Document:

TIF-Exhibit 10.18

EXHIBIT 10.18
TIFFANY AND COMPANY
AMENDED AND RESTATED
EXECUTIVE DEFERRAL PLAN

WHEREAS, effective October 1, 1989, Tiffany and Company, a New York corporation,  established an unfunded executive deferral plan for the benefit of a select group of management or highly compensated employees; 

WHEREAS, effective October 1, 1998,  Tiffany and Company amended such plan to permit additional executives and the directors of its parent corporation, Tiffany & Co., a Delaware corporation, to participate and to provide certain additional alternatives with respect to compensation deferred in accordance with such plan; 

WHEREAS, effective January 1, 2003, Tiffany and Company and its parent corporation further amended such plan to (i) eliminate Education Accounts, (ii) provide for the establishment of an unlimited number of Fixed Period Benefit subaccounts for pre-Retirement distributions, (iii) permit elections for deferral of Bonus Compensation to be made during the Plan Year that immediately proceeds the Plan Year in which such Bonus Compensation would otherwise be paid but limit deferral of Bonus Compensation to 90% of Bonus Compensation, (iv) allow the Administrator to make hardship distributions in circumstances that may or may not result from a Disability, (v) allow Participants to make daily changes in the Investment Funds used to value their respective Deferred Benefit Accounts, (vi) vary the Investment Funds available for such purposes and (vii) extend the Enrollment Period to the months of November and December each year.

WHEREAS, effective November 1, 2005, Tiffany and Company and its parent corporation further amended such plan to (i) permit executives of Iridesse, Inc. to participate, (ii) bring the plan into compliance with Section 409A of the Code as follows: (a)  by requiring a recently Eligible Employee who wishes to participate in the year he becomes eligible to make a written election to 

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become a Participant within thirty (30) days of his becoming eligible; (b) by requiring that Participants who wish to defer Bonus Compensation elect to do so no later than six months before the end of the fiscal year to which such Bonus Compensation relates; (c) by requiring that elections to change the time and form of a distribution (i) be made at least twelve months in advance, and (ii) not defer distribution for a period of less than five years from the date such distribution would otherwise have been made; (d) requiring that Specified Employees not receive certain distributions resulting from a Termination of Service earlier than six months after the date of the Termination of Service; (e) providing that, in the event of plan termination, the Employer shall pay a benefit to the Participant or his Beneficiary as otherwise required under the plan; and (f) decreasing the minimum Retirement Account balance eligible for distribution on an installment basis; and (iii) make other miscellaneous modifications.

WHEREAS, effective January 1, 2006, Tiffany and Company and its parent corporation further amended such plan to change the Enrollment Period to the months of January through June each year, and to update such plan to reflect current operational practices.

WHEREAS, effective December 31, 2008, Tiffany and Company further amended such plan to change the definition of Termination of Service to ensure compliance with Section 409A of the Code.

WHEREAS, effective August 1, 2009, Tiffany and Company and its parent corporation further amended such plan to permit redirection of past contributions amongst Retirement Accounts. 

WHEREAS, effective as of February 1, 2010, Tiffany and Company and its parent corporation further amended such plan to provide benefits for eligible participants whose DCRB contributions under the Tiffany & Co. Employee Profit Sharing and Retirement Savings Plan are limited by the Internal Revenue Code. 

WHEREAS, effective as of September 4, 2012, Tiffany and Company and its parent corporation 

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further amended such plan to vary the Investment Funds used to value Deferred Benefit Accounts. 

WHEREAS, effective as of July 1, 2013, Tiffany and Company and its parent corporation further amended such plan to vary the Investment Funds used to value Deferred Benefit Accounts and to authorize Tiffany and Company to vary the Investment Funds due to underperformance, in the absence of approval from the parent corporation.

WHEREAS, the purpose of the plan is to provide selected executives and directors an opportunity to defer a portion of their compensation in a manner best suited to each participant's individual needs.

NOW, THEREFORE, to carry the above intentions into effect, Tiffany and Company does enter into this Amended and Restated Plan effective as of September 4, 2012.

This Plan shall be known as the

TIFFANY AND COMPANY

EXECUTIVE DEFERRAL PLAN

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ARTICLE I
DEFINITIONS

"Administrator" means the individual appointed to administer the Plan pursuant to Article VII.

“Affiliate” means, with reference to any Person, any second Person that controls, is controlled by, or is under common control with, any such first Person, directly or indirectly.

"Base Compensation" means a Participant's salary and wages, including Executive Deferral Contributions made hereunder and any pretax elective deferrals to any Employer sponsored retirement savings plan or cafeteria plan, qualified pursuant to Section 401(k) or Section 125 of the Code, but excluding bonuses and overtime, all other Employer contributions to benefit plans, remuneration attributable to Employer sponsored stock option plans and all other forms of remuneration or reimbursement.

"Beneficiary" means the person, persons, trust or other entity, designated by written revocable designation filed with the Administrator by the Participant to receive payments in the event of the Participant's death.  If a designated Beneficiary does not survive the Participant or if no Beneficiary is designated as provided above, the Beneficiary shall be the legal representative of the Participant's estate.  If a designated Beneficiary survives the Participant but dies before payment in full of benefits under this Plan has been made, the legal representative of such Beneficiary's estate shall become the Beneficiary.  References to a Participant in this Plan in connection with payments hereunder shall also refer to such Participant's Beneficiary unless the context clearly requires otherwise.

"Benefit Distribution Date" means a future date (or dates) selected by a Participant during the applicable Enrollment Period within guidelines established by the Administrator, as adjusted as permitted in this Plan, on which the Participant shall be entitled to a benefit pursuant to this Plan equal to all or a designated portion of the balance of his Fixed Period Benefit Account.

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“Board” means the Board of Directors of Tiffany and Company, a New York corporation.

"Bonus Compensation" means cash compensation paid to a Participant, excluding Base Compensation, under the Employer's bonus program or programs (including, but not limited to cash Incentive Awards under Section 8 of Parent’s 1998 Employee Incentive Plan or Section 8 of Parent’s 2005 Incentive Plan), as such may exist and be modified from time to time, and payable to a Participant following the conclusion of the Employer's fiscal year in respect of service performed at any time during such fiscal year.
 
“Cause” means a termination of Participant’s employment, involuntary on Participant’s part, which is the result of:

		
	(i)
	Participant’s conviction or plea of no contest to a felony involving financial impropriety or a felony which would tend to subject the Employer or any of its Affiliates to public criticism or materially interfere with Participant’s continued service to the Employer or its Affiliate;

		
	(ii)
	Participant’s willful and unauthorized disclosure of material “Confidential Information” (as that term is defined in the Non-Competition and Confidentiality Covenants) which disclosure actually results in substantive harm to the Employer’s or its Affiliate’s business or puts such business at an actual competitive disadvantage;

		
	(iii)
	Participant’s willful failure or refusal to perform substantially all such proper and achievable directives issued by Participant’s superior (other than: (A) any such failure resulting from Participant’s incapacity due to physical or mental illness, or (B) any such refusal made by Participant in good faith because Participant believes such directives to be illegal, unethical or immoral) after a written demand for substantial performance is delivered to Participant on behalf of  Employer, which demand specifically identifies the manner in which Participant has not substantially performed Participant’s duties, and which performance is not substantially corrected by Participant within ten (10) days of receipt of such demand;

		
	(iv)
	Participant’s commission of any willful act which is intended by Participant to result in his personal enrichment at the expense of the Employer or any of its Affiliates, or which could reasonably be expected 

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by him to materially injure the reputation, business or business relationships of the Employer or any of its Affiliates;

		
	(v)
	A theft, fraud or embezzlement perpetrated by Participant upon Employer or any of its Affiliates.

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

"Committee" means the Board of Directors of Tiffany, which shall have authority over this Plan.
"Compensation" means Base Compensation, Bonus Compensation and Directors Compensation in the aggregate.

"Code" means the Internal Revenue Code of 1986, as amended from time to time.

“DCRB Contribution” shall have the meaning given such term under the Tiffany & Co. Employee Profit Sharing and Retirement Savings Plan.

“DCRB Plan” means the portion of the Tiffany & Co. Employee Profit Sharing and Retirement Savings Plan providing for “DCRB Contributions” as defined under such plan.

"Deferral Agreement" means a written or electronic agreement between a Participant and the Employer, whereby a Participant agrees to defer a portion of his Compensation and the Employer agrees to provide benefits pursuant to the provisions of this Plan.

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"Deferred Benefit Accounts" mean Retirement Accounts and Scheduled In-Service Withdrawal Accounts.

"Determination Date" shall mean the last business day of every month, for each Participant, his date of death, Retirement, or other termination of services with Employer and, with respect to Independent Directors only, termination of service as a Director.

“Director” means a member of Parent’s Board of Directors.

“Directors Compensation” means a Director’s annual retainer and any incremental annual retainer paid or payable by Parent to Director for service as a Director, including any per-meeting-attended compensation, but excluding Parent’s contributions to benefit and retirement plans, remuneration attributable to Parent-sponsored stock option plans and all other forms of remuneration or reimbursement.

"Disability" means a condition such that a Participant is (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident or health plan covering employees of Participant’s Employer.

"Education Account" means a Deferred Benefit Account established pursuant to Section 4.1.

"Effective Date" means October 1, 1989.

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"Eligible Student" means an individual who is a relative of a Participant and who is younger than the age of 14 when a subaccount is initially established, pursuant to Section 4.3B.

"Eligible Employees" means Directors, all officers of the Employer, “director”-level employees of Employer, and such other management and other highly compensated employees of the Employer as identified and approved by the Committee.

"Employer" means Tiffany, Parent, and Iridesse, or any other business entity which adopts this Plan with consent of the Board of Directors of Parent.

"Enrollment Period" means, with respect to any Plan Year, the months of January through June in the year preceding such Plan Year.  The Enrollment Period may be extended through July in the year preceding such Plan Year, upon an Eligible Employee’s request and at the Administrator’s discretion.  With respect to a person who becomes an Eligible Employee during the course of a Plan Year, in respect of such Plan Year the Enrollment Period means the thirty day period following the date he becomes an Eligible Employee. 

“Excess DCRB Contribution” means the Plan contribution described in Sections 3.3 and 3.4.

"Executive Deferral Contribution" means the Plan contribution described in Section 3.2.

"Fixed Period Benefit Account" means a Deferred Benefit Account established pursuant to Section  4.3C.

“Independent Director” means a Director who is not an employee of Employer at the time Participation in this Plan commences.

"Investment Fund" or "Fund" means any one of the investment funds described in 

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Schedule 4.5 which shall serve as means to measure value increases or decreases with respect to a Participant's Deferred Benefit Accounts.

“Iridesse” means Iridesse, Inc., a Delaware corporation, and any successor organization.

“Non-Competition and Confidentiality Covenants” means an instrument in substantially the form of Exhibit A attached duly completed and  executed by a Participant who is eligible to receive an Excess DCRB Contribution.

“Parent” means Tiffany & Co., a Delaware corporation, and any successor organization.

"Participant" means any Eligible Employee who has met the conditions for participation as set forth in Article II.

"Permitted Retirement Age" means that date on which the Participant has attained age 55, provided that if the Participant is an Independent Director the Permitted Retirement Age for such Participant shall be his age on the date  his participation in the Plan commenced.

“Person” means 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.

"Plan" means the Tiffany and Company Executive Deferral Plan as described in this instrument, as amended from time to time.

"Plan Year" means the period from the November 1, 1989 through December 31, 1989 and thereafter, the twelve (12) consecutive month period beginning on each January 1 and ending on each December 31.

“Pre-2005 Balances” means Deferred Benefit Account balances as of December 31, 2004, including any Investment Fund performance subsequent to December 31, 2004 (i) credited 

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to such Accounts and (ii) attributable to balances as of December 31, 2004. 

"Retirement" means any Termination of Service by a Participant after attaining his Permitted Retirement Age, provided that if the Participant is an Independent Director, Retirement shall mean any Termination of Service after attaining his Permitted Retirement Age.  

“Scheduled In-Service Withdrawal Account” means an Education Account or a Fixed Period Benefit Account, provided that, on and after January 1, 2003, all Education Accounts shall be converted to Fixed Period Benefit Accounts.

“Select Management Employee” means an Eligible Employee who has been appointed by the Board as an officer of Tiffany and Company with the title of Vice President, Group Vice President, Senior Vice President, Executive Vice President, President, Chairman of the Board, chief operating officer, or who otherwise has been specifically designated a Select Management Employee by the Board.  For the purpose of this definition, once a person has been appointed a Select Management Employee, he or she will be deemed, for the purposes of this Plan, to remain a Select Management Employee, regardless of any subsequent change in title or responsibility.  Notwithstanding the foregoing, the term “Select Management Employee” does not include any person (a) whose principal place of work is outside the United States and (b) who is paid his Compensation from a foreign bank or bank branch or who is eligible to receive retirement, severance or similar benefits under foreign law or as a result of foreign custom.

