| 1. | DEFINITIONS |
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| 1.1 | “Approval,”      “Approve,” and      “Approved” shall      mean prior written approval given on behalf of Company by an Authorized      Representative. |
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| 1.2 | “Authorized      Representative” shall mean a representative designated by Company      to be the primary point of contact with Vendor with respect to this      Agreement for the Gap Brand, the Banana Republic Brand, or the Outlet      Brands. |
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| 1.3 | “Clearance      Measures” shall mean trademark, patent or other searches useful in      assessing freedom to sell and ability to protect, as well as all other      methods necessary or useful to ensure that intellectual property rights of      third parties are not infringed and that where appropriate intellectual      property protection may be secured, including, without limitation,      online. |
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| 1.4 | “Company      Products” shall mean those Personal Care Products and Home      Fragrance Products that are developed for Company by Vendor pursuant to      this Agreement. |
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| 1.5 | “Company Stores”      shall mean Gap, GapKids, babyGap, GapBody, Gap Outlet, Gap Factory Store,      Gap Generation, Banana Republic, and Banana Republic Factory stores,      concessions, or other retail establishments, including online stores, that      are owned and/or operated by Company or its affiliates in the United      States (including Puerto Rico) andCanada. |
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| 1.6 | “Creative” shall      mean product fragrances (or formula combinations), concepts, Formulae,      product names, product line names, formula/ingredient descriptions,      instructions, packaging, labels, tags, taglines, slogans, copy, scent      strip designs, images, artwork, drawings, sketches, plans, designs,      displays, illustrations, models, tooling, Packaging Materials and all      other forms of identification affixed to or connected with Company      Products whether or not Approved by Company, including, without      limitation, any New Marks. |
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| 1.7 | “Formula(e)”      shall mean any and all of the formulae, lists of ingredients, fragrances,      technical information, recipes, processes and instructions (held in      whatever form) reasonably necessary to enable the Company Products to be      produced. |
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| 1.8 | “Home Fragrance      Product(s)” shall mean candles, potpourri, incense, room spray, and      any other products listed as home fragrance products on Appendix 1,      attached hereto, but no otherproducts. |
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| 1.9 | “Initial Retail      Price” shall mean the price established by Company as the retail      price to be marked on the relevant Company  Products. |
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| 1.10 | “Initial Retail      Value” shall mean the number of units of Company Products purchased      by Company multiplied by the Initial Retail Price for the relevant Company      Products. |
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| 1.11 | “New Marks”      shall mean any names, trademarks, service marks, trade names, domain      names, taglines, slogans, logos or trade dress developed under this      Agreement or used or proposed to be used on Company Products, and any      other names, trademarks, service marks, taglines, slogans or trade dress      displayed on or in connection with Company Products or the packaging for      Company Products. |
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| 1.12 | “Packaging      Materials” shall mean bottles and containers, labels and packaging      materials. |
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| 1.13 | “Personal Care      Product(s)” shall mean fragrances, skincare products, bath      products, body care products, and cosmetics, as set forth in those      categories on Appendix 1, attached hereto, and shall not include Home      Fragrance Products or any other products not specifically listed in those      categories on Appendix 1. |
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| 1.14 | “Third-Party      Materials” shall mean any designs, concepts, formulae, names,      packaging, materials, designs, or other items, or parts thereof, which      belong or may belong to a party other than Company or    Vendor. |
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| 2. | EXCLUSIVITY      AND GRANT OF RIGHTS |
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| 2.1 | Exclusive      Right.  Subject to the terms and conditions of this      Agreement, Company hereby grants to Vendor the exclusive and      non-transferable right to develop, produce, manufacture, and supply to      Company Stores, at Vendor’s sole cost and expense, Approved Company      Products, including Creative for such products, for the Gap and Banana      Republic brands, including the Outlet division (each a “Brand”),      provided that for the Banana Republic Brand such exclusivity shall apply      only to Fragrances as defined in Appendix 1.  Company reserves      all other rights not specifically granted hereunder, including the right      to contract with other parties for the development, production,      manufacture and distribution of any Company Products or other Personal      Care Products or Home Fragrance Products for Company’s other divisions,      subsidiaries, affiliated companies or brands (including without limitation      Old Navy, Piperlime, and Athleta) and for any territories or channels of      distribution not covered by this Agreement.  Company shall be      solely responsible, at its sole cost and expense, for marketing,      promoting, pricing and selling all Company Products and for in-store      operations, including supplying appropriate fixtures, real estate,      staffing and marketing. |
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| 2.2 | Loss of      Exclusivity.  In the event that Vendor becomes liable to      Company for lost sales margins pursuant to Section 6.4 on [———-1]      or more occasions during a [———-]2 period, in addition      to whatever other rights and remedies Company may have for such breach,      the rights granted to Vendor hereunder shall, at Company’s option,      immediately become non-exclusive.  In addition, if following a      Brand’s request to develop a Personal Care Product or Home Fragrance      Product category, Vendor does not develop commercially reasonable Concepts      within [———-3]      and/or a line of Approved Company Products in such category within [———-]4, Vendor’s exclusive      rights to such Personal Care Product or Home Fragrance Product category      may be revoked at Company’s sole option and upon such revocation shall      become non-exclusive. |
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| 3. | PRODUCT      DEVELOPMENT |
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| 3.1 | Scope.  At      the direction of and in collaboration with each Brand, Vendor shall      develop Personal Care Products and Home Fragrance Products in those      categories set forth in Appendix 1 hereto (“Development      Services”).  Vendor shall be responsible, at its sole      cost and expense, for development of product concepts, Formulae, Packaging      Materials, other Creative and all other aspects of actual or proposed      Company Products, for making all samples and all aspects of the      manufacture of Company Products. |
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| 3.2 | Product      Development.  At the direction of and in collaboration      with each Brand, Vendor shall create a product development plan, subject      to the Brand’s Approval, setting forth key milestones for the launch of      new Company Products that Vendor must meet for development, production,      manufacturing, and delivery (“Key      Milestones”).  Subject to the provisions of Section 4.4      hereof, Vendor’s failure to meet the Key Milestones shall constitute a      breach of this Agreement unless and to the extent that (i) such failure is      due to a failure on the part of the Brand in meeting its obligations to      respond to requests for Approval of Company Products after advance notice      from Vendor that such failure to respond may result in Vendor’s failure to      meet a Key Milestone, or (ii) the Brand’s Authorized Representative and      Vendor agree in writing in advance to extend the Key      Milestone. |
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| 3.3 | Pre-manufacturing      Final Approval.  All proposed new Company Products must      be Approved by the Brand prior to their manufacture and sale      hereunder.  Each Brand shall have the right to Approve all      aspects of each Company Product to be manufactured by Vendor, including,      without limitation, the aroma, concepts, Formulae, Creative, Packaging      Materials, quality, materials, naming and other trademarks and service      marks, all elements of Company branding and any relevant promotional      materials.  The parties understand and agree that no orders      shall be placed or accepted without such prior Approval by      Company. |
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| 3.4 | Legal      Clearance.  Vendor shall be solely responsible for and      shall perform all Clearance Measures for all aspects of the proposed      Company Products and their respective Creative (including New Marks), to      ensure that:  (i) Company can manufacture, produce, market,      use, reuse, publish and republish, distribute, and authorize others to      manufacture, produce, market, use, reuse, publish, republish and      distribute, the Approved Company Product and Creative, including      Third-Party Materials, and (ii) Company may own all rights and      interests in such Creative (except for any Third-Party Materials Approved      by Company) including, without limitation, the New Marks.  For      each new Company Product, Vendor shall be obligated to present no more      than [———-]5 product names that      are clear for Company’s use and ownership as set forth      herein.  If Company rejects all [———-]6 cleared product      names for the new Company Product and requires additional Clearance      Measures, such Clearance Measures shall be at Company’s sole cost and      expense.  Vendor shall ensure that any agent, subcontractor or      other person or entity acting on Vendor’s behalf that is involved in the      development or production of Company Products or Creative shall, prior to      such involvement, sign an intellectual property assignment agreement in      form and substance acceptable to Company assigning to Company all rights      to any Company Products and Creative.  Vendor shall not use any      Third-Party Materials in or as part of any Creative or Company Product      without Company’s Approval.  Vendor shall complete all Clearance      Measures before Vendor presents the Company Product to Company for      Approval.  Vendor warrants that it uses an outside law firm with      expertise in legal clearance to perform the Clearance Measures and that it      maintains documentation, including written opinions from counsel,      regarding those searches for [———-]7. |
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| 3.5 | In      the event that a Company Product cannot be distributed, marketed and/or      sold in Company Stores due to Vendor’s negligence in the performance of      the Clearance Measures, or Vendor’s failure to disclose to Company the      risks with respect to such Company Product or its Creative, Vendor shall      be liable to Company for any lost sales margin in Company Stores based on      Average Initial Retail (“AIR”) associated with any and all affected units      of such Company Product until such time as the Clearance Measures are      performed and the affected Company Product can be distributed, marketed,      and/or sold in the applicablelocation. |
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| 4. | APPROVALS |
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| 4.1 | Standard for      Approval.  Approvals may be based solely on Company’s      subjective standards and may be withheld or limited, reserved or made      subject to conditions in Company’s sole      discretion.  Notwithstanding the foregoing, Approvals, once      given, shall not be withdrawn absent a good faith, commercially reasonable      basis.  Company’s failure to approve, disapprove or otherwise      comment shall not be deemed to constitute approval and shall be deemed to      constitute disapproval.  Approvals related to the production,      manufacture or shipment of Company Products, including Forecasts, shall      not be effective unless made by a Company Vice President or      higher. |
