options for federal income tax
purposes, as evidenced by the related Award agreements, and shall be subject to
the foregoing and the following terms and conditions and to such other terms and
conditions, not inconsistent therewith, as the Committee shall determine:
<PAGE>   6
                  (a) Option Price. The Option Price per Share shall be
determined by the Committee, but shall not be less than 100% of the Fair Market
Value of the Shares on the date an Option is granted.

                  (b) Exercisability. Options granted under the Plan shall be
exercisable at such time and upon such terms and conditions as may be determined
by the Committee, but in no event shall an Option be exercisable more than ten
years after the date it is granted.

                  (c) Exercise of Options. Except as otherwise provided in the
Plan or in an Award agreement, an Option may be exercised for all, or from time
to time any part, of the Shares for which it is then exercisable. For purposes
of Section 6 of the Plan, the exercise date of an Option shall be the later of
the date a notice of exercise is received by the Company and, if applicable, the
date payment is received by the Company pursuant to clauses (i), (ii) or (iii)
in the following sentence. The purchase price for the Shares as to which an
Option is exercised shall be paid to the Company in full at the time of exercise
at the election of the Participant, subject to the approval of the Company, (i)
in cash or its equivalent (e.g., by check), (ii) except in the case of Canadian
resident Participants, in Shares having a Fair Market Value equal to the
aggregate Option Price for the Shares being purchased and satisfying such other
requirements as may be imposed by the Committee; provided, that such Shares have
been held by the Participant for no less than six months (or such other period
as established from time to time by the Committee or generally accepted
accounting principles), (iii) partly in cash and partly in such Shares or (iv)
through the delivery of irrevocable instruments to a broker to deliver promptly
to the Company an amount equal to the aggregate option price for the shares
being purchased. No Participant shall have any rights to dividends or other
rights of a stockholder with respect to Shares subject to an Option until the
Participant has given written notice of exercise of the Option, paid in full for
such Shares and, if applicable, has satisfied any other conditions imposed by
the Committee pursuant to the Plan.

                  (d) ISOs. The Committee may grant Options under the Plan that
are intended to be ISOs. Such ISOs shall comply with the requirements of Section
422 of the Code (or any successor section thereto). No ISO may be granted to any
Participant who at the time of such grant, owns more than ten percent of the
total combined voting power of all classes of stock of the Company or of any
Subsidiary, unless (i) the Option Price for such ISO is at least 110% of the
Fair Market Value of a Share on the date the ISO is granted and (ii) the date on
which such ISO terminates is a date not later than the day preceding the fifth
anniversary of the date on which the ISO is granted. Any Participant who
disposes of Shares acquired upon the exercise of an ISO either (i) within two
years after the date of grant of such ISO or (ii) within one year after the
transfer of such Shares to the Participant, shall notify the Company of such
disposition and of the amount realized upon such disposition.

                  (e) Attestation. Wherever in this Plan or any agreement
evidencing an Award a Participant is permitted to pay the exercise price of an
Option or taxes relating to the exercise of an Option by delivering Shares, the
Participant may, subject to procedures
<PAGE>   7
satisfactory to the Committee, satisfy such delivery requirement by presenting
proof of beneficial ownership of such Shares, in which case the Company shall
treat the Option as exercised without further payment and shall withhold such
number of Shares from the Shares acquired by the exercise of the Option.

7.       TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS

                  (a) Grants. The Committee also may grant (i) a Stock
Appreciation Right independent of an Option or (ii) a Stock Appreciation Right
in connection with an Option, or a portion thereof. A Stock Appreciation Right
granted pursuant to clause (ii) of the preceding sentence (A) may be granted at
the time the related Option is granted or at any time prior to the exercise or
cancellation of the related Option, (B) shall cover the same Shares covered by
an Option (or such lesser number of Shares as the Committee may determine) and
(C) shall be subject to the same terms and conditions as such Option except for
such additional limitations as are contemplated by this Section 7 (or such
additional limitations as may be included in an Award agreement).

