Document:

ex102to8k04637_09162013.htm

Exhibit 10.2

 

FORM OF VOTING AND LOCK-UP AGREEMENT

 

 

This VOTING AND LOCK-UP AGREEMENT (the “Agreement”) is made and entered into as of this 16th day of September, 2013 by FalconStor Software, Inc., a company incorporated under the laws of the State of Delaware (the “Company”), and [STOCKHOLDER] (“Stockholder”), pursuant to the terms of that certain Preferred Stock Purchase Agreement, dated as of September 16, 2013 (the “Purchase Agreement”), for the benefit of Hale Capital Partners, LP (the “Purchaser”).

 

Recitals:

WHEREAS, Stockholder is the record or beneficial owner of such number of shares of common stock, par value $0.001 per share, of the Company set forth on the signature page hereto, including, without limitation, common stock of the Company issuable upon conversion, exercise or exchange of any options, warrants or other convertible, exercisable or exchangeable securities (collectively, the “Common Shares”);

 

WHEREAS, the Company and the Purchaser are entering into the Purchase Agreement contemporaneously herewith; and

 

WHEREAS, in order to induce the Purchaser to enter into the Purchase Agreement, the Company and Stockholder have agreed to enter into this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Stockholder hereby agree as follows for the benefit of the Purchaser:

 

ARTICLE I

 

GRANT OF PROXY; VOTING AGREEMENT AND LOCK-UP

 

SECTION 1.01.  Voting Agreement.  Stockholder hereby agrees to vote the Common Shares, as well as any other shares of Common Stock of the Company that Stockholder may own or hereafter acquire or any other shares of Common Stock of the Company that Stockholder is entitled to vote, at the time of any meeting or meetings (or by written consent) of the stockholders of the Company at such times in favor of the Stockholder Approval, the execution and delivery of the Transaction Documents and the other transactions contemplated thereby, including without limitation, the issuance of all of the Underlying Shares to the Purchaser.  Stockholder hereby agrees that he or she will not vote any Common Shares in favor of the approval of any action the consummation of which would frustrate the purposes, or prevent or delay the consummation, of the Stockholder Approval, the execution and delivery of the Transaction Documents or the other transactions contemplated thereby; provided that nothing herein will prevent the Stockholder from voting in favor of a Permitted Transaction (as defined in the Purchase Agreement).

 

  

  

  

 

SECTION 1.02.  Irrevocable Proxy.

 

(a)           By entering into this Agreement, Stockholder hereby grants a proxy appointing the Purchaser as Stockholder’s attorney-in-fact and proxy, with full power of substitution, for and in Stockholder’s name, to vote, express, consent or dissent, or otherwise to utilize such voting power in the manner provided by Section 1.01 above with respect to all the Common Shares that constitute voting securities.  The proxy granted by Stockholder pursuant to this Article 1 is irrevocable and is granted in consideration of the Purchaser entering the Purchase Agreement and incurring certain related fees and expenses.  The proxy granted by Stockholder pursuant hereto shall be revoked only upon termination of this Agreement in accordance with Section 3.01 of this Agreement. Stockholder shall deliver to, or at the direction of, the Purchaser such completed forms of proxy or other documents or instruments as may be requested by the Purchaser to give effect to this Agreement.

 

(b)           By entering into this Agreement, the Company hereby (i) acknowledges the grant of the irrevocable proxy by Stockholder to the Purchaser pursuant to this Agreement and (ii) covenants and agrees not to accept any other proxies from the Stockholder in respect of any meeting or meetings (or action by written consent) of stockholders of the Company concerning the Stockholder Approval.  The Company shall give the Purchaser prompt written notice of any action by Stockholder which purports to revoke the proxy granted by Stockholder in favor of the Purchaser pursuant to this Agreement.