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| 4.2 | No Effect on Vendor’s      Liability.  No Approval given by Company shall limit,      reduce or exclude Vendor’s obligations or liability under this      Agreement. |
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| 4.3 | Product Change      Following Approval. |
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|   | (a) | Changes Initiated by      Vendor.  Vendor must submit to Company for its prior      Approval a complete description of a requested change to any aspect of the      development, manufacture, production or delivery of an Approved Company      Product (including Creative therefor) and the reason for the requested      change. |
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|   | (b) | Changes Requested by      Company.  Subject to the provisions of Section 4.4      hereof, Company reserves the right, at any time and for any commercially      reasonable basis, to request changes to Approved Company      Products.  Vendor shall comply with the request and have      developed, produced, manufactured and delivered conforming Approved      Company Product within [———-]8 of Company’s      request unless compliance cannot be accomplished using commercially      reasonable efforts, or unless otherwise Approved by Company, which      Approval shall not be unreasonablywithheld. |
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| 4.4 | Consequences for      Company Withdrawal of Approval or Change in      Plan.  Notwithstanding anything to the contrary contained      in this Agreement, if an Approval is withdrawn in respect of an Approved      Company Product (a) in production, then such Company Product shall be      deemed to be a Discontinued Product, as hereinafter defined, and governed      by the inventory clearance measures in Section 5 hereof; or (b) not in      production, then any and all deadlines and timetables relating to      production, manufacture and shipment of such Company Product for which      Approval has been withdrawn shall be revised, and any and all new      deadlines and timetables relating to production, manufacture and shipment      of such Company Product for which Approval has been withdrawn shall be      subject to confirmation by Vendor.  Further, if Company      withdraws an Approval or makes any change in plan as to a Company Product,      then revised Key Milestones will be subject to written confirmation by      Vendor before becoming the basis for any performance-related      penalties.  Under no circumstance shall Vendor be held liable      for the failure to meet any of the previous Key Milestones, including      without limitation lost sales margin under Section 6.4 as to such Company      Product. |
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| 5. | INVENTORY      CLEARANCE |
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| 5.1 | Discontinuation of      Approved Company Products Without Cause.  At any time and      for any reason Company may choose to discontinue the manufacture and sale      of any Company Product (each a “Discontinued Product”), and Company’s      liability to Vendor shall be limited to the Commitment Period as set forth      in the previous month’s Forecast, as defined in Section    6.1. |
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| 5.2 | Discontinued Product      Clearance. |
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|   | (a) | Company,      in its sole discretion, may offset its liability for Commitment Period      inventory by (i) purchasing some or all remaining Commitment Period      inventory of Discontinued Product at the Purchase Price not later than      [———-]9 from the date a      Company Product became a Discontinued Product; and/or (ii) demanding      destruction of some or all remaining Commitment Period inventory of      Discontinued Product and compensating Vendor in an amount equal to      Vendor’s cost of raw materials and production plus reasonable, documented      overhead expenses. |
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|   | (b) | Vendor      shall have the right to sell all inventory of Discontinued Product in      excess of the Commitment Period inventory for a period of [———-]10 from the date the      Company Product became a Discontinued Product, internationally to      “Authorized Channels of Distribution” as such term is defined in the      License Agreement and, at Company’s sole discretion, to other Approved      close-out retailers, including (i) a commercially reasonable “run-out” of      finished goods inventory in order to maximize the use of components, and      (ii) work-in-progress at hand at the time Company Products became      Discontinued Products that are completed by Vendor within a commercially      reasonable time thereafter (each a “Discontinued Product      Inventory”). |
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|   | (c) | All      remaining Discontinued Product Inventory and components not sold by Vendor      in accordance with Section 5.2(b) above shall be lawfully destroyed at      Vendor’s sole expense within [———-]11 after the end of      the [———-]12 period, unless      Company, in its sole discretion, Approves in advance Vendor’s further      clearance of such remaining Discontinued Product Inventory and components,      including Approval of the specific Company Products, quantities, channels      of distribution, and markets orterritories. |
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| 5.3 | Clearance of Current      Excess Inventory.  Within [———-]13 of execution of      this Agreement, Vendor shall provide Company a complete listing by      quantity and SKU of the entire current inventory of Discontinued Products      within the custody or control of Vendor and Vendor Affiliates, wherever      located (“Excess Inventory”).  All Excess Inventory must be      lawfully destroyed at Vendor’s sole expense on or before [———-]14 from the execution      and delivery of this Agreement, unless Company, in its sole discretion,      Approves in advance Vendor’s clearance of some or all of the Excess      Inventory, including Approval of the specific Company Products,      quantities, channels of distribution, and markets or territories, and the      deadline by which such Excess Inventory must be sold and after which any      remaining Excess Inventory must be lawfully destroyed at Vendor’s sole      expense.  Vendor shall certify to Company, in writing signed by      its Chairman, President, Chief Executive Officer or Chief Financial      Officer, that all remaining Excess Inventory has been      destroyed.  Vendor’s failure to destroy or sell through the      Excess Inventory per Company’s Approval as provided herein will constitute      a breach of the Agreement. |
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| 6. | DISTRIBUTION/DELIVERY      TO COMPANY STORES |
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| 6.1 | Forecasting.  Each      Brand will collaborate with Vendor to develop monthly forecasts for orders      of Company Products, which are subject to the agreement of Vendor and      which shall be submitted by each Brand to Vendor on a [———-]15 basis      (“Forecasts”).  Each Forecast will stipulate first a Commitment      Period and then a Planning Period on a rolling ———-]16      basis.  Company will be liable to Vendor for Commitment Period      inventory notwithstanding any change or plan or product discontinuation,      but in no event will Company have any liability for Planning Period      inventory.  Vendor agrees to abide by the terms and conditions      of the EDI Addendum attached hereto as Appendix 2 in transmitting      electronic documents to Company. |
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| 6.2 | Vendor Freight      Charges.  Vendor shall be solely responsible for all      freight charges and all other costs in relation to delivery of Company      Products to poolers. Vendor shall not be obligated to ship any order for      Company Products unless the purchase price of each order to be shipped is      not less than [———-]17per order;      provided, however, that the minimum freight order of [      ———-]18      shall not apply in the following circumstances:  (a) new      product rollout (excluding single CCs of lip balm); (b) one all-store      replenishment allocation per quarter; and (c) replenishment of any      Company Products that have been out of stock in Vendor’s warehouse for      more than [———-]19.  Alternatively,      at the sole option of Company, Company may submit purchase orders for      Company Products FOB Vendor’s distribution center, Dayton, New Jersey,      with no minimum purchase price. |
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| 6.3 | Store Support and      Return Process.  Vendor shall provide a staff member with      responsibility relating to inventory and return issues.  Vendor      shall also support a return process at Vendor’s sole cost and expense for      Company Stores to return to Vendor any product improperly delivered and      any damaged or defective Company Products, except that any leaking product      shall be destroyed by Company at Vendor’s  expense. |
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| 6.4 | Failure to Satisfy      Commitment Period Forecasts.  Subject in all respects to      the provisions of Section 3.2, and 4.4 hereof, in the event of Vendor’s      failure to satisfy Commitment Period Forecasts, including without      limitation failure to deliver the correct quantity of Company Products,      failure to deliver on time, or delivery of damaged or otherwise      non-conforming products, then in such event, Company may exercise any and      all available remedies as set forth in theVCA. |
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| 6.5 | Purchase      Price.  For all Approved Company Products developed,      produced, manufactured and supplied by Vendor to Company, Company shall      pay Vendor [———-]20 of the Initial      Retail Value of all Company Products received at the Company Stores or      other locations Approved by Company (the “Purchase      Price”).  However, for gift packs and other promotional items      developed, produced, manufactured and supplied by Vendor to Company, a      negotiated rate of compensation to the Vendor shall be agreed in      advance. |
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| 7. | INTELLECTUAL      PROPERTY |
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| 7.1 | Ownership of Company      Intellectual Property.  Vendor acknowledges that all      rights, titles and interests in and to the Gap, Banana Republic and other      Company names, trademarks, service marks and logos (“Company Marks”) and      Creative and Company Products (collectively, “Company Intellectual      Property”) shall be vested solely in Company, except Approved Third-Party      Materials where Company has Approved the third party’s retention of      ownership and the terms on which the Third-Party Materials will be      licensed to Company.  Vendor shall provide reasonable assistance      and cooperation to Company to acquire, transfer, maintain, perfect and      enforce Company’s rights, titles and interests in the Company Intellectual      Property, and shall not at any time do or cause to be done, or fail to do      or fail to cause to be done, any act or thing, directly or indirectly,      contesting or in any way impairing those rights, titles or interests of      Company.  If such reasonable assistance and cooperation involves      more than administrative acts, then the cost and expense of such      reasonable assistance and cooperation shall be borne by      Company.  Vendor acknowledges and agrees that (a) its use of the      Company Intellectual Property shall inure exclusively to benefit Company;      (b) use of the Company Intellectual Property by Vendor does not convey to      Vendor any right, title or interest in or to any of the Company      Intellectual Property or related goodwill; (c) Vendor shall not contest,      oppose, challenge or do anything to impair the validity, ownership or      enforceability of any of the Company Intellectual Property or the      exclusive ownership of Company in, or the exclusive right of Company to      control the use of, the Company Intellectual Property, or attempt to      register any Company Mark or any confusingly similar trademark, service      mark, trade name or domain name; (d) Vendor will not directly or      indirectly depreciate or attempt to depreciate the value of the goodwill      or reputation of any of the Company Intellectual Property, or use any of      the Company Intellectual Property in any manner that is inconsistent with      the terms of this Agreement. |
