Document:

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                                                                    EXHIBIT 10.4

         EXHIBIT 10.4 TO ROSS STORES, INC. THIRD QUARTER 2000 FORM 10-Q

                              EXECUTIVE RELOCATION
                                 LOAN AGREEMENT

     THIS LOAN AGREEMENT (the "Agreement") is entered into as of this 14th day
of August, 2000, by and between ROSS STORES, INC., a Delaware corporation (the
"Company"), and James C. Peters ("Executive").

     WHEREAS, Executive has relocated to California to serve as the Company's
President and Chief Operating Officer;

     WHEREAS, Executive and the Company have agreed that the Company shall lend
Executive Two Million Five Hundred Thousand Dollars ($2,500,000.00) for the
purpose of facilitating Executive's relocation to California; and

     WHEREAS, the Company has agreed to provide Executive with the loan as
additional consideration for Executive's services as an employee of the Company.

     NOW THEREFORE, the parties hereto agree as follows:

     1.     LOAN. The Company shall lend Executive a total of Two Million Five
Hundred Thousand Dollars ($2,500,000.00) (the "Loan") upon the terms and
conditions contained herein. The Loan shall be made on or after the date first
above written.

     2.     PROMISSORY NOTE. The Loan shall be made pursuant to a promissory
note in the form attached hereto as EXHIBIT A (the "Note"). Executive shall
execute and deliver the Note to Company concurrently with the execution of
this Agreement.

     3.     DEED OF TRUST WITH ASSIGNMENTS OF RENTS. The Loan shall be
secured by a Deed of Trust on the property purchased by Executive and
Executive's spouse as their new principal residence (the "Property") in the
form attached hereto as EXHIBIT B (the "Deed of Trust"), which Deed of Trust
shall be executed and delivered to Company concurrently with the closing of
the purchase of the Property by Executive. The Deed of Trust shall constitute
a valid and enforceable first priority lien on the Property.

     4.     INSURANCE AND PROPERTY TAXES. While the Loan or any portion
thereof, including any interest due thereunder, remains unpaid, Executive
hereby agrees to maintain at Executive's expense such fire, flood,
earthquake, property and casualty insurance coverage on the Property on terms
and from an insurance carrier acceptable to the Company in a sufficient total
amount to cover the full fair market value of the building and other
improvements on the Property, and Executive also hereby agrees to pay all
property taxes and any assessments applicable to the Property when due.

     5.     TITLE INSURANCE. As a condition for the Loan, Executive shall
procure title insurance on the Property for the benefit of the Company on
terms and from a title insurance company acceptable to the Company.

     6.     METHOD OF FUNDING. The Loan proceeds shall be advanced by bank
wire transfer from the Company to the escrow agent for the purchase of the
Property, with directions to be provided by the Company. The escrow agent
will be directed not to release such Loan

                                       1.
<PAGE>

proceeds until the Note and Deed of Trust are properly executed by Executive,
and his spouse where applicable, and delivered to escrow agent.

     7.     CONDITION ON FUTURE EMPLOYMENT. The Loan is conditioned on the
future performance of substantial services by Executive.

     8.     REPAYMENT OF LOAN. The Loan shall be repaid in accordance with
the terms set forth in the Note.

     9.     NON-TRANSFERABLE. The right of Executive to request and receive
the Loan hereunder, as well as the benefits of the interest arrangements
under this Agreement, shall not be assignable or otherwise transferable by
Executive.

     10.    QUALIFICATION AS EMPLOYEE-RELOCATION MORTGAGE LOAN. The parties
intend that the loan shall qualify as an employee relocation mortgage loan as
permitted by Section 7872 of the Internal Revenue Code of 1986, as amended,
and Treasury Regulation Section 1.7872-5T(c)(1)(i). Executive hereby
certifies to the Company that he reasonably expects to be entitled to and
will itemize income tax deductions for each year the loan is outstanding.
Executive agrees that the loan proceeds shall only be used to purchase the
new principal residence of the Executive.

     11.    GENERAL PROVISIONS.

            a.   This Agreement shall be governed by the laws of the State of
California applicable to contracts made and performed in such state, without
regard to principles of conflicts of laws.

            b.   This Agreement, including its Exhibits, contains the entire
agreement between Executive and the Company, and is the complete, final, and
exclusive embodiment of their agreement with regard to this subject matter.
Executive and the Company each acknowledge and represent that this Agreement is
entered into without reliance on any promise or representation other than those
expressly contained herein and that this Agreement cannot be modified except by
a separate written document signed by both parties.

            c.   Except as otherwise specified herein, any notice, demand or
request required or permitted to be given by either the Company or Executive
pursuant to the terms of this Agreement shall be in writing and shall be
deemed given when delivered personally, three days after being deposited in
the U.S. Mail, registered mail, return receipt requested, postage prepaid, or
one business day after delivery to an overnight carrier service and addressed
to the Company at its then current principal office and to Executive at the
address listed for him on the Company's payroll records.

            d.   Either party's failure to enforce any provision or
provisions of this Agreement shall not in any way be construed as a waiver of
any such provision or provisions, nor prevent that party thereafter from
enforcing each and every other provision of this Agreement. The rights
granted both parties herein are cumulative and shall not constitute a waiver
of either party's right to assert all other legal remedies available to it
under the circumstances.

            e.   Executive agrees upon request to execute any further
documents or instruments necessary or desirable to carry out the purpose or
intent of this Agreement.

                                       2.
<PAGE>

            f.   If any provision of this Agreement shall be held to be
invalid or unenforceable by a court of competent jurisdiction, such
determination shall not affect the remaining provisions of this Agreement.

            g.   In the event of any litigation concerning this Agreement,
the prevailing party shall be entitled to a reasonable sum for attorneys'
fees, costs, and litigation expenses, whether or not such action is
prosecuted to judgment. "Prevailing Party" includes without limitation a
party who agrees to dismiss an action upon payment by the other party of sums
allegedly due or performance of the covenants allegedly breached, or who
obtains substantially the relief sought by that party. In the event that the
Company is the Prevailing Party, the Company shall also be entitled to
reasonable costs associated with the collection of the Loan.

     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the
day and year first set forth above.

ROSS STORES, INC.                             EXECUTIVE
a Delaware corporation

By: /s/Michael A. Balmuth                     /s/James C. Peters
    Michael A. Balmuth                        James C. Peters
    Chief Executive Officer

                                       3.
<PAGE>

                EXHIBIT A TO EXECUTIVE RELOCATION LOAN AGREEMENT

                                 PROMISSORY NOTE
                            SECURED BY DEED OF TRUST

$2,500,000                                                   August 11, 2000

                                                          Newark, California

     FOR VALUE RECEIVED, James C. Peters ("BORROWER"), an employee of Ross
Stores, Inc. a Delaware corporation ("COMPANY") hereby unconditionally promises
to pay to the order of Company, in lawful money of the United States of America
and in immediately available funds, the principal sum of two million five
hundred thousand dollars ($2,500,000) (the "LOAN") together with accrued and
unpaid interest thereon, if any, each due and payable on the dates and in the
manner set forth below.

It is the intent of the parties that the purpose of this Note is not for
consumer, family or household purposes.

This Promissory Note Secured by Deed of Trust is the Note referred to in and is
executed and delivered in connection with that certain Loan Agreement ("LOAN
AGREEMENT") and Deed of Trust with Assignment of Rents dated as of even date
herewith relating to certain therein-described real property ("PROPERTY") and
executed and delivered by Borrower in favor of Company (as the same may from
time to time be amended, modified or supplemented or restated, the "DEED OF
TRUST"). Additional rights of Company are set forth in the Deed of Trust. All
capitalized terms used herein and not otherwise defined herein shall have the
respective meanings given to them in the Loan Agreement.

     1.   PRINCIPAL REPAYMENT. The outstanding principal amount of the Loan
shall be due and payable on the earliest to occur of: (a) July 31, 2008; or (b)
the one hundred twentieth (120th) day following the date of termination of
Borrower's employment with the Company for any reason; or (c) any sale, transfer
or hypothecation of all or any part of the Property. The earliest of such dates
is hereinafter referred to as the "REPAYMENT DATE."

     2.   INTEREST RATE. From the date hereof through the Repayment Date, this
Note shall be a non-interest bearing note and, as such, will be subject to the
provisions of Section 7872 of the Internal Revenue Code of 1986, as amended, and
the Treasury Regulations thereunder. Borrower represents and warrants that with
respect to himself and his spouse (i) they expect to itemize deductions on their
annual income tax returns for each year during which any amounts remain
outstanding under the Loan, (ii) they are relocating to the Danville, California
area due to a transfer to a new work location, (iii) the Loan proceeds shall be
used only for the purchase of their new principal residence located on the
Property, and (iv) the fair market value of the property described in the Deed
of Trust with Assignment of Rent, as determined by an appraiser acceptable to
Company, equals or exceeds the aggregate amount of all indebtedness secured by
liens upon such property.

