Document:

<PAGE>   1

                                                                 Exhibit 10.127a
                                                                   Tiffany & Co.
                                                             Report on Form 10-K
                                                                         FY 2000

                              [COMPANY LETTERHEAD]

                                 March 15, 2001

John S. Petterson
727 Fifth Avenue
New York, NY 10022

        Re: RETENTION AGREEMENT

Dear John:

        Tiffany and Company and Tiffany & Co. (respectively, "EMPLOYER" and
"PARENT,") wish to take steps to retain key management, it being recognized that
future discussions concerning a Change of Control or a decision to cooperate in
or effect a Change of Control could result in the departure or distraction of
key management at a time when Parent and Employer Board would require the clear
and focused attention of experienced management, unafflicted with concerns for
personal financial and job security. Accordingly, in order to induce you to
remain in the employ of the Employer, Parent and Employer have determined to
enter into this letter agreement (this "AGREEMENT") which addresses the terms
and conditions of your employment in the event of a Change of Control.

        This Agreement will provide you with certain payments and benefits
should you incur an Involuntary Termination after a Change of Control Date.

        An "Involuntary Termination" means (i) your termination of employment by
Employer during the Term without Cause or (ii) your resignation of employment
with the

<PAGE>   2

Employer during the Term for Good Reason. The terms "Change of Control Date,"
"Term," "Cause," "Good Reason" and other initially capitalized words and phrases
used in this letter agreement shall have the meanings ascribed to them in
Appendix I attached. With respect to your specific situation, you would also
have "Good Reason" to resign from employment with Employer if any of the
following occurs after a Change of Control Date:

                (A)     at any time you are not the Chief Direct Marketing
                        Officer of the Successor Entity or the Controlling
                        Entity; and

                (B)     any similar adverse change on or after the Change in
                        Control Date in your title, position or reporting
                        responsibilities.

        1.      Term of Employment Under This Agreement. The Term of your
employment under this Agreement shall not commence unless and until a Change in
Control Date occurs and shall continue thereafter until the SECOND anniversary
of the Change in Control Date.

        2.      Cash Payments in the Event of Involuntary Termination During the
Term. In the event of your Involuntary Termination during the Term you will be
paid the following amounts in cash by the Employer:

                (a)     your Earned Compensation previously unpaid;

                (b)     a severance payment equal to the sum of (i) TWO times
                        your Reference Salary and (ii) TWO times your Reference
                        Bonus; and

                (c)     a Supplementary Pension Payment designed to provide you
                        with the present cash value of the added benefits you
                        would have received under the Defined Benefit Plans had
                        you continued in your employment for a Measuring Period
                        of TWO years; and

                (d)     a Gross-Up Payment to defray your Excise Tax liability
                        if, following a Change in Control Date, it is determined
                        that any Payment(s) made to you is (are) subject to the
                        Excise Tax.

Payments under subsections (a) and (b) will be made within five (5) days of your
Date of Termination and payment under subsection (c) will be made within
forty-five (45) days of your date of termination. All calculations necessary to
compute the Supplementary Pension Benefit Payment shall be done by the
Accounting Firm at Employer's expense. Appendix II sets forth the applicable
procedures relating to the Gross-Up Payment.

<PAGE>   3

        3.      Benefit Continuation in the Event of Involuntary Termination
During the Term. In the event of your Involuntary Termination during the Term
Employer shall maintain all Benefit Plans in full force and effect, for the
continued benefit of you and your eligible dependents for a maximum Benefits
Continuation Period of TWO years. Employer's obligation under this Section 3 is
subject to the following: (i) that your and your eligible dependent's continued
participation is possible under the general terms and provisions of such Benefit
Plans (and under the terms of any applicable funding media) and (ii) that you
continue to pay an amount equal to your regular contribution under such plans
for such participation. You and your eligible dependents continued participation
in such plans shall also be subject to the additional conditions stated in
Appendix III.

        4.      Notice of Termination. Any termination of your employment by
Employer or by you during the Term shall be communicated by a Notice of
Termination to the other parties hereto.

        5.      No Mitigation or Offset; Employer's Opportunity to Correct. You
shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Agreement be reduced by any compensation
earned by you as the result of employment by another employer or by pension
benefits paid by Employer or Employer's plans after the Date of Termination or
otherwise, except as provided in the definition of "Benefit Continuation
Period." No event shall constitute Good Reason for your resignation unless your
claim to that effect is communicated by you to Employer in writing and is not
corrected by Employer or Parent in a manner which is reasonably satisfactory to
you (including full retroactive correction with respect to any monetary matter)
within ten (10) days of the Employer's receipt of such written notice from you.

        6.      Legal Fees and Expenses Necessary to Enforce Agreement. The
Employer shall pay or reimburse you on an after-tax basis for all costs and
expenses (including, without limitation, court costs and reasonable legal fees
and expenses which reflect common practice with respect to the matters involved)
incurred by you as a result of any claim, action or proceeding (i) contesting,
disputing or enforcing any right, benefits or obligations under this Agreement
or which you reasonably claim to have or to be owed to you by Employer or Parent
or (ii) arising out of or challenging the validity, advisability or
enforceability of this Agreement or any provision hereof; provided, however,
that the amount of the payments and reimbursements under this Section 5 shall
not exceed $50,000.

        7.      Employment During the Term. During the Term you shall be
employed by Employer on the terms and conditions on which you were employed
immediately prior to the Change in Control Date without any Substantial Change.

<PAGE>   4

        8.      Successors; Binding Agreement; Respective Responsibilities of
Parent and Employer.

                (a)     Assumption by Successor. Parent and Employer will each
require their respective successors (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
or assets of either, to expressly assume and to agree to perform this Agreement
for your benefit in the same manner and to the same extent that the Parent or
the Employer, as the case may be, would be required to perform it if no such
succession had taken place; provided, however, that no such assumption shall
relieve either the Parent or the Employer of its obligations hereunder, and no
failure to expressly assume and agree to perform this Agreement shall relieve
any successor of its obligations under this Agreement by operation of law.

                (b)     Enforceability; Beneficiaries. This Agreement shall be
binding upon, inure to the benefit of and be enforceable by you (and your
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees) and the Parent and Employer and any
Person(s) which succeeds to substantially all of the business or assets of the
Parent or Employer, whether by means of merger, consolidation, acquisition of
all or substantially all of the assets of the Parent or Employer or otherwise,
including, without limitation, as a result of a Change in Control or by
operation of law.

                (c)     Joint and Several Liability. Parent shall be jointly and
severally liable with Employer for all Employer's obligations hereunder and
Employer shall be jointly and severally liable with Parent for all Parent's
obligations hereunder.

        9.      Notices. For the purposes of this Agreement, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when hand-delivered or when mailed by
United States registered mail, return receipt requested, postage prepaid,
addressed, if to Parent or Employer, to the Boards of Directors, Tiffany & Co.
and Tiffany and Company, 600 Madison Avenue, New York, NY 10022, Attn. Legal
Department, or, if to you, to you at the address set forth on the first page of
this Agreement, or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

        10.     Miscellaneous.

                (a)     Amendments, Waivers, Etc. No provision of this Agreement
may be modified, waived or discharged unless such waiver, modification or
discharge is agreed to in writing, No waiver by either party hereto 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 provision or conditions at the same or at any
later or subsequent time. No agreements or

<PAGE>   5

representations, oral or otherwise, express or implied, with respect to the
subject matter here have been made by either party which are not expressly set
forth in this Agreement

and this Agreement shall supersede all prior agreements, negotiations,
correspondence, undertakings and communications of the parties, oral or written,
with respect to the subject matter hereof.

                (b)     Validity. The invalidity or unenforceability of any
provision 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.

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

                (d)     No Contract of Employment. Nothing in this Agreement
shall be construed as giving you any right to be retained in the employ of
Employer or Parent nor shall it affect the terms and conditions of your
employment with Employer prior to the commencement of the Term hereof. Failing
the occurrence of a Change in Control Date your employment shall continue to be
"at will," meaning that either you or Employer may terminate your employment
with or without cause, for any reason or no reason, with or without notice.

                (e)     Withholding. Amounts paid to you hereunder shall be
subject to all applicable federal, state and local withholding taxes.

                (f)     Source of Payments. All payments provided under this
Agreement, other than payments made pursuant to a Benefit Plan which provides
otherwise, shall be paid in cash from the general funds of Employer or Parent,
and no special or separate fund shall be established, and no other segregation
of assets made, to assure payment. You will have no right, title or interest
whatsoever in or to any investments which Employer or Parent may make to aid it
in meeting its obligations hereunder. To the extent that any person acquires a
right to receive payments from Employer or Parent hereunder, such right shall be
no greater than the right of an unsecured creditor of Parent or Employer, as the
case may be.

                (g)     Headings. The headings contained in this Agreement are
intended solely for convenience of reference and shall not affect the rights of
the parties to this Agreement.

                (h)     Governing Law. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of
the State of New York applicable to contracts entered into and to be performed
in this State.

<PAGE>   6

        If this letter set forth our agreement on the subject matter hereof,
kindly sign and return to Employer the enclosed copy of this letter which will
then constitute the agreement among us on this subject.

Sincerely,

TIFFANY & CO. ("Parent")

By:    /s/ Michael J. Kowalski
   ---------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

TIFFANY AND COMPANY ("Employer")

By:    /s/ Michael J. Kowalski
   ---------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

Agreed to as of this 26 day of March 2001

       /s/ John S. Petterson
------------------------------------
       John S. Petterson

Attachment: Appendices I through III

<PAGE>   7

                                                                 Exhibit 10.127a
                                                                   Tiffany & Co.
                                                             Report on Form 10-K
                                                                         FY 2000

                              [COMPANY LETTERHEAD]

                                 March 15, 2001

Fernanda M. Kellogg
727 Fifth Avenue
New York, NY 10022

        Re: RETENTION AGREEMENT

Dear Fernanda:

        Tiffany and Company and Tiffany & Co. (respectively, "EMPLOYER" and
"PARENT,") wish to take steps to retain key management, it being recognized that
future discussions concerning a Change of Control or a decision to cooperate in
or effect a Change of Control could result in the departure or distraction of
key management at a time when Parent and Employer Board would require the clear
and focused attention of experienced management, unafflicted with concerns for
personal financial and job security. Accordingly, in order to induce you to
remain in the employ of the Employer, Parent and Employer have determined to
enter into this letter agreement (this "AGREEMENT") which addresses the terms
and conditions of your employment in the event of a Change of Control.

        This Agreement will provide you with certain payments and benefits
should you incur an Involuntary Termination after a Change of Control Date.

        An "Involuntary Termination" means (i) your termination of employment
by Employer during the Term without Cause or (ii) your resignation of employment
with the

<PAGE>   8

Employer during the Term for Good Reason. The terms "Change of Control
Date," "Term," "Cause," "Good Reason" and other initially capitalized words and
phrases used in this letter agreement shall have the meanings ascribed to them
in Appendix I attached. With respect to your specific situation, you would also
have "Good Reason" to resign from employment with Employer if any of the
following occurs after a Change of Control Date:

                (A)     at any time you are not the Chief Public Relations
                        Officer of the Successor Entity or the Controlling
                        Entity; and

                (B)     any similar adverse change on or after the Change in
                        Control Date in your title, position or reporting
                        responsibilities.

        1.      Term of Employment Under This Agreement. The Term of your
employment under this Agreement shall not commence unless and until a Change in
Control Date occurs and shall continue thereafter until the SECOND anniversary
of the Change in Control Date.

        2.      Cash Payments in the Event of Involuntary Termination During the
Term. In the event of your Involuntary Termination during the Term you will be
paid the following amounts in cash by the Employer:

                (a)     your Earned Compensation previously unpaid;

                (b)     a severance payment equal to the sum of (i) TWO times
                        your Reference Salary and (ii) TWO times your Reference
                        Bonus; and

                (c)     a Supplementary Pension Payment designed to provide you
                        with the present cash value of the added benefits you
                        would have received under the Defined Benefit Plans had
                        you continued in your employment for a Measuring Period
                        of TWO years; and

                (d)     a Gross-Up Payment to defray your Excise Tax liability
                        if, following a Change in Control Date, it is determined
                        that any Payment(s) made to you is (are) subject to the
                        Excise Tax.

Payments under subsections (a) and (b) will be made within five (5) days of your
Date of Termination and payment under subsection (c) will be made within
forty-five (45) days of your date of termination. All calculations necessary to
compute the Supplementary Pension Benefit Payment shall be done by the
Accounting Firm at Employer's expense. Appendix II sets forth the applicable
procedures relating to the Gross-Up Payment.

<PAGE>   9

        3.      Benefit Continuation in the Event of Involuntary Termination
During the Term. In the event of your Involuntary Termination during the Term
Employer shall maintain all Benefit Plans in full force and effect, for the
continued benefit of you and your eligible dependents for a maximum Benefits
Continuation Period of TWO years. Employer's obligation under this Section 3 is
subject to the following: (i) that your and your eligible dependent's continued
participation is possible under the general terms and provisions of such Benefit
Plans (and under the terms of any applicable funding media) and (ii) that you
continue to pay an amount equal to your regular contribution under such plans
for such participation. You and your eligible dependents continued participation
in such plans shall also be subject to the additional conditions stated in
Appendix III.

        4.      Notice of Termination. Any termination of your employment by
Employer or by you during the Term shall be communicated by a Notice of
Termination to the other parties hereto.

        5.      No Mitigation or Offset; Employer's Opportunity to Correct. You
shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Agreement be reduced by any compensation
earned by you as the result of employment by another employer or by pension
benefits paid by Employer or Employer's plans after the Date of Termination or
otherwise, except as provided in the definition of "Benefit Continuation
Period." No event shall constitute Good Reason for your resignation unless your
claim to that effect is communicated by you to Employer in writing and is not
corrected by Employer or Parent in a manner which is reasonably satisfactory to
you (including full retroactive correction with respect to any monetary matter)
within ten (10) days of the Employer's receipt of such written notice from you.

        6.      Legal Fees and Expenses Necessary to Enforce Agreement. The
Employer shall pay or reimburse you on an after-tax basis for all costs and
expenses (including, without limitation, court costs and reasonable legal fees
and expenses which reflect common practice with respect to the matters involved)
incurred by you as a result of any claim, action or proceeding (i) contesting,
disputing or enforcing any right, benefits or obligations under this Agreement
or which you reasonably claim to have or to be owed to you by Employer or Parent
or (ii) arising out of or challenging the validity, advisability or
enforceability of this Agreement or any provision hereof; provided, however,
that the amount of the payments and reimbursements under this Section 5 shall
not exceed $50,000.

        7.      Employment During the Term. During the Term you shall be
employed by Employer on the terms and conditions on which you were employed
immediately prior to the Change in Control Date without any Substantial Change.

<PAGE>   10

        8.      Successors; Binding Agreement; Respective Responsibilities of
Parent and Employer.

                (a)     Assumption by Successor. Parent and Employer will each
require their respective successors (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
or assets of either, to expressly assume and to agree to perform this Agreement
for your benefit in the same manner and to the same extent that the Parent or
the Employer, as the case may be, would be required to perform it if no such
succession had taken place; provided, however, that no such assumption shall
relieve either the Parent or the Employer of its obligations hereunder, and no
failure to expressly assume and agree to perform this Agreement shall relieve
any successor of its obligations under this Agreement by operation of law.