 

SECTION 1.03.  Lock-up.  Except with respect to open market sales, Stockholder hereby agrees that during the term of this Agreement, Stockholder will not, directly or indirectly, issue, sell, offer or agree to sell, grant any option for the sale of, pledge, enter into any swap, derivative transaction or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any of the Common Shares (whether any such transaction is to be settled by delivery of common shares, other securities, cash or other consideration) or otherwise dispose (or publicly announce the undersigned's intention to do any of the foregoing) of, directly or indirectly, any Common Shares; provided, however, that the Stockholder may assign, sell, transfer, tender, hypothecate or otherwise dispose of any Common Shares provided that any such recipient of the Common Shares has delivered to (i) the Company and the Purchaser a written agreement, in a form reasonably satisfactory to the Purchaser, that the recipient shall be bound by, and the Common Shares so transferred, assigned or sold shall remain subject to this Agreement and (ii) the Purchaser an irrevocable proxy consistent with Section 1.02 of this Agreement with respect to any such Common Shares acquired by such recipient.

 

SECTION 1.04. Acknowledgment of Reliance. The Company and Stockholder understand and acknowledge that the Purchaser is entering into the Purchase Agreement in reliance upon the Company’s and Stockholder's execution and delivery of this Agreement.

 

  

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ARTICLE 2

 

REPRESENTATIONS AND WARRANTIES OF STOCKHOLDER

 

Stockholder represents and warrants to the Purchaser on the date hereof that:

 

(a)           The Common Shares beneficially owned by Stockholder do not constitute marital property under applicable laws, or if such Common Shares constitute marital property, the consent of Stockholder’s spouse is not required for the execution and delivery of this Agreement or the performance by Stockholder of the obligations hereunder.

 

(b)           The execution, delivery and performance by Stockholder of this Agreement and the consummation of the transactions contemplated hereby do not and will not, to the Stockholder’s knowledge, (i) violate any applicable law, rule, regulation, judgment, injunction, order or decree, (ii) require any consent or other action by any Person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration or to a loss of any benefit to which Stockholder is entitled under any provision of any agreement or other instrument binding on Stockholder, or (iii) result in the imposition of any lien on any assets of Stockholder.

 

(c)           Stockholder is the record or beneficial owner of the Common Shares free and clear of any proxy or voting restriction. Except for the Common Shares set forth on the signature page of this Agreement, Stockholder does not beneficially own or otherwise have the right to vote any (i) shares of capital stock or voting securities of the Company, (ii) securities of the Company convertible into or exchangeable for shares of capital stock or voting securities of the Company or (iii) options or other rights to acquire from the Company any capital stock, voting securities or securities convertible into or exchangeable for capital stock or voting securities of the Company.

 

(d)           Stockholder has all necessary legal capacity, power and authority to execute and deliver this Agreement, to perform his or its obligations hereunder and to consummate the transactions contemplated hereby.

 

ARTICLE 3

 

MISCELLANEOUS

 

SECTION 3.01.  Termination.  Except as otherwise specifically set forth herein, this Agreement shall terminate immediately following the occurrence of the earlier of (i) Stockholder Approval or (ii) the termination of the Purchase Agreement in accordance with its terms.

 

SECTION 3.02.  Further Assurances.  Stockholder will execute and deliver, or cause to be executed and delivered, all further documents and instruments and take all further action as may be reasonably necessary in order to consummate the transactions contemplated by this Agreement.

 

SECTION 3.03.  Changes In Shares.  In the event of a stock dividend or distribution, or any change in the common shares of the Company by reason of any stock dividend, split-up, recapitalization, combination, exchange of shares or the like, the term "Common Shares" shall be deemed to refer to and include the Common Shares as well as all such stock dividends and distributions and any shares into which or for which any or all of the Common Shares may be changed or exchanged.

 

  

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SECTION 3.04.  Amendments.  Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by Stockholder, the Company and the Purchaser or in the case of a waiver, by the Person against whom the waiver is to be effective.

 

SECTION 3.04.  Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties and/or beneficiaries hereto and their respective successors and assigns.  For the avoidance of doubt, the Purchaser is an express third party beneficiary of this Agreement. Stockholder agrees that this Agreement and the obligations hereunder shall attach to the Common Shares and shall be binding upon any Person to which legal or beneficial ownership of such Common Shares shall pass, whether by operation of law or otherwise, including, without limitation, such Stockholder's heirs, guardians, administrators or successors.  Notwithstanding any such transfer of Common Shares, the transferor shall remain liable for the performance of all obligations under this Agreement of the transferor.

 

SECTION 3.05.  Governing Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of New York.