                                       4.
<PAGE>

     From and after the Repayment Date until paid in full, Borrower further
promises to pay interest on the outstanding principal amount of the Loan, if
any, which interest shall be payable at a fixed rate of ten percent (10.0%) per
annum (the "INTEREST RATE"). Interest, if any, shall be paid at the same time
that the outstanding principal amount of the Loan is paid and shall be
compounded annually and calculated on the basis of a 360-day year for the actual
number of days elapsed. Lender shall have all remedies available to it by law as
a creditor hereunder.

     3.   PLACE/MANNER OF PAYMENT. All amounts payable hereunder shall be
payable at the office of Company unless another place of payment shall be
specified in writing by Company.

     4.   APPLICATION OF PAYMENTS. Payment on this Note shall be applied first
to accrued interest, if any, and thereafter to the outstanding principal balance
hereof.

     5.   SECURED NOTE. The full amount of this Note is secured by the
collateral identified and described as security therefor in the Deed of Trust.
Borrower shall not, directly or indirectly, create, permit or suffer to exist,
and shall defend the collateral against and take such other action as is
necessary to remove, any lien on or in the collateral, or in any portion
thereof.

     6.   DEFAULT. Each of the following events shall be an "EVENT OF DEFAULT"
hereunder:

          a.   Borrower fails to pay timely any of the principal amount due
under this Note on the date the same becomes due and payable or any accrued
interest or other amounts due under this Note on the date the same becomes due
and payable;

          b.   Borrower files a petition or action for relief under any
bankruptcy, insolvency or moratorium law or any other law for the relief of, or
relating to, debtors, now or hereafter in effect, or makes any assignment for
the benefit of creditors or takes any action in furtherance of any of the
foregoing;

          c.   An involuntary petition is filed against Borrower (unless such
petition is dismissed or discharged within sixty (60) days) under any bankruptcy
statute now or hereafter in effect, or a custodian, receiver, trustee, assignee
for the benefit of creditors (or other similar official) is appointed to take
possession, custody or control of any property of Borrower;

          d.   Borrower defaults on an obligation contained in the Loan
Agreement; or

          e.   Borrower's employment by or association with Company is
terminated for any reason or no reason, including, without limitation, death of
Borrower.

Upon the occurrence of an Event of Default pursuant to (a), (d) or (e) above,
all unpaid principal, accrued interest and other amounts owing hereunder shall,
at the option of Company, be immediately due, payable and collectible by Company
pursuant to applicable law. Upon the occurrence of an Event of Default pursuant
to (b) or (c) above, all unpaid principal, accrued interest and other amounts
owing hereunder shall automatically be immediately due, payable and collectible
by Company pursuant to applicable law. Company shall have all rights and may
exercise any remedies available to it under law, successively or concurrently.
Borrower expressly acknowledges and agrees that Company shall have the right to
offset any obligations of Borrower hereunder against salaries, bonuses or other
amounts that may be payable to Borrower by Company.

                                       5.
<PAGE>

     7.   WAIVER. Borrower waives presentment and demand for payment, notice of
dishonor, protest and notice of protest of this Note, and shall pay all costs of
collection when incurred, including, without limitation, reasonable attorneys'
fees, costs and other expenses.

     The right to plead any and all statutes of limitations as a defense to any
demands hereunder is hereby waived to the full extent permitted by law.

     8.   GOVERNING LAW. This Note shall be governed by, and construed and
enforced in accordance with, the laws of the State of California, excluding
conflict of laws principles that would cause the application of laws of any
other jurisdiction.

     9.   SUCCESSORS AND ASSIGNS. The provisions of this Note shall inure to the
benefit of and be binding on any successor to Borrower and shall extend to any
holder hereof. Borrower shall not, without the prior written consent of holder,
assign any of its rights or obligations hereunder.

BORROWER:                              /s/ James C. Peters
                                       --------------------------
                                       James C. Peters

                                       6.
<PAGE>

                EXHIBIT B TO EXECUTIVE RELOCATION LOAN AGREEMENT
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WHEN RECORDED MAIL TO:          |
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                                   SPACE ABOVE THIS LINE FOR RECORDER'S USE

                     DEED OF TRUST WITH ASSIGNMENT OF RENTS
                                  (SHORT FORM)

This DEED OF TRUST, made AUGUST 10, 2000, between JAMES C. PETERS and RHONDA M.
PETERS, husband and wife, herein collectively called TRUSTOR, whose address is ,

OLD REPUBLIC TITLE COMPANY, a California corporation, herein called TRUSTEE, and

ROSS STORES, INC. a Delaware corporation, herein called BENEFICIARY.

WITNESSETH: That Trustor grants to Trustee in trust, with power of sale, that
property in the City of          , County of State of California, described as:

          SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF

together with the rents, issues and profits thereof, subject, however, to
the right, power and authority hereinafter given to and conferred upon
Beneficiary to collect and apply such rents, issues and profits for the
Purpose of Securing (1) payment of the sum of $2,500,000 with interest
thereon according to the terms of a promissory note or notes of even
date herewith made by JAMES C. PETERS, payable to order of Beneficiary, and
extensions or renewals thereof, (2) the performance of each agreement of
Trustor incorporated by reference or contained herein, and (3) payment of
additional sums and interest thereon which may hereafter be loaned to
Trustor, or Trustor's successors or assigns, when evidenced by a
promissory note or notes reciting that they are secured by this Deed of
Trust.

To protect the security of this Deed of Trust, and with respect to the
property above described Trustor expressly makes each and all of the
agreements, and adopts and agrees to perform and be bound by each and
all of the terms and provisions set forth in subdivision A, and it is
mutually agreed that each and all of the terms and provisions set forth in
subdivision B of the fictitious deed of trust recorded in Orange County
August 17, 1964, and in all other counties August 18, 1964, in the book
and at the page of Official Records in the office of the county recorder of
the county where said property is located, noted below opposite the name
of such county, namely:

                                       7.
<PAGE>

<TABLE>
<CAPTION>

COUNTY          BOOK      PAGE      COUNTY       BOOK      PAGE     COUNTY              BOOK      PAGE   COUNTY        BOOK    PAGE
<S>            <C>       <C>       <C>          <C>       <C>      <C>                 <C>       <C>    <C>           <C>     <C>
ALAMEDA         1288      556       KINGS        858       713      PLACER              1028      379    SIERRA        38      187
ALPINE          3         130-31    LAKE         437       110      PLUMAS              166       1307   SISKIYOU      506     762
AMADOR          133       438       LASSEN       192       367      RIVERSIDE           3778      347    SOLANO        1287    621
BUTTE           1330      513       LOS ANGELES  T-3878    874      SACRAMENTO          5039      124    SONOMA        2067    427
CALAVERAS       185       338       MADERA       911       136      SAN BENITO          300       405    STANISLAUS    1970    56
COLUSA          323       391       MARIN        1849      122      SAN BERNARDINO      6213      768    SUTTER        655     585
CONTRA COSTA    4684      1         MARIPOSA     90        453      SAN FRANCISCO       A-804     596    TEHAMA        457     183
DEL NORTE       101       549       MENDOCINO    667       99       SAN JOAQUIN         2855      283    TRINITY       108     595
EL DORADO       704       635       MERCED       1660      753      SAN LUIS OBISPO     1311      137    TULARE        2530    108
FRESNO          5052      623       MODOC        191       93       SAN MATEO           4778      175    TUOLUMNE      177     160
GLENN           469       76        MONO         69        302      SANTA BARBARA       2065      881    VENTURA       2607    237
HUMBOLDT        801       83        MONTEREY     357       239      SANTA CLARA         6626      664    YOLO          769     16
IMPERIAL        1189      701       NAPA         704       742      SANTA CRUZ          1638      607    YUBA          398     693
INYO            165       672       NEVADA       363       94       SHASTA              800       633
KERN            3756      690       ORANGE       7182      18       SAN DIEGO SERIES 5 BOOK 1964, PAGE 149774
</TABLE>

shall inure to and bind the parties hereto, with respect to the property
above described. Said agreements, terms and provisions contained in said
subdivisions A and B, (identical in all counties, and printed on Pages 3 and
4 hereof) are by the within reference thereto, incorporated herein and made
a part of this Deed of Trust for all purposes as fully as if set forth
at length herein, and Beneficiary may charge for a statement regarding
the obligation secured hereby, provided the charge therefor does not exceed
the maximum allowed by law.

The undersigned Trustor, requests that a copy of any Notice of Default and
any Notice of Sale hereunder be mailed to Trustor at the address
hereinbefore set forth.

SEE ADDENDUM 1 AND ADDENDUM 2 ATTACHED HERETO AND INCORPORATED HEREIN BY
THIS REFERENCE FOR ADDITONAL PROVISIONS.