                (b)     Enforceability; Beneficiaries. This Agreement shall be
binding upon, inure to the benefit of and be enforceable by you (and your
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees) and the Parent and Employer and any
Person(s) which succeeds to substantially all of the business or assets of the
Parent or Employer, whether by means of merger, consolidation, acquisition of
all or substantially all of the assets of the Parent or Employer or otherwise,
including, without limitation, as a result of a Change in Control or by
operation of law.

                (c)     Joint and Several Liability. Parent shall be jointly and
severally liable with Employer for all Employer's obligations hereunder and
Employer shall be jointly and severally liable with Parent for all Parent's
obligations hereunder.

        9.      Notices. For the purposes of this Agreement, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when hand-delivered or when mailed by
United States registered mail, return receipt requested, postage prepaid,
addressed, if to Parent or Employer, to the Boards of Directors, Tiffany & Co.
and Tiffany and Company, 600 Madison Avenue, New York, NY 10022, Attn. Legal
Department, or, if to you, to you at the address set forth on the first page of
this Agreement, or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

        10.     Miscellaneous.

                (a)     Amendments, Waivers, Etc. No provision of this Agreement
may be modified, waived or discharged unless such waiver, modification or
discharge is agreed to in writing, No waiver by either party hereto 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 provision or conditions at the same or at any
later or subsequent time. No agreements or

<PAGE>   11

representations, oral or otherwise, express or implied, with respect to the
subject matter here have been made by either party which are not expressly set
forth in this Agreement

and this Agreement shall supersede all prior agreements, negotiations,
correspondence, undertakings and communications of the parties, oral or written,
with respect to the subject matter hereof.

                (b)     Validity. The invalidity or unenforceability of any
provision 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.

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

                (d)     No Contract of Employment. Nothing in this Agreement
shall be construed as giving you any right to be retained in the employ of
Employer or Parent nor shall it affect the terms and conditions of your
employment with Employer prior to the commencement of the Term hereof. Failing
the occurrence of a Change in Control Date your employment shall continue to be
"at will," meaning that either you or Employer may terminate your employment
with or without cause, for any reason or no reason, with or without notice.

                (e)     Withholding. Amounts paid to you hereunder shall be
subject to all applicable federal, state and local withholding taxes.

                (f)     Source of Payments. All payments provided under this
Agreement, other than payments made pursuant to a Benefit Plan which provides
otherwise, shall be paid in cash from the general funds of Employer or Parent,
and no special or separate fund shall be established, and no other segregation
of assets made, to assure payment. You will have no right, title or interest
whatsoever in or to any investments which Employer or Parent may make to aid it
in meeting its obligations hereunder. To the extent that any person acquires a
right to receive payments from Employer or Parent hereunder, such right shall be
no greater than the right of an unsecured creditor of Parent or Employer, as the
case may be.

                (g)     Headings. The headings contained in this Agreement are
intended solely for convenience of reference and shall not affect the rights of
the parties to this Agreement.

                (h)     Governing Law. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of
the State of New York applicable to contracts entered into and to be performed
in this State.

<PAGE>   12

        If this letter set forth our agreement on the subject matter hereof,
kindly sign and return to Employer the enclosed copy of this letter which will
then constitute the agreement among us on this subject.

Sincerely,

TIFFANY & CO. ("Parent")

By:    /s/ Michael J. Kowalski
   ----------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

TIFFANY AND COMPANY ("Employer")

By:    /s/ Michael J. Kowalski
   ----------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

Agreed to as of this 29 day of March 2001

       /s/ Fernanda M. Kellogg
------------------------------------
       Fernanda M. Kellogg

Attachment: Appendices I through III

<PAGE>   13

                                                                 Exhibit 10.127a
                                                                   Tiffany & Co.
                                                             Report on Form 10-K
                                                                         FY 2000

                              [COMPANY LETTERHEAD]

                                 March 15, 2001

Victoria Berger-Gross
727 Fifth Avenue
New York, NY 10022

        Re: RETENTION AGREEMENT

Dear Victoria:

        Tiffany and Company and Tiffany & Co. (respectively, "EMPLOYER" and
"PARENT,") wish to take steps to retain key management, it being recognized that
future discussions concerning a Change of Control or a decision to cooperate in
or effect a Change of Control could result in the departure or distraction of
key management at a time when Parent and Employer Board would require the clear
and focused attention of experienced management, unafflicted with concerns for
personal financial and job security. Accordingly, in order to induce you to
remain in the employ of the Employer, Parent and Employer have determined to
enter into this letter agreement (this "AGREEMENT") which addresses the terms
and conditions of your employment in the event of a Change of Control.

        This Agreement will provide you with certain payments and benefits
should you incur an Involuntary Termination after a Change of Control Date.

        An "Involuntary Termination" means (i) your termination of employment
by Employer during the Term without Cause or (ii) your resignation of employment
with the

<PAGE>   14

Employer during the Term for Good Reason. The terms "Change of Control Date,"
"Term," "Cause," "Good Reason" and other initially capitalized words and phrases
used in this letter agreement shall have the meanings ascribed to them in
Appendix I attached. With respect to your specific situation, you would also
have "Good Reason" to resign from employment with Employer if any of the
following occurs after a Change of Control Date:

                (A)     at any time you are not the Chief Human Resources
                        Officer of the Successor Entity or the Controlling
                        Entity; and

                (B)     any similar adverse change on or after the Change in
                        Control Date in your title, position or reporting
                        responsibilities.

        1.      Term of Employment Under This Agreement. The Term of your
employment under this Agreement shall not commence unless and until a Change in
Control Date occurs and shall continue thereafter until the SECOND anniversary
of the Change in Control Date.

        2.      Cash Payments in the Event of Involuntary Termination During the
Term. In the event of your Involuntary Termination during the Term you will be
paid the following amounts in cash by the Employer:

                (a)     your Earned Compensation previously unpaid;

                (b)     a severance payment equal to the sum of (i) TWO times
                        your Reference Salary and (ii) TWO times your Reference
                        Bonus; and

                (c)     a Supplementary Pension Payment designed to provide you
                        with the present cash value of the added benefits you
                        would have received under the Defined Benefit Plans had
                        you continued in your employment for a Measuring Period
                        of TWO years; and

                (d)     a Gross-Up Payment to defray your Excise Tax liability
                        if, following a Change in Control Date, it is determined
                        that any Payment(s) made to you is (are) subject to the
                        Excise Tax.

Payments under subsections (a) and (b) will be made within five (5) days of your
Date of Termination and payment under subsection (c) will be made within
forty-five (45) days of your date of termination. All calculations necessary to
compute the Supplementary Pension Benefit Payment shall be done by the
Accounting Firm at Employer's expense. Appendix II sets forth the applicable
procedures relating to the Gross-Up Payment.

<PAGE>   15

        3.      Benefit Continuation in the Event of Involuntary Termination
During the Term. In the event of your Involuntary Termination during the Term
Employer shall maintain all Benefit Plans in full force and effect, for the
continued benefit of you and your eligible dependents for a maximum Benefits
Continuation Period of TWO years. Employer's obligation under this Section 3 is
subject to the following: (i) that your and your eligible dependent's continued
participation is possible under the general terms and provisions of such Benefit
Plans (and under the terms of any applicable funding media) and (ii) that you
continue to pay an amount equal to your regular contribution under such plans
for such participation. You and your eligible dependents continued participation
in such plans shall also be subject to the additional conditions stated in
Appendix III.

        4.      Notice of Termination. Any termination of your employment by
Employer or by you during the Term shall be communicated by a Notice of
Termination to the other parties hereto.

        5.      No Mitigation or Offset; Employer's Opportunity to Correct. You
shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Agreement be reduced by any compensation
earned by you as the result of employment by another employer or by pension
benefits paid by Employer or Employer's plans after the Date of Termination or
otherwise, except as provided in the definition of "Benefit Continuation
Period." No event shall constitute Good Reason for your resignation unless your
claim to that effect is communicated by you to Employer in writing and is not
corrected by Employer or Parent in a manner which is reasonably satisfactory to
you (including full retroactive correction with respect to any monetary matter)
within ten (10) days of the Employer's receipt of such written notice from you.

        6.      Legal Fees and Expenses Necessary to Enforce Agreement. The
Employer shall pay or reimburse you on an after-tax basis for all costs and
expenses (including, without limitation, court costs and reasonable legal fees
and expenses which reflect common practice with respect to the matters involved)
incurred by you as a result of any claim, action or proceeding (i) contesting,
disputing or enforcing any right, benefits or obligations under this Agreement
or which you reasonably claim to have or to be owed to you by Employer or Parent
or (ii) arising out of or challenging the validity, advisability or
enforceability of this Agreement or any provision hereof; provided, however,
that the amount of the payments and reimbursements under this Section 5 shall
not exceed $50,000.

        7.      Employment During the Term. During the Term you shall be
employed by Employer on the terms and conditions on which you were employed
immediately prior to the Change in Control Date without any Substantial Change.

<PAGE>   16

        8.      Successors; Binding Agreement; Respective Responsibilities of
Parent and Employer.

                (a)     Assumption by Successor. Parent and Employer will each
require their respective successors (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
or assets of either, to expressly assume and to agree to perform this Agreement
for your benefit in the same manner and to the same extent that the Parent or
the Employer, as the case may be, would be required to perform it if no such
succession had taken place; provided, however, that no such assumption shall
relieve either the Parent or the Employer of its obligations hereunder, and no
failure to expressly assume and agree to perform this Agreement shall relieve
any successor of its obligations under this Agreement by operation of law.

                (b)     Enforceability; Beneficiaries. This Agreement shall be
binding upon, inure to the benefit of and be enforceable by you (and your
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees) and the Parent and Employer and any
Person(s) which succeeds to substantially all of the business or assets of the
Parent or Employer, whether by means of merger, consolidation, acquisition of
all or substantially all of the assets of the Parent or Employer or otherwise,
including, without limitation, as a result of a Change in Control or by
operation of law.

                (c)     Joint and Several Liability. Parent shall be jointly and
severally liable with Employer for all Employer's obligations hereunder and
Employer shall be jointly and severally liable with Parent for all Parent's
obligations hereunder.

        9.      Notices. For the purposes of this Agreement, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when hand-delivered or when mailed by
United States registered mail, return receipt requested, postage prepaid,
addressed, if to Parent or Employer, to the Boards of Directors, Tiffany & Co.
and Tiffany and Company, 600 Madison Avenue, New York, NY 10022, Attn. Legal
Department, or, if to you, to you at the address set forth on the first page of
this Agreement, or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

        10.     Miscellaneous.

                (a)     Amendments, Waivers, Etc. No provision of this Agreement
may be modified, waived or discharged unless such waiver, modification or
discharge is agreed to in writing, No waiver by either party hereto 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 provision or conditions at the same or at any
later or subsequent time. No agreements or

<PAGE>   17

representations, oral or otherwise, express or implied, with respect to the
subject matter here have been made by either party which are not expressly set
forth in this Agreement

and this Agreement shall supersede all prior agreements, negotiations,
correspondence, undertakings and communications of the parties, oral or written,
with respect to the subject matter hereof.

                (b)     Validity. The invalidity or unenforceability of any
provision 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.

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

                (d)     No Contract of Employment. Nothing in this Agreement
shall be construed as giving you any right to be retained in the employ of
Employer or Parent nor shall it affect the terms and conditions of your
employment with Employer prior to the commencement of the Term hereof. Failing
the occurrence of a Change in Control Date your employment shall continue to be
"at will," meaning that either you or Employer may terminate your employment
with or without cause, for any reason or no reason, with or without notice.

                (e)     Withholding. Amounts paid to you hereunder shall be
subject to all applicable federal, state and local withholding taxes.

                (f)     Source of Payments. All payments provided under this
Agreement, other than payments made pursuant to a Benefit Plan which provides
otherwise, shall be paid in cash from the general funds of Employer or Parent,
and no special or separate fund shall be established, and no other segregation
of assets made, to assure payment. You will have no right, title or interest
whatsoever in or to any investments which Employer or Parent may make to aid it
in meeting its obligations hereunder. To the extent that any person acquires a
right to receive payments from Employer or Parent hereunder, such right shall be
no greater than the right of an unsecured creditor of Parent or Employer, as the
case may be.

                (g)     Headings. The headings contained in this Agreement are
intended solely for convenience of reference and shall not affect the rights of
the parties to this Agreement.

                (h)     Governing Law. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of
the State of New York applicable to contracts entered into and to be performed
in this State.

<PAGE>   18

        If this letter set forth our agreement on the subject matter hereof,
kindly sign and return to Employer the enclosed copy of this letter which will
then constitute the agreement among us on this subject.

Sincerely,

TIFFANY & CO. ("Parent")

By:    /s/ Michael J. Kowalski
   ---------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

TIFFANY AND COMPANY ("Employer")

By:    /s/ Michael J. Kowalski
   ---------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

Agreed to as of this  22 day of  March 2001

       /s/ Victoria Berger-Gross
------------------------------------
       Victoria Berger-Gross

Attachment: Appendices I through III

<PAGE>   19

                                                                 Exhibit 10.127a
                                                                   Tiffany & Co.
                                                             Report on Form 10-K
                                                                         FY 2000

                              [COMPANY LETTERHEAD]

                                 March 15, 2001

Linda A. Hanson
727 Fifth Avenue
New York, NY 10022

        Re: RETENTION AGREEMENT

Dear Linda:

        Tiffany and Company and Tiffany & Co. (respectively, "EMPLOYER" and
"PARENT,") wish to take steps to retain key management, it being recognized that
future discussions concerning a Change of Control or a decision to cooperate in
or effect a Change of Control could result in the departure or distraction of
key management at a time when Parent and Employer Board would require the clear
and focused attention of experienced management, unafflicted with concerns for
personal financial and job security. Accordingly, in order to induce you to
remain in the employ of the Employer, Parent and Employer have determined to
enter into this letter agreement (this "AGREEMENT") which addresses the terms
and conditions of your employment in the event of a Change of Control.

        This Agreement will provide you with certain payments and benefits
should you incur an Involuntary Termination after a Change of Control Date.

<PAGE>   20

        An "Involuntary Termination" means (i) your termination of employment
by Employer during the Term without Cause or (ii) your resignation of employment
with the Employer during the Term for Good Reason. The terms "Change of Control
Date," "Term," "Cause," "Good Reason" and other initially capitalized words and
phrases used in this letter agreement shall have the meanings ascribed to them
in Appendix I attached. With respect to your specific situation, you would also
have "Good Reason" to resign from employment with Employer if any of the
following occurs after a Change of Control Date:

                (A)     at any time you are not the Chief Merchandising Officer
                        of the Successor Entity or the Controlling Entity; and

                (B)     any similar adverse change on or after the Change in
                        Control Date in your title, position or reporting
                        responsibilities.

        1.      Term of Employment Under This Agreement. The Term of your
employment under this Agreement shall not commence unless and until a Change in
Control Date occurs and shall continue thereafter until the SECOND anniversary
of the Change in Control Date.