 

SECTION 3.06.  Severability. If any term or provision of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable the remainder of the terms and provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

SECTION 3.07.  Specific Performance.  Stockholder agrees that irreparable damage would occur in the event any provision of this Agreement is not performed in accordance with the terms hereof and that the beneficiaries hereof shall be entitled to specific performance of the terms hereof in addition to any other remedy to which they are entitled at law or in equity.

 

SECTION 3.08.  Capitalized Terms.  Capitalized terms used but not defined herein shall have the respective meanings set forth in the Purchase Agreement.

 

[Signature page on next page]

 

  

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IN WITNESS WHEREOF, the Company and the Stockholder have executed this Agreement as of the date first above written.

 

	  	
FALCONSTOR SOFTWARE, INC.

	  	  
	  	
By:

	  
	  	  	
Name:

	
Seth Horowitz

	  	  	
Title:

	
Executive Vice President, Legal

 

	  	  
	  	  
	  	
[STOCKHHOLDER]

	  	  
	  	  
	  	
Number of Common Shares held

  

5Exhibit 10.17

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (the “Agreement”) is entered into effective September 1, 2013 (the “Effective
Date”) between Coty Inc. (the “Company” and, collectively with its affiliates, “Coty”),
and DARRYL MCCALL (“Executive”).

 

RECITALS

 

	A	As provided in a
    separate agreement between Executive and Coty Geneva, SA (“Coty Geneva”), Executive’s employment
    with Coty Geneva will end on August 31, 2013 in connection with his planned transfer to New York.
	 	 
	B	The parties desire that as of the Effective Date Executive will become
    employed by the Company.
	 	 
	C	The parties desire to set forth in
    this Agreement the terms of Executive’s employment with the Company.

 

NOW, THEREFORE,
the parties agree as follows: 

 

	1.	Employment.
	 	 	 
	 	 	 
	 	1.1	In General. The Company agrees to employ Executive as of the Effective
    Date, and Executive accepts such employment, on the terms and conditions set forth in this Agreement.
	 	 	 
	 	1.2	At-Will Employment. This Agreement does not constitute, and may
    not be construed as, a commitment to employment for any specific duration. The duration and terms and conditions of Executive’s
    employment relationship with the Company shall be at will, which means that the Company may change the terms and conditions
    of the employment relationship, and that Executive may leave the Company, or the Company may require Executive to leave its
    employ, for any reason or no reason, at any time.
	 	 	 
	 	1.3	Planned End Date. Executive’s employment with the Company
    will terminate on December 31, 2014 (the “Planned End Date”) or such earlier date on which his employment
    ends in accordance with this Agreement. The date Executive’s employment with the Company actually terminates is referred
    to in this Agreement as the “Separation Date.”
	 	 	 
	2.	Duties.
	 	 	 
	 	2.1	Executive shall be the Company’s Executive Vice President, Supply
    Chain and shall report to Michele Scannavini, Chief Executive Officer (the “Reporting Officer”). Executive
    shall perform all duties customarily associated with such office. Executive shall also perform such other duties consistent
    with his position as may be assigned to him from time to time by the Reporting Officer or the Company’s Board of Directors
    (the “Board”). Such duties may include directorships on the boards of entities affiliated with the Company
    or serving as representative on industry panels, and may entail reporting to others within the Coty group of companies in
    addition to his normal reporting lines within the Company. No additional compensation shall be paid for Executive’s
    assumption of such responsibilities except for such nominal compensation as may be required under local law, which to the
    extent paid shall be deducted from his Salary (as defined below).

    	 

    	

    
	 	2.2	Subject to Section 2.3, Executive shall devote his entire
    business time, attention, and energies to the business of the Company during Executive’s employment with the Company
    and shall use his best efforts to perform such responsibilities faithfully and efficiently. Executive shall comply with the
    Coty Code of Business Conduct, as in effect from time to time.
	 	 	 
	 	2.3	Nothing herein shall prohibit Executive from pursuing his business interests
    that are unrelated to the Company’s business as long as they do not violate Section 8, conflict with the interests of
    the Coty, or interfere with the performance of his duties pursuant to this Agreement.
	 	 	 
	 	2.4	Executive’s position will be based at the Company’s principal
    office in New York, New York. Notwithstanding the foregoing, Executive will be required to travel within the normal course
    of his duties.