STATE OF _______________________________}         Signature of Trustor
                                        }SS.
COUNTY OF_______________________________}         /s/ James C. Peters
                                                  James C.  Peters
On_______________________________________
before me,_______________________________,
personally appeared______________________,        /s/ Rhonda M. Peters
_________________________________________,        Rhonda M. Peters

personally known to me (or proved to me on
the basis of satisfactory evidence) to be         _____________________________
the person(s) whose name(s) is/are subscribed
to the within instrument and acknowledged to      _____________________________
me that he/she/they executed the same in
his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the
instrument the person(s) or the entity upon
behalf of which the person(s) acted, executed
the instrument. WITNESS my hand and official
seal.

Signature________________________________

                                          (This area for official notarial seal)

                                       8.
<PAGE>

                                  DO NOT RECORD

The following is a copy of Subdivisions A and B of the fictitious Deed of
Trust recorded in each county in California as stated in the foregoing Deed
of Trust and incorporated by reference in said Deed of Trust as being a
part thereof as if set forth at length therein.

A.    To protect the security of this Deed of Trust, Trustor agrees:

            (1)   To keep said property in good condition and repair; not to
remove or demolish any building thereon; to complete or restore promptly and in
good and workmanlike manner any building which may be constructed, damaged or
destroyed thereon and to pay when due all claims for labor performed and
materials furnished therefor; to comply with all laws affecting said property or
requiring any alterations or improvements to be made thereon; not to commit or
permit waste thereof; not to commit, suffer or permit any act upon said property
in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do
all other acts which from the character or use of said property may be
reasonably necessary, the specific enumerations herein not excluding the
general.

            (2)   To provide, maintain and deliver to Beneficiary fire insurance
satisfactory to and with loss payable to Beneficiary. The amount collected under
any fire or other insurance policy may be applied by Beneficiary upon any
indebtedness secured hereby and in such order as Beneficiary may determine, or
at option of Beneficiary the entire amount so collected or any part thereof may
be released to Trustor. Such application or release shall not cure or waive any
default or notice of default hereunder or invalidate any act done pursuant to
such notice.

            (3)   To appear in and defend any action or proceeding purporting to
affect the security hereof or the rights or powers of Beneficiary or Trustee;
and to pay all costs and expenses, including cost of evidence of title and
attorney's fees in a reasonable sum, in any such action or proceeding in which
Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to
foreclose this Deed.

            (4)   To pay: at least ten days before delinquency all taxes and
assessments affecting said property, including assessments on appurtenant water
stock; when due, all encumbrances, charges and liens, with interest, on said
property or any part thereof, which appear to be prior or superior hereto; all
costs, fees and expenses of this Trust.

Should Trustor fail to make any payment or to do any act as herein
provided, then Beneficiary or Trustee, but without obligation so to do and
without notice to or demand upon Trustor and without releasing Trustor
from any obligation hereof, may: make or do the same in such manner and to
such extent as either may deem necessary to protect the security hereof,
Beneficiary or Trustee being authorized to enter upon said property for
such purposes; appear in and defend any action or proceeding purporting to
affect the security hereof or the rights or powers of Beneficiary or Trustee;
pay, purchase, contest or compromise any encumbrance, charge or lien
which in the judgment of either appears to be prior or superior hereto; and,
in exercising any such powers, pay necessary expenses, employ counsel and pay
his reasonable fees.

            (5)   To pay immediately and without demand all sums so expended by
Beneficiary or Trustee, with interest from date of expenditure at the amount
allowed by law in effect at the date hereof, and to pay for any statement
provided for by law in effect at the date hereof regarding the obligation
secured hereby any amount demanded by the Beneficiary not to exceed the maximum
allowed by law at the time when said statement is demanded.

B.    It is mutually agreed:

            (1)   That any award of damages in connection with any condemnation
for public use of or injury to said property or any part thereof is hereby
assigned and shall be paid to Beneficiary who may apply or release such monies
received by him in the same manner and with the same effect as above provided
for disposition of proceeds of fire or other insurance.

            (2)   That by accepting payment of any sum secured hereby after its
due date, Beneficiary does not waive his right either to require prompt payment
when due of all other sums so secured or to declare default for failure so to
pay.

            (3)   That at any time or from time to time, without liability
therefor and without notice, upon written request of Beneficiary and
presentation of this Deed and said note for endorsement, and without affecting
the personal liability of any person for payment of the indebtedness secured
hereby, Trustee may: reconvey any part of said property; consent to the making
of any map or plat thereof; join in granting any easement thereon; or join in
any extension agreement or any agreement subordinating the lien or charge
hereof.

            (4)   That upon written request of Beneficiary stating that all sums
secured hereby have been paid, and upon surrender of this Deed and said note to
Trustee for cancellation and retention or other disposition as Trustee in its
sole discretion may choose and upon payment of its fees, Trustee shall reconvey,
without warranty, the property then held hereunder. The recitals in such
reconveyance of any matters or facts shall be conclusive proof of the
truthfulness thereof. The Grantee in such reconveyance may be described as "the
person or persons legally entitled thereto."

            (5)   That as additional security, Trustor hereby gives to and
confers upon Beneficiary the right, power and authority, during the continuance
of these Trusts, to collect the rents, issues and profits of said property,
reserving unto Trustor the right, prior to any default by Trustor in payment of
any indebtedness secured hereby or in performance of any agreement hereunder, to
collect and retain such rents, issues and profits as they become due and
payable. Upon any such default, Beneficiary may at any time without notice,
either in person, by agent, or by a receiver to be appointed by a court, and
without regard to the adequacy of any security for the indebtedness hereby
secured, enter upon and take possession of said property or any part thereof, in
his own name sue

                                       9.
<PAGE>

for or otherwise collect such rents, issues, and profits, including those
past due and unpaid, and apply the same, less costs and expenses of operation
and collection, including reasonable attorney's fees, upon any indebtedness
secured hereby, and in such order as Beneficiary may determine. The entering
upon and taking possession of said property, the collection of such rents,
issues and profits and the application thereof as aforesaid, shall not cure
or waive any default or notice of default hereunder or invalidate any act
done pursuant to such notice.

            (6)   That upon default by Trustor in payment of any indebtedness
secured hereby or in performance of any agreement hereunder, Beneficiary may
declare all sums secured hereby immediately due and payable by delivery to
Trustee of written declaration of default and demand for sale and of written
notice of default and of election to cause to be sold said property, which
notice Trustee shall cause to be filed for record. Beneficiary also shall
deposit with Trustee this Deed, said note and all documents evidencing
expenditures secured hereby.

After the lapse of such time as may then be required by law following
the recordation of said notice of default, and notice of sale having been
given as then required by law, Trustee, without demand on Trustor,
shall sell said property at the time and place fixed by it in said notice of
sale, either as a whole or in separate parcels, and in such order as it may
determine, at public auction to the highest bidder for cash in lawful
money of the United States, payable at time of sale. Trustee may postpone
sale of all or any portion of said property by public announcement at such
time and place of sale, and from time to time thereafter may postpone such
sale by public announcement at the time fixed by the preceding postponement.
Trustee shall deliver to such purchaser its deed conveying the property so
sold, but without any covenant or warranty, express or implied. The recitals
in such deed of any matters or facts shall be conclusive proof of the
truthfulness thereof. Any person, including Trustor, Trustee, or
Beneficiary as hereinafter defined, may purchase at such sale.

After deducting all costs, fees and expenses of Trustee and of this
Trust, including cost of evidence of title in connection with sale, Trustee
shall apply the proceeds of sale to payment of: all sums expended under the
terms hereof, not then repaid, with accrued interest at the amount allowed
by law in effect at the date hereof; all other sums then secured hereby; and
the remainder, if any, to the person or persons legally entitled thereto.

            (7)   Beneficiary, or any successor in ownership of any
indebtedness secured hereby, may from time to time, by instrument in writing,
substitute a successor or successors to any Trustee named herein or acting
hereunder, which instrument, executed by the Beneficiary and duly
acknowledged and recorded in the office of the recorder of the county or
counties where said property is situated, shall be conclusive proof of proper
substitution of such successor Trustee or Trustees, who shall, without
conveyance from the Trustee predecessor, succeed to all its title, estate,
rights, powers and duties. Said instrument must contain the name of the
original Trustor, Trustee and Beneficiary hereunder, the book and page where
this Deed is recorded and the name and address of the new Trustee.

            (8)   That this Deed applies to, inures to the benefit of, and
binds all parties hereto, their heirs, legatees, devisees, administrators,
executors, successors and assigns. The term Beneficiary shall mean the owner
and holder, including pledgees of the note secured hereby, whether or not
named as Beneficiary herein. In this Deed, whenever the context so requires,
the masculine gender includes the feminine and/or neuter, and the singular
number includes the plural.