        2.      Cash Payments in the Event of Involuntary Termination During the
Term. In the event of your Involuntary Termination during the Term you will be
paid the following amounts in cash by the Employer:

                (a)     your Earned Compensation previously unpaid;

                (b)     a severance payment equal to the sum of (i) TWO times
                        your Reference Salary and (ii) TWO times your Reference
                        Bonus; and

                (c)     a Supplementary Pension Payment designed to provide you
                        with the present cash value of the added benefits you
                        would have received under the Defined Benefit Plans had
                        you continued in your employment for a Measuring Period
                        of TWO years; and

                (d)     a Gross-Up Payment to defray your Excise Tax liability
                        if, following a Change in Control Date, it is determined
                        that any Payment(s) made to you is (are) subject to the
                        Excise Tax.

Payments under subsections (a) and (b) will be made within five (5) days of your
Date of Termination and payment under subsection (c) will be made within
forty-five (45) days of your date of termination. All calculations necessary to
compute the Supplementary Pension Benefit Payment shall be done by the
Accounting Firm at Employer's expense. Appendix II sets forth the applicable
procedures relating to the Gross-Up Payment.

<PAGE>   21

        3.      Benefit Continuation in the Event of Involuntary Termination
During the Term. In the event of your Involuntary Termination during the Term
Employer shall maintain all Benefit Plans in full force and effect, for the
continued benefit of you and your eligible dependents for a maximum Benefits
Continuation Period of TWO years. Employer's obligation under this Section 3 is
subject to the following: (i) that your and your eligible dependent's continued
participation is possible under the general terms and provisions of such Benefit
Plans (and under the terms of any applicable funding media) and (ii) that you
continue to pay an amount equal to your regular contribution under such plans
for such participation. You and your eligible dependents continued participation
in such plans shall also be subject to the additional conditions stated in
Appendix III.

        4.      Notice of Termination. Any termination of your employment by
Employer or by you during the Term shall be communicated by a Notice of
Termination to the other parties hereto.

        5.      No Mitigation or Offset; Employer's Opportunity to Correct. You
shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Agreement be reduced by any compensation
earned by you as the result of employment by another employer or by pension
benefits paid by Employer or Employer's plans after the Date of Termination or
otherwise, except as provided in the definition of "Benefit Continuation
Period." No event shall constitute Good Reason for your resignation unless your
claim to that effect is communicated by you to Employer in writing and is not
corrected by Employer or Parent in a manner which is reasonably satisfactory to
you (including full retroactive correction with respect to any monetary matter)
within ten (10) days of the Employer's receipt of such written notice from you.

        6.      Legal Fees and Expenses Necessary to Enforce Agreement. The
Employer shall pay or reimburse you on an after-tax basis for all costs and
expenses (including, without limitation, court costs and reasonable legal fees
and expenses which reflect common practice with respect to the matters involved)
incurred by you as a result of any claim, action or proceeding (i) contesting,
disputing or enforcing any right, benefits or obligations under this Agreement
or which you reasonably claim to have or to be owed to you by Employer or Parent
or (ii) arising out of or challenging the validity, advisability or
enforceability of this Agreement or any provision hereof; provided, however,
that the amount of the payments and reimbursements under this Section 5 shall
not exceed $50,000.

        7.      Employment During the Term. During the Term you shall be
employed by Employer on the terms and conditions on which you were employed
immediately prior to the Change in Control Date without any Substantial Change.

<PAGE>   22

        8.      Successors; Binding Agreement; Respective Responsibilities of
Parent and Employer.

                (a)     Assumption by Successor. Parent and Employer will each
require their respective successors (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
or assets of either, to expressly assume and to agree to perform this Agreement
for your benefit in the same manner and to the same extent that the Parent or
the Employer, as the case may be, would be required to perform it if no such
succession had taken place; provided, however, that no such assumption shall
relieve either the Parent or the Employer of its obligations hereunder, and no
failure to expressly assume and agree to perform this Agreement shall relieve
any successor of its obligations under this Agreement by operation of law.

                (b)     Enforceability; Beneficiaries. This Agreement shall be
binding upon, inure to the benefit of and be enforceable by you (and your
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees) and the Parent and Employer and any
Person(s) which succeeds to substantially all of the business or assets of the
Parent or Employer, whether by means of merger, consolidation, acquisition of
all or substantially all of the assets of the Parent or Employer or otherwise,
including, without limitation, as a result of a Change in Control or by
operation of law.

                (c)     Joint and Several Liability. Parent shall be jointly and
severally liable with Employer for all Employer's obligations hereunder and
Employer shall be jointly and severally liable with Parent for all Parent's
obligations hereunder.

        9.      Notices. For the purposes of this Agreement, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when hand-delivered or when mailed by
United States registered mail, return receipt requested, postage prepaid,
addressed, if to Parent or Employer, to the Boards of Directors, Tiffany & Co.
and Tiffany and Company, 600 Madison Avenue, New York, NY 10022, Attn. Legal
Department, or, if to you, to you at the address set forth on the first page of
this Agreement, or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

        10.     Miscellaneous.

                (a)     Amendments, Waivers, Etc. No provision of this Agreement
may be modified, waived or discharged unless such waiver, modification or
discharge is agreed to in writing, No waiver by either party hereto 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 provision or conditions at the same or at any
later or subsequent time. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter here have been made by
either party which are not expressly set forth in this Agreement

<PAGE>   23

and this Agreement shall supersede all prior agreements, negotiations,
correspondence, undertakings and communications of the parties, oral or written,
with respect to the subject matter hereof.

                (b)     Validity. The invalidity or unenforceability of any
provision 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.

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

                (d)     No Contract of Employment. Nothing in this Agreement
shall be construed as giving you any right to be retained in the employ of
Employer or Parent nor shall it affect the terms and conditions of your
employment with Employer prior to the commencement of the Term hereof. Failing
the occurrence of a Change in Control Date your employment shall continue to be
"at will," meaning that either you or Employer may terminate your employment
with or without cause, for any reason or no reason, with or without notice.

                (e)     Withholding. Amounts paid to you hereunder shall be
subject to all applicable federal, state and local withholding taxes.

                (f)     Source of Payments. All payments provided under this
Agreement, other than payments made pursuant to a Benefit Plan which provides
otherwise, shall be paid in cash from the general funds of Employer or Parent,
and no special or separate fund shall be established, and no other segregation
of assets made, to assure payment. You will have no right, title or interest
whatsoever in or to any investments which Employer or Parent may make to aid it
in meeting its obligations hereunder. To the extent that any person acquires a
right to receive payments from Employer or Parent hereunder, such right shall be
no greater than the right of an unsecured creditor of Parent or Employer, as the
case may be.

                (g)     Headings. The headings contained in this Agreement are
intended solely for convenience of reference and shall not affect the rights of
the parties to this Agreement.

                (h)     Governing Law. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of
the State of New York applicable to contracts entered into and to be performed
in this State.

<PAGE>   24

        If this letter set forth our agreement on the subject matter hereof,
kindly sign and return to Employer the enclosed copy of this letter which will
then constitute the agreement among us on this subject.

Sincerely,

TIFFANY & CO. ("Parent")

By:    /s/ Michael J. Kowalski
   ---------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

TIFFANY AND COMPANY ("Employer")

By:    /s/ Michael J. Kowalski

   ---------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

Agreed to as of this 22 day of March 2001

     /s/ Linda A. Hanson
------------------------------------
       Linda A. Hanson

Attachment: Appendices I through III

<PAGE>   25

                                                                 Exhibit 10.127a
                                                                   Tiffany & Co.
                                                             Report on Form 10-K
                                                                         FY 2000

                              [COMPANY LETTERHEAD]

                                 March 15, 2001

Caroline D. Naggiar
727 Fifth Avenue
New York, NY 10022

        Re: RETENTION AGREEMENT

Dear Caroline:

        Tiffany and Company and Tiffany & Co. (respectively, "EMPLOYER" and
"PARENT,") wish to take steps to retain key management, it being recognized that
future discussions concerning a Change of Control or a decision to cooperate in
or effect a Change of Control could result in the departure or distraction of
key management at a time when Parent and Employer Board would require the clear
and focused attention of experienced management, unafflicted with concerns for
personal financial and job security. Accordingly, in order to induce you to
remain in the employ of the Employer, Parent and Employer have determined to
enter into this letter agreement (this "AGREEMENT") which addresses the terms
and conditions of your employment in the event of a Change of Control.

        This Agreement will provide you with certain payments and benefits
should you incur an Involuntary Termination after a Change of Control Date.

<PAGE>   26

        An "Involuntary Termination" means (i) your termination of employment by
Employer during the Term without Cause or (ii) your resignation of employment
with the Employer during the Term for Good Reason. The terms "Change of Control
Date," "Term," "Cause," "Good Reason" and other initially capitalized words and
phrases used in this letter agreement shall have the meanings ascribed to them
in Appendix I attached. With respect to your specific situation, you would also
have "Good Reason" to resign from employment with Employer if any of the
following occurs after a Change of Control Date:

                (A)     at any time you are not the Chief Marketing Officer of
                        the Successor Entity or the Controlling Entity; and

                (B)     any similar adverse change on or after the Change in
                        Control Date in your title, position or reporting
                        responsibilities.

        1.      Term of Employment Under This Agreement. The Term of your
employment under this Agreement shall not commence unless and until a Change in
Control Date occurs and shall continue thereafter until the SECOND anniversary
of the Change in Control Date.

        2.      Cash Payments in the Event of Involuntary Termination During the
Term. In the event of your Involuntary Termination during the Term you will be
paid the following amounts in cash by the Employer:

                (a)     your Earned Compensation previously unpaid;

                (b)     a severance payment equal to the sum of (i) TWO times
                        your Reference Salary and (ii) TWO times your Reference
                        Bonus; and

                (c)     a Supplementary Pension Payment designed to provide you
                        with the present cash value of the added benefits you
                        would have received under the Defined Benefit Plans had
                        you continued in your employment for a Measuring Period
                        of TWO years; and

                (d)     a Gross-Up Payment to defray your Excise Tax liability
                        if, following a Change in Control Date, it is determined
                        that any Payment(s) made to you is (are) subject to the
                        Excise Tax.

Payments under subsections (a) and (b) will be made within five (5) days of your
Date of Termination and payment under subsection (c) will be made within
forty-five (45) days of your date of termination. All calculations necessary to
compute the Supplementary Pension Benefit Payment shall be done by the
Accounting Firm at Employer's expense. Appendix II sets forth the applicable
procedures relating to the Gross-Up Payment.

<PAGE>   27

        3.      Benefit Continuation in the Event of Involuntary Termination
During the Term. In the event of your Involuntary Termination during the Term
Employer shall maintain all Benefit Plans in full force and effect, for the
continued benefit of you and your eligible dependents for a maximum Benefits
Continuation Period of TWO years. Employer's obligation under this Section 3 is
subject to the following: (i) that your and your eligible dependent's continued
participation is possible under the general terms and provisions of such Benefit
Plans (and under the terms of any applicable funding media) and (ii) that you
continue to pay an amount equal to your regular contribution under such plans
for such participation. You and your eligible dependents continued participation
in such plans shall also be subject to the additional conditions stated in
Appendix III.

        4.      Notice of Termination. Any termination of your employment by
Employer or by you during the Term shall be communicated by a Notice of
Termination to the other parties hereto.

        5.      No Mitigation or Offset; Employer's Opportunity to Correct. You
shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Agreement be reduced by any compensation
earned by you as the result of employment by another employer or by pension
benefits paid by Employer or Employer's plans after the Date of Termination or
otherwise, except as provided in the definition of "Benefit Continuation
Period." No event shall constitute Good Reason for your resignation unless your
claim to that effect is communicated by you to Employer in writing and is not
corrected by Employer or Parent in a manner which is reasonably satisfactory to
you (including full retroactive correction with respect to any monetary matter)
within ten (10) days of the Employer's receipt of such written notice from you.

        6.      Legal Fees and Expenses Necessary to Enforce Agreement. The
Employer shall pay or reimburse you on an after-tax basis for all costs and
expenses (including, without limitation, court costs and reasonable legal fees
and expenses which reflect common practice with respect to the matters involved)
incurred by you as a result of any claim, action or proceeding (i) contesting,
disputing or enforcing any right, benefits or obligations under this Agreement
or which you reasonably claim to have or to be owed to you by Employer or Parent
or (ii) arising out of or challenging the validity, advisability or
enforceability of this Agreement or any provision hereof; provided, however,
that the amount of the payments and reimbursements under this Section 5 shall
not exceed $50,000.

        7.      Employment During the Term. During the Term you shall be
employed by Employer on the terms and conditions on which you were employed
immediately prior to the Change in Control Date without any Substantial Change.

<PAGE>   28

        8.      Successors; Binding Agreement; Respective Responsibilities of
Parent and Employer.

                (a)     Assumption by Successor. Parent and Employer will each
require their respective successors (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
or assets of either, to expressly assume and to agree to perform this Agreement
for your benefit in the same manner and to the same extent that the Parent or
the Employer, as the case may be, would be required to perform it if no such
succession had taken place; provided, however, that no such assumption shall
relieve either the Parent or the Employer of its obligations hereunder, and no
failure to expressly assume and agree to perform this Agreement shall relieve
any successor of its obligations under this Agreement by operation of law.

                (b)     Enforceability; Beneficiaries. This Agreement shall be
binding upon, inure to the benefit of and be enforceable by you (and your
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees) and the Parent and Employer and any
Person(s) which succeeds to substantially all of the business or assets of the
Parent or Employer, whether by means of merger, consolidation, acquisition of
all or substantially all of the assets of the Parent or Employer or otherwise,
including, without limitation, as a result of a Change in Control or by
operation of law.

                (c)     Joint and Several Liability. Parent shall be jointly and
severally liable with Employer for all Employer's obligations hereunder and
Employer shall be jointly and severally liable with Parent for all Parent's
obligations hereunder.

        9.      Notices. For the purposes of this Agreement, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when hand-delivered or when mailed by
United States registered mail, return receipt requested, postage prepaid,
addressed, if to Parent or Employer, to the Boards of Directors, Tiffany & Co.
and Tiffany and Company, 600 Madison Avenue, New York, NY 10022, Attn. Legal
Department, or, if to you, to you at the address set forth on the first page of
this Agreement, or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

        10.     Miscellaneous.

                (a)     Amendments, Waivers, Etc. No provision of this Agreement
may be modified, waived or discharged unless such waiver, modification or
discharge is agreed to in writing, No waiver by either party hereto 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 provision or conditions at the same or at any
later or subsequent time. No agreements or

<PAGE>   29

representations, oral or otherwise, express or implied, with respect to the
subject matter here have been made by either party which are not expressly set
forth in this Agreement

and this Agreement shall supersede all prior agreements, negotiations,
correspondence, undertakings and communications of the parties, oral or written,
with respect to the subject matter hereof.

                (b)     Validity. The invalidity or unenforceability of any
provision 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.

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

                (d)     No Contract of Employment. Nothing in this Agreement
shall be construed as giving you any right to be retained in the employ of
Employer or Parent nor shall it affect the terms and conditions of your
employment with Employer prior to the commencement of the Term hereof. Failing
the occurrence of a Change in Control Date your employment shall continue to be
"at will," meaning that either you or Employer may terminate your employment
with or without cause, for any reason or no reason, with or without notice.