“Specified Amount” means $130,000, adjusted as provided in Section 416(i)(1)(A) of the Code.

“Specified Employee” means (a) a Participant who is (i) an officer of the Employer by which such Participant is employed and (ii) who has an annual compensation greater than the Specified Amount, (b) a Participant who is a five-percent owner of the Employer by which such Participant is employed, or (c) a Participant who is a one-percent owner of the 

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Employer by which such Participant is employed and having an annual compensation from the Employer of more than $150,000.   Status as a Specified Employee shall be determined as of the December 31 most recently preceding Participant’s Termination of Service date.

"Termination of Service" means:
(a) with respect to Participant who is not an Independent Director, a termination of services provided by the Participant to the Employer, whether voluntarily or involuntarily, as determined by the Committee in accordance with Section 409A of the Code and Section 1.409A-1(h) of the Treasury Regulations.  In determining whether a Participant who is not an Independent Director has experienced a Termination of Service, the following provisions shall apply:

		
	(i)
	Termination of Service shall occur when the Participant has experienced a termination of employment with the Employer.  A Participant shall be considered to have experienced a termination of employment for this purpose when the facts and circumstances indicate that the Participant and his or her Employer reasonably anticipate that either (A) no further services will be performed by the Participant for the Employer after the applicable date, or (B) that the level of bona fide services the Participant will perform for the Employer after such date (whether as an employee or as an independent contractor) will permanently decrease to no more than 20% of the average level of bona fide services performed by the Participant (whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services to the Employer if the Participant has been providing services to the Employer less than 36 months).  

		
	(ii)
	If the Participant is on military leave, sick leave, or other bona fide leave of absence, other than a Disability leave, the employment relationship between the Participant and the Employer shall be treated as continuing intact, provided that the period of such leave 

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does not exceed 6 months, or if longer, so long as the Participant retains a right to reemployment with the Employer under an applicable statute or by contract.  If the period of a military leave, sick leave, or other bona fide leave of absence exceeds 6 months and the Participant does not retain a right to reemployment under an applicable statute or by contract, the employment relationship shall be considered to be terminated for purposes of this Plan as of the first day immediately following the end of such 6-month period.  In applying the provisions of this paragraph, a leave of absence shall be considered a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Employer.
(b) With respect to a Participant who is an Independent Director, a “Termination of Service” shall occur when such Participant ceases to be a Director, provided that Director and Employer do not anticipate resumption of services as a Director or Employee.  
(c) With respect to a Participant who serves simultaneously as a Director and an employee of Employer, a Termination of Service shall occur as described in paragraph (a) above for all contributions prior to such Termination of Service.  Should such Participant continue as a Director following a Termination of Service pursuant to section (a) above, and continue executive deferral contributions under the Plan as an Independent Director, a Termination of Service shall occur pursuant to section (b) above for the purposes of such executive deferral contributions.

“Tiffany” means Tiffany and Company, a New York corporation, and any successor organization.

"Retirement Account" means a Deferred Benefit Account established pursuant to Section 4.1.

"Vested" means that portion of a Participant's Deferred Benefit Accounts to which the Participant has a nonforfeitable right as defined in Section 5.1.

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"Treasury Regulations" means the Treasury Regulations promulgated pursuant to the Code, as amended from time to time.
ARTICLE II
MEMBERSHIP IN THE PLAN

		
	2.1
	Commencement of Participation.  Each Eligible Employee who is an Eligible Employee at any time during the Enrollment Period for any Plan Year shall be eligible to become a Participant in the Plan as of the first day of such Plan Year.  Notwithstanding the foregoing, but subject to the limitation expressed in Subsection 3.2 F below, each employee or Director who first becomes an Eligible Employee throughout the course of the Plan Year shall be eligible to become a Participant with respect to said Plan Year as of the first day of the month that is at least thirty (30) days after he is designated as an Eligible Employee provided that he shall have made a written election to become a Participant within thirty (30) days of such designation and provided further that such election shall not be effective with respect to Compensation earned for services performed prior to the date of such election.  Moreover, effective on and after February 1, 2010, if an Eligible Employee who is also a Select Management Employee is entitled to a DCRB Contribution under the DCRB Plan, and such DCRB Contribution is curtailed by reason of the limitations under Sections 401(a)(17) or 415 of the Code, the Eligible Employee shall receive an Excess DCRB Contribution under this Plan effective as of the date that such DCRB Contribution is made under the DCRB Plan regardless of whether the Eligible Employee has elected to participate in this Plan for any other purpose. 

		
	2.2
	Procedure For and Effect of Admission.  Each individual who becomes eligible for admission to participate in this Plan shall complete such forms and provide such data as are reasonably required by the Employer as a condition of such admission.  By becoming a Participant, each individual shall for all purposes be deemed conclusively to have assented to the provisions of this Plan and all amendments hereto.

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	2.3
	Cessation of Participation.  Except as provided in Section 3.4C, a Participant shall cease to be a Participant when he incurs a Termination of Service, or, for purposes of Excess DCRB Contributions, on the date on which he ceases to be a participant under the DCRB Plan.  Such persons, and all active Participants on the termination of the Plan, shall be deemed “former active Participants”.  Notwithstanding the foregoing, a former active Participant will be deemed a Participant, for all purposes of this Plan except with respect to contributions as described in Article III, as long as such former active Participant retains a benefit pursuant to the terms of Article VI.

 
    

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ARTICLE III
PLAN CONTRIBUTIONS

		
	3.1
	Executive Deferral Contribution.  For each Plan Year, each Eligible Employee may, by timely filing a Deferral Agreement with the Administrator, authorize the Employer to reduce his Base Compensation, his Bonus Compensation, his Directors Compensation or any combination of the foregoing, by fixed percentages, and to have corresponding fixed dollar amounts credited to his Deferred Benefit Accounts in accordance with Section 4.2.  Credit to Deferred Benefit Accounts shall be made in equal installments for each pay period in respect of Base Compensation reductions and in a lump sum for each payment in respect of Bonus Compensation and Directors Compensation reductions.   Subject to the rules set forth in Section 3.2 below, each Eligible Employee shall file a Deferral Agreement with the Administrator or his appointee during the applicable Enrollment Period for each Plan Year.

		
	3.2
	Rules Governing Executive Deferral Contributions.

		
	A.
	Throughout any one Plan Year, a Participant may defer all or any portion of his Compensation, except that a Participant may not defer: less than $2,000 in any Plan Year ending on or before December 31, 2002 or less than $1,000 in any other Plan Year (except Plan Years in which the Participant elects not to defer any portion of his Compensation); more than 50% of Base Compensation in any Plan Year; or more than 90% of Bonus Compensation payable in any Plan Year ending after December 31, 2002; or, for a person who becomes an Eligible Employee during the course of a Plan Year, any portion of Base Compensation or Bonus Compensation applicable to services performed prior to the Eligible Employee’s date of election in that Plan Year.

		
	B.
	The amount of Compensation that a Participant elects to defer shall be credited to the Participant's Deferred Benefit Accounts during each Plan Year on or about 

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that date on which the Participant would have, but for his deferral election, have been paid such Compensation.

		
	C.
	An election to defer Compensation pursuant to this Plan is irrevocable and shall continue until the earlier of:  (i) the Participant's Termination of Service, or (ii) the end of the Plan Year for which the deferral is effective.

		
	D.
	In respect of Bonus Compensation, an election to defer must be made no later than six months before the end of the fiscal year with respect to which such Bonus Compensation relates.

		
	E.
	Except as expressly provided in subsection D. above, each Eligible Employee shall file a Deferral Agreement with the Administrator during the applicable Enrollment Period for the Plan Year in question.

		
	F.
	No person who becomes an Eligible Employee during the course of Employer's Fiscal Year may file a Deferral Agreement with respect to Bonus Compensation for that Fiscal Year except as expressly provided in subsection D. above.

		
	3.3
	Excess DCRB Contribution.  Effective on and after February 1, 2010, if an Eligible Employee who is also a Select Management Employee is entitled to a DCRB Contribution under the DCRB Plan, and such DCRB Contribution is curtailed by reason of the limitations under Sections 401(a)(17) or 415 of the Code, the Eligible Employee shall have an Excess DCRB Contribution credited to his Deferred Benefit Accounts in accordance with Section 4.2 effective as of the date such DCRB Contribution is made under the DCRB Plan, regardless of whether the Eligible Employee has elected to participate in this Plan for any other purpose.  

		
	3.4
	Rules Governing Excess DCRB Contributions.

		
	A.
	The amount of an Excess DCRB Contribution shall equal the excess of (i) the 

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amount of the DCRB Contribution that would have been made under the terms of the DCRB Plan without giving effect to the limit on compensation imposed by Section 401(a)(17) of the Code or the limit on annual additions imposed by Section 415 of the Code, over (ii) the actual amount of the DCRB Contribution made on behalf of such Eligible Employee.  

		
	B.
	No Deferral Agreement shall be required for an Excess DCRB Contribution.

		
	C.
	If a Participant is eligible to continue receiving DCRB Contributions under the DCRB Plan while in receipt of payments under an employer-sponsored sickness or disability income plan or program, such Participant shall continue to be eligible to have allocations of Excess DCRB Contributions credited to his Deferred Benefit Accounts to the extent the requirements of Section 3.3 and this Section 3.4 are otherwise met.  Such Excess DCRB Contributions may continue notwithstanding the Participant’s Termination of Service due to Disability.  

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ARTICLE IV
PARTICIPANT'S ACCOUNTS

		
	4.1
	Establishment of Accounts.  The following Deferred Benefit Accounts shall be established with respect to each Participant:

A.    Retirement Account,

B.    Scheduled In-Service Withdrawal Accounts.

All contributions on behalf of a Participant shall be deposited to the appropriate Deferred Benefit Account, in accordance with Section 4.2.  
    
		
	4.2
	Deferred Benefit Allocation.  Each Eligible Employee shall submit to the Administrator, before the close of the Enrollment Period for each Plan Year, a written statement specifying the Eligible Employee's allocation of anticipated contributions with respect to his Deferred Benefit Accounts.  Notwithstanding the foregoing, an Excess DCRB Contribution shall be allocated only to the Eligible Employee’s Retirement Account. 

		
	4.3
	Suballocation Within the Deferred Benefit Accounts. 

		
	A.
	Retirement Subaccounts.  In the event a Participant shall allocate a portion of his anticipated contributions to his Retirement Account, he may, during each applicable Enrollment Period, direct that portion of his anticipated contributions to (i) a lump sum subaccount or to (ii) one of four installment subaccounts.  

A Participant entitled to receive Excess DCRB Contributions shall be permitted to select a Retirement subaccount for such contributions that is different from the Retirement subaccount selected for other contributions under the Plan.  If a Participant entitled to receive an Excess DCRB Contribution has not selected a 

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Retirement subaccount for such contributions, his Excess DCRB Contribution shall be allocated to the Retirement subaccount most recently selected by the Participant prior to the time such Excess DCRB Contribution is made or, if no such Retirement subaccount has been selected, to the lump sum subaccount.  Notwithstanding the foregoing, if no Retirement subaccount has been selected by the Participant prior to his first Excess DCRB Contribution, the Participant shall be permitted to select a Retirement subaccount for such contribution (and for future Excess DCRB Contributions) at any time during the Enrollment Period ending in the calendar year in which such first Excess DCRB Contribution is made or such other time as may be permitted by the Administrator (but in no event later than December 31 of such calendar year). 

Each Participant may only have one Retirement subaccount, except that a Participant entitled to receive Excess DCRB Contributions shall be permitted to have two Retirement subaccounts—one for Excess DCRB Contributions and one for other contributions under the Plan..   

Subject to Section 6.1.F below, the lump sum Retirement subaccount will be paid out in a lump sum within ninety (90) days of Retirement, and the installment Retirement subaccount will be paid in five (5), ten (10), fifteen (15) or twenty (20) annual installments, all pursuant to Section 6.1.  In the absence of such designation, contributions for that Plan Year will be paid out in a lump sum as aforesaid.  

Participants may, by written election made before December 31, 2006, redirect contributions made before the date of such election to Participant’s Retirement Account from the lump sum Retirement subaccount or any of the three installment Retirement subaccounts to the lump sum account or to any of the four installment subaccounts, provided (i) that each Participant shall, at the conclusion of such redirection process, have only one Retirement subaccount; and (ii) that such redirection shall not affect payments the Participant would 

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otherwise receive in calendar year 2005 or 2006. 