            (9)   That Trustee accepts this Trust when this Deed, duly
executed and acknowledged, is made a public record as provided by law.
Trustee is not obligated to notify any party hereto of pending sale under any
other Deed of Trust or of any action or proceeding in which Trustor,
Beneficiary or Trustee shall be a party unless brought by Trustee.

DO NOT RECORD                                      REQUEST FOR FULL RECONVEYANCE
------------

TO OLD REPUBLIC TITLE COMPANY, TRUSTEE:

      The undersigned is the legal owner and holder of the note or notes, and of
all other indebtedness secured by the foregoing Deed of Trust. Said note or
notes, together with all other indebtedness secured by said Deed of Trust, have
been fully paid and satisfied; and you are hereby requested and directed, on
payment to you of any sums owing to you under the terms of said Deed of Trust,
to cancel said note or notes above mentioned, and all other evidences of
indebtedness secured by said Deed of Trust delivered to you herewith, together
with the said Deed of Trust, and to reconvey, without warranty, to the parties
designated by the terms of said Deed of Trust, all the estate now held by you
under the same.

      Dated____________________________

                                           ____________________________________

                                           ____________________________________

Please mail Deed of Trust,_____________________________________________________
Note and Reconveyance to_______________________________________________________
DO NOT LOSE OR DESTROY THIS DEED OF TRUST OR THE NOTE WHICH IT SECURES. BOTH
MUST BE DELIVERED TO THE TRUSTEE FOR CANCELLATION BEFORE RECONVEYANCE WILL BE
MADE.

                                       10.
<PAGE>

                                    EXHIBIT A

                          LEGAL DESCRIPTION OF PROPERTY

     ---------------------------------------------------------------------.

                        [To be provided by escrow agent]

                                       2.

<PAGE>

                                   ADDENDUM 1

                              ADDITIONAL PROVISIONS

     ----------------------------------------------------------------------

Trustor also agrees that it shall not encumber, hypothecate, sell, assign,
or otherwise transfer the property above described, and the performance
of such agreement is one of the purposes secured by this Deed of Trust.

                                       3.

<PAGE>

                                   ADDENDUM 2

Attached to and made a part of the Deed of Trust dated August 10, 2000,
executed by James C. Peters and Rhonda M. Peters, husband and wife,
collectively as Trustor ("Deed of Trust").

      1.    DEFINITIONS. As used in this Addendum:

            a.  "Third Party Secured Obligation" means any obligation which is
required to be performed by Employee which is secured by this Deed of Trust;

            b.  "Spouse" means Rhonda M. Peters; and

            c.  "Employee" means James C. Peters.

      As used herein, "Beneficiary" shall mean Beneficiary (as defined in the
Deed of Trust) or Trustee (as defined in the Deed of Trust) if acting on behalf
of Beneficiary (as defined in the Deed of Trust). All other capitalized words
are used herein as they are defined in the attached Deed of Trust.

      2.    RIGHTS OF BENEFICIARY. Spouse authorizes Beneficiary to perform any
or all of the following acts at any time in its sole discretion, all without
notice to Spouse and without affecting Beneficiary's rights or Spouse's
obligations under this Deed of Trust:

            a.  Beneficiary may alter any terms of the Third Party Secured
Obligation or any part of it, including renewing, compromising, extending or
accelerating, or otherwise changing the time for payment of, or increasing or
decreasing the rate of interest on, the Third Party Secured Obligation or any
part of it.

            b.  Beneficiary may take and hold any additional security for the
Third Party Secured Obligation, accept substituted security for that obligation,
and subordinate, exchange, enforce, waive, release, compromise, fail to perfect
and sell or otherwise dispose or any such security.

            c.  Beneficiary may direct the order and manner of any sale of all
or any part of any security now or later to be held for the Third Party Secured
Obligation, and Beneficiary may also bid at any such sale.

            d.  Beneficiary may apply any payments or recoveries from Employee
or any other source, and any proceeds of any security, to the Third Party
Secured Obligation in such manner, order and priority as Beneficiary may elect,
whether that obligation is secured by this Deed of Trust or not at the time of
the application.

            e.  Beneficiary may release Employee of Employee's liability for the
Third Party Secured Obligation or any part of it.

            f.  Beneficiary may substitute, add or release any one or more
guarantors or endorsers.

                                       4.

<PAGE>

            g.  In addition to the Third Party Secured Obligation, Beneficiary
may extend other credit to Employee, and may take and hold security for the
credit so extended, all without affecting Beneficiary's rights or Spouse's
liability under this Deed of Trust.

      3.    DEED OF TRUST TO BE ABSOLUTE. Spouse expressly agrees that until
each and every term, covenant and condition of this Deed of Trust and the Third
Party Secured Obligation is fully performed, Spouse shall not be released by or
because of:

            a.  Any act or event which might otherwise discharge, reduce, limit
or modify Spouse's obligations under this Deed of Trust.

            b.  Any waiver, extension, modification, forbearance, delay or other
act or omission of Beneficiary, or its failure to proceed promptly or otherwise
as against Employee, any other person or any security.

            c.  Any action, omission or circumstance which might increase the
likelihood that Spouse may be called upon to perform under this Deed of Trust or
which might affect the rights or remedies of Spouse as against Employee; or

            d.  Any dealings occurring at any time between Employee and
Beneficiary, whether relating to the Third Party Secured Obligation or
otherwise.

      Spouse hereby expressly waives and surrenders any defense to Spouse's
liability under this Deed of Trust based upon any of the foregoing acts,
omissions, agreements, waivers or matters. It is the purpose and intent of this
Deed of Trust that the obligations of Spouse under it shall be absolute and
unconditional under any and all circumstances.

      4.    SPOUSE'S WAIVERS. Spouse waives:

            a.  All statutes of limitations as a defense to any action or
proceeding brought against Spouse by Beneficiary, to the fullest extent
permitted by law;

            b.  Any right it may have to require Beneficiary to proceed against
Employee, proceed against or exhaust any other security held from Employee, or
pursue any other remedy in Beneficiary's power to pursue;

            c.  Any defense based on any claim that Spouse's obligations exceed
or are more burdensome than those of Employee.

            d.  Any defense based on: (i) any legal disability of Employee, (ii)
any release, discharge, modification, impairment or limitation of the liability
of Employee to Beneficiary from any cause, whether consented to by Beneficiary
or arising by operation of law or from any bankruptcy or other voluntary of
involuntary proceeding, in or out of court, for the adjustment of
debtor-creditor relationships ("Insolvency Proceeding") and (iii) any rejection
or disaffirmance of the Third Party Secured Obligation, or any part of it, or
any security held for it, in any such Insolvency Proceeding;

                                       5.
<PAGE>

            e.  Any defense based on any action taken or omitted by Beneficiary
in any Insolvency Proceeding involving Employee, including any election to have
Beneficiary's claim allowed as being secured, partially secured or unsecured,
any extension of credit by Beneficiary to Employee in any Insolvency Proceeding,
and the taking and holding by Beneficiary of any security for any such extension
of credit.

            f.  All presentments, demands for performance, notices of
nonperformance, protests, notices of protest, notices of dishonor, notices of
acceptance of this Deed of Trust and of the existence, creation, or incurring of
new or additional indebtedness, and demands and notices of every kind;

            g.  Any defense based on or arising out of any defense that Employee
may have to the payment or performance of the Third Party Secured Obligation or
any part of it;

            h.  All rights and defenses that the Spouse may have because the
Third Party Secured Obligation is secured by real property. This means, among
other things:

                  (i)   The Beneficiary may foreclose under this Deed of Trust
without first foreclosing on any other real or personal property collateral.

                  (ii)  If the Beneficiary forecloses on any real property
collateral pledged as collateral:

                        (1)   The amount of the Third Party Secured Obligation
may be reduced only by the price for which that collateral is sold at the
foreclosure sale, even if the collateral is worth more than the sale price.

                        (2)   The Beneficiary may foreclose pursuant to this
Deed of Trust even if the Beneficiary, by foreclosing on the real property
collateral, has destroyed any right the Spouse may have to collect from the
Employee.

            i.  The Spouse waives all rights and defenses arising out of an
election of remedies by the Beneficiary, even though that election of remedies,
such as a nonjudicial foreclosure, has destroyed the Spouse's rights of
subrogation and reimbursement against the Employee by the operation of Section
580d of the California Code of Civil Procedure or otherwise.

    This is an unconditional and irrevocable waiver of any rights and defenses
the Spouse may have because the Third Party Secured Obligation is secured by
real property. These rights and defenses include, but are not limited to, any
rights or defenses based upon Section 580a, 580b, 580d or 726 of the California
Code of Civil Procedure.

