DESCRIPTION OF LIZ CLAIBORNE, INC.
2001 SALARIED EMPLOYEE INCENTIVE PLAN
For the 2001 fiscal year, Liz Claiborne, Inc. maintained a bonus plan for full time salaried employees under which
bonuses were earned based upon a combination of return on invested operating capital and earnings per share, as
measured against pre-established targets, and, as applicable, achievement of targeted levels of divisional direct
operating profit and/or departmental performance considerations and the achievement of individual goals, subject
to certain terms and conditions. A similar bonus plan is anticipated for 2002.