 

	3.	Compensation. Executive’s compensation during
    his employment under this Agreement shall be as follows:
	 	 	 
	 	3.1	Salary. The Company shall pay Executive base salary (“Salary”)
    at an annual rate determined by converting Executive’s rate of annual base compensation with Coty Geneva immediately
    before the Effective Date into US dollars, using the Company’s applicable FY14 currency exchange plan rate in effect
    as of the Effective Date. Executive’s Salary shall be payable in accordance with the Company’s normal payroll
    practices as in effect from time to time.
	 	 	 
	 	3.2	APP Bonus. Executive shall continue to participate in the Coty
    Annual Performance Plan (the “APP”), with a Target Award of 60% of Executive’s Salary. Executive
    understands that the APP is a discretionary bonus plan and may be amended or terminated by Coty in its sole discretion at
    any time, and that an award under the APP (“Bonus”) is not guaranteed by Coty except as provided in the
    APP. In determining Executive’s Bonus, if any, Coty will consider the business results of the Company as well as affiliated
    companies, as provided in the APP.
	 	 	 
	 	3.3	Long-Term Incentive Plan. Executive shall continue to be eligible
    for long-term incentive grants under the Coty Inc. Long-Term Incentive Plan (the “LTIP”) at the discretion
    of the Board or the Board’s Remuneration and Nomination Committee. Executive understands that the LTIP may be amended
    or terminated by Coty in its sole discretion to the extent provided under the LTIP.
	 	 	 
	 	3.4	Automobile. Executive shall receive a monthly car allowance which
    amount will be similar to the monthly lease value current applied to senior executives of the Company.
	 	 	 
	 	3.5	Benefits. Executive shall be eligible to participate in the welfare,
    retirement, perquisite and fringe benefit, and other benefit plans, practices, policies and programs, as may be in effect
    from time to time for senior executives of the Company generally.
	 	 	 
	4.	Business Expenses. During Executive’s employment
    under this Agreement, Executive shall be eligible for prompt reimbursement for business expenses, travel and entertainment
    reasonably incurred by Executive, subject to the terms and conditions of the Coty Travel Policy as in effect from time to
    time.

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	5.	Vacation. Executive shall accrue paid vacation at
    the rate of twenty (20) work days per year or such greater rate as may be provided by the terms and conditions of the Company’s
    standard vacation policies for its employees as in effect from time to time (the “Vacation Policy”). Executive’s
    vacation entitlement shall be subject to the terms and conditions of the Vacation Policy, including, without limitation, such
    overall limitations on accrued but unused vacation as the Vacation Policy may provide. In scheduling vacation Executive shall
    duly consider the business requirements of the Company.
	 	 	 
	6.	Relocation Benefits. Executive will be entitled to
    Coty’s standard International Transfer Policy (“ITP”) terms that apply when an employee returns to
    his home country. These will include the following, subject in each case to the terms and conditions of the ITP:
	 	 	 
	 	6.1	Sea shipment of goods from Geneva to the New York City area or to Santa
    Fe, New Mexico, as elected by Executive;
	 	 	 
	 	6.2	Home-finding assistance for a rental home in the New York City area;
	 	 	 
	 	6.3	Payment upon submission of appropriate
    documentation of either (i) up to 60 days of temporary living expenses in New York while searching for a rental home or (ii)
    two times Executive’s monthly rent in Geneva in case of a double rent situation;
	 	 	 
	 	6.4	A relocation allowance equal to one month’s Salary; and
	 	 	 
	 	6.5	Tax assistance with respect to the filing of Executive’s 2013 tax
    filings in Switzerland and Executive’s 2013 and 2014 tax filings in the United States; provided, however,
    that Executive shall in no event be entitled to tax assistance after (i) the Company’s termination of his employment
    for Cause, (ii) Executive’s resignation from the Company before the Planned End Date, or (iii) the expiration of six
    months from his Separation Date if his employment terminates for any other reason.
	 	 	 