On and after August 1, 2009, Participants shall have a one-time option during his period of participation in the Plan to redirect, by written election, prior contributions to Participant’s Retirement Account from the lump sum Retirement subaccount or any of the four installment Retirement subaccounts to the lump sum Retirement account or to any of the four installment Retirement subaccounts, provided (i) that each Participant shall, at the conclusion of such redirection process, have only one Retirement subaccount (or two Retirement subaccounts in the case of a Participant who has received Excess DCRB Contributions and has selected a separate Retirement subaccount for such contributions); (ii) that Participant’s Retirement shall occur no earlier than one year after Participant’s written election for redirection is received by the Plan Administrator; and (iii) Participant elects that distributions under the Retirement Subaccount resulting from the redirection hereunder, whether in a lump sum account or any of the four installment subaccounts, shall commence five years after Participant’s Retirement.  Should Participant’s Retirement occur within one year following the date on which the Plan Administrator receives the written election for redirection under this paragraph, such written election shall be deemed null and void and Participant’s prior written election shall apply.  A Participant who has received Excess DCRB Contributions and has selected two Retirement subaccounts (one for Excess DCRB Contributions and one for other contributions under the Plan) shall be permitted to make the one-time election described in this paragraph with respect to each such Retirement subaccount, and such elections need not be made at the same time. 

		
	B.
	Education Subaccounts.  In the event a Participant shall allocate a portion of his anticipated contributions to his Education Account, the Participant may further allocate amongst subaccounts on behalf of Eligible Students.  Said allocation shall be made in writing prior to the beginning of the Plan Year on Participant's 

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As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

Deferral Agreement, or such other forms as are required by the Administrator.  In the absence of such suballocation, all contributions to the Participant's Education Account shall be equally allocated among the Participant's Education subaccounts.  A Participant's election pursuant to Section 4.5 shall apply uniformly to each subaccount.  A Participant, in any one Plan Year, may not allocate less than $1,000 (except in Plan Years in which the Participant elects not to defer any portion of his Compensation) to any one Education subaccount. 

Notwithstanding the foregoing, no Education Accounts shall be established effective following the Plan Year ending December 31, 2002, and all Education Accounts in effect as of such date shall be converted to Fixed Period Benefit Accounts or subaccounts by filing a conversion schedule with the Administrator by which benefits payable in respect of each such Education Account and subaccount shall become payable upon a specific Benefit Distribution Date provided, however, that no conversion schedule shall permit amounts accumulated pursuant to the Plan prior to January 1, 2003 to be paid to a Participant or Beneficiary prior to the time such Participant or Beneficiary would have been entitled to such payment under the Plan as it existed prior to the amendments made effective January 1, 2003.

		
	C.
	Fixed Period Benefit Subaccounts.  In the event a Participant shall allocate a portion of his anticipated contributions to his Fixed Period Benefit Account, the Participant may further allocate amongst subaccounts differentiated by Benefit Distribution Dates.  Said allocation shall be made in writing prior to the beginning of the Plan Year on Participant's Deferral Agreement, or such other forms as are required by the Administrator, provided that (i) each Participant shall have a one-time option in respect of each of his Benefit Distribution Dates to change such Benefit Distribution Date to a date at least five years  subsequent to such original Benefit Distribution Date and (ii) such option is exercised, if at all, at least one year prior to the original Benefit Distribution Date by written notice to the Administrator.  In the absence of such suballocation, all 

21

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

contributions to the Participant's Fixed Period Benefit Account shall be equally allocated among Participant's subaccounts.   A Participant's election pursuant to Section 4.5 shall apply uniformly to each subaccount.  A Participant, in any one Plan Year, may not allocate less than $1,000 (except in Plan Years in which the Participant elects not to defer any portion of his Compensation) to any one Fixed Period subaccount.  For elections made prior to November of 2002, a Participant shall not elect a Benefit Distribution Date with respect to the Fixed Period Benefit Account which occurs prior to twenty-four (24) months from the date on which the first contribution to such subaccount is first credited except as provided in Section 4.1 above.  For elections made in or after November of 2002, a Participant shall not elect a Benefit Distribution Date with respect to a Scheduled In-Service Withdrawal Account which occurs prior to twenty-four (24) months from the last day in the Plan Year in which such election is made.

		
	4.4
	Irrevocable Benefit Allocation.  Once an Eligible Employee has allocated anticipated contributions under the Plan and the Plan Year has begun, he may not modify, alter, amend or revoke said allocations.  Notwithstanding, a Participant may, prior to the commencement of a new Plan Year, elect to modify, alter, amend or revoke his future allocations to his Deferred Benefit Accounts (other than allocations of Excess DCRB Contributions) to the extent the Administrator shall provide, effective the first day of such new Plan Year.

		
	4.5
	Directed Valuation of Deferred Benefit Accounts.  As provided herein, a Participant may direct that his Deferred Benefit Accounts be valued, in accordance with Section 4.7, as if the account was invested in one or more of the Investment Funds listed in Schedule 4.5 attached.  The Committee may, from time to time, add additional Investment Funds to Schedule 4.5.  A Participant shall submit to the Plan Administrator in writing his investment selection for evaluation purposes.  The Participant may select one or more investment funds in multiples of  1%.  A Participant may make a separate selection with respect to each Deferred Benefit Account.  Investment Fund elections may be made daily.  The Committee may 

22

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

designate one or more Investment Funds to be used to value a Participant’s Deferred Benefit Accounts in the event the Participant fails to make an investment selection.

		
	4.6
	Administration of Investments.  The investment gain or loss with respect to contributions made to the Deferred Benefit Accounts on behalf of a Participant shall continue to be determined in the manner selected by the Participant, pursuant to Section 4.5, until a new designation is filed with the Plan Administrator.  If any Participant fails to file a designation, he shall be deemed to have designated the first Investment Fund listed in Schedule 4.5 attached.  A designation filed by a Participant changing his Investment Funds shall apply to future contributions and/or amounts already accumulated in his Deferred Benefit Accounts.  A Participant may change his investment selection at any time throughout the course of each Plan Year.  Notwithstanding the foregoing sentence, the Administrator retains the discretion to restrict the quantity of investment changes made by a participant in a Plan Year, should that Participant’s investment changes indicate market timing or other abuse.

		
	4.7
	Valuation of Deferred Benefit Accounts.  The Deferred Benefit Accounts of each Participant shall be valued, on any date prior to complete distribution of all benefits due Participant under this Plan, based upon the performance of the Investment Fund(s) selected by the Participant.  Such valuation shall reflect the net asset value expressed per share of the designated Investment Fund(s).  The fair market value of an Investment Fund shall be determined by the Administrator.  It shall represent the fair market value of all securities or other property held for the respective fund, plus cash and accrued earnings, less accrued expenses and proper charges against the fund.  Each Deferred Benefit Account shall be valued separately.  A valuation summary shall be prepared on each Determination Date.

		
	4.8
	Investment Obligation of the Employer.  Benefits are payable as they become due irrespective of any actual investments the Employer may make to meet its obligations.  Neither the Employer, nor any trustee (in the event the Employer elects to use a grantor trust to accumulate funds) shall be obligated to purchase or maintain 

23

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

any asset, and any reference to investments or Investment Funds is solely for the purpose of computing the value of benefits.  To the extent a Participant or any person acquires a right to receive payments from the Employer under this Plan, such right shall be no greater than the right of any unsecured creditor of the Employer. 

		
	4.9
	Change of Funds.  In the event that any of the Investment Funds designated in Schedule  4.5 attached underperforms in comparison to relevant benchmarks, materially changes its investment objectives, adopts a plan of liquidation, ceases to report its net asset values or otherwise ceases to exist, the Employer may amend this Plan by designating new or additional funds for the purposes of Section 4.7 and each Participant shall redirect the valuation of  his or her Deferred Benefit Accounts effective with the date of such amendment. 

24

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

ARTICLE V
VESTING

5.1    A. Vesting Schedule – Executive Deferral Contributions.  A Participant shall have a fully Vested interest with respect to Executive Deferral Contributions and Investment Fund performance credited to such contributions in his Deferred Benefit Accounts, in all instances and at all times.  

B. Vesting Schedule – DCRB Contributions.    A Participant shall be Vested in his Excess DCRB Contributions and Investment Fund performance credited to such contributions in his Deferred Benefit Accounts if, and to the same extent, he is vested in his DCRB Contributions under the DCRB Plan.  

C. Forfeiture of Vested DCRB Contributions.  Notwithstanding Section 5.1B, any Excess DCRB Contributions and Investment Fund performance credited to such contributions in a Participant’s Deferred Benefit Accounts that would otherwise be payable to a Participant or to his Beneficiary shall be forfeited in the event that (i) the Participant’s employment with Employer is terminated by the Employer for Cause, (ii) the Participant voluntarily resigns from the Employer prior to reaching Participant’s Permitted Retirement Age and fails to execute and deliver to the Employer the Non-Competition and Confidentiality Covenants prior to the effective date of such resignation, or (iii) a former Participant who has executed and delivered the Non-Competition and Confidentiality Covenants breaches Section 2 of such Covenants.
    

    

25

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

ARTICLE VI
BENEFITS/DISTRIBUTIONS

6.1    Termination of Service.  

		
	A.
	If a Participant incurs a Termination of Service for any reason, the Employer shall pay to the Participant, or to the Participant’s Beneficiary if applicable, a benefit equal to the value of Participant’s Deferred Benefit Accounts, determined pursuant to Section 4.7 and Section 5.1 on such distribution dates as may be applicable under this Article VI.  

  
		
	B.
	Subject to Section 6.1.F below, with the exception of funds allocated to the Participant’s Retirement Account, if the Participant incurs a Termination of Service for any reason, the benefit hereunder, including funds allocated to the Participant’s Scheduled In-Service Withdrawal Accounts, shall be paid to the Participant or the Participant’s Beneficiary, as applicable, as a lump sum within ninety (90) days of the date of such Termination of Service, provided that Participant has no discretion or control in determining the Plan Year in which such lump sum amount is paid.

		
	C.
	Subject to Section 6.1.F below, with respect to funds allocated to the Participant’s Retirement Account, if the Participant incurs a Termination of Service for any reason other than his Retirement or Disability, the benefit hereunder allocated to such Retirement Account, shall be paid to the Participant or the Participant’s Beneficiary, as applicable, as a lump sum within ninety (90) days of the date of such Termination of Service.

		
	D.
	Subject to Section 6.1.F below, with respect to funds allocated to the Participant’s Retirement Account, if the Participant incurs a Termination of Service by reason of his Retirement, the benefit hereunder allocated to such Retirement Account, shall be paid to the Participant or the Participant’s 

26

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

Beneficiary, as provided in Section 6.2 below.

		
	E.
	With respect to funds allocated to the Participant’s Retirement Account, if the Participant incurs a Termination of Service by reason of his Disability, the Participant shall remain as a Participant in the Plan but shall be ineligible for further contributions to his Deferred Benefit Accounts except as otherwise provided in Section 3.4C.  In that circumstance, funds allocated to the Participant’s Retirement Account shall be paid to him commencing on his 65th birthday in the form he elected pursuant to Section 4.3A.

		
	F.
	Notwithstanding anything stated in this Plan to the contrary, if a Participant who is a Specified Employee incurs a Termination of Service, other than by reason of such Participant’s death or Disability, no distribution of, payment from or benefit in lieu of Participant’s Deferred Benefit Accounts other than Pre-2005 Balances shall be made until the expiration of a period of six months following such Separation of Service, and any payments otherwise scheduled under this Plan during such six-month period shall be deemed deferred until the earlier of the expiration of such six-month period or such Participant’s death.  On the expiration of such six month period (or such Participant’s death) all such deferred payments shall be promptly made and all other payments shall be made as otherwise scheduled or provided for herein. 