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| 7.2 | Assignment.  Vendor      hereby assigns to Company all of Vendor’s worldwide right, title and      interest in and to all rights, title and interest in the Company      Intellectual Property for the full term of protection of such rights,      including any renewals and extensions, and agrees that such assignment      shall be effective as soon as is possible under any applicable law,      statute or regulation.  Vendor hereby further assigns to Company      all rights with respect to Third-Party Materials that Vendor may have such      that Company has exclusive rights with respect to such Third-Party      Materials. |
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| 7.3 | Moral      Rights.  Vendor also hereby irrevocably transfers and      assigns to Company, and waives and agrees never to assert, any and all      “Moral Rights” (as defined below) Vendor may have in or with respect to      any Company Intellectual Property, even after termination of Vendor's work      on behalf of Company.  Vendor shall use its best efforts to      obtain waivers of any and all “Moral Rights” from all of its employees,      officers, agents, and/or contractors (and their employees, officers and/or      agents).  “Moral Rights” means any rights to claim authorship of      the Company Intellectual Property, to object to or prevent any      modification of the Company Intellectual Property, to withdraw from      circulation or control the publication or distribution of any Company      Intellectual Property, and any similar right, existing under judicial or      statutory law of any country in the world, or under any treaty, regardless      of whether or not such right is called or generally referred to as a      “Moral Right.” |
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| 8. | CONFIDENTIALITY |
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| 8.1 | Confidentiality.      For the avoidance of doubt, the following categories of confidential and      proprietary information are subject to the confidentiality obligations set      forth in the VCA: All products, concepts, Formulae, scents, fragrances,      colors, packaging, prices, costs, financial information, product concepts,      strategic or other plans, sales, sourcing, lists of dealers and customers      and prospective dealers and customers, and any proposals made to or      received from prospective dealers or suppliers related to Company      Products. Confidentiality shall not apply to: (a) information that at the      time of receipt by Vendor was already known to Vendor; (b) information      that at any time is received in good faith by Vendor or any of its      Affiliates from a third party, which was lawfully in the possession of the      third party and the third party had the right to disclose; (c) information      that as of the date of receipt by Vendor is in the public domain or      subsequently enters the public domain without fault on the part of Vendor;      (d) is disclosed pursuant to compulsory process or governmental      requirement after Vendor has promptly notified Company of such compulsory      process or governmental requirement, and Company has had the opportunity      to obtain a protective order or confidential treatment agreement with      provisions equivalent to the provisions of this Agreement, it being      expressly understood that the burden of proof to establish any and all of      the aforementioned exceptions from confidential treatment shall be upon      Vendor and shall be evidenced solely by the written records of      Vendor. |
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| 8.2 | Legally Required      Disclosures. Nothing in this Section shall prohibit disclosure of      information that Vendor believes in good faith is required to be disclosed      by law, including without limitation the applicable rules and regulations      of the Securities and Exchange Commission (“SEC”), the Nasdaq Stock      Market, any other exchange where Vendor’s securities may be listed for      trading, or any court decision that is binding on Vendor (“Applicable      Securities Laws”), but any such disclosure must be reviewed by Company in      advance and must be submitted to Company with reasonable advance notice      and in no event less than one (1) full business day, or twenty-four (24)      hours, whichever is longer, prior to disclosure. Company understands that      this Agreement is a material contract to be filed by Vendor with the SEC.      Vendor will file a confidential treatment request for the financial and      commercial information contained in the Agreement to the extent permitted      by the applicable Federal securities laws and will provide Company with      reasonable advance notice and in no event less than one (1) full business      day, or twenty-four (24) hours, whichever is longer, prior to such      filing. |
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| 9. | INDEMNIFICATION |
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| 9.1 | Indemnification by      Vendor. In addition to Vendor’s indemnification obligations under      the VCA, Vendor agrees to defend, indemnify and hold Company, its      officers, directors, agents and employees free and harmless from and      against any and all liabilities, losses, demands, causes of action, costs,      injuries, damages and expenses, including attorneys’ fees, which Company      may suffer or incur as a result of any claims made in connection with or      arising from any Creative (except to the extent Company has to pay the      owner of the Formulae for removal of the Formulae for subsequent use with      a third party filler after termination or expiration of this Agreement) or      Company Products provided to, for, or on behalf of Company by Vendor, any      Vendor Affiliate or Vendor’s subcontractor, agent, or representative,      including but not limited to any claims based on: Vendor’s failure to      comply with any applicable domestic or foreign law, statute or regulation;      personal injuries; the negligence, acts or omissions of Vendor, any Vendor      Affiliate, or any of Vendor’s representatives, agents, contractors or      assigns; the breach of or failure to perform under any term, obligation,      requirement or provision of this Agreement; any unauthorized use of any      Company Intellectual Property; any infringement or alleged infringement by      Vendor or any Vendor Affiliate of the rights of any third party relating      to the Creative or any Company Product; and/or the breach of any      representation or warranty set forth herein. If Vendor does not promptly      assume the defense of any claim tendered for indemnification hereunder,      then Company may defend the claim itself, with counsel of the Company’s      choosing, at the expense ofVendor. |
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| 9.2 | Indemnification by      Company.  Company agrees to defend, indemnify and hold      Vendor, Vendor Affiliates, and their several officers, directors, agents      and employees free and harmless from and against any and all liabilities,      losses, demands, causes of action, costs, injuries, damages and expenses,      including attorneys’ fees, which Vendor or Vendor Affiliates may suffer or      incur as a result of any claims made in connection with or arising from      any claims made by third parties against Vendor for Company’s breach of      this Agreement or infringement of intellectual property rights arising out      of the Approved use of any materials provided by Company to Vendor for use      in the development, production, manufacture or distribution of Company      Product.  If Company does not promptly assume the defense of any      claim tendered for indemnification hereunder, then Vendor, Vendor      Affiliates, and the other persons entitled to indemnification under this      Agreement may defend the claim themselves, with counsel of their choosing,      at the expense of Company. |
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| 10. | TERM      AND TERMINATION |
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| 10.1 | Term.  This      Agreement shall be effective on the Effective Date and, unless terminated      earlier as provided in this Agreement, shall continue in full force and      effect until December 31, 2011 (the“Term”). |
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| 10.2 | Product Launch      Expenditures.  Vendor may submit for Approval by each      Brand’s CFO or his or her designee, written estimates for any new tooling      or capital investment expenditures that are reasonably necessary for      Vendor to support new product launches scheduled to occur within the      period from [———-]21.  In the      event that the parties do not reach agreement to renew this Agreement upon      expiration, Company agrees to reimburse Vendor for the unamortized costs      of any Approved tooling and/or capital investment expenditure(s) actually      incurred during such period, in an amount not to exceed [———-]22 total for all      Brands, payable within [———-]23 of receipt of      Vendor’s invoice for such expenditures with supporting      documentation. |
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| 10.3 | Events of      Default.  If any of the following events shall occur      (each, an “Event of Default”): |
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|   | (a) | Vendor      commits a material breach of this Agreement or the VCA that is not capable      of remedy, including but not limited to a material breach of Vendor’s      confidentiality, non-competition or intellectual property      obligations; |
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|   | (b) | Vendor      commits a material breach of this Agreement or the VCA that is capable of      remedy and fails to remedy such breach within [———-]24 of Company’s      written notice to Vendor of thebreach; |
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|   | (c) | Vendor: |
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|   | (i) | is      unable to pay its debts or appears to be unable to pay or to have no      reasonable prospect of being able to pay his debts, or is insolvent within      the meaning of any applicable law; |
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|   | (ii) | is      adjudged by any court insolvent orbankrupt; |
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|   | (iii) | has      a petition presented for its winding up or issues a notice convening a      meeting of shareholders to consider a resolution for winding up or has a      petition presented for its administration or an application for an      administration order is made, or has a similar procedure commenced by or      against it under any applicable law;or |
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|   | (iv) | suffers      an encumbrance taking possession of or suffers the appointment of a      receiver or administrative receiver or administrator or any similar person      under any applicable law or suffers any sequestration order being made in      respect of the whole or substantial part of its  assets; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Vendor      or any Vendor Affiliate directly or indirectly opposes (or assists any      third party to oppose) the application, registration or renewal of any      Company trademark, design and/or patent, including without limitation the      Company Intellectual Property; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Vendor      or any Vendor Affiliate itself registers or disputes or directly or      indirectly assists any third party to dispute the validity of any Company      trademark, design and/or patent, including without limitation the Company      Intellectual Property; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Gary      McNatton or a substitute Approved by Company (which Approval will not be      unreasonably withheld) ceases to be substantially involved in the      Development Services; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (w) | immediately      terminate this Agreement in its entirety;or |
|--------|-----|--------------------------------------------------------------|