	7.	Confidentiality. Commencing on the Effective Date
    and at all times thereafter, Executive shall not use for any purpose or disclose to any third party any Confidential Information
    (as defined below) other than (i) in the performance of Executive’s duties under this Agreement, (ii) as may otherwise
    be required by law, regulation or legal process, or (iii) as may be required by a governmental authority, agency or body.
    In each case subject to the last sentence of this Section 7, “Confidential Information” means any proprietary
    and/or confidential information relating to Coty, Coty’s customers, or other parties with which Coty has a business
    relationship or that may provide Coty with a competitive advantage, and includes, without limitation, trade secrets; inventions
    (whether or not patentable); technology and business processes; business, product or marketing plans; negotiating strategies;
    sales and other forecasts; financial information; client lists or other intellectual property; information relating to compensation
    and benefits; compilations of public information that become proprietary as a result of Coty’s compilation of such public
    information for use in its business; and documents (including any electronic record, videotapes or audiotapes) and oral communications
    incorporating Confidential Information. Executive shall also comply with any confidentiality obligations of Coty to a third
    party that Executive knows or should know about, whether arising under a written agreement or otherwise. Information shall
    not be deemed Confidential Information if it is or becomes generally available to the public other than as a result of an
    unauthorized disclosure or action by Executive or at Executive’s direction or by any other person who directly or indirectly
    receives such information from Executive. Because Confidential Information is extremely valuable, the Company takes measures
    to maintain its confidentiality and guard its secrecy.

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	 	Confidential Information may be copied, disclosed or used
    by Executive during his employment with the Company only as necessary to carry out Company business and, where applicable,
    only as required or authorized under the terms of any agreements between the Company and any third party. If Executive is
    ever asked to disclose any information or materials that are subject to these confidentiality restrictions, pursuant to legal
    process or otherwise, Executive must contact the Company to seek the Company’s written consent prior to any disclosure.
	 	 	 	 
	8.	Non-Competition; Non-interference.
	 	 	 	 
	 	8.1	Definitions.
	 	 	 	 
	 	 	8.1.1	“Competing Organization” means any person or organization
    that is engaged in, or about to become engaged in, research or development, production, marketing, leasing, selling, distributing,
    or servicing of a Competing Product.
	 	 	 	 
	 	 	8.1.2	“Competing Product” means any product, process, system
    or service of any person or organization other than Coty, in existence or under development, that is the same as or similar
    to or competes with, or has a usage allied to, a product, process, system or service upon which Executive has worked (in either
    a sales or a non-sales capacity) during the last two (2) years of Executive’s employment by Coty, or about which Executive
    acquires, or has access to, Confidential Information.
	 	 	 	 
	 	 	8.1.3	“Restricted Entity” means any corporation, firm, or
    business, other than Coty, engaged in a consumer or professional cosmetics, fragrances or toiletries business or any other
    business that is competitive, in any geographical area, with any business of Coty to which Executive was assigned or for which
    Executive rendered substantial employment services or had managerial oversight responsibility or with respect to which Executive
    was exposed to Confidential Information at any time during the two (2) years prior to the termination of Executive’s
    employment with the Company.
	 	 	 	 
	 	 	8.1.4	“Term of Employment” refers to the period or periods
    during which Executive is employed by Coty.
	 	 	 	 
	 	8.2	Non-Competition.
	 	 	 	 
	 	 	8.2.1	During the Term of Employment and for twelve (12) months thereafter,
    Executive shall not, without the written consent of the Company, on Executive’s own behalf or for a Competing Organization,
    either as principal, agent, consultant, employee, officer, director, or otherwise, engage in any work or other activity that
    competes in any way with Coty (i) in or directly related to the specific areas or subject matters in which Executive worked
    during the Term of Employment, or (ii) involving or directly related to Confidential Information of which Executive became
    aware or to which Executive had access during such employment. Executive shall consult the Company before entering upon any
    activity that might violate the provisions of this section, it being understood that Executive’s activities shall be
    limited hereby only to the extent that is reasonably necessary for the protection of Coty’s interests for a period determined
    by the Company in accordance with this section.

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	 	 	 	It is further understood
    that such interests will normally require that, for a period determined in accordance with this section, Executive
    not engage in work or other activity as defined above.
	 	 	 	 
	 	 	8.2.2	Executive may accept employment with a large Competing Organization whose
    business is diversified (and which has separate and distinct divisions), and which as to part of its business is not a Competing
    Organization, provided the Company, prior to Executive accepting such employment, shall receive separate written assurances
    satisfactory to the Company that Executive will not render services directly or indirectly in connection with any Competing
    Product. Executive shall inform any Competing Organization, prior to accepting employment, of the existence of this Section
    8.2 and provide such employer with a copy thereof.
	 	 	 	 