      5.    WAIVERS OF SUBROGATION AND OTHER RIGHTS.

            a.  Upon a default by Employee, Beneficiary in its sole discretion,
without prior notice to or consent of Spouse, may elect to: (i) foreclose either
judicially or nonjudicially against any real or personal property security it
may hold for the Third Party Secured Obligation, (ii) accept a transfer of any
such security in lieu of foreclosure, (iii) compromise or adjust the

                                       6.
<PAGE>

Third Party Secured Obligation or any part of it or make any other accommodation
with Employee or Spouse, or (iv) exercise any other remedy against Employee or
any security. No such action by Beneficiary shall release or limit the liability
of Spouse, who shall remain liable under this Deed of Trust after the action,
even if the effect of the action is to deprive Spouse of any subrogation rights,
rights of indemnity, or other rights to collect reimbursement from Employee for
any sums paid to Beneficiary, whether contractual or arising by operation of law
or otherwise. Spouse expressly agrees that under no circumstances shall it be
deemed to have any right, title, interest or claim in or to any real or personal
property to be held by Beneficiary or any third party after any foreclosure or
transfer in lieu of foreclosure of any security for the Third Party Secured
Obligation.

            b.  Regardless of whether Spouse may have made any payments to
Beneficiary, Spouse hereby waives: (i) all rights of subrogation, all rights of
indemnity, and any other rights to collect reimbursement from Employee for any
sums paid to Beneficiary, whether contractual or arising by operation of law
(including the United Bankruptcy Code or any successor or similar statute) or
otherwise, (ii) all rights to enforce any remedy that Beneficiary may have
against Employee, and (iii) all rights to participate in any security now or
later to be held by Beneficiary for the Third Party Secured Obligation. The
waivers given in this subsection 5(b) shall be effective until the Third Party
Secured Obligation has been paid and performed in full.

            c.  Spouse understands and acknowledges that if Beneficiary
forecloses judicially or nonjudicially against any real property security for
the Third Party Secured Obligation, that foreclosure could impair or destroy any
ability that Spouse may have to seek reimbursement, contribution, or
indemnification from Employee or others based on any right Spouse may have of
subrogation, reimbursement, contribution or indemnification. Spouse further
understands and acknowledges that in the absence of this Deed of Trust and
Addendum, such potential impairment or destruction of Spouse's rights, if any,
may entitle Spouse to assert a defense to this Deed of Trust and Addendum based
on Section 580d of the California Code of Civil Procedure as defined in UNION
BANK V. GRADSKY, 265 Cal.App.2d 40 (1968). By executing this Deed of Trust and
Addendum, Spouse freely, irrevocably and unconditionally: (i) waives and
relinquishes that defense and agrees that Spouse will be fully liable under this
Deed of Trust and Addendum even though Beneficiary may foreclose judicially or
nonjudicially against any real property security for the Third Party Secured
Obligation; (ii) agrees that Spouse will not assert that defense in any action
or proceeding which Beneficiary may commence to enforce this Deed of Trust;
(iii) acknowledges and agrees that the rights and defense that Spouse may have
or be entitled to assert based upon or arising out of any one or more Sections
580a, 580b, 580d or 726 of the California Code of Civil Procedure or Section
2848 of the California Civil Code; and (iv) acknowledges and agrees that
Beneficiary is relying on this waiver in making the Third Party Secured
Obligation, and that this waiver is a material part of the consideration which
Beneficiary is receiving for making the Third Party Secured Obligation.

      6.    REVIVAL AND REINSTATEMENT. If Beneficiary is required to pay, return
or restore to Employee or any other person any amounts previously paid on the
Third Party Secured Obligation because of any Insolvency Proceeding of Employee,
any stop notice or any other reason, the obligations of Spouse shall be
reinstated and revived and the rights of Beneficiary shall continue with regard
to such amounts, all as though they had never been paid.

                                       7.
<PAGE>

      7.    INFORMATION REGARDING EMPLOYEE. Before signing this Deed of Trust,
Spouse acknowledges that Spouse is aware of the financial condition and business
operations of Employee and such other matters as Spouse deemed appropriate to
assure Spouse of Employee's ability to discharge its obligations in connection
with the Third Party Secured Obligation. Spouse assumes full responsibility for
that due diligence, as well as for keeping informed of all matters which may
affect Employee's ability to pay and perform its obligations to Beneficiary.
Beneficiary has no duty to disclose to Spouse any information which Beneficiary
may have or receive about Employee's financial condition or business operations,
or any other circumstances.

                                       8.<PAGE>

                                                                    EXHIBIT 10.5

         EXHIBIT 10.5 TO ROSS STORES, INC. THIRD QUARTER 2000 FORM 10-Q

                         EXECUTIVE EMPLOYMENT AGREEMENT

         THIS EXECUTIVE EMPLOYMENT AGREEMENT is made effective as of
_____________________, by and between Ross Stores, Inc. (the "Company"), a
Delaware corporation, and ___________________________ (the "Executive").

                                    RECITALS

         A.   It is now the mutual desire of the Company and the Executive to
enter into a written employment agreement to govern the terms of the Executive's
employment by the Company as of the start of the term of this Agreement on the
terms and conditions set forth below.

                              TERMS AND CONDITIONS

         In consideration for the promises of the parties set forth below, the
Company and the Executive hereby agree as follows:

         1.   TERM. Subject to the provisions of Section 6 of this Agreement,
the term of employment of the Executive under this Agreement shall be as
follows.

              (a)  INITIAL TERM. The initial term of the employment of the
Executive by the Company under this Agreement shall begin on the date hereof and
end on                    , unless extended or terminated earlier in accordance
with this Agreement.

              (b)  RENEWAL TERMS. Upon the written request of the Executive to
extend the Executive's term of employment under this Agreement prior to the
termination of the Executive's employment with the Company, the Board of
Directors of the Company ("Board") shall consider extending the Executive's
employment with the Company under this Agreement. Such request must be delivered
to the Chairman of the Compensation Committee of the Board not later than twelve
(12) months prior to the end of the initial or renewal term of employment.
Within thirty (30) days following the receipt of such notice, the Board shall
consider the Executive's request and advise the Executive, in writing, within
thirty (30) days following its consideration of the Executive's written request,
whether it approves of such extension. The failure of the Board to provide such
written advice shall constitute approval of the Executive's request for
extension. If the Executive's request for an extension is approved, this
Agreement shall be extended two (2) additional years. Such additional two-year
period is referred to herein as a "Renewal Term."

         2.   POSITION AND DUTIES. During the term of the Executive's employment
under this Agreement, the Executive shall serve as the Senior Vice President,
____________________ of the Company with overall responsibility for the
___________________ function of the Company. The Executive shall report directly
to the Chief Executive Officer, Chief Operating Officer or Executive Vice
President, Merchandising of the Company. During the term of the
<PAGE>

Executive's employment, the Executive may engage in outside activities provided
those activities do not conflict with the Executive's duties and
responsibilities hereunder, and provided further that the Executive gives
written notice to the Board of any significant outside business activity in
which Executive plans to become involved, whether or not such activity is
pursued for profit.

         3.   PRINCIPAL PLACE OF EMPLOYMENT. The Executive shall be employed at
the Company's offices in _____________________, except for required travel on
the Company's business to an extent substantially consistent with present
business travel obligations of the Executive's position.

         4.   COMPENSATION AND RELATED MATTERS.

              (a)  SALARY. During the Executive's employment, the Company shall
pay the Executive a salary of not less than __________________ Dollars
($___________) per year. The Executive's salary, shall be payable in equal
installments in accordance with the Company's normal payroll practices
applicable to senior officers. Subject to the first sentence of this Section
4(a), the Executive's salary may be adjusted from time to time by the Board in
accordance with normal business practices of the Company.

              (b)  BONUS. During the Executive's employment, the Company shall
pay the Executive an annual bonus in accordance with the terms of the existing
bonus incentive plan that covers the Executive (which is currently the Incentive
Compensation Plan) or any replacement plan of substantially equivalent or
greater value that may subsequently be established and in effect during the term
of Executive's employment with the Company.

              (c)  EXPENSES. During the Executive's employment, the Executive
shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by Executive in performing services hereunder, including all reasonable
expenses of travel and living while away from home, provided that such expenses
are incurred and accounted for in accordance with the policies and procedures
established by the Company.

              (d)  BENEFITS. The Executive shall be entitled to participate in
all of the Company's employee benefit plans and arrangements in effect on the
date hereof in which senior executives of the Company are eligible to
participate (including without limitation each pension and retirement plan and
arrangement, supplemental pension and retirement plan, deferred compensation
plan, short-term and long-term incentive plan, stock option plan (but not
including the Company's Outside Directors Option Plan or 2000 Equity Incentive
Plan), life insurance and health-and-accident plan and arrangement, medical
insurance plan, physical examination program, dental care plan, accidental death
and disability plan, survivor income plan, relocation plan, financial, tax and
legal counseling programs, and vacation plan). The Company shall not make any
changes in such plans or arrangements which would adversely affect the
Executive's rights or benefits thereunder, unless such change occurs pursuant to
a program applicable to all senior executives of the Company and does not result
in a proportionately greater reduction in the benefits of the Executive as
compared with any other senior executive of the Company. The Executive shall be
entitled to participate in, or receive benefits under, any employee benefit plan
arrangement made available by the Company in the future to its executives and
key management
<PAGE>

employees, subject to, and on a basis consistent with, the terms, conditions and
overall administration of such plans and arrangements. Except as otherwise
specifically provided herein, nothing paid to the Executive under any plan or
arrangement presently in effect or made available in the future shall be in lieu
of the salary or bonus otherwise payable under this Agreement.