		
	6.2
	Retirement Account - Form of Payment:

		
	A.
	Subject to Section 6.1F, if the Participant's Termination of Service shall occur as a result of Participant's Retirement or Disability, and the Participant has elected deferrals to a lump sum subaccount under Section 4.3A, the value of such subaccount is to be paid to the Participant within 90 days of (i) the date of his Retirement, (ii) in the case of Participant who has 

27

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

made a written election on and after August 1, 2009 for redirection, pursuant to the fifth paragraph of 4.3A, the fifth anniversary of his Retirement, or (iii) in the case of Disability, his 65th birthday; provided that, in all cases, Participant has no discretion or control in determining the Plan Year in which such lump sum amount is paid.  Subject to Section 6.1F, if the Participant's Termination of Service shall occur as a result of Participant's Retirement or Disability, and the Participant has elected deferrals to an installment subaccount under Section 4.3A, the benefit in respect of such subaccount shall be paid by Employer to Participant in five, ten, 15 or 20 annual installments beginning within 90 days of (x) the date of his Retirement, (y) in the case of Participant’s written election on and after August 1, 2009 for redirection, pursuant to the fifth paragraph of 4.3A, the fifth anniversary of Participant’s Retirement,  or (z) in the case of Disability, his 65th birthday;  provided that, in all cases, Participant has no discretion or control in determining the Plan Year in which such lump sum amount is paid; and with each subsequent annual installment to be paid on or before February 1 of each subsequent year, determined as follows:

28

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

	
				
	Five Annual Installments
	 
	Percentage of Installment

	Benefit Year
	 
	Retirement Account

	 
	 
	 
	 

	1 (Year of Retirement/5th anniversary of Retirement/65th birthday)
	 
	 
	20%

	2
	 
	 
	25%

	3
	 
	 
	33%

	4
	 
	 
	50%

	5
	 
	 
	100%

	
					
	Ten Annual Installments
	 
	 
	 
	 

	Benefit Year
	 
	Percentage of Installment Retirement Account

	 
	 
	 
	 
	 

	1 (Year of Retirement/5th anniversary of Retirement/65th birthday)
	 
	 
	10%
	 

	2
	 
	 
	11%
	 

	3
	 
	 
	13%
	 

	4
	 
	 
	14%
	 

	5
	 
	 
	17%
	 

	6
	 
	 
	20%
	 

	7
	 
	 
	25%
	 

	8
	 
	 
	33%
	 

	9
	 
	 
	50%
	 

	10
	 
	 
	100%
	 

29

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

	
					
	Fifteen Annual Installments
	 
	 
	 
	 

	Benefit Year
	 
	Percentage of Installment Retirement Account

	 
	 

	1 (Year of Retirement/5th anniversary of Retirement/65th birthday)
	 
	 
	7%
	 

	2
	 
	 
	7%
	 

	3
	 
	 
	8%
	 

	4
	 
	 
	8%
	 

	5
	 
	 
	9%
	 

	6
	 
	 
	10%
	 

	7
	 
	 
	11%
	 

	8
	 
	 
	12%
	 

	9
	 
	 
	12%
	 

	10
	 
	 
	17%
	 

	11
	 
	 
	20%
	 

	12
	 
	 
	25%
	 

	13
	 
	 
	333%
	 

	14
	 
	 
	50%
	 

	15
	 
	 
	100%
	 

	
					
	Twenty Annual Installments
	 
	 
	 
	 

	Benefit Year
	 
	Percentage of Installment Retirement Account

	 
	 
	 
	 
	 

	1 (Year of Retirement/5th anniversary of Retirement/65th birthday)
	 
	 
	5%
	 

	2
	 
	 
	5%
	 

	3
	 
	 
	6%
	 

	4
	 
	 
	6%
	 

	5
	 
	 
	6%
	 

	6
	 
	 
	7%
	 

	7
	 
	 
	7%
	 

	8
	 
	 
	8%
	 

	9
	 
	 
	8%
	 

	10
	 
	 
	9%
	 

	11
	 
	 
	10%
	 

	12
	 
	 
	11%
	 

	13
	 
	 
	13%
	 

	14
	 
	 
	14%
	 

	15
	 
	 
	17%
	 

	16
	 
	 
	20%
	 

	17
	 
	 
	25%
	 

	18
	 
	 
	33%
	 

	19
	 
	 
	50%
	 

	20
	 
	 
	100%
	 

30

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

In the event a Participant receiving such installments dies before all installments are paid, his Beneficiary shall receive the balance remaining in such subaccount in a lump sum.
    
		
	B.
	Subject to Section 6.1.F, notwithstanding any provision to the contrary, if at the time benefits are to commence, the Participant's Retirement Account has a value less than $10,000, the Participant's benefit hereunder shall be paid to the Participant as a lump sum within ninety (90) days of Participant’s Termination of Service, provided that Participant has no discretion or control in determining the Plan Year in which such lump sum amount is paid.

31

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

		
	6.3
	Education Account.

		
	A.
	If a Participant does not incur a Termination of Service prior to January 1 of the calendar year in which an Eligible Student of the Participant attains a Determination Age, the Employer shall pay to the Participant a benefit, as soon as administratively possible, determined as follows:

	
			
	Eligible Student's
	Percentage of Eligible

	Determination Age
	Student's Subaccount

	 
	 
	 

	18
	 
	25%

	19
	 
	33%

	20
	 
	50%

	21
	 
	100%

		
	B.
	Subject to Section 6.1F if a Participant should incur a Termination of Service for any reason while having a balance in his Education Account, the Vested portion of the balance shall be distributed to the Participant, or Beneficiary if applicable, in accordance with Section 6.1.

		
	C.
	Notwithstanding any provision to the contrary, if, on the January 1 of the calendar year in which an Eligible Student of Participant attains age 18, the Eligible Student's subaccount has a balance of less than $20,000, then said balance shall be paid to the Participant as soon as administratively possible.

		
	6.4
	Fixed Period Benefit Account.

		
	A.
	If a Participant does not incur a Termination of Service prior to a designated Benefit Distribution Date, the Employer shall pay to the Participant a benefit equal to the balance of the Participant's subaccount which has been earmarked with respect to said Benefit Distribution Date, provided, however, that each Participant shall have a one-time option in respect of each such Benefit Distribution Date, to  postpone the Benefit Distribution Date for no less than five years, such option  to be exercised, if at all, by written notice give to the 

32

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

Administrator no less than one year earlier than such original Benefit Distribution Date.

		
	B.
	Subject to Section 6.1.F, if a Participant should incur a Termination of Service for any reason while having a balance in his Fixed Period Benefit Account, the balance shall be distributed to the Participant, or Beneficiary, if applicable, in accordance with Section 6.1

33

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

		
	6.5
	Unforeseeable Emergency Distribution.

		
	A.
	In the event of an unforeseen emergency, a Participant may apply in writing to the Committee for withdrawal against his Deferred Benefit Accounts, other than Excess DCRB Contributions and Investment Fund performance credited to such contributions in his Deferred Benefit Accounts.  The withdrawal shall only be allowed at the discretion of the Committee and for purposes which constitute an "unforeseeable emergency" as defined in Section 409A(a)(2)(B)(ii)(I) of the Code and regulations promulgated thereunder.  For the purpose of withdrawals, the value of all available Deferred Benefit Accounts shall be determined on the Determination Date next following the date as of which the application is approved by the Committee and shall be paid as soon as practical thereafter.  The Committee shall approve such application only to relieve an unforeseeable emergency and shall make no distribution in excess of the amounts  necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated by the Participant as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).  In making a determination whether to approve any such application, the Committee may require the Participant to submit such proof as to the existence of such unforeseeable emergency as the Committee shall deem necessary and shall consider all relevant facts and circumstances presented by the Participant.  All determinations under this Section shall be based upon uniform and nondiscriminatory rules and standards applicable to all Participants similarly situated and shall be final, conclusive and binding on all interested parties. 

34

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

		
	B.
	To the extent a withdrawal shall be permitted pursuant to this Section 6.5, the Participant's Deferred Benefit Accounts shall be correspondingly reduced in the following order:

1.    The Fixed Period Benefit Account,

2.    The Education Account,

3.    The Retirement Account.

		
	6.6
	Tax Withholding.  To the extent required by the law in effect at the time benefits are distributed pursuant to this Article VI, the Employer or its agents shall withhold any taxes required by the federal or any state or local government from payments made hereunder.

.            
 
    

35

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

ARTICLE VII
ADMINISTRATION

		
	7.1
	Appointment of Administrator.  Tiffany shall appoint, on behalf of all Participants, an Administrator.  The Administrator may be removed by Tiffany at any time and he may resign at any time by submitting his resignation in writing to Tiffany.  A new Administrator shall be appointed as soon as possible in the event that the Administrator is removed or resigns from his position.  Any person so appointed shall signify his acceptance by filing a written acceptance with Tiffany.

		
	7.2
	Administrator's Responsibilities.  The Administrator is responsible for the day to day administration of the Plan.  He may appoint other persons or entities to perform any of his fiduciary functions.  Such appointment shall be made and accepted by the appointee in writing and shall be effective upon the written approval of Tiffany.  The Administrator and any such appointee may employ advisors and other persons necessary or convenient to help him carry out his duties including his fiduciary duties.  The Administrator shall have the right to remove any such appointee from his position.  Any person, group of persons or entity may serve in more than one fiduciary capacity.

		
	7.3
	Records and Accounts.  The Administrator shall maintain or shall cause to be maintained accurate and detailed records and accounts of Participants and of their rights under the Plan and of all investments, receipts, disbursements and other transactions.  Such accounts, books and records relating thereto shall be open at all reasonable times to inspection and audit by the Employer and by persons designated thereby.

		
	7.4
	Administrator's Specific Powers and Duties.  In addition to any powers, rights and duties set forth elsewhere in the Plan, the Administrator shall have the following discretionary powers and duties:

    

36

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

		
	A.
	To adopt such rules and regulations consistent with the provisions of the Plan;

		
	B.
	To enforce the Plan in accordance with its terms and any rules and regulations he establishes;

		
	C.
	To maintain records concerning the Plan sufficient to prepare reports, returns and other information required by the Plan or by law;

		
	D.
	To construe and interpret the Plan and to resolve all questions arising under the Plan;

		
	E.
	To direct the Employer to pay benefits under the Plan, and to give such other directions and instructions as may be necessary for the proper administration of the Plan;

		
	F.
	To be responsible for the preparation, filing and disclosure on behalf of the Plan of such documents and reports as are required by any applicable federal or state law.

		
	7.5
	Employer's Responsibility to Administrator.  The Employer shall furnish the Administrator such data and information as he may require.  The records of the Employer shall be determinative of each Participant's period of employment, termination of employment and the reason therefor, leave of absence, reemployment, years of service, personal data, and compensation reductions.  Participants and their Beneficiaries shall furnish to the Administrator such evidence, data, or information, and execute such documents as the Administrator requests.

		
	7.6
	Liability.  Neither the Administrator nor the Employer shall be liable to any person for any action taken or omitted in connection with the administration of this Plan unless attributable to his own fraud or willful misconduct; nor shall the Employer be liable to any person for such action unless attributable to fraud or willful misconduct 

37

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

on the part of the director, officer or employee of the Employer.

		
	7.7
	Procedure to Claim Benefits.  Each Participant or Beneficiary must claim any benefit to which he is entitled under this Plan by a written notification to the Administrator.  If a claim is denied, it must be denied within a reasonable period of time, and be contained in a written notice stating the following:

		
	A.
	The specific reason for the denial,

		
	B.
	Specific reference to the Plan Provision on which the denial is based,

		
	C.
	Description of additional information necessary for the claimant to present his claim, if any, and an explanation of why such material is necessary, and

		
	D.
	An explanation of the Plan's claim procedure.

The claimant will have sixty (60) days to request a review of the denial by the Administrator, who will provide a full and fair review.  The request for review must be written and submitted to the same person who handles initial claims.  The claimant may review pertinent documents, and he may submit issues and comments in writing.  The decision by the Administrator with respect to the review must be given within sixty (60) days after receipt of the request, unless special circumstances require an extension (such as for a hearing).  In no event shall the decision be delayed beyond one hundred twenty (120) days after receipt of the request for review.  The decision shall be written in a manner calculated to be understood by the claimant, and it shall include specific reasons and refer to specific Plan provisions as to its effect.

		
	7.8
	Challenging Forfeiture of Benefits due to Termination for Cause.   If the Committee shall have determined that a Participant or his Beneficiary shall forfeit any amounts attributable to Excess DCRB Contributions under this Plan due to a 

38

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

Termination of Service for Cause, such Participant (or his Beneficiary in the event Participant is deceased) shall have the right to elect to challenge such forfeiture through binding arbitration held in New York City, New York under the then existing Commercial Arbitration Rules of the American Arbitration Association.  Arbitration proceedings shall be conducted by three arbitrators who shall be authorized to determine whether Cause for termination existed, but solely for the purpose of determining rights to benefits under this Plan.  Without limit to their general authority, the arbitrators shall have the right to order reasonable discovery in accordance with the Federal Rules of Civil Procedure.  The final decision of the arbitrators shall be binding and enforceable without further legal proceedings in court or otherwise, provided that either party to such arbitration may enter judgment upon the award in any court having jurisdiction.  The final decision arising from the arbitration shall be accompanied by a written opinion and decision which shall describe the rational underlying the award and shall include findings of fact and conclusions of law.  The cost of such arbitration shall initially be borne equally to the parties to such arbitration (which parties shall be limited to the Employer and the Participant (or his Beneficiary)), and each party shall bear its or his own legal fees; however, the arbitrators shall have authority to award the Participant (or his Beneficiary) his or her legal fees and costs if the arbitrators determine that the decision to forfeit any benefit was made in bad faith.  As a condition to proceeding with such arbitration the Employer may require the Participant or his Beneficiary to agree, in writing, that the arbitration award will be binding upon the Participant or such Beneficiary, as the case may be, in connection with rights under this Plan, and that the Participant waives any right to proceed through court proceedings.  Such award shall be confidential and shall not be binding or admissible in connection with any other proceeding.  