                (e)     Withholding. Amounts paid to you hereunder shall be
subject to all applicable federal, state and local withholding taxes.

                (f)     Source of Payments. All payments provided under this
Agreement, other than payments made pursuant to a Benefit Plan which provides
otherwise, shall be paid in cash from the general funds of Employer or Parent,
and no special or separate fund shall be established, and no other segregation
of assets made, to assure payment. You will have no right, title or interest
whatsoever in or to any investments which Employer or Parent may make to aid it
in meeting its obligations hereunder. To the extent that any person acquires a
right to receive payments from Employer or Parent hereunder, such right shall be
no greater than the right of an unsecured creditor of Parent or Employer, as the
case may be.

                (g)     Headings. The headings contained in this Agreement are
intended solely for convenience of reference and shall not affect the rights of
the parties to this Agreement.

                (h)     Governing Law. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of
the State of New York applicable to contracts entered into and to be performed
in this State.

<PAGE>   30

        If this letter set forth our agreement on the subject matter hereof,
kindly sign and return to Employer the enclosed copy of this letter which will
then constitute the agreement among us on this subject.

Sincerely,

TIFFANY & CO. ("Parent")

By:    /s/ Michael J. Kowalski
   ----------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

TIFFANY AND COMPANY ("Employer")

By:    /s/ Michael J. Kowalski
   ----------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

Agreed to as of this _____ day of _______ 2001

     /s/ Caroline D. Naggiar
------------------------------------
       Caroline D. Naggiar

Attachment: Appendices I through III

<PAGE>   31

                                                                 Exhibit 10.127a
                                                                   Tiffany & Co.
                                                             Report on Form 10-K
                                                                         FY 2000

                              [COMPANY LETTERHEAD]

                                 March 15, 2001

Beth O. Canavan
727 Fifth Avenue
New York, NY 10022

        Re: RETENTION AGREEMENT

Dear Beth:

        Tiffany and Company and Tiffany & Co. (respectively, "EMPLOYER" and
"PARENT,") wish to take steps to retain key management, it being recognized that
future discussions concerning a Change of Control or a decision to cooperate in
or effect a Change of Control could result in the departure or distraction of
key management at a time when Parent and Employer Board would require the clear
and focused attention of experienced management, unafflicted with concerns for
personal financial and job security. Accordingly, in order to induce you to
remain in the employ of the Employer, Parent and Employer have determined to
enter into this letter agreement (this "AGREEMENT") which addresses the terms
and conditions of your employment in the event of a Change of Control.

        This Agreement will provide you with certain payments and benefits
should you incur an Involuntary Termination after a Change of Control Date.

        An "Involuntary Termination" means (i) your termination of employment
by Employer during the Term without Cause or (ii) your resignation of employment
with the Employer during the Term for Good Reason. The terms "Change of Control
Date,"

<PAGE>   32

"Term," "Cause," "Good Reason" and other initially capitalized words and
phrases used in this letter agreement shall have the meanings ascribed to them
in Appendix I attached. With respect to your specific situation, you would also
have "Good Reason" to resign from employment with Employer if any of the
following occurs after a Change of Control Date:

                (A)     at any time you are not the Chief U.S. Retail Officer of
                        the Successor Entity or the Controlling Entity; and

                (B)     any similar adverse change on or after the Change in
                        Control Date in your title, position or reporting
                        responsibilities.

        1.      Term of Employment Under This Agreement. The Term of your
employment under this Agreement shall not commence unless and until a Change in
Control Date occurs and shall continue thereafter until the SECOND anniversary
of the Change in Control Date.

        2.      Cash Payments in the Event of Involuntary Termination During the
Term. In the event of your Involuntary Termination during the Term you will be
paid the following amounts in cash by the Employer:

                (a)     your Earned Compensation previously unpaid;

                (b)     a severance payment equal to the sum of (i) TWO times
                        your Reference Salary and (ii) TWO times your Reference
                        Bonus; and

                (c)     a Supplementary Pension Payment designed to provide you
                        with the present cash value of the added benefits you
                        would have received under the Defined Benefit Plans had
                        you continued in your employment for a Measuring Period
                        of TWO years; and

                (d)     a Gross-Up Payment to defray your Excise Tax liability
                        if, following a Change in Control Date, it is determined
                        that any Payment(s) made to you is (are) subject to the
                        Excise Tax.

Payments under subsections (a) and (b) will be made within five (5) days of your
Date of Termination and payment under subsection (c) will be made within
forty-five (45) days of your date of termination. All calculations necessary to
compute the Supplementary Pension Benefit Payment shall be done by the
Accounting Firm at Employer's expense. Appendix II sets forth the applicable
procedures relating to the Gross-Up Payment.

<PAGE>   33

        3.      Benefit Continuation in the Event of Involuntary Termination
During the Term. In the event of your Involuntary Termination during the Term
Employer shall maintain all Benefit Plans in full force and effect, for the
continued benefit of you and your eligible dependents for a maximum Benefits
Continuation Period of TWO years. Employer's obligation under this Section 3 is
subject to the following: (i) that your and your eligible dependent's continued
participation is possible under the general terms and provisions of such Benefit
Plans (and under the terms of any applicable funding media) and (ii) that you
continue to pay an amount equal to your regular contribution under such plans
for such participation. You and your eligible dependents continued participation
in such plans shall also be subject to the additional conditions stated in
Appendix III.

        4.      Notice of Termination. Any termination of your employment by
Employer or by you during the Term shall be communicated by a Notice of
Termination to the other parties hereto.

        5.      No Mitigation or Offset; Employer's Opportunity to Correct. You
shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Agreement be reduced by any compensation
earned by you as the result of employment by another employer or by pension
benefits paid by Employer or Employer's plans after the Date of Termination or
otherwise, except as provided in the definition of "Benefit Continuation
Period." No event shall constitute Good Reason for your resignation unless your
claim to that effect is communicated by you to Employer in writing and is not
corrected by Employer or Parent in a manner which is reasonably satisfactory to
you (including full retroactive correction with respect to any monetary matter)
within ten (10) days of the Employer's receipt of such written notice from you.

        6.      Legal Fees and Expenses Necessary to Enforce Agreement. The
Employer shall pay or reimburse you on an after-tax basis for all costs and
expenses (including, without limitation, court costs and reasonable legal fees
and expenses which reflect common practice with respect to the matters involved)
incurred by you as a result of any claim, action or proceeding (i) contesting,
disputing or enforcing any right, benefits or obligations under this Agreement
or which you reasonably claim to have or to be owed to you by Employer or Parent
or (ii) arising out of or challenging the validity, advisability or
enforceability of this Agreement or any provision hereof; provided, however,
that the amount of the payments and reimbursements under this Section 5 shall
not exceed $50,000.

        7.      Employment During the Term. During the Term you shall be
employed by Employer on the terms and conditions on which you were employed
immediately prior to the Change in Control Date without any Substantial Change.

<PAGE>   34

        8.      Successors; Binding Agreement; Respective Responsibilities of
Parent and Employer.

                (a)     Assumption by Successor. Parent and Employer will each
require their respective successors (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
or assets of either, to expressly assume and to agree to perform this Agreement
for your benefit in the same manner and to the same extent that the Parent or
the Employer, as the case may be, would be required to perform it if no such
succession had taken place; provided, however, that no such assumption shall
relieve either the Parent or the Employer of its obligations hereunder, and no
failure to expressly assume and agree to perform this Agreement shall relieve
any successor of its obligations under this Agreement by operation of law.

                (b)     Enforceability; Beneficiaries. This Agreement shall be
binding upon, inure to the benefit of and be enforceable by you (and your
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees) and the Parent and Employer and any
Person(s) which succeeds to substantially all of the business or assets of the
Parent or Employer, whether by means of merger, consolidation, acquisition of
all or substantially all of the assets of the Parent or Employer or otherwise,
including, without limitation, as a result of a Change in Control or by
operation of law.

                (c)     Joint and Several Liability. Parent shall be jointly and
severally liable with Employer for all Employer's obligations hereunder and
Employer shall be jointly and severally liable with Parent for all Parent's
obligations hereunder.

        9.      Notices. For the purposes of this Agreement, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when hand-delivered or when mailed by
United States registered mail, return receipt requested, postage prepaid,
addressed, if to Parent or Employer, to the Boards of Directors, Tiffany & Co.
and Tiffany and Company, 600 Madison Avenue, New York, NY 10022, Attn. Legal
Department, or, if to you, to you at the address set forth on the first page of
this Agreement, or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

        10.     Miscellaneous.

                (a)     Amendments, Waivers, Etc. No provision of this Agreement
may be modified, waived or discharged unless such waiver, modification or
discharge is agreed to in writing, No waiver by either party hereto 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 provision or conditions at the same or at any
later or subsequent time. No agreements or

<PAGE>   35

representations, oral or otherwise, express or implied, with respect to the
subject matter here have been made by either party which are not expressly set
forth in this Agreement

and this Agreement shall supersede all prior agreements, negotiations,
correspondence, undertakings and communications of the parties, oral or written,
with respect to the subject matter hereof.

                (b)     Validity. The invalidity or unenforceability of any
provision 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.

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

                (d)     No Contract of Employment. Nothing in this Agreement
shall be construed as giving you any right to be retained in the employ of
Employer or Parent nor shall it affect the terms and conditions of your
employment with Employer prior to the commencement of the Term hereof. Failing
the occurrence of a Change in Control Date your employment shall continue to be
"at will," meaning that either you or Employer may terminate your employment
with or without cause, for any reason or no reason, with or without notice.

                (e)     Withholding. Amounts paid to you hereunder shall be
subject to all applicable federal, state and local withholding taxes.

                (f)     Source of Payments. All payments provided under this
Agreement, other than payments made pursuant to a Benefit Plan which provides
otherwise, shall be paid in cash from the general funds of Employer or Parent,
and no special or separate fund shall be established, and no other segregation
of assets made, to assure payment. You will have no right, title or interest
whatsoever in or to any investments which Employer or Parent may make to aid it
in meeting its obligations hereunder. To the extent that any person acquires a
right to receive payments from Employer or Parent hereunder, such right shall be
no greater than the right of an unsecured creditor of Parent or Employer, as the
case may be.

                (g)     Headings. The headings contained in this Agreement are
intended solely for convenience of reference and shall not affect the rights of
the parties to this Agreement.

                (h)     Governing Law. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of
the State of New York applicable to contracts entered into and to be performed
in this State.

<PAGE>   36

        If this letter set forth our agreement on the subject matter hereof,
kindly sign and return to Employer the enclosed copy of this letter which will
then constitute the agreement among us on this subject.

Sincerely,

TIFFANY & CO. ("Parent")

By:    /s/ Michael J. Kowalski
   ---------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

TIFFANY AND COMPANY ("Employer")

By:    /s/ Michael J. Kowalski
   ---------------------------------
       Name:  Michael J. Kowalski
       Title: President and Chief Executive Officer

Agreed to as of this 30 day of March 2001

       /s/ Beth O. Canavan
------------------------------------
       Beth O. Canavan

Attachment: Appendices I through III

<PAGE>   37

                                                       APPENDIX I - DEFINITIONS

FOR PURPOSES OF THE AGREEMENT, THE FOLLOWING INITIALLY CAPITALIZED WORDS SHALL
HAVE THE MEANINGS SET FORTH BELOW:

        "ACCOUNTING FIRM" shall mean PricewaterhouseCoopers LLP or, if such
firm is unable or unwilling to perform such calculations or provide such
opinions as are required under this Agreement, such other nationally recognized
public accounting firm as shall be designated by agreement of you and the
Employer, or failing such Agreement, as designated by PricewaterhouseCoopers
LLP, provided, however, that if PricewaterhouseCoopers LLP, or any firm
designated by PricewaterhouseCoopers LLP, is serving as accountant or auditor
for the Person or group effecting the Change of Control (other than for Parent
or Employer), you may appoint another nationally recognized public accounting
firm as Accounting Firm hereunder.

        "AFFILIATE" shall mean any Person that controls, is controlled by or is
under common control with, any other Person, directly or indirectly.

        "BENEFIT CONTINUATION PERIOD" means the period beginning on your Date of
Termination and ending following the period of years stated in Section 3,
provided that such period shall earlier terminate on the commencement date of
equivalent benefits from your new employer or your attainment of age sixty-five
(65), whichever first occurs.

        "BENEFIT PLANS" mean all insured and self-insured employee welfare
benefit plans in which you were entitled to participate immediately prior to
your Date of Termination.

        "CAUSE" shall mean a termination of your employment during the Term
which is the result of:

                (i)     your conviction or plea of nolo contendere to a felony
                        involving financial impropriety or a felony which would
                        tend to subject Employer or any of its Affiliates to
                        public criticism or materially interfere with your
                        continued service to Employer;

                (ii)    your willful disclosure of material trade secrets or
                        other material confidential information related to the
                        business of Employer or any of its Affiliates, which
                        disclosure actually results in substantive harm to such
                        business or puts such business at an actual competitive
                        disadvantage;

                (iii)   your willful failure or refusal to perform substantially
                        all such proper and achievable directives issued by your
                        superior (other than any such failure resulting from
                        your incapacity due to physical or mental illness, any
                        such actual or anticipated failure resulting from a
                        resignation by you for Good Reason, or any such refusal
                        made by you in good faith because you believe such
                        directives to be illegal, unethical or immoral) after a
                        written demand for substantial performance is delivered
                        to you on behalf of Employer, which demand specifically
                        identifies the manner in which you have not
                        substantially performed your duties, and which
                        performance is not substantially corrected by you within
                        ten (10) days of receipt of such demand;

                (iv)    your gross negligence in the performance of your duties
                        and responsibilities materially injurious to the
                        Employer;

                (v)     your willful breach of any material obligation that you
                        have to Parent or Employer under any written agreement
                        that you have with either Parent or Employer;

                (vi)    your fraud or dishonesty with regard to Employer or any
                        of its Affiliates;

                                       I-1
<PAGE>   38

                (vii)   your death; or

                (viii)  your Disability.

For purposes of the previous sentence, no act or failure to act on your part
shall be deemed "willful" unless done, or omitted to be done, by you in bad
faith toward, or without reasonable belief that your action or omission was in
the best interests of, Parent, Employer or an Affiliate of Parent or Employer.
Notwithstanding the foregoing, you shall not be deemed to have been terminated
for Cause with respect to items (i) through (vi) or item (viii) unless and until
there shall have been delivered to you a copy of a resolution duly adopted by
the affirmative vote of not less than three-fourths (3/4th) of the entire
membership of the Employer Board at a meeting called and held for such purpose
(after reasonable notice to you and an opportunity for you, together with your
counsel, to be heard before such Board), finding that, in the good faith opinion
of such Board, Cause exists as set forth in items (i), (ii), (iii), (iv), (v),
(vi) or (viii) above.