              (e)  VACATIONS. The Executive shall be entitled to the number of
vacation days in each calendar year, and to compensation in respect of earned
but unused vacation days, determined in accordance with the Company's vacation
plan. The Executive shall also be entitled to all paid holidays given by the
Company to its executives. Unused vacation days shall not be forfeited once they
have been earned and, if still unused at the time of the Executive's termination
of employment with the Company, shall be promptly paid to the Executive at their
then-current value, based on the Executive's rate of pay at the time of the
Executive's termination of employment.

              (f)  SERVICES FURNISHED. The Company shall furnish the Executive
with office space and such services as are suitable to the Executive's position
and adequate for the performance of the Executive's duties during the term of
this Agreement.

         5.   CONFIDENTIAL INFORMATION

              (a)  The Executive agrees not to disclose, either while in the
Company's employ or at any time thereafter, to any person not employed by the
Company, or not engaged to render services to the Company, any confidential
information obtained while in the employ of the Company, including, without
limitation, any of the Company's inventions, processes, methods of distribution
or customers or trade secrets; provided, however, that the Executive's provision
shall not preclude the Executive from use or disclosure of information known
generally to the public or from disclosure required by law or court order.

              (b)  The Executive agrees that upon leaving the Company's employ
Executive will make himself or herself reasonably available to answer questions
from Company officers regarding the Executive's former duties and
responsibilities and the knowledge Executive obtained in connection therewith.
In addition, Executive will not take with Executive, without the prior written
consent of any officer authorized to act in the matter by the Board, any study,
memoranda, drawing, blueprint, specification or other document of the Company,
its subsidiaries, affiliates and divisions, which is of a confidential nature
relating to the Company, its subsidiaries, affiliates and divisions.

         6.   TERMINATION. The Executive's employment may be terminated during
the term of this Agreement only as follows:

              (a)  DEATH. The Executive's employment shall terminate upon the
Executive's death.

              (b)  DISABILITY. If, as a result of the Executive's Disability (as
defined below), the Executive shall have been absent from the Executive's duties
hereunder on a full-time basis for the entire period of six consecutive months,
and within thirty days after written notice of termination is given by the
Company or the Executive (which may occur before or after the end
<PAGE>

of such six-month period), the Executive shall not have returned to the
performance of the Executive's duties hereunder on a full-time basis, the
Executive's employment shall terminate. A termination of employment pursuant to
this Section 6(b) shall be deemed an involuntary termination for purposes of
this Agreement or any plan or practice of the Company. For purposes of this
Agreement, the term "Disability" shall mean a physical or mental illness,
impairment or condition reasonably determined by the Board that prevents the
Executive from performing the duties of the Executive's position under this
Agreement.

              (c)  CAUSE. The Company may terminate the Executive's employment
for Cause. The Company shall have "Cause" to terminate the Executive's
employment if the Executive either (i) continuously fails to substantially
perform the Executive's duties hereunder (unless such failure is a result of a
disability as defined in Section (b)) or (ii) intentionally engages in illegal
or grossly negligent conduct which is materially injurious to the Company
monetarily or otherwise. A termination for Cause shall not take effect unless:
(1) the Executive is given written notice by the Company of its intention to
terminate Executive for Cause; (2) the notice specifically identifies the
particular act or acts or failure or failures to act which are the basis for
such termination; (3) the notice is given within 90 days of the Company's
learning of such act or acts or failure or failures to act; and (4) the
Executive fails to substantially cure such conduct, to the extent such cure is
possible, within 60 days after the date that such written notice is given to the
Executive.

              (d)  WITHOUT CAUSE. The Company may terminate the Executive's
employment at any time Without Cause. A termination "Without Cause" is a
termination of the Executive's employment by the Company for any reasons other
than the death or disability of the Executive or the involuntary termination of
Executive for Cause as described above in Section 6(c).

              (e)  TERMINATION BY THE EXECUTIVE FOR GOOD REASON. The Executive
may terminate the Executive's employment with the Company for Good Reason, which
shall be deemed to occur if Executive terminates the Executive's employment
within six months after (1) written notice of a failure by the Company to comply
with any material provision of this Agreement (including but not limited to the
reduction of the Executive's salary or target bonus opportunity) which failure
has not been cured within ten days after such written notice of noncompliance
has been given by the Executive to the Company, or (2) a significant
diminishment in the nature or scope of the authority, power, function or duty
attached to the position which the Executive currently maintains without the
express written consent of the Executive, or (3) the Executive is relocated more
than 25 miles from the Executive's Principal Place of Employment as described in
Section 3 without the Executive's prior written consent.

              (f)  VOLUNTARY TERMINATION. The Executive may voluntarily
terminate the Executive's employment with the Company at any time. A voluntary
termination of employment by the Executive pursuant to Section 6(e) above for
Good Reason shall not be deemed a voluntary termination by the Executive for
purposes of this Agreement or any plan or practice of the Company but shall be
deemed an involuntary termination.

              (g)  NON-RENEWAL. If the Executive fails to request an extension
of the term of the Executive's employment in accordance with Section 1 or if the
Board fails to approve such
<PAGE>

request, this Agreement shall automatically expire at the end of the then
current term. Such expiration shall not entitle the Executive to any
compensation or benefits except as earned by the Executive through the date of
expiration of the then current term of the employment and as set forth in
Section 8(e) [Special Change of Control Provisions]. The parties hereto shall
have no further obligations to each other thereafter except as set forth in
Sections 5 and 12.

         7.   NOTICE AND EFFECTIVE DATE OF TERMINATION

              (a)  NOTICE. Any termination of the Executive's employment by the
Company or by the Executive during the term of this Agreement (other than as a
result of death) shall be communicated by written notice of termination to the
other party hereto. Such notice 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 that provision.

              (b)  DATE OF TERMINATION. The date of termination shall be:

                   (i)    if the Executive's employment is terminated by the
Executive's death, the date of the Executive's death;

                   (ii)   if the Executive's employment is terminated due to
disability pursuant to Section 6(b), the date of termination shall be the 31st
day following delivery of the notice of termination;

                   (iii)  if the Executive's employment is terminated for any
other reason by either party, the date on which a notice of termination is
delivered to the other party; and

                   (iv)   if the Agreement expires pursuant to Section
6(g)[Non-Renewal], the parties' employment relationship shall terminate on the
last day of the term of Executive's employment under this Agreement without any
notice.

         8.   COMPENSATION AND BENEFITS UPON TERMINATION.

              (a)  TERMINATION DUE TO DISABILITY, WITHOUT CAUSE OR FOR GOOD
REASON. If the Executive's employment terminates pursuant to Sections
6(b)[Disability], (d)[Without Cause], or (e)[For Good Reason], the Executive
shall be entitled to the following:

                   (i)    SALARY. The Company shall continue to pay the
Executive the Executive's then-current salary through the remaining term of the
Executive's employment under this Agreement as defined in Section 1.

                   (ii)   BONUS. The Company shall continue to pay the Executive
an annual bonus(es) throughout such remaining term. Each such bonus shall be
equal to the greater of (A) the Executive's bonus during the year prior to the
Executive's termination or (B) the bonus that the Executive would have earned
under the Company's bonus plan in the year that Executive was terminated had
Executive remained in its employment; provided, however, that such
post-termination bonuses shall not exceed the lesser of 100% of the targeted
amounts for
<PAGE>

those bonuses in the prior year and 100% of such targeted amounts
for the then-current year. Such bonuses shall not be paid until due under the
Company's present bonus plan.

                   (iii)  STOCK OPTIONS. With respect to any stock options
granted to the Executive by the Company, the Executive shall immediately become
vested in any unvested stock options upon such termination.

                   (iv)   RESTRICTED STOCK. With respect to any restricted stock
granted to the Executive by the Company which has not become vested as of such
termination, the Executive shall immediately become vested in a pro rata portion
of such unvested stock in accordance with the terms of the applicable stock
grant agreements.

         The Company shall have no further obligations to the Executive as a
result of such termination except as set forth in Section 12.

              (b)  FOR CAUSE. If the Executive's employment is terminated for
Cause (as defined in Section 6(c), Executive shall receive only the
post-termination compensation and benefits described in Section 8(c) [Death or
Voluntary Termination].