|   | (x) | immediately      terminate the Agreement as to the Banana Republic Brand, the Gap Brand,      and/or the Outlet Brands, or as to particular Company Product lines or      categories within one or more Brands;or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (y) | immediately      terminate only the Development Services or the manufacture of Approved      Company Products, triggering the need for Company and Vendor to      renegotiate in good faith the terms and conditions of the existing      Agreement; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (z) | inform      Vendor that Company is considering terminating the Agreement (the “Interim Termination      Notice”) and at any time during the      [———-]25      following such notice, give Vendor not fewer than [———-]26 notice      of the day when the Agreement shall terminate, in whole or in      part. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 10.4 | Commitment Period      Inventory; Wind-Down on Expiration; No Wind-Down on Event of      Default. |
|------|---------------------------------------------------------------------------------------------------|

|   | (a) | Commitment Period      Inventory.  Company, in its sole discretion, may offset      its liability for Commitment Period inventory upon expiration of the      Agreement by (i) purchasing some or all remaining Commitment Period      inventory at the Purchase Price and/or (ii) demanding destruction of some      or all remaining Commitment Period inventory and compensating Vendor in an      amount equal to Vendor’s cost of raw materials and production plus      reasonable, documented overheadexpenses. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Wind-Down on      Expiration. |
|--------|-----|-------------------------------|