	 	 	8.2.3	If, because of restrictions imposed in or pursuant to this Section 8.2,
    Executive is unable to obtain employment consistent with Executive’s experience or employment qualifications and as
    long as Executive is diligently seeking employment, Executive understands that the Company will pay to Executive each month,
    so long as such restrictions remain in effect, a sum equal to the base compensation Executive was receiving from the Company
    at the termination of Executive’s employment, less the total of (i) any and all compensation paid or due to Executive
    for any other employment in which Executive engaged during such month (whether part- or full-time, temporary or permanent,
    of a consulting nature, or otherwise), (ii) any and all retirement, pension, severance, disability or other similar income
    Executive received from the Company during such month, and (iii) any unemployment or similar compensation Executive received
    during such month, such payment to be made only upon the receipt from Executive with respect to such month of a signed written
    statement setting forth Executive’s certification as to (A) the compensation paid or due to Executive for any other
    employment and any unemployment or similar compensation, (B) Executive’s efforts to obtain employment consistent with
    Executive’s experience and employment qualifications, and (C) that, despite Executive’s conscientious efforts,
    Executive has been unable to obtain such employment because of such restrictions.
	 	 	 	 
	 	 	8.2.4	Executive understands that the obligation of the Company to make any
    monthly payment under Section 8.2.3 above shall cease upon (i) Executive’s obtaining employment consistent with Executive’s
    experience and employment qualifications, (ii) the Company waiving such restrictions, or (iii) the expiration of twelve (12)
    months following the Term of Employment, whichever shall first occur.
	 	 	 	 
	 	8.3	Non-interference.
	 	 	 	 
	 	 	8.3.1	Executive will not at any time
    during, or for a period of twelve (12) months following the termination of, Executive’s employment with the Company,
    directly or indirectly solicit, induce, influence, or attempt to solicit, induce or influence any person then employed by
    Coty to terminate his or her employment relationship with Coty or otherwise interfere with any such employment by or association
    with Coty for the purpose of associating, as an employee or otherwise, with any Restricted Entity or otherwise encourage any
    such employee to leave his or her employment with Coty.

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	 	 	8.3.2	Executive will not at any time during, or for a period of
    twelve (12) months following the termination of, Executive’s employment with the Company, directly or indirectly solicit,
    induce, influence, or attempt to solicit, induce or influence any customer, supplier or vendor of Coty to divert his, her
    or its business to any Restricted Entity or otherwise encourage such customer, supplier or vendor to terminate or change its
    business relationship with Coty or otherwise interfere with any business or contractual relationship of Coty that may exist
    from time to time, including but not limited to with any supplier, customer or vendor.
	 	 	 	 
	9.	Company Property.
	 	 	 	 
	 	9.1	In General. Executive agrees that all patents, patentable
    inventions, copyrights, trade secret rights, trademark rights and associated goodwill, rights in know-how, and all other intellectual
    property rights, as well as all their physical and intangible embodiments, that are conceived, discovered, developed, created
    or reduced to practice by Executive, solely or in collaboration with others, during the period of his employment with the
    Company and that relate in any manner to the business of the Coty that Executive may be directed to undertake, investigate
    or experiment with or that Executive may become associated with in performing services for the Company or for Coty (collectively,
    “Intellectual Property”) are the sole property of the Company. The Company and Executive expressly agree
    that each copyrightable work created in whole or part by Executive at the direction of the Coty or relating to the business
    of the Coty shall be considered a “work made for hire” to the maximum extent allowed by law, and that Company
    shall be considered the “author” of each such work, as those terms are defined in the Copyright Act 17 U.S.C.
    §101, et seq. At the Company’s request or in the event any Intellectual Property is deemed for any reason to be
    owned by Executive, Executive also agrees to assign (or cause to be assigned) and hereby assigns fully to the Company all
    such Intellectual Property.
	 	 	 	 