                  (b) Terms. The exercise price per Share of a Stock
Appreciation Right shall be an amount determined by the Committee but in no
event shall such amount be less than the greater of (i) the Fair Market Value of
a Share on the date the Stock Appreciation Right is granted or, in the case of a
Stock Appreciation Right granted in conjunction with an Option, or a portion
thereof, the Option Price of the related Option and (ii) an amount permitted by
applicable laws, rules, by-laws or policies of regulatory authorities or stock
exchanges. Each Stock Appreciation Right granted independent of an Option shall
entitle a Participant upon exercise to an amount equal to (i) the excess of (A)
the Fair Market Value on the exercise date of one Share over (B) the exercise
price per Share, times (ii) the number of Shares covered by the Stock
Appreciation Right. Each Stock Appreciation Right granted in conjunction with an
Option, or a portion thereof, shall entitle a Participant to surrender to the
Company the unexercised Option, or any portion thereof, and to receive from the
Company in exchange therefor an amount equal to (i) the excess of (A) the Fair
Market Value on the exercise date of one Share over (B) the Option Price per
Share, times (ii) the number of Shares covered by the Option, or portion
thereof, which is surrendered. The date a notice of exercise is received by the
Company shall be the exercise date. Payment shall be made in Shares or in cash,
or partly in Shares and partly in cash (any such Shares valued at such Fair
Market Value), all as shall be determined by the Committee. Stock Appreciation
Rights may be exercised from time to time upon actual receipt by the Company of
written notice of exercise stating the number of Shares with respect to which
the Stock Appreciation Right is being exercised. No fractional Shares will be
issued in payment for Stock Appreciation Rights, but instead cash will be paid
for a fraction or, if the Committee should so determine, the number of Shares
will be rounded downward to the next whole Share.

                  (c) Limitations. The Committee may impose, in its discretion,
such conditions upon the exercisability or transferability of Stock Appreciation
Rights as it may deem fit.
<PAGE>   8
                  (d) Limited Stock Appreciation Rights. The Committee may grant
LSARs that are exercisable upon the occurrence of specified contingent events.
Such LSARs may provide for a different method of determining appreciation, may
specify that payment will be made only in cash and may provide that any related
Awards are not exercisable while such LSARs are exercisable. Unless the context
otherwise requires, whenever the term "Stock Appreciation Right" is used in the
Plan, such term shall include LSARs.

8.       OTHER STOCK-BASED AWARDS

                  (a) Generally. The Committee, in its sole discretion, may
grant Awards of Shares, Awards of restricted Shares and Awards that are valued
in whole or in part by reference to, or are otherwise based on the Fair Market
Value of, Shares ("Other Stock-Based Awards"). Such Other Stock-Based Awards
shall be in such form, and dependent on such conditions, as the Committee shall
determine, including, without limitation, the right to receive one or more
Shares (or the equivalent cash value of such Shares) upon the completion of a
specified period of service, the occurrence of an event and/or the attainment of
performance objectives. Other Stock-Based Awards may be granted alone or in
addition to any other Awards granted under the Plan. Subject to the provisions
of the Plan, the Committee shall determine to whom and when Other Stock-Based
Awards will be made, the number of Shares to be awarded under (or otherwise
related to) such Other Stock-Based Awards; whether such Other Stock-Based Awards
shall be settled in cash, Shares or a combination of cash and Shares; and all
other terms and conditions of such Awards (including, without limitation, the
vesting provisions thereof and provisions ensuring that all Shares so awarded
and issued shall be fully paid and non-assessable).

                  (b) Performance-Based Awards. Notwithstanding anything to the
contrary herein, certain Other Stock-Based Awards granted under this Section 8
may be granted in a manner which is deductible by the Company under Section
162(m) of the Code (or any successor section thereto) ("Performance-Based
Awards"). A Participant's Performance-Based Award shall be determined based on
the attainment of written performance goals approved by the Committee for a
performance period established by the Committee (i) while the outcome for that
performance period is substantially uncertain and (ii) no more than 90 days
after the commencement of the performance period to which the performance goal
relates or, if less, the number of days which is equal to 25 percent of the
relevant performance period. The performance goals, which must be objective,
shall be based upon one or more of the following criteria: (i) consolidated
earnings before or after taxes (including earnings before interest, taxes,
depreciation and amortization); (ii) net income; (iii) operating income; (iv)
earnings per Share; (v) book value per Share; (vi) return on shareholders'
equity; (vii) expense management; (viii) return on investment; (ix) improvements
in capital structure; (x) profitability of an identifiable business unit or
product; (xi) maintenance or improvement of profit margins; (xii) stock price;
(xiii) market share; (xiv) revenues or sales; (xv) costs; (xvi) cash flow;
(xvii) working capital and (xviii) return on assets. The foregoing criteria
<PAGE>   9
may relate to the Company, one or more of its Subsidiaries or one or more of its
divisions or units, or any combination of the foregoing, and may be applied on
an absolute basis and/or be relative to one or more peer group companies or
indices, or any combination thereof, all as the Committee shall determine. In
addition, to the degree consistent with Section 162(m) of the Code (or any
successor section thereto), the performance goals may be calculated without
regard to extraordinary items. The maximum amount of a Performance-Based Award
during a calendar year to any Participant shall be: (x) with respect to
Performance-Based Awards that are denominated in Shares, one million Shares and
(y) with respect to Performance-Based Awards that are not denominated in Shares,
$5,000,000. The Committee shall determine whether, with respect to a performance
period, the applicable performance goals have been met with respect to a given
Participant and, if they have, to so certify and ascertain the amount of the
applicable Performance-Based Award. No Performance-Based Awards will be paid for
such performance period until such certification is made by the Committee. The
amount of the Performance-Based Award actually paid to a given Participant may
be less than the amount determined by the applicable performance goal formula,
at the discretion of the Committee. The amount of the Performance-Based Award
determined by the Committee for a performance period shall be paid to the
Participant at such time as determined by the Committee in its sole discretion
after the end of such performance period; provided, however, that a Participant
may, if and to the extent permitted by the Committee and consistent with the
provisions of Section 162(m) of the Code, elect to defer payment of a
Performance-Based Award.