|   | (i) | Within      [———-]27 of expiration of      this Agreement, Vendor shall deliver to Company a complete and accurate      schedule of Vendor's inventory of Company Products on hand in excess of      the Commitment Period inventory, in process of manufacture and in transit,      including without limitation, raw materials, bulk materials, ingredients,      supplies and containers, as of the close of business on the date of      expiration (the “Final Inventory”).  Company shall have the      option, exercisable by notice to Vendor within [————]28 after its      receipt of the Final Inventory schedule, or from time to time thereafter      to the extent Final Inventory is available, to purchase any or all of the      Final Inventory for an amount equal to the Purchase Price.  If      such purchase option should be exercised by Company, then Vendor shall      deliver to Company or its designee all of the Final Inventory purchased by      Company within [———-]29 after Company's      said notice of exercise of its option.  Company shall pay Vendor      for such Final Inventory within [———-]30 after delivery of      such Final Inventory. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Upon      expiration of this Agreement and to the extent Company has not exercised      its option to purchase all or part of the Final Inventory, then Vendor      shall have a [———-]31 wind-down      period (the “Wind-Down Period”) to sell the remaining Final Inventory of      Company Products internationally to “Authorized Channels of Distribution”      as such term is defined in the License Agreement and, at Company’s sole      discretion, to other Approved close-out retailers, including (i) a      commercially reasonable “run-out” of finished goods inventory in order to      maximize the use of components, and (ii) work-in-progress at hand at      the expiration of this Agreement that is completed by Vendor within a      commercially reasonable time thereafter (collectively “the Wind-Down      Inventory Amount”).  All remaining inventory from the Wind-Down      Inventory Amount and components not sold by Vendor as set forth above      shall be lawfully destroyed at Vendor’s sole expense within [———-]32 after the end of      the Wind-Down Period, unless Company, in its sole discretion, Approves in      advance Vendor’s further clearance of such remaining Wind-Down Inventory      Amount and components, including Approval of the specific Company      Products, quantities, channels of distribution, and markets or      territories.  Vendor shall certify to Company, in writing signed      by its Chairman, President, Chief Executive Officer or Chief Financial      Officer, that all remaining Wind-Down Inventory has been      destroyed. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (iii) | Except      as otherwise specifically provided to the contrary in this Agreement, on      the expiration or termination of this Agreement, all of the rights of      Vendor under this Agreement shall terminate forthwith and shall revert      automatically to Company. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Vendor’s Event of      Default.  In the event this Agreement is terminated for      Vendor’s Event of Default as set forth in Section 10.3, Vendor shall have      no continuing license to develop, manufacture, produce, distribute, sell      or otherwise use any of the Creative or Company Products created pursuant      to this Agreement, and Company shall have no liability to Vendor for any      remaining inventory.  Vendor shall lawfully destroy any      remaining inventory of Approved Company Product, absent express, written      agreement with Company to the contrary, and shall certify to Company, in      writing signed by its Chairman, President, Chief Executive Officer or      Chief Financial Officer, that the inventory has been      destroyed. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | GENERAL      PROVISIONS |
|-----|-------------------------|

