MOVADO GROUP, INC. On September 23, 1994, the Company entered into a Death and Disability Benefit Plan agreement with the Company's Chairman and Chief Executive Officer. Under the terms of the agreement, in the event of the Chairman's death or disability, the Company is required to make an annual benefit payment of approximately $300,000 to his spouse for the lesser of ten years or her remaining lifetime. Neither the agreement nor the  benefits payable thereunder are assignable and no benefits are payable to the estates or heirs of the Chairman or his spouse. Results of operations include an actuarially determined charge related to this plan of  approximately $120,000, $110,000 and $101,000 for fiscal 2001, 2000 and 1999, respectively. Effective concurrently with the consummation of the Company's public offering in the fourth quarter of fiscal 1994, the Board of Directors and the shareholders of the Company approved the adoption of the Movado Group, Inc. 1993 Employee Stock Option Plan (the “Employee Stock Option Plan”) for the benefit of certain officers, directors and key employees of the Company. The Employee Stock Option Plan was  amended in fiscal 1997 and restated as the Movado Group, Inc. 1996 Stock Incentive Plan (the “Plan”). Under the Plan, the Compensation Committee of the Board of Directors, which is comprised of the Company's four outside directors, has the authority to grant incentive stock options and nonqualified stock options, to  purchase, as well as stock appreciation rights and stock awards, up to 2,000,000 shares of Common Stock. Options granted to participants under the Plan become exercisable in equal installments on the first through fifth anniversaries of the date of grant and remain exercisable until the tenth anniversary of the date of grant. The option price may not be less than the fair market value of the stock at the time the options are granted.  Transactions in stock options under the Plan since fiscal 1998 are summarized as follows: Outstanding Weighted Average  Options Exercise Price January 31, 1998 1,126,400 $09.91 Options granted 282,749 25.53 Options exercised (63,250) 9.02 Options forfeited  (62,289) 13.39 January 31, 1999 1,283,610 13.23 Options granted 436,550 21.56 Options exercised (54,266) 9.21 Options forfeited  (109,477) 16.51 January 31, 2000 1,556,417 15.65 Options granted 244,050 8.72 Options exercised (103,387) 8.15 Options forfeited (82,779) 18.86 January 31, 2001 1,614,301 $15.09 53