9.       ADJUSTMENTS UPON CERTAIN EVENTS

                  Notwithstanding any other provisions in the Plan to the
contrary, the following provisions shall apply to all Awards granted under the
Plan:

                  (a) Generally. In the event of any change in the outstanding
Shares after the Effective Date by reason of any Share dividend or split,
reorganization, recapitalization, merger, consolidation, spin-off, combination,
combination or transaction or exchange of Shares or other corporate exchange, or
any distribution to shareholders of Shares other than regular cash dividends or
any transaction similar to the foregoing, the Committee in its sole discretion
and without liability to any person may make such substitution or adjustment, if
any, as it deems to be equitable, as to (i) the number or kind of Shares or
other securities issued or reserved for issuance pursuant to the Plan or
pursuant to outstanding Awards, (ii) the maximum number of Shares for which
Options or Stock Appreciation Rights may be granted during a calendar year to
any Participant, (iii) the Option Price or exercise price of any stock
appreciation right and/or (iv) any other affected terms of such Awards.

                  (b) Change in Control. In the event of a Change of Control
after the Effective Date, (i) any outstanding Awards then held by Participants
which are unexercisable or otherwise unvested shall automatically be deemed
exercisable or otherwise vested, as the case may be, as of immediately prior to
such Change of Control and (ii) the Committee may, but shall not be obligated
to, make provision for a cash
<PAGE>   10
payment to the holder of an outstanding Award in consideration for the
cancellation of such Award which, in the case of Options and Stock Appreciation
Rights, shall equal the excess, if any, of the Fair Market Value of the Shares
subject to such Options or Stock Appreciation Rights over the aggregate exercise
price of such Options or Stock Appreciation Rights.

10.      NO RIGHT TO EMPLOYMENT OR AWARDS

                  The granting of an Award under the Plan shall impose no
obligation on the Company or any Subsidiary to continue the employment or
service or consulting relationship of a Participant and shall not lessen or
affect the Company's or Subsidiary's right to terminate the employment or
service or consulting relationship of such Participant. No Participant or other
Person shall have any claim to be granted any Award, and there is no obligation
for uniformity of treatment of Participants, or holders or beneficiaries of
Awards. The terms and conditions of Awards and the Committee's determinations
and interpretations with respect thereto need not be the same with respect to
each Participant (whether or not such Participants are similarly situated).

11.      SUCCESSORS AND ASSIGNS

                  The Plan shall be binding on all successors and assigns of the
Company and a Participant, including without limitation, the estate of such
Participant and the executor, administrator or trustee of such estate, or any
receiver or trustee in bankruptcy or representative of the Participant's
creditors.

12.      NONTRANSFERABILITY OF AWARDS

                  Unless otherwise determined by the Committee, an Award shall
not be transferable or assignable by the Participant otherwise than by will or
by the laws of descent and distribution. An Award exercisable after the death of
a Participant may be exercised by the legatees, personal representatives or
distributees of the Participant.

13.      AMENDMENTS OR TERMINATION

                  The Board may amend, alter or discontinue the Plan, but no
amendment, alteration or discontinuation shall be made which, (a) without the
approval of the shareholders of the Company, would (except as is provided in
Section 9 of the Plan), increase the total number of Shares reserved for the
purposes of the Plan or change the maximum number of Shares for which Awards may
be granted to any Participant or (b) without the consent of a Participant, would
impair any of the rights or obligations under any Award theretofore granted to
such Participant under the Plan; provided, however, that the Committee may amend
the Plan in such manner as it deems necessary to permit the granting of Awards
meeting the requirements of the Code or other applicable laws.
<PAGE>   11
14.      INTERNATIONAL PARTICIPANTS

                  With respect to Participants who reside or work outside the
United States of America and who are not (and who are not expected to be)
"covered employees" within the meaning of Section 162(m) of the Code, the
Committee may, in its sole discretion, amend the terms of the Plan or Awards
with respect to such Participants in order to conform such terms with the
requirements of local law.

15.      CHOICE OF LAW

                   The Plan shall be governed by and construed in accordance
with the laws of the State of Delaware without regard to conflicts of laws.

16.      EFFECTIVENESS OF THE PLAN

                  The Plan shall be effective as of the Effective Date, subject
to the approval of the shareholders of the Company.

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