39

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

ARTICLE VIII
AMENDMENT AND TERMINATION

		
	8.1
	Plan Amendment.  The Plan may be amended in whole or in part by Tiffany and Parent at any time; provided that no such amendment shall reduce any Participant's Vested Deferred Benefits.  Notice of any such amendment shall be given in writing to each Participant and each Beneficiary of a deceased Participant.  

		
	8.2
	No Premature Distribution.  No amendment hereto shall permit amounts accumulated pursuant to the Plan prior to the amendment to be paid to a Participant or Beneficiary prior to the time he would otherwise be entitled thereto.

		
	8.3
	Termination of the Plan.  Tiffany reserves the right to terminate the Plan and/or the Deferral Agreements pertaining to Participants at any time in the event that Tiffany, in its sole discretion, shall determine that the economics of the Plan have been adversely and materially affected by a change in the tax laws, other governmental action or other event beyond the control of the Participant and Tiffany or that the termination of the Plan is otherwise in the best interest of the Tiffany. 

		
	8.4
	Effect of Termination.  In the event of Plan termination pursuant to Section 8.3, the Employer shall pay a benefit to the Participant or the Beneficiary of any deceased Participant as otherwise required under the Plan provided that the Employer retains the discretion, in the event of a Plan termination meeting the requirements of Section 1.409A-3 (j)(4)(ix) of the Treasury Regulations, to pay a lump-sum benefit in accordance with such Treasury Regulation to each Participant or the Beneficiary of any deceased Participant, in lieu of other benefits under this Plan, equal to the full value of Participant’s Deferred Benefit Accounts determined pursuant to Section 4.7.

		
	8.5
	Adverse Determination.  Notwithstanding anything stated to the contrary in this Plan, if at any time, as a result of a Final Determination, a tax is payable by a Participant in respect of any benefit under this Plan prior to payment under the terms of this Plan of 

40

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

such benefit, then Employer shall pay to the Participant who is required to pay such tax the amount of such tax and such Participant's Deferred Benefits shall be reduced by the amount of such tax.  Employer reserves the right, in its sole discretion, to allocate the amount of such tax among the various Deferred Benefit Accounts of any Participant who is required to pay such tax.  For the purposes of this Section 8.5 the term "Final Determination" means (i) an assessment of tax by the United States Internal Revenue Service addressed to the Participant or his Beneficiary  which is not timely appealed to the courts; (ii) a final determination by the United States Tax Court or any other Federal Court, the time for an appeal thereof having expired or been waived; or (iii) an opinion by Employer's counsel, addressed to Employer and in form and substance satisfactory to Employer, to the effect that amounts payable under the Plan are subject to Federal income tax to the Participant or his Beneficiary prior to payment under the terms of the Plan.  No Final Determination shall be deemed to have occurred until the Employer has actually received a copy of the assessment, court order or opinion which forms the basis thereof and such other documents as it may reasonably request.

41

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

ARTICLE IX
MISCELLANEOUS

		
	9.1
	Supplemental Benefits.  The benefits provided for the Participants under this Plan are in addition to benefits provided by any other plan or program of the Employer and, except as otherwise expressly provided for herein, the benefits of this Plan shall supplement and shall not supersede any plan or agreement between the Employer and any Participant.

		
	9.2
	Governing Law.  The Plan shall be governed and construed under the laws of the State of New York as in effect at the time of its adoption.

		
	9.3
	Jurisdiction.  The courts of the State of New York shall have exclusive jurisdiction in any or all actions arising under this Plan.

		
	9.4
	Binding Terms.  The terms of this Plan shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, executors, administrators and successors.

		
	9.5
	Spendthrift Provision.  The interest of any Participant or any Beneficiary receiving payments hereunder shall not be subject to anticipation, nor to voluntary or involuntary alienation until distribution is actually made.

		
	9.6
	No Assignment Permitted.  No Participant, Beneficiary or heir shall have any right to commute, sell, transfer, assign or otherwise convey the right to receive any payment under the terms of this Plan.  Any such attempted assignment shall be considered null and void.

42

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

		
	9.7
	Construction.  All headings preceding the text of the several Articles hereof are inserted solely for reference and shall not constitute a part of this Plan, nor affect its meaning, construction or effect.  Where the context admits, words in the masculine gender shall include the feminine and neuter genders, and the singular shall mean the plural.

		
	9.8
	No Employment Agreement.  Nothing in this Plan or in any Deferral Agreement entered into under this Plan shall confer on any Participant the right to continued employment with any Employer and, except as expressly set forth in a written agreement entered into with the express authorization of the Board of Directors of Employer, both the Participant and the Employer shall be free to terminate Participant's employment for any cause or without cause.

		
	9.9
	2005 and Subsequent Amendments.  None of the amendments made to this Plan in 2005 or after shall be read to invalidate any election made on or prior to December 31, 2004 that would have been permissible under the terms of the Plan as it existed on December 31, 2004 and such elections shall be deemed to remain in effect unless changed as expressly provided for hereunder.

[the balance of this page has been left intentionally blank – signature page to follow]

43

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

	
		
	 
	Tiffany and Company

	 
	("Tiffany)

	 
	 

	 
	By: /s/ Patrick B. Dorsey

	 
	Name: Patrick B. Dorsey

	 
	Title: Senior Vice President - Secretary

	Attest: /s/ Robyn M. Wapner
	 

	Name: Robyn M. Wapner
	 

	Title: Assistant Secretary
	 

	 
	 

	 
	Tiffany & Co.

	 
	("Parent")

	 
	 

	 
	By: /s/ Patrick B. Dorsey

	 
	Name: Patrick B. Dorsey

	 
	Title: Senior Vice President - Secretary

	Attest: /s/ Robyn M. Wapner
	 

	Name: Robyn M. Wapner
	 

	Title: Assistant Secretary
	 

44

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

Exhibit A

NON-COMPETITION AND CONFIDENTIALITY COVENANTS

THIS INSTRUMENT  is made and given this ___ day of _________ 2___ by __________________(“Participant”) to and for the benefit of Tiffany and Company, a New York corporation and its Affiliates (as defined below) with reference to the following facts and circumstances:

A.    All or a portion of the balances in Participant’s Deferred Benefit Accounts under that certain Tiffany and Company Amended and Restated Executive Deferral Plan, as Adopted by the Board of Directors May 20, 2010 (the “Deferral Plan”) are attributable to Excess DCRB Contributions made under the Deferral Plan and Investment Fund performance credited to such contributions (the “Excess DCRB Benefit”), and Participant has resigned or is about to resign his or her employment with Tiffany or its Affiliate;

B.    Participant’s age at the effective date of such resignation was or will be less than 55 years;

C.    But for Participant’s obligation to provide this instrument, Participant is otherwise Vested in a right to an Excess DCRB Benefit under the Deferral Plan;

D.    Participant is willing to make the promises set forth in this instrument in order to obtain an Excess DCRB Benefit under the Deferral Plan;  and

E.    Participant agrees that the right to receive an Excess DCRB Benefit under the terms of the Deferral Plan is full and fair consideration for the promises made in this instrument,

NOW THEREFORE, Participant hereby agrees as follows:

1.    Defined Terms.  Unless otherwise defined in this instrument, words and phrases that have a defined meaning in the Deferral Plan shall have the same meaning in this instrument.   The initially capitalized words and phrases set forth below shall have the meanings ascribed to them below:

“Affiliate” means, with reference to any Person, any second Person that controls, is controlled by, or is under common control with, any such first Person, directly or indirectly.

“Board” means the board of directors of Tiffany and Company, a New York corporation. 

“Change in Control” means 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 

45

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

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;

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

46

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

		
	(vii)
	all or substantially all of the assets of Tiffany and Company 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 Tiffany and Company representing Fifty percent (50%) or more of the combined voting power of Tiffany and Company’s then outstanding securities entitled to vote in the election of directors of Tiffany and Company; 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 date on which a Change of Control occurs.

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

“Confidential Information” means all information relating in any manner to Tiffany or its business, including but not limited to, contemplated new products and services, marketing and advertising campaigns, sales projections, creative campaigns and themes, financial information, budgets and projections, system designs, employees, management procedures and systems, employee training materials, equipment, production plans and techniques, product and materials specifications, product designs and design techniques,  client information (including purchase history and client identifying information) and vendor information (including the identity of vendors and information concerning the capacity of or products or pricing provided by specific vendors); notwithstanding the foregoing, “Confidential Information” shall not include information that becomes generally publicly available other than as a result of a disclosure by Participant or that becomes available to Participant on a non-confidential basis from a Person that to the Participant’s knowledge, after due inquiry, is not bound by a duty of confidentiality.

“Covered Employee” means an employee of Tiffany.

“Duration of Non-Competition Covenant” means the period beginning with Participant’s Termination Date and ending upon the first to occur of the following: (i) the second year 

47

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

anniversary of  Participant’s Termination Date, (ii) a Change in Control Date or (iii) Participant’s 65th birthday provided that, in no circumstance shall the Duration of this Covenant be less than six months. 

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

“Incumbent Directors” means those individuals who were members of the Parent Board, as of January 1, 2004 and those individuals whose later appointment to the Parent Board, or whose later nomination for election to such Board by the stockholders of Parent, was approved by a vote of at least a majority of those members of such Board who either were members of such Board as of such date, or whose election or nomination for election was previously so approved.

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

“Parent” means Tiffany & Co., a Delaware corporation.

“Parent Board” means the board of directors of Parent.

“Person” means 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.

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

“Regulations” mean regulations under Section 280G of the Code, including proposed and temporary regulations, and any successor provisions thereto.

“Rights Plan” means the Amended and Restated Rights Agreement Dated as of September 22, 1998 by and between Tiffany & Co., a Delaware corporation, and ChaseMellon Shareholder Services L.L.C., as Rights Agent, as such Agreement may be further amended from time to time.

“Termination Date” means the date Participant ceases to be an employee of Tiffany.

“Tiffany” means Tiffany and Company, a New York corporation, and if the context so requires, Tiffany and Company and/or any Affiliate of Tiffany and Company, such term 

48

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

to be interpreted broadly so as to give rights equivalent to Tiffany and Company to any Affiliate of Tiffany and Company.

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

2.    Non-Competition.  Participant agrees that for the Duration of the Non-Competition Covenant Participant will not directly or indirectly (whether as director, officer, consultant, principal, owner, member, partner, advisor, financier, employee, agent or otherwise): 

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

(ii) employ, attempt to employ, or assist anyone in employing a Covered Employee or any person who was a Covered Employee at any time during the Duration of the Non-Competition Covenant or within three (3) months prior thereto (including by influencing any Covered Employee to terminate his/her employment with Tiffany or to accept employment with any Person); or 

(iii) attempt in any manner to solicit Jewelry purchases by any client of Tiffany or persuade any client of Tiffany to cease doing business or reduce the amount of business that such client has customarily done with Tiffany.  

3.    Confidentiality.    Participant acknowledges that Participant has had access to Confidential Information.  Participant agrees not to disclose Confidential Information or to use Confidential Information to the detriment of Tiffany.  If the Participant is requested in any case by a court or governmental body to make any disclosure of Confidential Information, the Participant shall (i) promptly notify Tiffany in writing, (ii) consult with and assist Tiffany at Tiffany’s expense in obtaining an injunction or other appropriate remedy to prevent such disclosure, and (iii) use Participant’s reasonable efforts to obtain at the Company’s expense a protective order or other reliable assurance that confidential treatment will be accorded to any Confidential Information that must be disclosed.  Subject to the foregoing sentence, Participant may furnish that portion (and only that portion) of the Confidential Information that, in the written opinion of Participant’s counsel (the form and substance of which opinion shall be reasonably acceptable to Tiffany), the Participant is legally compelled or otherwise required to disclose or else stand liable for contempt or suffer other material penalty.  The obligations in this section shall continue beyond the Duration of the Non-Competition Covenant.

49

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

4.    Loss of Excess DCRB Benefit  in the Event of Breach.  Should Participant breach Participant’s obligations under Section 2 above, he shall forfeit and lose all right to any current or future Excess DCRB Benefit under the Deferral Plan.   

5.    Enforcement.  

(i)    Participant agrees that the restrictions set forth in this instrument are reasonable and necessary to protect the goodwill of Tiffany.  If any provision set forth herein is deemed invalid, illegal or unenforceable based upon duration, geographic scope or otherwise, Participant agrees that such provision shall be modified to make it enforceable to the fullest extent permitted by law.  