| 11.1 | Non-Competition.  During      the term of this Agreement, Vendor may not enter into any agreement for      the development, production, manufacture, distribution or sale of Personal      Care Products or Home Fragrance Products with [———-]33. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | No      Assignment.  Neither party shall assign, transfer or      delegate its rights or obligations under this Agreement without the prior      written consent of the other party, which consent shall not be      unreasonably withheld.  Any purported assignment, transfer,      delegation or other disposition, except as permitted herein, shall be null      and void.  Notwithstanding the foregoing, Company may assign the      Agreement (without obtaining Vendor’s prior written consent) to any of its      respective current or future worldwide divisions, subsidiaries and/or      affiliated companies. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | Notices.  Any      notice, request, demand or other communication required or permitted      hereunder shall be in writing, shall reference this Agreement and shall be      deemed to be properly given:  (a) when delivered personally;      (b) when sent by facsimile, with written confirmation of receipt by      the sending facsimile machine; (c) three (3) business days after having      been sent by registered or certified mail, return receipt requested,      postage prepaid; or (d) upon delivery by an overnight private industry      express courier, with written confirmation of receipt.  All      notices shall be sent to the following addresses (or to such other address      or person as may be designated by a party by giving written notice to the      other party pursuant to thisSection): |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Company:                                      |         | Vendor:                                   |
|-----------------------------------------------|--------------|-------------------------------------------|
| General      Manager, Banana Republic         |         | Attn:      Mr. Jean Madar, CEO            |
| Personal      Care                            |         | Attn:      Mr. Russell Greenberg, CFO     |
| General      Manager, Gap Personal Care       |         | Inter      Parfums, Inc.                  |
| General      Manager, Outlet Personal Care    |         | 551      Fifth Avenue                     |
| Gap      Inc.                                 |         | New      York, NY 10176                   |
| Two      Folsom Street                        |         | Facsimile:  (212)      983-0654 |
| San      Francisco, CA  94105       |         |                                      |
| BR      Facsimile:  (415) 427-5433  |         |                                      |
| Gap      Facsimile:  (415) 427-7046 |         |                                      |
|                                          |         |                                      |
| With      a copy to:                          |         |                                      |
|                                          |         |                                      |
| General      Counsel                          |         |                                      |
| Gap      Inc.                                 |         |                                      |
| Two      Folsom Street                        |         |                                      |
| San      Francisco, CA  94105       |         |                                      |
| Facsimile:  (415)      427-6982     |    |                                      |