              (c)  DEATH OR VOLUNTARY TERMINATION. If the Executive's employment
terminates pursuant to Section 6(a) [Death] or 6(f)[Voluntary Termination],
Executive (or the Executive's designee or the Executive's estate) shall be paid
the Executive's salary through the Executive's termination date and not
thereafter. Executive shall not be entitled to any bonus payments which were not
fully earned prior to the Executive's termination date, and Executive shall not
be entitled to any pro-rated bonus payment for the year in which the Executive's
employment terminates. Any stock options granted to the Executive by the Company
shall continue to vest only through the date on which the Executive's employment
terminates and any restricted stock that was granted to the Executive by the
Company that is unvested as of the date on which the Executive's employment
terminates shall automatically be reacquired by the Company and the Executive
shall have no further rights with respect to such restricted stock. The Company
shall have no further obligations to the Executive as a result of the
termination of the Executive's employment pursuant to Section 6(a) or (f).

              (d)  NON-RENEWAL. If the Agreement expires as set forth in Section
6(g)[Non-Renewal], the Executive shall be entitled only to the following:

                   (i)    SALARY. The Company shall continue to pay the
Executive the Executive's then-current salary through the remaining term of the
Executive's employment under this Agreement as defined in Section 1.

                   (ii)   BONUS. The Company shall continue to pay the Executive
an annual bonus for the year of termination which shall be pro-rated for the
portion of the bonus year that Executive is employed by the Company. The
calculation of such bonus prior to pro-ration shall be equal to the greater of
(A) the Executive's bonus during the year prior to the Executive's termination
or (B) the bonus that the Executive would have earned under the Company's bonus
plan in the year that Executive was terminated had Executive remained in its
employment; provided, however, that such post-termination bonuses shall not
exceed the lesser of 100% of the targeted amounts for those bonuses in the prior
year and 100% of such targeted
<PAGE>

amounts for the then-current year. Such bonuses shall not be paid until due
under the Company's present bonus plan.

                   (iii)  STOCK OPTIONS. With respect to any stock options
granted to the Executive by the Company, the Executive shall be vested in the
stock options only through the date on which the Executive's employment
terminates according to the original terms of the stock option agreements and
the respective plan.

                   (iv)   RESTRICTED STOCK. Any restricted stock that was
granted to the Executive by the Company that is unvested as of the date on which
the Executive's employment terminates due to a nonrenewal shall automatically
become vested in a pro-rata portion of such restricted stock determined on the
basis of the number of full months that have elapsed from the date of grant of
such restricted stock until the termination date divided by the total number of
months required for the restricted stock to become vested if not for the
termination or this provision. Thereafter, the unvested portion of the
restricted stock shall automatically be reacquired by the Company and the
Executive shall have no further rights in such unvested portion of the
restricted stock.

         The Company shall have no further obligations to the Executive as a
result of such termination except as set forth in Section 12.

              (e)  SPECIAL CHANGE OF CONTROL PROVISIONS.

                   (i)    CHANGE OF CONTROL BENEFITS.

                          (1)  In the event of a Change of Control (as defined
below), Executive shall be entitled to receive the immediate acceleration of the
vesting of any restricted stock that was granted to the Executive by the Company
and an additional salary equal to _____________________________Dollars
($__________) per month for a period of two (2) years following the Change of
Control unless and until Executive's employment is Voluntarily Terminated (as
defined in Section 6(f)) or is terminated for Cause (as defined in Section
6(c)).

                          (2)  Notwithstanding the foregoing, if the Executive's
employment is terminated either by the Company Without Cause (as defined in
Section 6(d) or by the Executive for Good Reason as defined in Section 6(e))
within one month prior and twelve (12) months following a Change of Control, the
Executive shall be entitled to the following (in addition to any other payments
or benefits provided under this Agreement):

                               a.  SALARY. The salary that shall be payable to
Executive under Section 8(a) shall be for a period of not less than two (2)
years.

                               b.  BONUS. The bonus that shall be payable to
Executive under Section 8(a) shall be for a period of not less than two (2)
years.

                          (3)  HEALTH CARE COVERAGE. In the event of the
termination of Executive's employment following a Change of Control, then
Executive shall be entitled to the continuation of the Executive's health care
coverage under the Company's employee benefit plans (including medical, dental,
vision and mental coverage) which the Executive had at the
<PAGE>

time of the termination (including coverage for the Executive's dependents) at
the Company's expense for a period of two (2) years. Such health care
continuation rights will be in addition to any rights the Executive may have
under ERISA Sections 600 and thereafter and Section 4980B of the Internal
Revenue Code ("COBRA coverage").

                          (4)  ESTATE PLANNING. In the event of the termination
of Executive's employment following a Change of Control, then Executive shall
also be entitled to the reimbursement of the Executive's estate planning
expenses (including attorneys' fees) as to which and on the terms of which
Executive was entitled prior to the termination for a period of two (2) years
following the date of termination of employment.

                   (ii)   CHANGE OF CONTROL DEFINED. A "Change in Control" shall
be deemed to have occurred if: (1) any person or group (within the meaning of
Rule 13d-3 of the rules and regulations promulgated under the Securities
Exchange Act of 1934, as amended) shall acquire, in one or a series of
transactions, whether through sale of stock or merger, ownership of stock of the
Company that possesses more than 30 percent of the total fair market value or
total voting power of the stock of the Company or any successor to the Company;
(2) a merger in which the Company is a party after which merger the stockholders
of the Company do not retain, directly or indirectly, at least a majority of the
beneficial interest in the voting stock of the surviving company, or (3) the
sale, exchange, or transfer of all or substantially all of the Company's assets
(other than a sale, exchange, or transfer to one or more corporations where the
stockholders of the Company before and after such sale, exchange, or transfer,
directly or indirectly, are the beneficial owners of at least a majority of the
voting stock of the corporation(s) to which the assets were transferred).

                   (iii)  EXCISE TAX GROSS-UP. If the Executive becomes entitled
to one or more payments (with a "payment" including the vesting of restricted
stock, a stock option, or other non-cash benefit or property), whether pursuant
to the terms of this Agreement or any other plan or agreement with the Company
or any affiliated company (collectively, "Change of Control Payments"), which
are or become subject to the tax ("Excise Tax") imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended (the "Code"), the Company shall pay to
the Executive at the time specified below such amount (the "Gross-up Payment")
as may be necessary to place the Executive in the same after-tax position as if
no portion of the Change of Control Payments and any amounts paid to the
Executive pursuant to Section 8 had been subject to the Excise Tax. The Gross-up
Payment shall include, without limitation, reimbursement for any penalties and
interest that may accrue in respect of such Excise Tax. For purposes of
determining the amount of the Gross-up Payment, the Executive shall be deemed:
(A) to pay federal income taxes at the highest marginal rate of federal income
taxation for the calendar year in which the Gross-up Payment is to be made; and
(B) to pay any applicable state and local income taxes at the highest marginal
rate of taxation for the calendar year in which the Gross-up Payment is to be
made, net of the maximum reduction in federal income taxes which could be
obtained from deduction of such state and local taxes if paid in such year. If
the Excise Tax is subsequently determined to be less than the amount taken into
account hereunder at the time the Gross-up Payment is made, the Executive shall
repay to the Company at the time that the amount such reduction in Excise Tax is
finally determined (but, if previously paid to the taxing authorities, not prior
to the time the amount of such reduction is refunded to the Executive or
otherwise realized as a benefit by the Executive) the portion of the Gross-up
Payment that would
<PAGE>

not have been paid if such Excise Tax had been used in initially calculating
the Gross-up payment, plus interest on the amount of such repayment at the
rate provided in Section 1274(b)(2)(B) of the Code. In the event that the
Excise Tax is determined to exceed the amount taken into account hereunder at
the time the Gross-up Payment is made, the Company shall make an additional
Gross-up Payment in respect of such excess (plus any interest and penalties
payable with respect to such excess) at the time that the amount of such
excess is finally determined.

                   (iv)   The Gross-up Payment provided for above shall be paid
on the 30th day (or such earlier date as the Excise Tax becomes due and payable
to the taxing authorities) after it has been determined that the Change of
Control Payments (or any portion thereof) are subject to the Excise Tax;
provided, however, that if the amount of such Gross-up Payment or portion
thereof cannot be finally determined on or before such day, the Company shall
pay to the Executive on such day an estimate, as determined by counsel or
auditors selected by the Company and reasonably acceptable to the Executive, of
the minimum amount of such payments. The Company shall pay to the Executive the
remainder of such payments (together with interest at the rate provided in
Section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be
determined. In the event that the amount of the estimated payments exceeds the
amount subsequently determined to have been due, such excess shall constitute a
loan by the Company to the Executive, payable on the fifth day after demand by
the Company (together with interest at the rate provided in Section
1274(b)(2)(B) of the Code). The Company shall have the right to control all
proceedings with the Internal Revenue Service that may arise in connection with
the determination and assessment of any Excise Tax and, at its sole option, the
Company may pursue or forego any and all administrative appeals, proceedings,
hearings, and conferences with any taxing authority in respect of such Excise
Tax (including any interest or penalties thereon); provided, however, that the
Company's control over any such proceedings shall be limited to issues with
respect to which a Gross-up Payment would be payable hereunder, and the
Executive shall be entitled to settle or contest any other issue raised by the
Internal Revenue Service or any other taxing authority. The Executive shall
cooperate with the Company in any proceedings relating to the determination and
assessment of any Excise Tax and shall not take any position or action that
would materially increase the amount of any Gross-up Payment hereunder.