(ii)    In the event of breach or threatened breach by Participant of the provisions set forth in this instrument, Participant acknowledges that Tiffany will be irreparably harmed and that monetary damages (including loss of benefits) shall be an insufficient remedy to Tiffany. Therefore, Participant consents to the enforcement of this instrument  by means of temporary or permanent injunction and other appropriate equitable relief in any competent court, in addition to any other remedies Tiffany may have under this Agreement or otherwise. 

6.     Procedure to Obtain Determination.  Should Participant wish to obtain a determination that any proposed employment, disclosure, arrangement or association (each a “Proposed Transaction”) is not prohibited hereunder, Participant shall direct a written request to the Board.  Such request shall fully describe the Proposed Transaction.  Within 30 days after receipt of such request, the Board may (i) issue such a determination in writing, (ii) issue its refusal of such request in writing, or (iii) issue a written request for more written information concerning the Proposed Transaction.  In the event that alternative (iii) is elected (which election may be made on behalf of the Board by the Legal Department of Tiffany and Company without action by the Board), any action on Participant’s request will be deferred for ten (10) days following receipt by said Legal Department of the written information requested.  Failure of the Board to act within any of the time periods specified in this Section 4 shall be deemed a determination that the Proposed Transaction is not prohibited hereunder.   A determination made or deemed made under this Section 6 shall be limited in effect to the Proposed Transaction described in the submitted materials and shall not be binding or constitute a waiver with respect to any other Proposed Transaction, whether proposed  by such Participant or any other Person.  In the event that Participant wishes to seek a determination that employment with a management consulting firm, an accounting firm, a law firm or some other provider of consulting services to a wide variety of clients will not be prohibited hereunder should such firm, at some unspecified time, provide services to a Person in the Retail Jewelry Trade or the Wholesale Jewelry Trade, Participant may seek a determination hereunder; in submitting such a Proposed Transaction, the Participant should specify the extent that Participant will be involved in or can be excluded from involvement in the provision of such services.  In a making any determination under this Section 6, the Board shall not be deemed to be acting as a fiduciary with respect to the 

50

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

Deferral Plan, the Participant or any Beneficiary of the Participant and shall be under no obligation to issue a determination that any Proposed Transaction is not prohibited hereunder.

7.    Arbitration and Equitable Relief.    Participant and Tiffany agree that any and all disputes arising out or relating to the interpretation or application of this instrument, including any dispute concerning whether any conduct is in violation of Section 2 or 3 above, shall be subject to arbitration in New York, New York, under the then existing Commercial Arbitration Rules of the American Arbitration Association.  Arbitration proceedings shall be conducted by three arbitrators.  Without limit to their general authority, the arbitrators shall have the right to order reasonable discovery in accordance with the Federal Rules of Civil Procedure.  The final decision of the arbitrators shall be binding and enforceable without further legal proceedings in court or otherwise, provided that either party to such arbitration may enter judgment upon the award in any court having jurisdiction.  The final decision arising from the arbitration shall be accompanied by a written opinion and decision which shall describe the rational underlying the award and shall include findings of fact and conclusions of law.  The cost of such arbitration shall be borne equally by the parties and each party to the arbitration shall bear its own legal fees. Notwithstanding any provision in this Section 7, the requirement to arbitrate disputes shall not apply to any action to enforce this instrument  by means of temporary or permanent injunction or other appropriate equitable relief.  

8.    Miscellaneous Provisions.    

(a)    Tiffany may assign its rights to enforce this instrument to any of its Affiliates.  Participant understands and agrees that the promises in this instrument are for the benefit of Tiffany (which term includes Tiffany and Company and its Affiliates) and for the benefit of the successors and assigns of Tiffany and its Affiliates.

(b)    Any determination made by the Board under Section 6 above shall bind Tiffany and Company and its Affiliates.

(c)    If any action by Participant prohibited hereunder causes Participant to lose a right to an Excess DCRB Benefit under the Deferral Plan, such loss of Excess DCRB Benefit shall also be effective with respect to Participant’s Beneficiaries under the Deferral Plan.

(d)     The laws of the State of New York, without giving effect to its conflicts of law principles, govern all matters arising out of or relating to this instrument and all of the prohibitions and remedies it contemplates, including, without limitation, its validity, interpretation, construction, performance and enforcement.

(e)     Each Person giving or making any notice, request, demand or other communication (each, a “Notice”) pursuant to this Instrument shall

		
	(i)
	give the Notice in writing; and

51

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

		
	(ii)
	use one of the following methods of delivery, each of which for purposes of this Agreement is a writing:

		
	(A)
	Personal delivery;

		
	(B)
	Registered or Certified Mail, in each case, return receipt requested and postage prepaid; or

		
	(C)
	Nationally recognized overnight courier, with all fees prepaid. 

(f)    Each Person giving a Notice shall address the Notice to the recipient (the “Addressee”) at the address given on the signature page of this Instrument or to a changed address designated in a Notice. 

(g)    A Notice is effective only if the person giving the Notice has complied with subsections (e) and (f) and if the Addressee has received the Notice. A Notice is deemed to have been received upon receipt as indicated by the date on the signed receipt, provided, however, that if the Addressee rejects or otherwise refuses to accept the Notice, or if the Notice cannot be delivered because of a change in address for which no Notice was given, then upon such rejection, refusal or inability to deliver such Notice will be deemed to have been received. Despite the other clauses of this subsection (g), if any Notice is received after 5:00 p.m. on a business day where the Addressee is located, or on a day that is not a business day where the Addressee is located, then the Notice is deemed received at 9:00 a.m. on the next business day where the Addressee is located.

(h)    This instrument shall not be amended except by a subsequent written instrument that has been executed by Participant and on behalf of Tiffany by a duly authorized officer of Tiffany.  Participant’s obligations under this instrument may not be waived, except pursuant to a writing executed on behalf of Tiffany or as otherwise provided in Section 6 above.  

(i)    This instrument constitutes the final expression of Participant’s  post-employment confidentiality and non-competition obligations  necessary to receive an Excess DCRB Benefit under the Deferral Plan.  It is the complete and exclusive expression of those obligations and all prior and contemporaneous negotiations and agreements between the parties on those matters are expressly merged into and superceded by this Agreement; notwithstanding the foregoing, Participant’s right to receive an Excess DCRB Benefit and the amount and terms of payment of such Excess DCRB Benefit shall be exclusively determined by the Deferral Plan.  

(continued)

52

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

(j)     Any reference in this instrument to the singular includes the plural where appropriate, and any reference in this instrument to the masculine gender includes the feminine and neuter genders where appropriate.  The descriptive headings of the sections of this instrument are for convenience only and do not constitute part of this instrument.

IN WITNESS WHEREOF, this instrument has been executed on the date first written above.

	
	
	Participant

	 

	Name:

	 

	Notice Address

	 

	 

	 

	 

	 

	
		
	 
	Accepted and agreed (as to Section 7)

	 
	 

	 
	Tiffany and Company

	 
	 

	 
	 

	By:
	 

	Name:
	 

	Title:
	 

	 
	 

	Notice Address:

	 

	The Board of Directors

	Tiffany and Company

	Care of:

	Legal Department

	200 5th Avenue

	New York, NY 10010

53

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013

Schedule 4.5 to Tiffany and Company Executive Deferral Plan

		
	1.
	NVIT Money Market Fund – Money Market

		
	2.
	PIMCO VIT Total Return Admin. Fund – Bond

		
	3.
	MFS VIT Value Fund  – Large Cap Value

		
	4.
	Fidelity VIP II Contra Fund – Large Cap Blend

		
	5.
	T. Rowe Price New America Growth Fund  – Large Cap Growth

		
	6.
	Dreyfus Stock Index Fund – Large Blend

		
	7.
	Delaware VIP Small Value Fund – Mid Cap Growth

		
	8.
	MS UIF Mid Cap Growth Fund  – Mid Cap Growth

		
	9.
	Janus Aspen Series Overseas Fund – Foreign Large Growth

		
	10.
	Mason ClearBridge Small Growth I – Small Cap Value

		
	11.
	Goldman Sachs VIT Mid Cap Value Fund – Mid Cap Value

		
	12.
	Oppenheimer Global Securities VA Fund – Global Equity

		
	13.
	PIMCO VIT Real Return – Bond

		
	14.
	T. Rowe Price Limited Term Bond Fund – Short Term Bond

		
	15.
	NVIT Mid Cap Index Fund – Mid Blend

		
	16.
	Dreyfus IP Small Cap Index Fund – Small Blend

		
	17.
	MFS VIT II International Value Fund – Frn Large Value

		
	18.
	American Funds International 2 Fund – Frn Large Blend

54

As Adopted by the Tiffany & Co. Board of Directors May 15, 2013TIF-Exhibit 10.32

EXHIBIT 10.32

Tiffany and Company
200 Fifth Avenue
New York, New York 10010
August 15, 2014
Ms. Jill Beraud
Via Hand Delivery                        
Dear Jill,
We are pleased to extend you an offer to join Tiffany and Company, a New York corporation (“Tiffany” or the “Company”) and to confirm the terms of your employment in this letter.  Tiffany is a wholly-owned subsidiary of Tiffany & Co., a Delaware corporation (NYSE: TIF) (“Parent”).  If you accept this offer, subject to its terms, you will be employed by Tiffany and you will be an executive officer of both Tiffany and Parent.   For more information about our executive compensation program please read Parent’s Proxy Statement published on April 10, 2014 (the “Proxy Statement”).  You should assume that all compensation discussed below, including equity compensation, is subject to withholding for state and federal taxes and for other deductions pursuant to our benefit plans.  
		
	Title:
	Executive Vice President

		
	Duties:
	In the role of Executive Vice President, you will have worldwide strategic and profit & loss (“p&l”) accountability for all sales channels, including retail, trade, e-commerce and business sales, for all direct and indirect subsidiaries of Parent that sell or otherwise distribute Tiffany & Co. brand products in all global markets (“Global Retail Operations”).   Your responsibility for Global Retail Operations will also include oversight of the global Strategic Store Development and Real Estate division, which is responsible for the design, renovation and maintenance of all Tiffany retail and non-retail properties.

Key priorities for the role include:
		
	•
	Elevate Tiffany & Co.’s luxury positioning through unique customer experiences both within and outside of the store;

		
	•
	Act as a key liaison/integrator between corporate headquarters and the regions to optimize strategic direction and facilitate close collaboration across design, merchandising, marketing and sales;

		
	•
	Build capabilities of the regional teams with enhanced focus on brand building and operational excellence; and

		
	•
	Drive results utilizing a variety of levers to deliver both topline and bottom-line growth on a sustainable basis.

As a key executive, you will also serve as a director and officer of the Company and certain global affiliates (although for avoidance of doubt, you will not serve as a director of the Parent).
		
	Current Reporting:
	Frederic Cumenal

		
	Commencement Date:
	as soon as possible, but no later than October 15, 2014.  If you fail to commence employment by that date this offer shall be deemed of no force or effect.  The term “Commencement Date” refers to the date you actually begin employment with Tiffany, on or before October 15, 2014.

		
	Salary:
	Annual gross salary of $850,000

Short-term Cash 
		
	Incentive Award:
	Beginning in fiscal year 2015, you will be eligible to receive a short-term cash incentive award, on an annual basis.  Your target short-term cash incentive award will be 70% of your gross annual salary.  Pay-out of the target short-term cash incentive award for fiscal year 2015 (year beginning February 1, 2015 and ending January 31, 2016, referred to 

1 

hereafter as “Fiscal 2015”), if any, will be contingent on company performance goals as determined by the Compensation Committee (the “Committee”) of the Parent’s Board of Directors (the “Board”).
For the portion of fiscal year 2014 (year beginning February 1, 2014 and ending January 31, 2015, referred to hereafter as “Fiscal 2014”) during which you are employed by Tiffany, you shall receive a one-time cash payment, in lieu of a short-term cash incentive award for Fiscal 2014, equal to no less than $200,507 (100% of your target short-term cash incentive award, pro-rated for your months of service in Fiscal 2014).  To the extent your Commencement Date occurs prior to October 15, 2014, your pay-out shall be increased accordingly.  This one-time cash payment shall be made to you no later than April 15, 2015, provided you remain employed with the Company on April 1, 2015.
Long Term 
		
	Incentive Award:
	Under its current practice, the Committee grants long term incentives in the form of equity awards to continuing members of senior management at the regularly scheduled Board Meeting held in January of each year.  Under our current practice, the total grant date value of each year’s grant of long term incentive equity awards is based on a percentage of salary.  200% of base salary has been established as the long-term incentive target for you for Fiscal 2015.  The grant date for Fiscal 2015 long-term incentive awards will be in January 2015.  The Committee has historically awarded long-term incentive awards in two components: (i)  performance-based restricted stock units that vest, if at all, after a three-year performance period; and (ii) stock options which vest over four years at a rate of 25% per year on the respective first, second, third, and fourth anniversaries of the grant date.  The ratio of grant date value between options and performance-based restricted stock units has historically been 50/50.  