| 11.4 | Entire      Agreement.  This Agreement, together with the VCA,      constitutes the entire agreement between Company and Vendor concerning the      subject matter herein, and supersedes any and all previous oral and/or      written agreements or understandings between Company and Vendor related      thereto.  This Agreement may be modified only by a written      amendment executed by Company and Vendor.  Notwithstanding      anything to the contrary contained in the VCA, no amendment, modification      or change to the VCA shall be effective against Vendor if such amendment,      modification or change shall have an adverse effect upon Vendor or shall      increase the obligations of Vendor under this Agreement or the      VCA. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.5 | Severability;      Survival.  Any term, requirement or provision of this      Agreement that is determined to be invalid or unenforceable will be      ineffective to the extent of such determination without invalidating the      remaining terms, requirements and provisions of this Agreement or      affecting the validity or enforceability of such remaining terms,      requirements and provisions.  The obligations of the parties      that by their nature would continue beyond the termination or expiration      of this Agreement shall survive termination or expiration of this      Agreement for any reason. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6 | Force      Majeure.  If the      performance of any part of this Agreement by either party (the      “Interrupted Party”) is prevented or delayed by reason of any flood, riot,      fire, explosion, war, terrorist act, governmental action or inaction in      response to, or in contemplation of, a terrorist act, or any other      casualty or cause beyond the control of the Interrupted Party, which      cannot be overcome (a “Force Majeure Event”), the Interrupted Party shall      be excused from such performance to the extent that it is necessarily      prevented, hindered or delayed thereby, for so long as such event shall      continue to prevent, hinder or delay such performance.  This      Agreement shall be deemed suspended so long as and to the extent that any      such cause shall operate to prevent, hinder or delay the performance by      the Interrupted Party of its obligations; however, the other party, at its      sole option, shall have the right to terminate this Agreement immediately      if the Interrupted Party’s performance is suspended pursuant to this      Section for more than [———-]34.  Upon      the occurrence of a Force Majeure Event, the Interrupted Party shall, as      soon as reasonably practicable thereafter, notify the other party of the      nature and extent of any such Force Majeure  Event. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| The      Gap, Inc.                  |               | Inter      Parfums, Inc.                  |
|-------------------------------------|--------------------|-------------------------------------------|
|                                |               |                                      |
| By:                                 |     |                                      | By: | /s/ Russell Greenberg |
|                                | Name:              |                                      |   | Name:      Russell Greenberg |
|                                | Title:             |                                      |   | Title:      Executive Vice President |
|                                | Date:              |                                      |   | Date: |
|                                |               |                                      |
| Banana      Republic, LLC           |               | Inter      Parfums USA, LLC               |
|                                |               |                                      |
|                                |               | By:      Inter Parfums, Inc., Sole Member |
| By:                                 |     |                                      |   |
|                                | Name:              |                                      | By: | /s/ Russell Greenberg |
|                                | Title:             |                                      |   | Name:      Russell Greenberg |
|                                | Date:              |                                      |   | Title:      Executive Vice President |
|                                |               |                                      |   | Date:  |
|                                |               |                                      |
| (continues      on next page)       |               |                                      |
|                                |               |                                      |
| (continues      from previous page) |               |                                      |
|                                |               |                                      |
| Gap      (Apparel), LLC             |               | Gap      (ITM) Inc.                       |
|                                |               |                                      |
| By:                                 |     |                                      | By: |     |
|                                | Name:              |                                      |   | Name: |
|                                | Title:             |                                      |   | Title: |
|                                | Date:              |                                      |   | Date: |