        "CHANGE IN CONTROL" shall mean a change in control of Parent of a
nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Exchange Act, whether or
not Parent is then subject to such reporting requirement; provided, however,
that, anything in this Agreement to the contrary notwithstanding, a Change in
Control shall be deemed to have occurred if:

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

                (ii)    ten (10) days following the "Shares Acquisition Date" if
                        any Person has in fact become and then remains an
                        "Acquiring Person" under the Rights Plan;

                (iii)   if the Parent Board should resolve to redeem the
                        "Rights" under the Rights Plan in response to a proposal
                        by any Person to acquire, directly or indirectly,
                        securities of Parent representing Fifteen percent (15%)
                        or more of the combined voting power of Parent's then
                        outstanding securities entitled to vote in the election
                        of directors of Parent;

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

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

                                       I-2
<PAGE>   39

                (vi)    all or substantially all of the assets of Parent are
                        sold, liquidated or distributed, except to an Affiliate
                        of Parent;

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

                (viii)  any Person, or any syndicate or group deemed to be a
                        person under Section 14(d)(2) of the Exchange Act,
                        excluding Parent or any of its Affiliates, a trustee or
                        any fiduciary holding securities under an employee
                        benefit plan of Parent or any of its Affiliates, an
                        underwriter temporally holding securities pursuant to an
                        offering of such securities or a corporation owned,
                        directly or indirectly by stockholders of Parent in
                        substantially the same proportion as their ownership of
                        Parent, is or becomes the "beneficial owner" (as defined
                        in Rule 13d-3 of the General Rules and Regulations under
                        the Exchange Act), directly or indirectly, of securities
                        of Employer representing Fifty percent (50%) or more of
                        the combined voting power of Employer's then outstanding
                        securities entitled to vote in the election of directors
                        of Employer; or

                (ix)    there is a "change of control" or a "change in the
                        effective control" of Parent within the meaning of
                        Section 280G of the Code and the Regulations.

        "CHANGE IN CONTROL DATE" shall mean the earliest of:

                (i)     the date on which a Change of Control occurs;

                (ii)    the date on which Parent executes an agreement or its
                        stockholders adopt a resolution, the consummation of
                        which would result in the occurrence of a Change of
                        Control;

                (iii)   the date the Parent Board approves a transaction or
                        series of transactions, the consummation of which would
                        result in a Change in Control; and

                (iv)    the date Parent or Employer fails to satisfy the
                        obligation to have this Agreement expressly assumed by
                        their respective successors in accordance with Section
                        8(a) of the Agreement;

provided that if your employment with Employer terminates prior to any of the
dates specified in items (i) through (iv) of this definition and it is
reasonably demonstrated that your termination of employment (a) was at the
request of a third party who has taken steps reasonably calculated to effect a
Change in Control or (b) otherwise arose in connection with or in anticipation
of a Change in Control, then "Change in Control Date" shall mean the date
immediately prior to your Date of Termination.

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

        "COMMON STOCK" shall mean the common stock of Parent.

        "CONTROLLING ENTITY" shall mean the Controlling Person of the Successor
Entity if such a Controlling Person exists; otherwise "Controlling Entity" shall
mean the Successor Entity.

        The "CONTROLLING PERSON" of any Person shall mean the Person which
ultimately controls such first Person and all other Affiliates of such first
Person, directly or indirectly, through ownership of voting stock or otherwise.

                                      I-3
<PAGE>   40

        Your "DATE OF TERMINATION" shall mean:

                (i)     if your employment is terminated for Disability, thirty
                        (30) days after a Notice of Termination is given
                        (provided that you shall not have returned to the
                        full-time performance of your duties during such thirty
                        (30) day period);

                (ii)    if your employment is terminated by Employer in an
                        Involuntary Termination, five (5) days after the date
                        the Notice of Termination is received by you;

                (iii)   if your employment is terminated by Employer for Cause
                        (other than Disability), the later of the date specified
                        in the Notice of Termination or ten (10) days following
                        the date such Notice is received by you;

                (iv)    if you resign and specify Good Reason, ten (10) days
                        after the date your Notice of Termination is received by
                        Employer; and

                (v)     if you resign and decline to specify Good Reason, the
                        date set forth in your Notice of Termination, which
                        shall be no earlier than ten (10) days after the date
                        such notice is received by Employer.

        "DEFINED BENEFIT PLANS" shall mean, collectively, the Tiffany and
Company Pension Plan and the 1994 Tiffany and Company Supplemental Retirement
Income Plan.

        "DISABILITY" shall mean your incapacity due to physical or mental
illness which causes you to be absent from the full-time performance of your
duties with Employer for six (6) consecutive months provided, however, that you
shall not be determined to be subject to a Disability for purposes of this
Agreement unless you fail to return to full-time performance of your duties with
Employer within thirty (30) days after written Notice of Termination due to
Disability is given to you.

        "EARNED COMPENSATION" shall mean:

                (i)     any earned but unpaid base salary through your Date of
                        Termination at the rate in effect at the time of the
                        Notice of Termination;

                (ii)    all unused vacation time which you may have accrued as
                        of your Date of Termination; and

                (iii)   a pro rata portion of your target bonus or incentive
                        award for the fiscal year in which your Involuntary
                        Termination occurs, calculated on the assumption that
                        all performance targets (including your individual
                        performance targets and sales and earnings targets
                        applicable to the Employer and/or to the Successor
                        Entity) have been or will be achieved.

        "EMPLOYER" shall mean Tiffany and Company, a New York corporation, and
any successor to its business and/or assets by operation of law or otherwise.

        "EMPLOYER BOARD" shall mean the Board of Directors of Employer.

        "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended, and any successor provisions thereto.

        "EXCISE TAX" shall mean the excise tax imposed by Section 4999 of the
Code and interest or penalties with respect to such excise tax.

        "GOOD REASON" means, in addition to those reasons stated in the body of
the Agreement, your resignation from employment with Employer during the Term as
a result of any of the following:

                                      I-4
<PAGE>   41

                (i)     A meaningful and detrimental alteration in your
                        position, your titles, or the nature or status of your
                        responsibilities (including your reporting
                        responsibilities) from those in effect immediately
                        before the Change in Control Date.

                (ii)    A reduction by Employer in your annual base salary as in
                        effect immediately prior to the Change in Control Date
                        or as the same may be increased from time to time
                        thereafter; a failure by the Employer to increase your
                        salary at a rate commensurate with that of other key
                        executives of Employer; or a reduction in your target
                        bonus or incentive award (expressed as a percentage of
                        base salary) below the target in effect for you prior to
                        the Change in Control Date;

                (iii)   The failure by Employer to pay you a bonus or incentive
                        award commensurate with the bonus paid other key
                        executives of Employer (expressed as a percentage of
                        your target bonus) unless such failure is justified by
                        clear and objective deficiencies of the business units
                        for which you are responsible;

                (iv)    the relocation of the office of Employer where you were
                        employed immediately prior to the Change in Control Date
                        to a location which is more than 50 miles away or should
                        Employer require you to be based more than 50 miles away
                        from such office (except for required travel on the
                        Employer's business to an extent substantially
                        consistent with your customary business travel
                        obligations in the ordinary course of business prior to
                        the Change in Control Date);

                (v)     the failure by Employer or Parent to continue in effect
                        any compensation plan in which you participated prior to
                        the Change in Control Date or made available to you
                        after the Change in Control Date, unless an equitable
                        arrangement (embodied in an ongoing substitute or
                        alternative plan) has been made with respect to such
                        plan in connection with the Change in Control, or the
                        failure by Employer or Parent to continue your
                        participation therein on at least as favorable a basis,
                        both in terms of the amount of benefits provided and the
                        level of your participation relative to other
                        participants, as existed on the Change in Control Date;

                (vi)    the failure by Employer or Parent to continue to provide
                        you with benefits at least as favorable in the aggregate
                        to those enjoyed by you under the Defined Benefit Plans,
                        the Benefit Plan or Employer's or Parent's savings, life
                        insurance, disability and fringe benefit plans and
                        programs in which you were participating or had a right
                        to participate immediately prior to the Change in
                        Control Date; or the failure by the Company to provide
                        you with the number of paid vacation days to which you
                        were entitled on the basis of years of service with
                        Employer in accordance with Employer's normal vacation
                        policy in effect immediately prior to the Change in
                        Control Date;

                (vii)   the failure of Employer and Parent to obtain an express
                        agreement reasonably satisfactory to you from their
                        successors, if any, to assume and agree to perform this
                        Agreement, as contemplated in Section 8(a) of the
                        Agreement;

                (viii)  any termination of your employment with Employer which
                        is not effected pursuant to the terms of this Agreement;
                        or

                (ix)    a material breach by Employer or Parent of the
                        provisions of this Agreement.

        "GROSS-UP PAYMENT" means a payment to you by the Employer such that
after payment by you of all Taxes (including any Excise Tax and any state or
federal income taxes) imposed upon the Gross-Up

                                      I-5
<PAGE>   42

Payment, you retain an amount of the Gross-Up Payment equal to the sum of (x)
the Excise Tax imposed upon the Payments which have triggered your right to a
Gross-Up Payment and (y) the product of any deductions disallowed you because of
the inclusion of the Gross-Up Payment in your adjusted gross income and the
highest applicable marginal rate of federal income taxation for the calendar
year in which the Gross-Up Payment is to be made.

        "INCUMBENT DIRECTORS" shall mean those individuals who were members of
the Board of Directors of Tiffany & Co., a Delaware corporation, as of the date
of this Agreement and those individuals whose later appointment to such Board,
or whose later nomination for election to such Board by the stockholders of
Tiffany & Co., was approved by a vote of at least a majority of those members of
such Board who either were members of such Board as of the date of this
Agreement, or whose election or nomination for election was previously so
approved.`-+*

        "MEASUREMENT PERIOD" means the period of years after your Date of
Termination specified in Section 3.

        "NOTICE OF TERMINATION" shall mean a written notice indicating the
specific termination provision in this Agreement relied upon and setting forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of your employment under the provision so indicated.

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

        "PARENT BOARD" shall mean the Board of Directors of Parent.

        "PAYMENT" means (i) any amount due or paid to you under this Agreement,
(ii) any amount that is due or paid to you under any plan, program or
arrangement of Parent or Employer (including, without limitation the Parent's
stock option plans) and (iii) any amount or benefit that is due or payable to
you under this Agreement or under any plan, program or arrangement of Parent or
Employer not otherwise covered under clause (i) or (ii) hereof which must
reasonably be taken into account under Section 280G of the Code and the
Regulation in determining the amount of "parachute payments" received by you,
including, without limitation, any amounts which must be taken into account
under the Code and Regulations as a result of (A) the acceleration of the
vesting of any option, restricted stock or other equity award granted under the
Parent's employee stock option plans or otherwise, (B) the acceleration of the
time at which any payment or benefit is receivable by you or (C) any contingent
severance or other amounts that are payable to you.

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

        "REFERENCE BONUS" shall mean the greater of (i) the target annual bonus
applicable to you for the year in which your Involuntary Termination occurs and
(ii) the highest annual bonus paid to you in any of the three years ended prior
to the Change in Control Date. For this purpose, the term "bonus" shall also
refer to a cash Incentive Award under the 1998 Employee Incentive Plan.

        "REFERENCE SALARY" shall mean the greater of (i) the annual rate of
your base salary from Employer in effect immediately prior to the date of your
Involuntary Termination and (ii) the highest annual rate of your base salary
from Employer in effect at any point during the three-year period ended on the
Change in Control Date.

        "REGULATIONS" shall mean regulations under Section 280G of the Code,
including proposed and temporary regulations, and any successor provisions
thereto.

                                      I-6
<PAGE>   43

        "RIGHTS PLAN" shall mean the Amended and Restated Rights Agreement
Dated as of September 22, 1998 by and between Parent and ChaseMellon Shareholder
Services L.L.C., as Rights Agent, as such Agreement may be further amended from
time to time.

        "SUBSTANTIAL CHANGE" means any substantial change in the terms or
conditions of your employment following a Change of Control Date that is less
favorable to you than those in effect previous to the Change of Control Date.

        "SUCCESSOR ENTITY" shall mean the Person who is in most immediate
control, whether through voting stock ownership of one or more subsidiaries or
otherwise, of the worldwide consolidated business of Parent's Affiliates,
substantially as such business existed immediately prior to the Change in
Control Date whether or not such Person is ultimately controlled by another
Person.

        "SUPPLEMENTARY PENSION PAYMENT" means the lump sum actuarial equivalent
(employing actuarial assumptions no less favorable to you than those in effect
under the Defined Benefit Plans prior to the Change in Control Date) of the
excess of the (i) aggregate benefits under the Defined Benefit Plans which you
would receive if your employment with Employer continued for the Measurement
Period over (ii) your vested accrued benefits payable under the Defined Benefit
Plans as of your Date of Termination. The following assumptions shall be used to
calculate such actuarial equivalent, that: (x) your accrued benefits under the
Defined Benefit Plans were fully vested, (y) in each of the years during the
Measurement Period your salary and bonus were equivalent to your Reference
Salary and Reference Bonus and (z) that you will begin to receive benefits under
Defined Benefit Plans at age 65, as calculated by the Accounting Firm with the
assistance of the actuaries for the Tiffany and Company Pension Plan.

        "TAXES" shall mean the federal, state and local income taxes to which
you are subject at the time of determination, calculated on the basis of the
highest marginal rates then in effect, plus any additional payroll or
withholding taxes to which you are then subject.

        "TERM" shall mean the term of your employment under this Agreement as
defined in Section 1.

                                      I-7
<PAGE>   44

                           APPENDIX II - PROCEDURES RELATING TO GROSS UP PAYMENT

(A) Assumptions to be Used in Calculating the Gross-Up Payment. In determining
the amount of the Gross-Up Payment, you shall be deemed to:

        (1) pay federal income taxes at the highest marginal rates of federal
        income taxation for the calendar year in which the Gross-Up Payment is
        to be made;

        (2) pay 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 state and local taxes; and

        (3) have otherwise allowable deductions for federal income tax purposes
        at least equal to those which could be disallowed because of the
        inclusion of the Gross-Up Payment in your gross income.

(B) Calculation and Payment of Gross-Up Payment. Subject to the provisions set
out below, all determinations required under this Appendix, including whether a
Gross-Up Payment is required, the amount of the Payments constituting excess
parachute payments, and the amount of the Gross-Up Payment, shall be made by the
Accounting Firm. Any determination by the Accounting Firm shall be binding upon
you and the Employer. The Accounting Firm shall be instructed by the Employer to
provide detailed supporting calculations both to you and the Employer within
fifteen days of the Change of Control Date, your Date of Termination or any
other date reasonably requested by you or the Employer on which a determination
under this Appendix is necessary or advisable. The Employer shall pay to you the
initial amount of the Gross-Up Payment within five days of the receipt by you
and the Employer of the Accounting Firm's determination. If the Accounting Firm
determines that no Excise Tax is payable by you, the Employer shall cause the
Accounting Firm to provide you with an opinion that the Accounting Firm has
substantial authority under the Code and Regulations that you are not required
to report an Excise Tax on your federal income tax return. If the initial
Gross-Up Payment is insufficient to cover the amount of the Excise Tax that is
ultimately determined to be owing by you with respect to any Payment
(hereinafter an "UNDERPAYMENT"), the Employer, after exhausting its remedies
under (C) below, shall promptly pay to you an additional Gross-Up Payment in
respect of the Underpayment.

