EXHIBIT 10.2
                                                                   ------------


                            Form of Award Agreement



TO:

FROM:

DATE:    ____________, 2006

SUBJECT: EXECUTIVE LONG TERM INCENTIVE PLAN


I am pleased to announce our new Long Term Incentive  Plan.  Under this program
you will earn a stock  award if the  Company  meets or  exceeds  its  operating
margin goal over the next three years.  This is a special  program for our most
senior  managers  in the  Company  and you have  been  selected  since  you can
significantly influence the attainment of our corporate goals.

You have been granted a target  award  of___________  performance  shares under
this long term  incentive  program for the current  (first)  performance  cycle
which runs from  February 1, 2006  through  the end of fiscal year 2009.  If we
achieve our target  operating margin for fiscal year 2009, you will be eligible
to receive shares of common stock,  representing  100% of your target award. If
we  exceed  that  goal and  reach an  operating  margin  of 111% of the  target
operating margin, you will be eligible to receive shares,  representing 150% of
your target  award.  If we achieve our  threshold  goal,  which is 89.5% of the
target operating margin , you will be eligible to receive shares,  representing
50% of your target  award.  You will receive a separate  e-mail with the target
operating margins, as determined by the Company's  Compensation  Committee.  We
will interpolate for share amounts between performance levels.

If you are  employed  with  the  Company  (or one of its  subsidiaries)  at the
conclusion of this performance  cycle (January 31, 2009) and goals are met, you
will receive up to 50% of your target level shares. The remainder of the earned
shares will be distributed to you as soon as possible after January 31, 2011 as
long as you have not  voluntarily  resigned or been terminated for cause before
January  31,  2011.  Dividends  paid  during  the  performance  cycle  and  the
subsequent two year deferral  period will be credited in the form of additional
shares of Movado stock and will be  distributed to you with any shares that you
earn under this program.

Attached is a more detailed  description of our new incentive plan. Please keep
in mind that the performance  goals under this program (which will be contained
in the separate e-mail) are  confidential.  If you have any questions feel free
to discuss it with me or Vivian D'Elia.