TALBOTS INC
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<TYPE>EX-10.29
<SEQUENCE>2
<FILENAME>ex1029-amendsharerepurchase.htm
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<TITLE> Amended Share Repurchase Program
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>AMENDED SHARE
REPURCHASE PROGRAM </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS  AGREEMENT is entered into as of August 31, 2004  between THE TALBOTS,  INC., a Delaware  corporation
(&#147;Talbots&#148;) and AEON (U.S.A.), INC., a Delaware corporation (&#147;AEON USA&#148;).</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
Talbots originally initiated its share repurchase program in February 1995 and
subsequently extended such program from time to time up to the date hereof; and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
as part of the share repurchase program, for each month in which Talbots repurchased
shares from the public shareholders, Talbots then repurchased such numbers of shares of
Common Stock from AEON USA sufficient to maintain substantially the same percentage
ownership in Talbots between AEON USA and the public shareholders, with the only exception
being the $50 million share repurchase program established by the Company in October 2001
in which AEON USA did not participate; and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
Talbots has completed the most recent share repurchase program
and the Board of Directors of Talbots believes that it is in the best interests of Talbots
and its shareholders to extend the share repurchase program; and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Board of Directors of Talbots has now authorized the expenditure of up to an
additional $50 million for the repurchase of shares of Common Stock under the amended
share repurchase program, such repurchases to be made from time to time over a two year
period (the &#147;Program&#148;); and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
it is agreed that the price to AEON USA for shares repurchased from AEON USA under the
Program will continue to be the weighted average price paid to the public shareholders for
the month; </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, it is agreed by Talbots and AEON USA as follows: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Purchase Dates</U>. On a business day (&#147;monthly purchase date&#148;)
          occurring in the last five (5) calendar days of each calendar month in which
          Talbots has purchased shares of its Common Stock from the public in open market
          purchases, privately negotiated transactions or otherwise, Talbots will purchase
          from AEON USA, and AEON USA will transfer and sell to Talbots, a pro rata number
          of shares of Talbots Common Stock. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Purchase Price</U>. The purchase price to be paid by Talbots to AEON USA for
          the shares purchased from AEON USA under the Program will be equal to the
          weighted average price (excluding commissions, mark-ups, fees and other costs)
          paid by Talbots for the shares of Talbots Common Stock purchased from the public
          shareholders for such calendar month under the Program (the &#147;Weighted
          Average Price&#148;). </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Purchase Notice</U>. At least one (1) business day before each monthly
          purchase date, Talbots will provide written notice to AEON USA by telecopy or
          otherwise of (a) the total number of shares of Talbots Common Stock purchased by
          Talbots from the public shareholders for the particular calendar month under the
          Program and the respective purchase prices of such shares purchased from the
          public shareholders, (b) the total number of shares of Talbots Common Stock to
          be purchased from AEON USA on the monthly purchase date pursuant to paragraph 1
          above, (c) the purchase price to be paid by Talbots to AEON USA determined under
          paragraph 2 above, and (d) the aggregate purchase price to be paid by Talbots to
          AEON USA for all shares to be purchased from AEON USA for such month. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Payment</U>. On each monthly purchase date Talbots will make payment to AEON
          USA for the shares being purchased from AEON USA for such month. Payment of the
          purchase price will be by wire transfer or other mutually agreed payment method. </FONT></P>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Transfer of AEON USA Shares</U>. On or promptly following each monthly
          purchase date, AEON USA will deliver stock certificates to the stock transfer
          agent of Talbots with instructions to transfer the total number of Talbots
          shares of Common Stock purchased by Talbots from AEON USA for such month. AEON
          USA will also deliver to the stock transfer agent such stock powers and other
          instruments as may be necessary to give effect to such purchase. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>General</U>. This Agreement is binding upon and is for the benefit of Talbots
          and AEON USA and their respective successors and assigns, and no other person or
          entity shall have any rights or benefits under this Agreement either as a third
          party beneficiary or otherwise. This Agreement may be amended by an agreement
          signed by Talbots and AEON USA. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have each signed and delivered this Agreement as of the date
set forth on the first page of this Agreement. </FONT></P>

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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE TALBOTS, INC.<BR><BR>
<BR>By:&nbsp;&nbsp;EDWARD L. LARSEN<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:&nbsp;&nbsp;&nbsp;&nbsp;Edward L. Larsen<BR>Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President, Finance,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer and Treasurer</FONT></TD>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AEON (U.S.A.), INC.<BR><BR>
<BR>By:&nbsp;&nbsp;ISAO TSURUTA<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:&nbsp;&nbsp;&nbsp;&nbsp;Isao Tsuruta<BR>Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President</FONT></TD>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></P>

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