The Committee retains discretion to make changes to all long term incentive award programs at any time.  
Special Sign-on 
		
	Cash Award:
	You will receive a sign-on cash bonus equal to $1,700,000 intended to offset the loss of equity interests in your current employer.  This sign-on cash bonus will be paid to you within 30 days of the Commencement Date, but in no event later than November 15, 2014. This lump sum payment will be subject to recoupment by Tiffany according to the schedule detailed below should you resign voluntarily (without Good Reason) or be terminated with Cause, each as described in Exhibit A attached, during the time periods below.

Recoupment Schedule:
50% of the sign-on cash bonus ($850,000) will be subject to recoupment should you resign voluntarily (without Good Reason) or be terminated with Cause before the three-year anniversary of the Commencement Date.  
The remainder of the sign-on cash bonus will be subject to recoupment during the four year period following the Commencement Date, should you resign voluntarily (without Good Reason) or be terminated with Cause, in accordance with the following schedule:  

2 

	
		
	Effective Date of Resignation/Termination
	Amount Subject to Recoupment

	Before one-year anniversary of Commencement Date
	$850,000 recoverable

	Subsequent to  one-year anniversary but prior to second-year anniversary of Commencement Date
	$637,500 recoverable

	Subsequent to second-year anniversary but prior to third-year anniversary of Commencement Date
	$425,000 recoverable

	Subsequent to third-year anniversary but prior to fourth-year anniversary of Commencement Date
	$212,500 recoverable

		
	Relocation Assistance
	Relocation Assistance will be provided to you as described in Exhibit B.  The cost of these benefits will be subject to recoupment in full by Tiffany should you resign voluntarily (without Good Reason) or be terminated with Cause before the second anniversary of the Commencement Date, as described in Exhibit A attached.  To the extent any reimbursement of costs and expenses provided for in Exhibit B constitutes taxable income to you for federal income tax purposes, such reimbursements shall be made no later than December 31 of the calendar year next following the calendar year in which the expenses to be reimbursed are incurred.

		
	Severance Benefits:
	Please see Exhibit C for a copy of the retention agreement applicable to executive officers of Parent in the event of a Change in Control, and providing for severance benefits under certain scenarios following a Change in Control.

Severance benefits will also be payable to you, absent a Change in Control, during the two year period ending on the second anniversary of the Commencement Date (the “Initial Two-Year Term”), as follows.  During the Initial Two-Year Term, a lump-sum severance benefit will be payable to you if (i) you are involuntarily terminated without Cause, or you resign for Good Reason (see Exhibit A for applicable “Cause” and “Good Reason” definitions), and (ii)  a Change in Control has not occurred prior to the effective date of such termination, and (iii) you sign, return, and do not revoke a release of claims in a form provided by the Company.  
The lump-sum severance benefit will equal the sum of the following (less any amount potentially due to you under Restrictive Covenants, described below), paid as soon as practicable, but in no event later than the 60th day following the effective date of termination:
		
	(A)
	One year of annual salary; plus

		
	(B)
	the actual short-term incentive award for the last completed fiscal year prior to termination, as determined by the Committee, if such short-term incentive award remains unpaid; plus

		
	(C)
	a pro-rata portion of the short-term incentive award for the current fiscal year that remains uncompleted as of the effective date of termination, calculated by reference to what would have been otherwise awarded to you had the Company exercised its discretion to pay the full target short-term incentive award (70% of base salary) in respect of that fiscal year; plus

		
	(D)
	reimbursement for up to twelve (12) months of continued health care coverage available to you under Company-sponsored medical plans, pursuant to The Consolidated Omnibus Budget Reconciliation Act of 1985 (commonly known as “COBRA”). 

3 

Following the completion of the Initial Two-Year Term, the Company will have no obligation to provide severance benefits to you beyond those benefits provided for by Company policies and guidelines applicable to like-titled officers, or alternatively, as described in Exhibit C (in the event of certain Change in Control scenarios).  
		
	Share Ownership Policy:
	As an executive officer of Parent you will be subject to the Share Ownership Policy adopted by the Board and attached as Exhibit D, as may be amended from time-to-time.

Non-Competition/
		
	Confidentiality:
	As an executive officer you will be required to sign and comply with the 

Non- Competition and Confidentiality Covenants, requiring forfeiture of certain equity awards and excess retirement benefits in the event of a breach, as described in Exhibit E.  You will further be subject to restrictions as described in the Restrictive Covenants section below.  
		
	Conditions:
	This offer is also contingent on your successful completion of a Conflict of Interest questionnaire (attached as Exhibit F) and your written representation by your signature below that you are not contractually obligated to any other employer, or subject to any covenants against competition or similar covenants that would affect the performance of your employment with Tiffany.  This offer is further contingent upon your obtaining proper work authorization.  These conditions must be met on or before October 15, 2014, or this offer will be null and void.

		
	Employment-at-will:
	Your employment is “At Will.”  At Will employment means that you can quit at any time.  At Will employment means that Tiffany can end your employment at any time, for any legal reason or for no reason.  Upon voluntary resignation by you (without Good Reason, as defined in Exhibit A), and upon termination by Tiffany (without Cause, as defined in Exhibit A), sixty days (60) of working notice shall be provided, payable in lieu of notice in Tiffany’s sole discretion.

		
	Clawback Policy:
	As an executive officer of Parent, performance-based compensation awarded to you will be subject to the Policy for Recovery of Incentive-based Compensation Erroneously Awarded to Executive Officers attached as Exhibit G, as well as any other future clawback policies adopted by the Board. 

		
	Benefits:
	We offer a broad range of benefits and amenities for you and your eligible dependents, including domestic partners.  All such benefits are subject to the terms of the benefit plans and are available to employees generally.   Health benefits include medical, dental, vision care and prescription drug.  Retirement benefits include a 401(k) plan with an employer match, a defined contribution retirement benefit and a defined contribution excess benefit (for earnings above statutory limits).    

In addition to those programs you will be eligible to participate in a deferred compensation plan which provides tax deferred savings for additional retirement income or for planning for future expenses (e.g. dependent college tuition). 
We also offer sick days (for your care and that of your family members) and short- and long- term disability including executive long-term disability. Survivor protection benefits include accidental death & dismemberment insurance, business travel accident insurance, and an executive life insurance policy (see below for additional details)   Health and dependent care spending accounts, long term care, adoption assistance, medical, family and bereavement leave, transportation assistance, education assistance, employee assistance program, health and fitness program reimbursement, milestone and service recognition programs, employee giving program and a generous employee discount are also offered. You will be eligible to participate in these various benefit programs subject to the terms by which all such benefits are provided to Tiffany's regular full time employees and this letter will not afford you additional rights. 

4 

		
	Vacation Days: 
	You will be eligible for five workweeks of vacation per fiscal year (February 1 to January 31). You will accrue one twelfth of your annual vacation at the end of each completed month of service (i.e., 2.08 days per month).  If you wish to take vacation in excess of the amount you have earned so far in the year, after six months of service, the time can be taken and then offset by future accruals. All vacation requests are subject to management approval as outlined in the vacation policy or by departmental procedures.  

		
	Personal Days: 
	You will be eligible for two personal days per fiscal year. In your first year of employment, you will be immediately entitled to one personal day.

		
	Life Insurance:
	The Company currently provides life insurance benefits to its executive officers as follows:

		
	•
	executive officers own whole life policies on their own lives;

		
	•
	the death benefit is three times annual base salary and target short-term incentive award;

		
	•
	the Company pays the premium on such policies in an amount sufficient to accumulate cash value;

		
	•
	premiums are calculated to accumulate a target cash value at age 65;

		
	•
	the target cash value will allow the policy to remain in force after age 65 without payment of further premiums with a death benefit equivalent to twice the executive officer’s ending annual base salary and target short-term incentive or bonus amount; and

		
	•
	the amount of the premiums paid by the Company is taxable income to the executive officer.

		
	Restrictive Covenants
	(a)    In consideration of this offer of employment, subsequent ongoing employment with the Company, and all compensation paid to you by the Company including the payment set forth below, you hereby covenant and agree that during your employment with the Company and the post-employment periods described hereunder, you will not directly or indirectly (whether as director, officer, consultant, principal, owner, member, partner, advisor, financier, employee, agent or otherwise): 

		
	(i) 
	for a period of six (6) months (the “Non-Compete Period”), in New York, London,  Paris, Hong Kong, Shanghai, Beijing, or Geneva, or within a fifty-mile radius of any of these cities, commence employment with, assist, have any interest in or contribute your knowledge and abilities to, any Retail Jewelry Trade or Wholesale Jewelry Trade (provided that this subsection shall not prohibit an investment by you not exceeding five percent of the outstanding securities of a publicly traded company); 

		
	(ii) 
	for a period of eighteen (18) months, employ, attempt to employ, or assist anyone in employing a Covered Employee (including by influencing any Covered Employee to terminate his/her employment with the Company or any other direct or indirect subsidiary of Parent); or

		
	(iii) 
	for a period of eighteen (18) months, attempt in any manner to solicit jewelry purchases by any client of the Company or any other direct or indirect subsidiary of Parent to cease doing business or reduce the amount of business that such client has customarily done with the Company or any other direct or indirect subsidiary of Parent. 

5 

		
	(b)
	In addition to the compensation specified in this offer letter, the Company shall pay to you a lump sum payment equal to six (6) months of salary  as additional consideration for the restrictive covenants set forth above provided, however, that the Company shall not be required to make any such  payment or portion thereof (but may in its sole discretion elect to do so) if the covenants above are expressly waived by the Company.  Notwithstanding anything to the contrary set forth in this Agreement, the covenants set forth above shall be valid and binding on you notwithstanding your refusal to accept the additional payment provided for under this section (b).  The payment described herein, or any portion thereof, will be paid to you no earlier than the six month anniversary of your effective date of termination, and no later than the seven month anniversary of your effective date of termination.

		
	(c)
	No act or failure to act shall be a waiver of any right conveyed under these Restrictive Covenants, except an express waiver in writing and the Company may condition a waiver under under (a)(i) with respect to any single prohibited engagement upon your written acknowledgement that (i) Section (a)(i) shall continue to apply to subsequent prohibited engagements, and (ii) any payments under Section (b) above shall be offset by payments received pursuant to a prohibited engagement to which such a waiver applies or (iii) both of (i) and (ii) apply.  The rights reserved to the Company under these Restrictive Covenants are necessarily of a special and unique character, which gives them an unusual and extraordinary value, the loss of which cannot reasonably or adequately be compensated for in damages in an action at law, and the breach by you of any of the provisions under these Restrictive Covenants will cause the Company and its affiliates irreparable injury.  Therefore, in addition to any other available remedies, the Company and its affiliates shall be entitled to an injunction to restrain any violation of these Restrictive Covenants by you.  

		
	(d)
	The Restrictive Covenants contained herein shall each be construed as an agreement independent of any other provision in this offer letter, and the existence of any claim or cause of action of you may have against the Company or its affiliates  shall not constitute a defense to the enforcement by the Company of such covenants.  

 
		
	(e)
	It is the intention of both parties to make the Restrictive Covenants herein binding only to the extent that it may be lawfully done under existing applicable laws.  In the event that any part of these Restrictive Covenants are determined by a court of law to be overly broad thereby making the covenant unenforceable, the parties hereto agree, and it is their desire, that such court shall substitute the broadest possible judicially enforceable limitation in place of the offensive part of the covenant, and that as so modified the covenant shall be as fully enforceable as set forth herein by the parties themselves.

		
	(f)
	During the Non-Compete Period, you will inform any prospective or future employer of the restrictions contained herein prior to the commencement of that employment.   During the eighteen (18) month period following your termination from employment, you will inform any prospective or future employer of any restrictions contained in (a)(ii)-(iii) of this Restrictive Covenant section that have not yet expired, and provide such employer with a copy of such restrictions (but no other terms of this offer letter), prior to the commencement of that employment.

6 

“Covered Employee” means (i) any person who is an employee of Tiffany or any of its affiliated companies (collectively, “Tiffany Affiliates”) or (ii) was, at any date during your employment with Tiffany, an employee of any Tiffany Affiliate, unless the employment of such person with such Tiffany Affiliate has been terminated for at least six (6) months.
"Retail Jewelry Trade" means the operation of one or more retail outlets (including stores-within-stores, leased departments or concessions) selling Jewelry in any city in the world in which a TIFFANY & CO. store is located at the time in question; for the purpose of this definition, a retail outlet will not be deemed engaged in the Retail Jewlery Trade if less than 5% of the items displayed for sale in such outlet are Jewelry, so that, by way of example, an apparel store that offers Jewelry as an incidental item would not be deemed engaged in the Retail Jewelry Trade. 