----

| Banana      Republic (Apparel), LLC |               | Banana      Republic (ITM) Inc. |
|-------------------------------------|--------------------|---------------------------------|
|                                |               |                            |
| By:                                 |               |                            | By: |     |
|                                | Name:              |                            |   | Name: |
|                                | Title:             |                            |   | Title: |
|                                | Date:              |                            |   | Date: |
|                                |               |                            |
| Gap      (Canada), Inc.             |               | Gap      (Puerto Rico), Inc.    |
|                                |               |                            |
| By:                                 |     |                            | By: |     |
|                                | Name:              |                            |   | Name: |
|                                | Title:             |                            |   | Title: |
|                                | Date:              |                            |   | Date: |

----

| Exclusive rights                                                                                                                                                                                                                                                               |         | Non-Exclusive rights                                                  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|----------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                |         |                                                                       |
| Fragrances (Perfume, Eau      de Perfume, Eau de toilette, cologne) for men, women, baby and unisex. As      well as their corresponding ancillaries (shower gel, body lotion, body      cream, body spray, soap, shaving products, deodorant)                                      |         | Hair Care (Conditioners,      shampoo, hair sprays, hair styling products) |
|                                                                                                                                                                                                                                                                                |         |                                                                       |
| Cosmetics (blushers, eye      makeup, face powders, lipsticks, colored lip balms and lip glosses, makeup      bases), nail color (nail polish)                                                                                                                                      |         | Cosmetics Accessories      such as cosmetics bags, Dopp kits, tweezers     |
|                                                                                                                                                                                                                                                                                |         |                                                                       |
| Skincare Products (baby      powders, oils and lotions, bath additives, facial treatments, hand and      body creams, lotions and treatments, skin care products for women, men and      children, sun care products, talcum and dusting powders, personal      cleansing products) |         | Home Fragrances      accessories                                           |
|                                                                                                                                                                                                                                                                                |         |                                                                       |
| Home Fragrances (room      spray, scented candles, unscented candles, incense sticks, fragrance oils,      potpourri beads, scented sachets, scented beads, oilstick)                                                                                                               |    |                                                                       |

| No      rights                                                                                                                                         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                   |
| Hair Care (Ethnic hair      products, hair coloring products, hair perming products, brushes, combs,      hair dryers, specialty hair products...) |
|                                                                                                                                                   |
| Oral Care Products      (denture products, jellies and treatment, mouth wash, toothbrushes, tooth      paste)                                          |
|                                                                                                                                                   |
| Other Toiletries      (depilatories, waxes and bleaches)                                                                                               |
|                                                                                                                                                   |
| Nail Care (artificial      nails, nail and cuticle treatments, nail polish remover, dryer and      thinner)                                            |
|                                                                                                                                                   |
| Other (fragranced      fabric, leather or apparelrelated-item)                                                                                         |

----

| 1. | Incorporation. |
|----|----------------|

| 2. | Documents. |
|----|------------|

| 3. | Standards. |
|----|------------|

| 4. | Network. |
|----|----------|

----

| 5. | Proper      Receipt. |
|----|----------------------|

| 6. | Costs. |
|----|--------|

| 7. | Confidential and      Proprietary Information. |
|----|------------------------------------------------|

----

----

| 8. | Signed      Writing. |
|----|----------------------|

| 9. | Liability for Errors      and Losses |
|----|--------------------------------------|

| Vendor                                      |         | The      Gap, Inc.                          |
|---------------------------------------------|--------------|---------------------------------------------|
|                                        |         |                                        |
|                              |         |                              |
| Signature      of Authorized Representative |         | Signature      of Authorized Representative |
|                                        |         |                                        |
|                              |         |                              |
| Print      Name                             |         | Print      Name                             |
|                                        |         |                                        |
|                              |         |                              |
| Title                                       |         | Title                                       |
|                                        |         |                                        |
|                              |         |                              |
| Date                                        |         | Date                                        |
|                                        |         |                                        |
|                                        |    | [signature      lines to be added]          |

----