(C) Procedures Regarding Claims In Respect of Underpayments. If a claim is made
upon you by the Internal Revenue Service, that would, if successful, require the
Employer to make a Gross-Up Payment to you, you must notify the Employer as soon
as practicable after you know of the claim. Such notice must state the nature of
the claim and the date that payment is demanded. As a condition to your right to
a Gross-Up Payment in respect of such claim, you shall not pay such claim until
the expiration of a thirty (30) day period following the date on which you
notify the Employer of such claim, or such shorter period ending on the date the
Taxes in respect to such claim are due (the "NOTICE PERIOD"). If the Employer
notifies you in writing prior to the expiration of the Notice Period that it
desires to contest the claim, you shall:

        (1) give the Employer any information reasonably requested by the
        Employer relating to the claim;

        (2) take such action in connection with the claim as the Employer may
        reasonably request, including, without limitation, accepting legal
        representation with respect to such claim by an attorney reasonably
        selected by the Employer and reasonably acceptable to you;

        (3) cooperate with the Employer in good faith in contesting the claim;
        and

        (4) permit the Employer to participate in any proceedings relating to
        the claim.

You shall permit the Employer to control all proceedings related to the claim
and, at its option, permit the Employer to pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim.

                                      II-1
<PAGE>   45

If requested to do so by the Employer, you agree either to pay the tax claimed
and sue for a refund or contest the claim in any permissible manner and to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts as the
Employer shall determine; provided, however, that, if the Employer directs you
pay such claim and pursue a refund, the Employer shall advance the amount of
such payment to you on an after-tax and interest-free basis (an "ADVANCE").

The Employer's control of the contest related to the claim shall be limited to
the issues related to the Gross-Up Payment and you shall be entitled to settle
or contest, as the case may be, any other issues raised by the Internal Revenue
Service or other taxing authority. If the Employer does not notify you in
writing prior to the end of the Notice Period of its desire to contest the
claim, the Employer shall pay to you an additional Gross-Up Payment in respect
of the excess parachute payments that are the subject of the claim, and you
agree to pay the amount of the Excise Tax that is the subject of the claim to
the applicable taxing authority in accordance with applicable law.

(D) Repayment of Advance. If, after receipt by you of an Advance, you become
entitled to a refund with respect to the claim to which such Advance relates,
you shall pay the Employer the amount of the refund (together with any interest
paid or credited thereon after Taxes applicable thereto). If, after receipt by
you of any Advance, a third-party determination is made that you are not
entitled to any refund with respect to the claim and the Employer does not
promptly notify you of its intent to contest the denial of refund, then the
amount thereof shall offset the amount of the additional Gross-Up Payment then
owing to you with respect to such claim.

(E) Indemnity and Costs Relating to Gross-Up Payments. The Employer shall
indemnify you and hold you harmless, on an after-tax basis, from any costs,
expenses, penalties, fines, interest or other liabilities ("Losses") incurred by
you with respect to the exercise by the Employer of any of its rights under this
Appendix II, including, without limitation, any Losses related to the Employer's
decision to contest a claim or any imputed income to you resulting from any
Advance or action taken on your behalf by the Employer hereunder. The Employer
shall pay all legal fees and expenses incurred by you under this Appendix II,
and shall promptly reimburse you for the reasonable expenses incurred by you in
connection with any actions taken by the Employer or required to be taken by you
hereunder. The Employer shall also pay all of the fees and expenses of the
Accounting firm, including, without limitation, the fees and expenses related to
the determination referred to in (B) above.

                                      II-2
<PAGE>   46

                                             APPENDIX III - BENEFIT CONTINUATION

(A) In the event that your participation in any Benefit Plan is barred, Employer
shall, at its sole cost and expense, arrange to have issued for the benefit of
you and your eligible dependents individual policies of insurance providing
benefits substantially similar (on an after-tax basis) to those which you
otherwise would have been entitled to receive under such Benefit Plan pursuant
to Section 3 for the Benefit Continuation Period.

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

(C) In either of the circumstances described in (A) or (B), you shall not be
required to pay any premiums or other charges in an amount greater than that
which you would have paid in order participate in such Benefit Plan had your
Involuntary Termination not occurred.

(D) If at the end of the Benefit Continuation Period you have not reached age
sixty-five and you have not previously received or are not then receiving
equivalent benefits from a new employer, Employer shall arrange to enable you to
convert your and your eligible dependents' coverage under the Benefit Plans to
individual policies or programs upon the same terms as employees of the Employer
may apply for such conversions. Employer shall bear the cost of making such
conversions available to you; you shall bear the cost of coverage under such
converted policies or programs.

(E) For the purposes of Section 3 and this Appendix, a dependent will be deemed
"eligible" if, at the time in question, you would, if an employee of Employer,
be entitled to cover such dependent under the plan in question.

                                      II-2<PAGE>   1

                                                                     Exhibit 4.7

                             TRUST SUPPLEMENT NO. 13

         TRUST SUPPLEMENT NO. 13, dated as of March 15, 2001 (the "Trust
Supplement"), among AIRPLANES LIMITED, a limited liability company organized
under the laws of Jersey, Channel Islands ("Airplanes Limited"), AIRPLANES U.S.
TRUST, a Delaware business trust formed pursuant to the Airplanes Trust
Agreement (as defined in the Pass Through Agreement (as defined below))
("Airplanes Trust" and, together with Airplanes Limited, the "Note Issuers"),
and BANKERS TRUST COMPANY, a New York banking corporation ("Bankers Trust"), not
in its individual capacity but solely as Pass Through Trustee hereunder (the
"Trustee"), to the Pass Through Trust Agreement dated as of March 28, 1996,
among the Note Issuers and the Trustee (the "Pass Through Agreement").

                              W I T N E S S E T H:

         WHEREAS, the Pass Through Agreement, unlimited as to the aggregate
principal amount of Certificates (unless otherwise specified herein, capitalized
terms used herein without definition having the respective meanings specified
therefor in the Pass Through Agreement) which may be issued thereunder, has
heretofore been executed and delivered;

         WHEREAS, pursuant to the terms and conditions of the Pass Through
Agreement, as supplemented by Supplement A dated as of March 16, 1998, this
Trust Supplement and any other supplement thereto (the "Agreement"), the Trustee
shall purchase those Notes issued by the Note Issuers of the same tenor and
designation as the Certificates issued hereunder and shall hold such Notes in
trust for the benefit of the Holders of the Certificates issued hereunder;

         WHEREAS, the Trustee hereby declares the creation of this Trust (the
"Trust") for the benefit of the Holders of the Certificates issued hereunder,
and the initial Holders of the Certificates issued hereunder, as the
beneficiaries of the Trust created hereby, by their respective acceptances of
the Certificates issued hereunder, join in the creation of this Trust with the
Trustee;

         WHEREAS, all of the conditions and requirements necessary to make this
Trust Supplement, when duly executed and delivered, a legal, valid and binding
instrument in accordance with its terms and for the purposes herein expressed,
have been done, performed and fulfilled, and the execution and delivery of this
Trust Supplement in the form and with the terms hereof have been in all respects
duly authorized; and

         WHEREAS, this Trust Supplement is subject to the provisions of the
Trust Indenture Act of 1939, and shall, to the extent applicable, be governed by
such provisions.

         NOW, THEREFORE, in consideration of the premises herein, it is agreed
among the Note Issuers and the Trustee as follows:

                                    ARTICLE I

                                THE CERTIFICATES

                                       1

<PAGE>   2

         Section 1.01. The Certificates.

         There is hereby created a subclass of Certificates to be issued under
the Agreement to be designated and known as "Subclass A-9 Pass Through
Certificates" (hereinafter referred to as the "Subclass A-9 Certificates"). Each
Subclass A-9 Certificate represents a Fractional Undivided Interest in the Trust
created hereby. The terms and conditions applicable to the Subclass A-9
Certificates are as follows:

                  (a) The aggregate principal amount of the Subclass A-9
         Certificates that shall be authenticated under the Agreement (except
         for Subclass A-9 Certificates authenticated and delivered pursuant to
         Sections 3.03, 3.04 and 3.05 of the Pass Through Agreement) upon their
         initial issuance is $750,000,000.

                  (b) The Subclass A-9 Certificates shall be in the form
         attached hereto as Exhibit A. The Subclass A-9 Certificates shall be
         Book-Entry Certificates and shall be subject to the conditions set
         forth in the Letter of Representations between the Note Issuers and the
         Clearing Agency attached hereto as Exhibit B.

                  (c) The proceeds of the sale of the Subclass A-9 Certificates
         shall be used to purchase from the Note Issuers on the date hereof the
         following Notes (the "Corresponding Notes") in the aggregate principal
         amounts set forth below:

<TABLE>
<CAPTION>
         Notes                                       Principal Amount         Maturity
         -----                                       ----------------         --------
         <S>                                         <C>                   <C>
         Airplanes Limited Subclass A-9 Notes        $ 682,444,117.47      March 15, 2019
         Airplanes Trust Subclass A-9 Notes          $  67,555,882.53      March 15, 2019
</TABLE>

                                   ARTICLE II

               ACQUISITION OF THE NOTES; ISSUANCE OF CERTIFICATES

         Section 2.01. Acquisition of Notes.

         (a) The Note Issuers hereby convey, transfer, sell, set over and
otherwise assign to the Trust for the benefit of the Holders of the Subclass A-9
Certificates, the Corresponding Notes and all monies due and to become due
thereunder and all rights to collateral and proceeds thereof and all rights to
enforce the same.

         (b) In connection with such transfer, not later than the date hereof,
each Note Issuer shall deposit the Corresponding Notes issued by it with the
Trustee on behalf of the Trust and cause such Notes to be registered in the name
of the Trustee in the register therefor maintained by such Note Issuer.

         (c) The transfer of the Corresponding Notes accomplished hereby is
absolute, it being understood that the transfer is intended by the parties
hereto as a sale.

         Section 2.02. Acceptance by Trustee.

         The Trustee, by its execution and delivery of this Trust Supplement,
acknowledges its acceptance of all right, title and interest in and to the
Corresponding Notes

                                       2
<PAGE>   3

to be acquired hereby and declares that the Trustee holds and will hold such
right, title and interest, together with all other property constituting the
Trust Property of the Trust, on behalf of the Trust for the benefit of all then
present and future Holders of the Subclass A-9 Certificates, upon the trusts set
forth in the Agreement. By its payment for and acceptance of each Subclass A-9
Certificate issued to it under the Agreement, each initial Certificateholder of
a Subclass A-9 Certificate, as a grantor of the Trust created hereby, shall
thereby join in the creation and declaration of the Trust.

         Section 2.03. Limitation of Powers.

         The Trust created hereby shall be constituted solely for the purpose of
making the investment in the Corresponding Notes provided for herein, and,
except as set forth herein or in this Trust Supplement or in the Agreement, the
Trustee shall not be authorized or empowered to acquire any other investments or
engage in any other activities and, in particular, the Trustee shall not be
authorized or empowered to do anything that would cause the Trust created hereby
to fail to qualify as a "grantor trust" for federal income tax purposes.

         Section 2.04. Issuance of Certificates.

         On the date hereof, the Trustee shall execute on behalf of the Trust,
authenticate and deliver, in fully registered form only, the Subclass A-9
Certificates upon the written order of the Note Issuers, in authorized
denominations and in the names specified by the Note Issuers. The Trustee shall
execute on behalf of the Trust, deliver and authenticate Subclass A-9
Certificates equalling the aggregate principal amount of the Corresponding Notes
to be purchased by the Trustee pursuant to this Trust Supplement, and evidencing
the entire ownership interest in the Trust created hereby. The Trustee shall
issue on behalf of the Trust and deliver such Certificates, in authorized
denominations and in such Fractional Undivided Interests, so as to result in the
receipt of consideration in an amount equal to the aggregate principal amount of
such Corresponding Notes and, concurrently therewith, the Trustee shall purchase
on behalf of the Trust, pursuant to the terms and conditions of the related
Trust Supplement, such Notes at a purchase price equal to the amount of such
consideration so received.

         The Subclass A-9 Certificates offered and sold in reliance on Rule 144A
shall be issued initially in the form of one or more permanent global
certificates (each, a "Rule 144A Global Certificate"). The aggregate principal
amount of each Rule 144A Global Certificate may from time to time be increased
or decreased by adjustments made on the records of The Depository Trust Company,
as the Clearing Agency, in accordance with the instructions given by the Holder
thereof, as hereinafter provided.

         The Subclass A-9 Certificates offered and sold in offshore transactions
in reliance on Regulation S shall be issued initially in the form of one or more
temporary global certificates (each, a "Temporary Regulation S Global
Certificate"). At any time following the applicable Regulation S Global
Certificate Exchange Date, upon receipt by the Trustee of a certificate
substantially in the form of Exhibit C hereto, one or more permanent global
certificates (each, a "Permanent Regulation S Global Certificate" and, together
with each Temporary Regulation S Global Certificate, the "Regulation S Global
Certificates," such Regulation S Global Certificates and the Rule 144A Global
Certificates being referred to herein as the "Global Certificates") shall be
deposited with The Depository Trust Company, as the Clearing Agency, and the
Registrar shall reflect on its books and records the date and a

                                       3

<PAGE>   4

decrease in the principal amount of the Temporary Regulation S Global
Certificate in an amount equal to the principal amount of the beneficial
interest in such Temporary Regulation S Global Certificate transferred.

         Section 2.05. Restrictive Legends. Unless and until a Subclass A-9
Certificate is exchanged for an Exchange Certificate in connection with an
effective registration under the Securities Act pursuant to the Registration
Rights Agreement, each Rule 144A Global Certificate and, until at least the 41st
day after the Closing Date and receipt by the Note Issuers and the Trustee of a
certificate substantially in the form of Exhibit D hereto, each Regulation S
Global Certificate shall bear the following legend on the face thereof:

         THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT
         OF 1933, AS AMENDED (THE "SECURITIES ACT") OR WITH ANY SECURITIES
         REGULATORY AUTHORITY IN ANY JURISDICTION AND, ACCORDINGLY, MAY NOT BE
         OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
         BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.
         BY ITS ACQUISITION HEREOF, THE HOLDER OR BENEFICIAL OWNER OF THIS
         CERTIFICATE (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL
         BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS
         NOT A U.S. PERSON AND IS ACQUIRING THIS CERTIFICATE IN AN OFFSHORE
         TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT,
         (2) AGREES THAT IT WILL NOT, BEFORE TWO YEARS AFTER THE LATER OF THE
         ORIGINAL ISSUE DATE OF THIS CERTIFICATE AND THE LAST DATE THAT
         AIRPLANES GROUP OR ANY OF ITS AFFILIATES OWNED THIS CERTIFICATE, RESELL
         OR OTHERWISE TRANSFER THIS CERTIFICATE EXCEPT (A) TO AIRPLANES GROUP OR
         ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A QUALIFIED
         INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
         ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
         COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (D)
         PURSUANT TO AN EXEMPTION FROM REGISTRATION IN ACCORDANCE WITH RULE 144
         UNDER THE SECURITIES ACT (IF AVAILABLE), OR (E) PURSUANT TO AN
         EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH
         CASE (A) THROUGH (E) ABOVE, IN ACCORDANCE WITH ANY APPLICABLE
         SECURITIES LAWS OF ANY STATE IN THE UNITED STATES OR ANY OTHER
         APPLICABLE JURISDICTION, AND (3) AGREES THAT IT WILL DELIVER TO EACH
         PERSON TO WHOM THIS CERTIFICATE IS TRANSFERRED A NOTICE SUBSTANTIALLY
         TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS
         CERTIFICATE WITHIN THE TWO-YEAR TIME PERIOD REFERRED TO ABOVE, THE
         HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE TRANSFER NOTICE
         ATTACHED HERETO AND SUBMIT THIS CERTIFICATE TO THE TRUSTEE. AS USED
         HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S.
         PERSON" HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE
         SECURITIES ACT. THE TRUST AGREEMENT CONTAINS A PROVISION REQUIRING THE

                                       4

<PAGE>   5

         TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS CERTIFICATE IN
         VIOLATION OF THE FOREGOING RESTRICTIONS.