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

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

“Termination” of employment shall have the meaning, for purposes of post-employment payments described in this offer letter (e.g. post-employment Non-Compete payment, Severance Benefits) provided for under the “Termination of Service” definition found in the Tiffany and Company Executive Deferral Plan.

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

This letter sets forth our entire offer, superseding all prior oral and written offers.

Jill, we are delighted that you have decided to join Tiffany and look forward to welcoming you soon.  

If you agree to the terms outlined above, please so indicate by your signature below.

Sincerely,

/s/ Michael J. Kowalski

Michael J. Kowalski
Chief Executive Officer

By my signature below:

		
	•
	I acknowledge that I have read and understand each of the terms of this offer letter. 

		
	•
	I agree to accept employment with Tiffany and Company under the terms of this offer letter.  

		
	•
	I expressly acknowledge that I am under no restrictions from a prior employer or business partner that would interfere with the performance of services for Tiffany and Company or its affiliates.  

		
	•
	I expressly acknowledge that I agree to and accept the Restrictive Covenants described above, which are 

7 

reasonable in nature.

	
	
	/s/ Jill Beraud

By: Jill Beraud
Dated:  8/18/14

Cc: Frederic Cumenal, President
      Victoria Berger-Gross, Senior Vice President, Global Human Resources
       

8 

CONDITIONAL SIGN-ON BONUS
RELOCATION ASSISTANCE
ACKNOWLEDGEMENT AND AGREEMENT 
This Conditional Sign-on Bonus Acknowledgment and Agreement (this “Agreement”) is entered into as of the 15th day of October, 2014, by and between Tiffany and Company (“Tiffany” or the “Company”) and Jill Beraud (“Executive”). 

Recitals:

WHEREAS, the Company wishes to employ Executive as Executive Vice President;

WHEREAS, Executive has resigned from prior employment to commence employment with Tiffany, and has forfeited certain equity interests as a result of such resignation; 

WHEREAS, in consideration of such forfeited equity interests, the Company wishes to make Executive whole through a sign-on bonus;

WHEREAS, the Company wishes to provide relocation assistance to Executive;

WHEREAS, in consideration of, and as a condition to the receipt of the sign-on bonus and relocation assistance, Executive and Tiffany are entering into this Agreement;

Agreement:

NOW, THEREFORE, Executive and Tiffany hereby agree as follows: 
1.    Conditional Sign-On Bonus. Tiffany agrees to pay Executive a Conditional Sign-On Bonus equal to $1,700,000 (“Bonus”), subject to all required taxes and withholdings, to be paid thirty (30) days following Executive’s Commencement Date as that term is defined in the August 115 2014 offer letter provided to Executive by Tiffany (“Offer Letter”).
2.    Relocation Assistance.  Tiffany agrees to provide relocation assistance to Executive as described in Exhibit B to the Offer Letter.
    
3.    Repayment of Bonus Due to Termination of Employment. Executive agrees that, in the event she resigns without Good Reason or is terminated by the company for Cause, she will repay the Bonus to the Company according to the schedule below.  The intention is for 50% of the Bonus to be repayable should Executive resign without Good Reason or be terminated with Cause prior to the three-year anniversary of the Commencement Date, and for Executive’s responsibility for repayment of the remainder of the Bonus ($850,000) to decrease ratably during the four-year period following the Commencement Date.

1

Recoupment Schedule:

	
		
	Effective Date of Resignation/Termination
	Amount Subject to Recoupment

	Prior to one-year anniversary of Commencement Date
	$1,700,000 recoverable

	On or after one-year anniversary but prior to second-year anniversary of Commencement Date
	$1,487,500 recoverable

	On or after second-year anniversary but prior to third-year anniversary of Commencement Date
	$1,275,000 recoverable

	On or after third-year anniversary but prior to fourth-year anniversary of Commencement Date
	$212,500 recoverable

	On or after fourth-year anniversary of Commencement Date
	$0 recoverable

Executive agrees that she will repay any portion of the Bonus due hereunder by no later than the effective date of the employment termination, and that any outstanding balance on such repayment obligation is delinquent and immediately collectable the day following the effective date of termination

4.    Repayment of Relocation Assistance Due to Termination of Employment.  Executive agrees that, in the event that she resigns without Good Reason or is terminated by the Company for Cause prior to the two-year anniversary of the Commencement Date, she will repay the Company  100% of all reimbursements and payments provided by the Company to her, directly or on her behalf and pursuant to the relocation assistance described in Exhibit B to the Offer Letter (“Relocation Benefits”).  

5.    No Guarantee of Continued Employment. Nothing in this Agreement modifies the nature of Executive’s employment on an at-will basis.  Nothing in this Agreement guarantees employment for any period of time.

6.    Consent to Offset. By her signature below, Executive expressly agrees that any repayment due to Tiffany under this Agreement may be deducted to the extent permitted by law from any amounts due to Executive from Tiffany at the time of employment termination, including wages, accrued vacation pay, incentive compensation payments, bonuses and commissions, and hereby expressly authorizes such deduction(s).
  
7.     Acknowledgements and Integration. Executive understands and acknowledges that this Agreement is the entire agreement between Tiffany and her with respect to this subject matter, and Executive acknowledges that Tiffany has not made any other statements, promises or commitments of any kind (written or oral) to cause Executive to agree to the terms of this Agreement.

8.  Severability. The parties agree that should any provision of this Agreement be declared or determined by any court to be illegal, invalid or unenforceable, the remainder of the Agreement shall nonetheless remain binding and enforceable and the illegal, invalid or unenforceable provision(s) shall be modified only so much as necessary to comply with applicable law.
   

2

9.  Counterparts.  This Agreement may be executed in two or more counterparts, and by facsimile or electronic transmission, each of which will be deemed to be an original but all of which, taken together, shall constitute one and the same Agreement.

10. Good Reason.  For purposes of this Agreement, Executive’s resignation from employment with the Company for “Good Reason” shall mean any one or more of the following actions taken without Executive’s consent:
		
	•
	a material adverse change in Executive’s duties, authority or responsibilities; 

		
	•
	a material adverse change in Executive’s reporting responsibility;

		
	•
	any reduction in Executive’s base salary or in her target short-term incentive / annual bonus (but, for the avoidance of doubt, any actual pay-out of a short-term incentive / annual bonus for a given fiscal year which is less than the target shall not constitute Good Reason); 

		
	•
	The unilateral relocation of the office by the Company where Executive is employed, to a location which is more than 50 miles away, or should the Company require Executive to be based more than 50 miles away from such office (except for required travel on the Company’s business to an extent substantially consistent with Executive’s customary business travel obligations in the ordinary course of business).

Notwithstanding the foregoing, Executive must give written notice to the Company of the occurrence of an event or condition that constitutes Good Reason within up to 90 days following the occurrence of such event or condition and the Company shall have at least thirty (30) days from the date on which written notice thereof is received to cure such event or condition.  If the Company is able to cure such event or condition within such thirty-day period, such event or condition shall not constitute Good Reason hereunder.  If the Company fails to cure such event or condition, Executive’s termination for Good Reason shall be effective immediately following the end of such thirty (30)-day cure period.        
     
11.     Cause. For purposes of this Agreement, “Cause” shall mean a termination of Executive’s employment which is the result of:
		
	(i)
	Executive’s conviction or plea of nolo contendere to a felony or any other crime involving financial impropriety or moral turpitude or which would tend to subject the Company or any of its affiliates to public criticism or materially interfere with Executive’s continued service to the Company;

		
	(ii)
	Executive’s willful violation of the Parent Code of Business and Ethical Conduct for Directors, the Chief Executive Officer, the Chief Financial Officer and All Other Officers; and the Company’s Business Conduct Policy – Worldwide;

		
	(iii)
	Executive’s willful failure or refusal to perform substantially all such proper and achievable directives issued by Executive’s superior or the Parent board of directors (other than any such failure resulting from 

3

Executive’s incapacity due to physical or mental illness, any such actual or anticipated failure resulting from a resignation by Executive for Good Reason, or any such refusal made by Executive in good faith because Executive believes such directives to be illegal, unethical or immoral) after a written demand for substantial performance is delivered to Executive on behalf of the Company, which demand specifically identifies the manner in which Executive has not substantially performed Executive’s duties, and which performance is not substantially corrected by Executive within ten (10) days of receipt of such demand;

		
	(iv)
	Executive’s gross negligence in the performance of Executive’s duties and responsibilities materially injurious to the Company;

		
	(v)
	Executive’s willful breach of any material obligation that Executive has to Parent or the Company under any written agreement that Executive has with either Parent or the Company;

		
	(vi)
	Executive’s fraud or dishonesty with regard to the Company or any of its affiliates; or

		
	(vii)
	Executive’s failure to reasonably cooperate in any investigation of alleged misconduct by Executive or by any other employee of Parent, the Company or any affiliate of the Company.

For purposes of the previous sentence, no act or failure to act on Executive’s part shall be deemed “willful” unless done, or omitted to be done, by Executive in bad faith toward, or without reasonable belief that Executive’s action or omission was in the best interests of, Parent, the Company or an affiliate of the Company.  Notwithstanding the foregoing, Executive shall not be deemed to have been terminated for Cause with respect to items (i) through (vii) unless and until there shall have been delivered to Executive 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 Company’s board of directors at a meeting called and held for such purpose (after reasonable notice to Executive and an opportunity for Executive, together with Executive’s counsel, to be heard before such Board), finding that, in the good faith opinion of such board of directors, Cause exists as set forth in any of  items (i) through (vii) above.

4

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

 
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

	
			
	 
	 
	Tiffany and Company

	 
	 
	(the "Company" or "Tiffany")

	 
	 
	 

	Jill Beraud
	 
	 

                                        

5

TIFFANY & CO.
200 FIFTH AVENUE
NEW YORK, NEW YORK 10010 
212-755-8000

RELOCATION -- OFFER

The details of the relocation support provided to you are as follows:

Miscellaneous Relocation Allowance:  In order to help defray non-reimbursable miscellaneous costs, the Company will provide a one-time Miscellaneous Relocation Allowance of 2,500.00 USD (net – grossed-up for taxes). 

Transportation to Assignment Location:  The Company will reimburse one-way coach airfare for yourself and relocating family from Boston to New York.  

Shipment of Household Goods:  The Company will provide assistance with household goods handling, including packing and unpacking, shipment and storage, appliance disconnection and hook-up and insurance coverage.  The Company will support shipment of household goods with applicable maximums based on family size.  Shipment support will include a partial shipment of goods to accommodate a one bedroom apartment in 2014 and final move to home residence no later than twenty (20) months following the Commencement Date as that term is defined in your offer letter.

Homefinding Service:  In order to assist with finding and securing a home during the assignment, the Company will arrange for one-day homefinding service with a company identified relocation provider.

Initial Temporary Housing:  The Company will provide 30 days temporary housing in New York City to assist in the transition between your permanent housing in Massachusetts and rental housing in New York (see below).

Temporary Housing Allowance Lump Sum:  The Company will provide a one-time lump sum payment of $25,000 (net) in order to assist with your finding and securing rental accommodation in New York for the first 12 months of employment or until you have relocated your family to the New York area. 

Home Sale/Home Purchase Assistance: The Company will provide assistance and reimbursement of usual and customary home sale/purchase expenses.  Your home purchase must be made in the new within eighteen months of your commencement date in order to receive reimbursement for covered expenses and costs which are capped at a total of $125,000.

Reimbursable home sale expenses are as follows:

Page 1 of 2

		
	•
	Real Estate commission (local custom).

		
	•
	Seller’s normal closing costs:

		
	▪
	Abstracting.

		
	▪
	Title Insurance.

		
	▪
	Escrow fees.

		
	▪
	Attorney fees.

		
	▪
	Documentary stamps.

		
	▪
	State/local transfer taxes.

		
	▪
	Recording fees.

		
	▪
	Release/conveyance fees.

		
	▪
	Termite inspection, if required.

		
	▪
	Other inspections, if required by local custom.

		
	▪
	Mortgage prepayment penalties up to six months, interest or one percent of the loan balance, whichever is greater.

		
	▪
	Survey costs, if required by local custom.

Covered home purchase expenses include: 
		
	•
	Mortgage Origination Fee/Discount “points” (up to a maximum of 2 percentage points)**.

		
	•
	Appraisal fees, if required by lender.

		
	•
	Termite inspection, if required.

		
	•
	Structural inspection, if required.

		
	•
	Survey costs, if required.

		
	•
	Title search costs.

		
	•
	Recording fees, transfer taxes and title insurance fees.

		
	•
	Legal fees up to 1% of purchase price.

		
	•
	Mortgage service charge or lenders legal charge.

** Employees are encouraged to shop around for “no fee” mortgages.

The following items are specifically excluded: 
		
	•
	Property taxes.

		
	•
	Escrow items. 

		
	•
	Pre-paid interest. 

Page 2 of 2

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