         9.   EMPLOYMENT RESTRICTION.

              (a)  NON-COMPETE. The Company and the Executive acknowledge that
the Company has a special interest in and derives significant benefit from the
unique skills and experience of the Executive. In addition, the Executive will
use and have access to some of the Company's proprietary and valuable
Confidential Information during the course of the Executive's employment.
Accordingly, except as hereafter noted, during the term of the Executive's
employment with the Company for a period of 36 months following the Executive's
termination of employment with the Company, Executive shall not provide any
labor, work, services or assistance to (whether as an officer, director,
employee, partner, agent, owner, independent contractor, stockholder or
otherwise) any off-price retailers and to Burlington Coat Factory Warehouse
Corporation, Dillard Department Stores, Inc., Filene's Basement Corp., The
Federated Stores, The May Department Stores Company, The TJX Companies, Inc. and
Value City Department Stores, Inc., as well as all subsidiaries, divisions
and/or the surviving entity of any of the above that do business in the retail
industry in the case of a merger or acquisition.
<PAGE>

However, this Section 9(a) shall not prohibit the Executive from making any
investment of 1% or less of the equity securities of any publicly-traded
corporation or limited partnership that is engaged in any business of the type
or character engaged in by the Company.

The foregoing restrictions shall have no force or effect in the event that: (i)
the Executive's employment with the Company is terminated either by the Company
pursuant to Section 6(d)[Without Cause] or by the Executive pursuant or Sections
6(e) [Termination by the Executive for Good Reason]; or (ii) the Company fails
to approve or grant an extension of this Agreement in accordance with Section 1
hereof.

              (b)  NON-SOLICITATION OF EMPLOYEES. During the term of the
Executive's employment with the Company and for a period of 36 months following
the termination of that employment for any reason, the Executive shall not
directly or indirectly solicit any other employee of the Company to terminate
his or her employment with the Company.

         10.  EXERCISE OF STOCK OPTIONS FOLLOWING TERMINATION. If the
Executive's employment terminates, Executive (or the Executive's estate) may
exercise the Executive's right to purchase any vested stock under the stock
options granted to Executive by the Company as provided in the applicable stock
option agreements. All such purchases must be made by the Executive in
accordance with the applicable stock option plans and agreements between the
parties.

         11.  SUCCESSORS; BINDING AGREEMENT. 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 would still be payable to Executive hereunder, all such
amounts shall be paid in accordance with the terms of this Agreement to the
Executive's written designee or, if there be no such designee, to the
Executive's estate.

         12.  INSURANCE AND INDEMNITY. The Company shall, to the extent
permitted by law, include the Executive during the term of the Executive's
agreement under any directors and officers liability insurance policy maintained
for its directors and officers, with coverage at least as favorable to the
Executive in amount and each other material respect as the coverage of other
directors and officers covered thereby. The Executive's obligation to provide
insurance and indemnify the Executive shall survive expiration or termination of
this Agreement with respect to proceedings or threatened proceedings based on
acts or omissions of the Executive occurring during the Executive's employment
with the Company or with any affiliated company. Such obligations shall be
binding upon the Company's successors and assigns and shall inure to the benefit
of the Executive's heirs and personal representatives.

         13.  NOTICE. For the purposes of this Agreement, notices, demands and
all other communications provided for in the Agreement shall be in writing and
shall be deemed to have been duly given when delivered or (unless otherwise
specified) mailed by United States registered mail, return receipt requested,
postage prepaid, addressed as follows:
<PAGE>

                  If to the Executive:
                                            --------------------

                                            --------------------

                                            --------------------

                  If to the Company:        Ross Stores, Inc.
                                            8333 Central Avenue
                                            Newark, CA  94560
                                            Attention: President and COO

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.

         14.  COMPLETE AGREEMENT; MODIFICATION OR WAIVER; ENTIRE AGREEMENT. The
Executive's document represents the complete agreement of the parties with
respect to the subject matter hereof and supersedes all prior and
contemporaneous agreements, promises or representations of the parties. No
provision of this Agreement may be modified or waived except in a document
signed by the Executive and the chairman of the Compensation Committee of the
Board or such other person as may be designated by the Board. This Agreement,
along with any stock option or restricted stock agreements between the parties,
constitute the entire agreement between the parties regarding their employment
relationship. To the extent that this Agreement is in any way inconsistent with
any prior or contemporaneous restricted stock or stock option agreements between
the parties, this Agreement shall control. No agreements or representations,
oral or otherwise, with respect to the subject matter hereof have been made by
either party which are not set forth expressly in this Agreement.

         15.  GOVERNING LAW - SEVERABILITY. The validity, interpretation,
construction, performance, and enforcement of this Agreement shall be governed
by the laws of the state in which Executive's principle place of employment is
located without reference to that state's choice of law rules. The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

         16.  MITIGATION NOT REQUIRED. In the event the Executive's employment
with the Company terminates for any reason, the Executive shall not be obligated
to seek other employment following such termination. Any amounts due the
Executive under this Agreement shall be offset by any remuneration attributable
to any subsequent employment that Executive may obtain during the period of
payment of compensation under this Agreement following the termination of
Executive's employment with the Company.

         17.  WITHHOLDING. All payments required to be made by the Company
hereunder to the Executive or the Executive's estate or beneficiaries shall be
subject to the withholding of such amounts as the Company may reasonably
determine it should withhold pursuant to any applicable law. To the extent
permitted, the Executive may provide all or any part of any necessary
withholding by contributing Company stock with value, determined on the date
such withholding is due, equal to the number of shares contributed multiplied by
the closing NASDAQ price on the date preceding the date the withholding is
determined.
<PAGE>

         18.  ARBITRATION. In the event of any dispute or claim relating to
or arising out of the parties' employment relationship or this Agreement
(including, but not limited to, any claims of breach of contract, wrongful
termination, or age, race, sex, disability or other discrimination), all such
disputes shall be fully, finally and exclusively resolved by binding
arbitration conducted by the American Arbitration Association in the city in
which Executive's principle place of employment is located by an arbitrator
mutually agreed upon by the parties hereto or, in the absence of such
agreement, by an arbitrator selected in accordance with the Commercial
Arbitration Rules of the American Arbitration Association, provided, however,
that the Executive's arbitration provision shall not apply to any disputes or
claims relating to or arising out of the misuse or misappropriation of the
Company's trade secrets or proprietary information. Notwithstanding the
foregoing, if either the Company or the Executive shall request, such
arbitration shall be conducted by a panel of three arbitrators, one selected
by the Company, one selected by the Executive, and the third selected by
agreement of the first two, or, in the absence of such agreement, in
accordance with such Rules.

         If there is termination of your employment with the Company followed by
a dispute as to whether you are entitled to the benefits provided under this
Agreement, then, during the period of that dispute the Company shall pay you
fifty percent (50%) of the amount specified in Section 8 hereof (except that the
Company shall pay one hundred percent (100%) of any insurance premiums provided
for in Section 8), if, and only if, you agree in writing that if the dispute is
resolved against you, you shall promptly refund to the Company all payments you
receive. If the dispute is resolved in your favor, promptly after resolution of
the dispute the Company shall pay you the sum that was withheld during the
period of the dispute plus interest at the rate provided in Section 1274(d) of
the Code, compounded quarterly.

         19.  ATTORNEY'S FEES. Each party shall bear its own attorney's fees and
costs incurred in any action or dispute arising out of this Agreement.

         20.  MISCELLANEOUS. No right or interest to, or in, any payments shall
be assignable by the Executive; provided, however, that the Executive's
provision shall not preclude Executive from designating in writing one or more
beneficiaries to receive any amount that may be payable after Executive's death
and shall not preclude the legal representative of Executive's estate from
assigning any right hereunder to the person or persons entitled thereto. This
Agreement shall be binding upon and shall inure to the benefit of the Executive,
the Executive's heirs and legal representatives and, the Company and its
successors.

         IN WITNESS WHEREOF, the parties have executed this Executive Employment
Agreement effective as of the date and year first above written.

ROSS STORES, INC.                          EXECUTIVE

------------------------------             -------------------------------------
By: Michael Balmuth

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