         Each Global Certificate, whether or not an Exchange Certificate, shall
also bear the following legend on the face thereof:

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY TO THE TRUSTEE OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
         IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER
         ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
         DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
         VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED
         OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         TRANSFERS OF THIS GLOBAL CERTIFICATE SHALL BE LIMITED TO TRANSFERS IN
         WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR
         THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
         GLOBAL CERTIFICATE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
         WITH THE RESTRICTIONS SET FORTH IN SECTION 2.07 OF THE TRUST
         SUPPLEMENT.

         Section 2.06. Exchange Offer. Upon the occurrence of an Exchange Offer
in accordance with the Registration Rights Agreement, the Trust shall, upon
cancellation by the Trustee of the Registrable Certificates surrendered for
exchange, issue, and the Trustee shall authenticate, one or more global Exchange
Certificates in the names specified by the Note Issuers and in an aggregate
principal amount equal to the principal amount of the Registrable Certificates
tendered for acceptance by persons that are not (x) broker-dealers, (y) persons
participating in the distribution of the Exchange Certificates or (z) persons
who are affiliates (as defined in Rule 144 under the Securities Act) of the
Trust and accepted for exchange in the Exchange Offer. Concurrently with the
issuance of such Exchange Certificates, the Trustee shall cause the aggregate
principal amount of the Exchange Certificates to be recorded and the aggregate
principal amount of the Subclass A-9 Certificates to be reduced accordingly and
shall direct the Registrar to make a corresponding recordation and reduction in
its books and records of the corresponding book-entry interests. Book-entry
interests corresponding to a Subclass A-9 Certificate so exchanged for an
Exchange Certificate shall be in turn exchanged for book-entry interests in such
Exchange Certificate.

         Section 2.07. Special Transfer Provisions. Unless and until a Subclass
A-9 Certificate is exchanged for an Exchange Certificate under an effective
registration statement under the Securities Act pursuant to the Registration
Rights Agreement, the following provisions shall apply:

         (a) Transfers to QIBs. The following provisions shall apply with
respect to the registration of any proposed transfer of an interest in a Rule
144A Global Certificate or a Definitive Certificate issued in exchange for an
interest in such Rule 144A Global Certificate to a QIB (excluding Non-U.S.
Persons):

                                       5

<PAGE>   6

                  (i) If the Subclass A-9 Certificate to be transferred consists
         of (x) Definitive Certificates, the Registrar shall register the
         transfer if such transfer is being made by a proposed transferor who
         has checked the box provided for on the form of such Certificate
         stating, or has otherwise advised the Trustee and the Registrar in
         writing, that the sale has been made in compliance with the provisions
         of Rule 144A to a transferee who has signed the certification provided
         for on the form of such Certificate stating, or has otherwise advised
         the Trustee and the Registrar in writing, that it is purchasing such
         Certificate for its own account or an account with respect to which it
         exercises sole investment discretion and that it and any such account
         are QIBs within the meaning of Rule 144A, are aware that the sale to it
         is being made in reliance on Rule 144A and acknowledge that they have
         received such information regarding Airplanes Limited and Airplanes
         Trust as they have requested pursuant to Rule 144A or have determined
         not to request such information and that they are aware that the
         transferor is relying upon their foregoing representations in order to
         claim the exemption from registration provided by Rule 144A or (y) an
         interest in a Rule 144A Global Certificate, the transfer of such
         interest may be effected only through the book-entry system maintained
         by The Depository Trust Company.

                  (ii) If the proposed transferee is a Clearing Agency
         Participant, and the Subclass A-9 Certificate to be transferred is a
         Definitive Certificate, upon receipt by the Registrar of the documents
         referred to in Clause (i) and instructions given in accordance with The
         Depository Trust Company's and the Registrar's procedures, the
         Registrar shall reflect on its books and records the date and an
         increase in the principal amount at maturity of the Rule 144A Global
         Certificate in an amount equal to the principal amount at maturity of
         the Definitive Certificate to be transferred, and the Trustee shall
         cancel the Definitive Certificate so transferred.

         (b) Transfers of Interests in a Temporary Regulation S Global
Certificate. The following provisions shall apply with respect to registration
of any proposed transfer of interests in a Temporary Regulation S Global
Certificate:

                  (i) The Registrar shall register the transfer of any interest
         in a Temporary Regulation S Global Certificate (x) if the proposed
         transferee is a Non-U.S. Person and the proposed transferor has
         delivered to the Registrar a certificate substantially in the form of
         Exhibit D hereto or (y) if the proposed transferee is a QIB and the
         proposed transferor has checked the box provided for on the form of
         Subclass A-9 Certificate stating, or has otherwise advised the Trustee
         and the Registrar in writing, that the sale has been made in compliance
         with the provisions of Rule 144A to a transferee who has signed the
         certification provided for on the form of such Certificate stating, or
         has otherwise advised the Trustee and the Registrar in writing, that it
         is purchasing such Certificate for its own account or an account with
         respect to which it exercises sole investment discretion and that it
         and any such account are QIBs within the meaning of Rule 144A, are
         aware that the sale to them is being made in reliance on Rule 144A and
         acknowledge that they have received such information regarding the
         Trust as they have requested pursuant to Rule 144A or have determined
         not to request such information and that they are aware that the
         transferor is relying upon their foregoing representations in order to
         claim the exemption from registration provided by Rule 144A.

                  (ii) If the proposed transferee is a Clearing Agency
         Participant that provides the documents referred to in clause (i)(y)
         above, upon receipt by the

                                       6

<PAGE>   7

         Registrar of such documents and instructions given in accordance with
         The Depository Trust Company's and the Registrar's procedures, the
         Registrar shall reflect on its books and records the date and an
         increase in the principal amount of the Rule 144A Global Certificate,
         in an amount equal to the principal amount of the Temporary Regulation
         S Global Certificate to be transferred, and the Trustee shall decrease
         the amount of the Temporary Regulation S Global Certificate.

         (c) Transfers of interests in a Permanent Regulation S Global
Certificate or Definitive Certificates issued in exchange for an interest in a
Permanent Regulation S Global Certificate to U.S. Persons. The Registrar shall
register any transfer of interests in a Permanent Regulation S Global
Certificate or Definitive Certificates issued in exchange for an interest in a
Permanent Regulation S Global Certificate to U.S. Persons without requiring any
additional certification.

         (d) Transfers to Non-U.S. Persons at any Time. The following provisions
shall apply with respect to any transfer of a Subclass A-9 Certificate to a
Non-U.S. Person:

                  (i) Prior to the applicable Regulation S Global Certificate
         Exchange Date, the Registrar shall register any proposed transfer of a
         Subclass A-9 Certificate to a Non-U.S. Person upon receipt of a
         certificate substantially in the form of Exhibit D hereto from the
         proposed transferor.

                  (ii) On and after the applicable Regulation S Global
         Certificate Exchange Date, the Registrar shall register any proposed
         transfer of a Subclass A-9 Certificate to any Non-U.S. Person if the
         Subclass A-9 Certificate to be transferred is a Definitive Certificate
         or an interest in a Rule 144A Global Certificate, upon receipt of a
         certificate substantially in the form of Exhibit D from the proposed
         transferor.

                  (iii) (a) If the proposed transferor is a Clearing Agency
         Participant holding a beneficial interest in a Rule 144A Global
         Certificate, upon receipt by the Registrar of (x) the documents, if
         any, required by paragraph (ii) and (y) instructions in accordance with
         The Depository Trust Company's and the Registrar's procedures, the
         Registrar shall reflect on its books and records the date and a
         decrease in the principal amount of a Rule 144A Global Certificate in
         an amount equal to the principal amount of the beneficial interest in
         such Rule 144A Global Certificate to be transferred, and (b) if the
         proposed transferee is a Clearing Agency Participant, upon receipt by
         the Registrar of instructions given in accordance with The Depository
         Trust Company's and the Registrar's procedures, the Registrar shall
         reflect on its books and records the date and an increase in the
         principal amount of the Regulation S Global Certificate of the relevant
         subclass in an amount equal to the principal amount of the beneficial
         interest in such Rule 144A Global Certificate or any Definitive
         Certificates issued in exchange for such interest in such Rule 144A
         Global Certificate to be transferred, and the Trustee shall cancel the
         Definitive Certificate, if any, so transferred or decrease the amount
         of the Rule 144A Global Certificate.

         (e) Private Placement Legend. Upon the transfer, exchange or
replacement of Subclass A-9 Certificates not bearing the Private Placement
Legend, the Registrar shall deliver Subclass A-9 Certificates that do not bear
the Private Placement Legend. Upon the transfer, exchange or replacement of
Subclass A-9 Certificates bearing the Private Placement Legend, the Registrar
shall deliver only Subclass A-9 Certificates that bear the Private Placement
Legend unless either (i) the Private Placement Legend is no longer

                                       7
<PAGE>   8

required under Section 2.05 hereof or, (ii) in respect of a Definitive
Certificate, there is delivered to the Registrar an opinion of counsel
reasonably satisfactory to the Trustee to the effect that neither such legend
nor the related restrictions on transfer are required in order to maintain
compliance with the provisions of the Securities Act.

         (f) General. By its acceptance of any Subclass A-9 Certificate bearing
the Private Placement Legend, each Holder of such Certificate acknowledges the
restrictions on transfer of such Certificate set forth in this Trust Supplement
and in the Private Placement Legend and agrees that it will transfer such
Certificate only as provided in this Trust Supplement. The Registrar shall not
register a transfer of any Subclass A-9 Certificate unless such transfer
complies with the restrictions on transfer of such Certificate set forth in this
Trust Supplement. In connection with any transfer of Subclass A-9 Certificates,
each Holder agrees by its acceptance of such Certificates to furnish the Trustee
the certifications and legal opinions described herein to confirm that such
transfer is being made pursuant to an exemption from, or a transaction not
subject to, the registration requirements of the Securities Act; provided that
the Trustee shall not be required to determine (but may rely on a determination
made by Airplanes Limited and Airplanes Trust with respect to) the sufficiency
of any such legal opinions.

         The Trustee shall retain copies of all letters, notices and other
written communications received pursuant to this Section 2.07. Airplanes Limited
and Airplanes Trust shall have the right to inspect and make copies of all such
letters, notices or other written communications at any reasonable time upon the
giving of reasonable written notice to the Trustee.

         Section 2.08. Definitions. For the purposes of this Article II, the
following terms shall have the meanings indicated below:

         "Exchange Act" means the U.S. Securities Exchange Act of 1934, as
amended.

         "Exchange Certificates" means Exchange Certificates as defined and
described in the Registration Rights Agreement.

         "Exchange Offer" means the Exchange Offer as defined and described in
the Registration Rights Agreement.

         "Non-U.S. Person" means a person who is not a U.S. person, as defined
in Regulation S.

         "Private Placement Legend" means the legend initially set forth on the
Certificates in the form set forth in Section 2.05 hereof.

         "Registrable Certificates" means Registrable Certificates as defined
and described in the Registration Rights Agreement.

         "Registration Rights Agreement" means the Registration Rights
Agreement, dated as of March 15, 2001, between the Note Issuers, Morgan Stanley
& Co. Incorporated and Lehman Brothers Inc. and any other agreement entered into
between the Note Issuers and a purchaser of Certificates providing for the
registration of the transfer of such Certificates under the Securities Act.

                                       8

<PAGE>   9

         "Registration Statement" means the Registration Statement as defined
and described in the Registration Rights Agreement.

         "Regulation S" means Regulation S under the Securities Act.

         "Regulation S Global Certificate Exchange Date" means the date of
exchange of any Temporary Regulation S Global Certificate for any Permanent
Regulation S Global Certificate, which shall be the forty-first day after March
15, 2001.

         "Rule 144A" means Rule 144A under the Securities Act.

         "Securities Act" means the Securities Act of 1933, as amended.

                                   ARTICLE III

                                   THE TRUSTEE

         Section 3.01. The Trustee.

         The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Trust Supplement or the due
execution hereof by the Note Issuers, or for or in respect of the recitals and
statements contained herein, all of which recitals and statements are made
solely by the Note Issuers.

         Except as herein otherwise provided, no duties, responsibilities or
liabilities are assumed, or shall be construed to be assumed by the Trustee
other than as set forth in the Agreement, and this Trust Supplement is executed
and accepted on behalf of the Trustee, subject to all the terms and conditions
set forth in the Agreement, upon the effectiveness thereof, as fully to all
intents as if the same were herein set forth at length.

                                   ARTICLE IV

                            MISCELLANEOUS PROVISIONS

         Section 4.01. Pass Through Agreement Ratified.

         Except and so far as herein expressly provided, all of the provisions,
terms and conditions of the Pass Through Agreement are in all respects ratified
and confirmed; and the Pass Through Agreement and this Trust Supplement shall be
taken, read and construed as one and the same instrument.

         Section 4.02. GOVERNING LAW.

         THIS TRUST SUPPLEMENT AND THE SUBCLASS A-9 CERTIFICATES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

         Section 4.03. Execution in Counterparts.

         This Trust Supplement may be executed in any number of counterparts,
each of which shall be an original, but such counterparts shall together
constitute but one and the same instrument.

                                       9

<PAGE>   10

         IN WITNESS WHEREOF, the Trustee and each Note Issuer have caused this
Trust Supplement to be duly executed as of the day and year first written above.

                                 AIRPLANES LIMITED

                                 By: /s/ Hugh Jenkins
                                     -----------------------------------------
                                 Name:  Hugh Jenkins
                                 Title: Director

                                 AIRPLANES U.S. TRUST

                                 By: /s/ Hugh Jenkins
                                     -----------------------------------------
                                 Name:  Hugh Jenkins
                                 Title: Controlling Trustee

                                 BANKERS TRUST COMPANY, not in its individual
                                   capacity but solely as Trustee

                                 By: /s/ Peter Morse
                                     -----------------------------------------
                                 Name:  Peter Morse
                                 Title: Vice President

                                       10
<PAGE>   11

                                    EXHIBIT A

                        FORM OF SUBCLASS A-9 CERTIFICATE

         THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT") OR WITH ANY SECURITIES REGULATORY
AUTHORITY IN ANY JURISDICTION AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS
EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE
HOLDER OR BENEFICIAL OWNER OF THIS CERTIFICATE (1) REPRESENTS THAT (A) IT IS A
"QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS CERTIFICATE IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT,
(2) AGREES THAT IT WILL NOT, BEFORE TWO YEARS AFTER THE LATER OF THE ORIGINAL
ISSUE DATE OF THIS CERTIFICATE AND THE LAST DATE THAT AIRPLANES GROUP OR ANY OF
ITS AFFILIATES OWNED THIS CERTIFICATE, RESELL OR OTHERWISE TRANSFER THIS
CERTIFICATE EXCEPT (A) TO AIRPLANES GROUP OR ANY SUBSIDIARY THEREOF, (B) INSIDE
THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE
144A UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES
ACT, (D) PURSUANT TO AN EXEMPTION FROM REGISTRATION IN ACCORDANCE WITH RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE), OR (E) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE (A) THROUGH
(E) ABOVE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE IN THE
UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION, AND (3) AGREES THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THIS CERTIFICATE IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF
THIS CERTIFICATE WITHIN THE TWO-YEAR TIME PERIOD REFERRED TO ABOVE, THE HOLDER
MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE TRANSFER NOTICE ATTACHED HERETO
AND SUBMIT THIS CERTIFICATE TO THE TRUSTEE. AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM
BY REGULATION S UNDER THE SECURITIES ACT. THE TRUST AGREEMENT CONTAINS A
PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS
CERTIFICATE IN VIOLATION OF THE FOREGOING RESTRICTIONS.

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO BANKERS TRUST
COMPANY, A NEW YORK BANKING CORPORATION, OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN

                                       11

<PAGE>   12

AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         TRANSFERS OF THIS GLOBAL CERTIFICATE SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR
SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL CERTIFICATE
SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH
IN SECTION 2.07 OF THE TRUST SUPPLEMENT.

                    AIRPLANES SUBCLASS A-9 PASS THROUGH TRUST

          Airplanes Subclass A-9 Floating Rate Pass Through Certificate

                          Issuance Date: March 15, 2001

                       Final Maturity Date: March 15, 2019

                Evidencing a fractional undivided interest in the
                    Airplanes Subclass A-9 Pass Through Trust

Certificate No. _____                       CUSIP ____________
Up to $ ____________                        ISIN _____________
                                            CCN ______________

               $_______ Fractional Undivided Interest representing
                    % of the Trust per $100,000 face amount

         THIS CERTIFIES THAT ____________________, for value received, is the
registered owner of up to ____________________ DOLLARS ($__________) Fractional
Undivided Interest in the Airplanes Subclass A-9 Pass Through Trust (the
"Trust") created pursuant to the Airplanes Pass Through Trust Agreement dated as
of March 28, 1996, among Airplanes Limited, a limited liability company
organized under the laws of Jersey, Channel Islands ("Airplanes Limited"),
Airplanes U.S. Trust, a Delaware business trust ("Airplanes Trust" and, together
with Airplanes Limited, the "Note Issuers"), and Bankers Trust Company, a New
York banking corporation, as trustee (the "Trustee"), as supplemented by
Supplement A dated as of March 16, 1998 and the Trust Supplement No. 13 thereto,
dated as of March 15, 2001 (together, the "Agreement"), a summary of certain of
the pertinent provisions of which is set forth below. To the extent not
otherwise defined herein, the capitalized terms used herein have the meanings
assigned to them in the Agreement.

         This Certificate is one of the duly authorized Certificates designated
as "Airplanes Subclass A-9 Floating Rate Pass Through Certificates" (herein
referred to as the "Certificates"). This Certificate is issued under and is
subject to the terms, provisions, and conditions of the Agreement, to which
Agreement the Certificateholder of this Certificate, by virtue of the acceptance
hereof, assents and by which such Certificateholder is bound. The

                                       12

<PAGE>   13

property of the Trust includes, among other things, certain Notes and all rights
of the Trustee, on behalf of the Trust, to receive payments under the Guarantees
(collectively, the "Trust Property").

         This Certificate represents a Fractional Undivided Interest in the
Trust and the Trust Property, and the Holder hereof shall have no rights,
benefits or interest in respect of any assets or property other than the Trust
Property.

         Subject to and in accordance with the terms of the Agreement, from
funds received by the Trustee and deposited in the Certificate Account pursuant
to the Agreement, there will be distributed monthly in arrears on each Payment
Date, commencing on April 16, 2001, to the Person in whose name this Certificate
is registered at the close of business on the Record Date with respect to such
Payment Date, in the manner specified in Sections 4.02(c) and (d) of the
Agreement, such Person's pro rata share (based on the aggregate Fractional
Undivided Interest in the Trust held by such Person) of the aggregate amount in
the Certificate Account. Subject to and in accordance with the terms of the
Agreement, in the event that any Special Payment on the Notes is received by the
Trustee, there shall be distributed as soon as the Trustee has confirmed receipt
of such Special Payment in the Special Payment Account, to the Person in whose
name this Certificate is registered at the close of business on the Record Date
immediately preceding such Special Payment, in the manner specified in Sections
4.02(c) and (d) of the Agreement, such Person's pro rata share (based on the
aggregate Fractional Undivided Interest in the Trust held by such Person) of the
aggregate amount of such Special Payment. The Trustee shall mail notice of each
Special Payment to the Person in whose name this Certificate is registered at
the close of business on the Record Date immediately preceding such Special
Payment.

         Payments on this Certificate will be made by the Trustee by check
mailed to the Person entitled thereto (except as otherwise provided in the
Agreement), without the presentation or surrender of this Certificate or the
making of any notation hereon. Except as otherwise provided in the Agreement
and, notwithstanding the above, the final distribution on this Certificate will
be made after notice mailed by the Trustee of the pendency of such distribution
and only upon presentation and surrender of this Certificate at the office or
agency of the Trustee specified in such notice.

         THE AGREEMENT AND THIS CERTIFICATE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

         Reference is hereby made to the further provisions of this Certificate
set forth in the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.

                                       13

<PAGE>   14

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  _____________________         AIRPLANES SUBCLASS A-9 PASS
                                        THROUGH TRUST

                                      By: BANKERS TRUST COMPANY, not in its
                                             individual capacity, but
                                             solely as Trustee

                                          By:_______________________________
                                          Name:
                                          Title:

              [FORM OF THE TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

                    This is one of the Certificates referred
                      to in the within-mentioned Agreement.

 Dated:  ____________                 BANKERS TRUST COMPANY, not in its
                                         individual capacity, but solely as
                                         Trustee

                                      By:__________________________________
                                      Name:
                                      Title:

                                       14
<PAGE>   15

                            [REVERSE OF CERTIFICATE]

         The Certificates do not represent a direct obligation of, or an
obligation guaranteed by, or an interest in, either Note Issuer or the Trustee
or any Affiliate thereof. The Certificates are limited in right of payment, all
as more specifically set forth on the face hereof and in the Agreement. All
payments or distributions made to Certificateholders under the Agreement shall
be made only from the Trust Property and only to the extent that the Trustee
shall have sufficient income or proceeds from the Trust Property to make such
payments in accordance with the terms of the Agreement. Each Holder of this
Certificate, by its acceptance hereof, agrees that it will look solely to the
income and proceeds from the Trust Property to the extent available for
distribution to such Certificateholder as provided in the Agreement. This
Certificate does not purport to summarize the Agreement and reference is made to
the Agreement for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby. A copy of the Agreement may
be examined during normal business hours at the principal office of the Trustee,
and at such other places, if any, designated by the Trustee, by any
Certificateholder upon request.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the Note
Issuers and the rights of the Certificateholders under the Agreement at any time
by the Note Issuers and the Trustee with the consent of the Certificateholders
holding Certificates evidencing Fractional Undivided Interests aggregating not
less than a majority in interest in the Trust. Any such consent by the
Certificateholder of this Certificate shall be conclusive and binding on such
Certificateholder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange hereof or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Register upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in its capacity as Registrar, or by any
successor Registrar, in New York, New York, duly endorsed or accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Registrar duly executed by the Certificateholder hereof or such
Certificateholder's attorney duly authorized in writing, and thereupon one or
more new Certificates of authorized denominations evidencing the same aggregate
Fractional Undivided Interest in the Trust will be issued to the designated
transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons in minimum denominations of $100,000 Fractional Undivided Interest and
integral multiples of $1,000 in excess thereof, except that one Certificate may
be in a denomination of less than $100,000. As provided in the Agreement and
subject to certain limitations therein set forth, the Certificates are
exchangeable for new Certificates of authorized denominations evidencing the
same aggregate Fractional Undivided Interest in the Trust, as requested by the
Certificateholder surrendering the same.

                                       15

<PAGE>   16

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee shall require payment of a sum sufficient to cover any
tax or governmental charge payable in connection therewith.

         The Trustee, the Registrar, and any agent of the Trustee or the
Registrar may treat the person in whose name this Certificate is registered as
the owner hereof for all purposes, and neither the Trustee, the Registrar, nor
any such agent shall be affected by any notice to the contrary.

         The obligations and responsibilities created by the Agreement and the
Trust created thereby shall terminate upon the distribution to
Certificateholders of all amounts required to be distributed to them pursuant to
the Agreement and the disposition of all property held as part of the Trust
Property.

                                       16

<PAGE>   17

                            [FORM OF] TRANSFER NOTICE

         FOR VALUE RECEIVED the undersigned registered holder hereby sell(s),
assign(s) and transfer(s) unto

Insert Taxpayer Identification No.___________________________

________________________________________________________________________________
(Please print or typewrite name and address including zip code of assignee)

the within Certificate and all rights thereunder, hereby irrevocably
constituting and appointing

_______________________________ attorney to transfer said Note on the books of
the Trustee with full power of substitution in the premises.

Date:   __________________                [Signature of Transferor]

                                          NOTE: The signature
                                          to this assignment
                                          must correspond with
                                          the name as written
                                          upon the face of the
                                          within-mentioned
                                          instrument in every
                                          particular, without
                                          alteration or any
                                          change whatsoever.

                         [THE FOLLOWING PROVISIONS TO BE
                     INCLUDED ON ALL CERTIFICATES OTHER THAN
                       EXCHANGE CERTIFICATES AND PERMANENT
                        REGULATION S GLOBAL CERTIFICATES]

         In connection with any transfer of this Certificate occurring prior to
the date which is the earlier of (i) the date the Shelf Registration Statement
is declared effective or (ii) the end of the period referred to in Rule 144(k)
under the Securities Act, the undersigned confirms that, without utilizing any
general solicitation or general advertising:

                                   [Check One]

[  ]     (a)      this Certificate is being transferred in compliance with the
                  exemption from registration under the Securities Act 1933
                  provided by Rule 144A thereunder.

                                       or

[  ]     (b)      this Certificate is being transferred other than in accordance
                  with (a) above and documents are being furnished which comply
                  with the conditions of transfer set forth in this Certificate
                  and the Trust Supplement.

                                       17

<PAGE>   18

If none of the foregoing boxes is checked, the Trustee or other Registrar shall
not be obligated to register this Certificate in name of any Person other than
the Holder hereof unless and until the conditions to any such transfer of
registration set forth herein and in Section 2.07 of the Trust Supplement shall
have been satisfied.

Date:_____________               ________________________________________

                                 NOTICE: The signature to this
                                 assignment must correspond with
                                 the name as written upon the face
                                 of the within-mentioned
                                 instrument in every particular,
                                 without alteration or any change
                                 whatsoever.

TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

         The undersigned represents and warrants that it is purchasing this
Certificate for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933 and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding Airplanes Limited
and Airplanes U.S. Trust as the undersigned has requested pursuant to Rule 144A
or has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

Date:_____________               _______________________________________________

                                 NOTICE:  To be executed by an executive officer

                                       18

<PAGE>   19

                                    EXHIBIT B

                            LETTER OF REPRESENTATIONS

                                       19

<PAGE>   20

                                    EXHIBIT C

                               FORM OF CERTIFICATE

                                                          --------------, ------

Bankers Trust Company
Four Albany Street
New York, New York 10006
Attention: Corporate Trust and Agency Group

Airplanes Limited
22 Grenville Street
St. Helier
Jersey, JE4 8PX
Channel Islands

Airplanes U.S. Trust
1100 North Market Street
Rodney Square North
Wilmington, Delaware 19890-001

         Re:      Airplanes Pass Through Trust (the "Issuer") Subclass A-9
                  Certificates

Dear Sirs:

         This letter relates to U.S. $ ____________ principal amount of Subclass
A-9 Certificates of the Issuer represented by a Subclass A-9 Certificate which
bears a legend (the "Legended Certificate") outlining restrictions upon transfer
of such Legended Certificate. Pursuant to Section 2.04 of the Trust Supplement
dated as of March 15, 2001 (the "Trust Supplement") relating to the Subclass A-9
Certificates, we hereby certify that we are (or we will hold such securities on
behalf of) a person outside the United States to whom the Subclass A-9
Certificates may be transferred in accordance with Rule 904 of Regulation S
promulgated under the U.S. Securities Act of 1933, as amended ("Regulation S").
Accordingly, you are hereby requested to exchange the legended certificate for
an unlegended certificate representing an identical principal amount of Subclass
A-9 Certificates, all in the manner provided for in the Trust Supplement.

                                       20

<PAGE>   21

         Each of you is entitled to rely upon this letter and is irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this letter have the meanings set forth in
Regulation S.

                                Very truly yours,

                                [Name of Holder]

                                By:
                                   ---------------------------------------
                                Name:
                                Title:

                                       21
<PAGE>   22

                                    EXHIBIT D

                     FORM OF CERTIFICATE TO BE DELIVERED IN
               CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S

                                                           ---------------, ----

Bankers Trust Company
Four Albany Street
New York, New York 10006
Attention: Corporate Trust and Agency Group

Airplanes Limited
22 Grenville Street
St. Helier
Jersey, JE4 8PX
Channel Islands

Airplanes U.S. Trust
1100 North Market Street
Rodney Square North
Wilmington, Delaware 19890-001

         Re:      Airplanes Pass Through Trust (the "Issuer") Subclass A-9
                  Certificates

Dear Sirs:

         In connection with our proposed sale of U.S.$___________ aggregate
principal amount of the Subclass A-9 Certificates, we confirm that such sale
will be effected pursuant to and in accordance with Regulation S under the
Securities Act of 1933, as amended ("Regulation S") and, accordingly, we
represent that:

         (1) the offer of the Subclass A-9 Certificates was not made to a person
in the United States;

         (2) at the time the buy order was originated, the transferee was
outside the United States or we and any person acting on our behalf reasonably
believed that the transferee was outside the United States;

         (3) no directed selling efforts have been made by us in the United
States in contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S, as applicable; and

         (4) the transaction is not part of a plan or scheme to evade the
registration requirements of the U.S. Securities Act of 1933.

                                       22

<PAGE>   23

         Each of you is entitled to rely upon this letter and is irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this letter have the meanings set forth in
Regulation S.

                                     Very truly yours,

                                     [Name of Transferor]

                                     By:
                                        ---------------------------------------
                                     Name:
                                     Title:

                                       23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}]]