	 	9.2	Further Assurances. Executive agrees to assist the
    Company or its designee, at the Company’s expense, in every lawful way to secure, document and record the Company’s
    rights in Intellectual Property, including the disclosure to the Company of all pertinent information and data with respect
    to all Intellectual Property, the execution of all applications, specifications, oaths, assignments and all other instruments
    that the Company may deem necessary in order to apply for and obtain such rights and in order to assign and convey to the
    Company, its successors, assigns and nominees the sole and exclusive right, title and interest in and to all Intellectual
    Property. Executive also agrees that Executive’s obligation to execute or cause to be executed any such instrument or
    papers shall continue after the termination of this Agreement. Executive further agrees not to assert or make a claim of ownership
    of any Intellectual Property, and that Executive will not file any applications for patents or copyright or trademark registration
    relating to any Intellectual Property.
	 	 	 	 
	 	9.3	Pre-Existing Materials. Executive agrees that if in
    the course of performing services for the Company Executive incorporates into or in any way uses in creating Intellectual
    Property any pre-existing invention, improvement, development, concept, discovery, works, or other proprietary right or information
    owned by Executive or in which Executive has an interest, (i) Executive will inform the Company, in writing before incorporating
    such invention, improvement, development, concept, discovery or other proprietary information into any Intellectual Property,
    and (ii) Executive hereby grants the Company a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to

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	 	 	make, have made, modify, sell, copy and distribute, and to
    use or exploit in any way and in any medium, whether or not now known or existing, such item as part of or in connection with
    such Intellectual Property. Executive will not incorporate any invention, improvement, development, concept, discovery, intellectual
    property or other proprietary information owned by any party other than Executive into any Intellectual Property without the
    Company’s prior written permission.
	 	 	 	 
	 	9.4	Attorney-in-Fact. Executive hereby irrevocably designates
    and appoints the Company and its duly authorized officers and agents as Executive’s agent and attorney-in-fact, to act
    for and on Executive’s behalf to execute and file any such applications and to do all other lawfully permitted acts
    to further the prosecution and issuance of patents, copyright, trademark and mask work registrations with the same legal force
    and effect as if executed by Executive, if the Company is unable, because of Executive’s unavailability, dissolution,
    mental or physical incapacity, or for any other reason, to secure Executive’s signature for the purpose of applying
    for or pursuing any application for any United States or foreign patents or mask work or copyright or trademark registrations
    covering the Intellectual Property owned by the Company pursuant to this Section 9.
	 	 	 	 
	10.	Termination on Planned End Date. Upon the termination
    of Executive’s employment (other than for Cause) on the Planned End Date, Executive shall be entitled to the following:
	 	 	 	 
	 	10.1	Executive shall be entitled to any earned but unpaid Salary
    through the date of termination, any accrued but unused vacation, and any other vested benefits to which Executive is entitled
    in accordance with the terms of any plan of the Company (the “Accrued Compensation”).
	 	 	 	 
	 	10.2	Executive shall be entitled to a prorated Bonus payout for
    the fiscal year of termination, based on the duration of his employment during that year (a “Prorated Bonus”).
    The Bonus will be based on actual results and will be paid at the time APP bonuses are paid to other executives.
	 	 	 	 
	 	10.3	Subject to the approval of the Board, and provided that Executive
    executes within the 30-day period after the Separation Date, a general release of claims in the form prescribed by the Company
    (a “General Release”), and does not revoke the General Release within seven days after such execution,
    Executive’s termination of employment shall be considered a “Retirement” for purposes of his awards under
    the LTIP, and Executive shall not be eligible for any severance payment or settlement payment.
	 	 	 	 
	11.	Termination for Cause.
	 	 	 	 
	 	11.1	Termination for Cause. The Company may terminate Executive’s
    employment under this Agreement for Cause.
	 	 	 	 
	 	11.2	Cause Definition. “Cause” means:
	 	 	 	 
	 	 	(a)	Executive’s willful and continued failure to substantially perform
    his duties for the Company or to carry out the business plan of the Company as determined by the Board;
	 	 	 	 
	 	 	(b)	Executive’s conviction of, guilty
    plea to, or entry of a nolo contendere plea to, a felony;

    	7

    	

    
	 	 	(c)	The willful or continued negligent engaging by Executive
    in conduct which is materially injurious to the Company, financially or otherwise; or
	 	 	 	 
	 	 	(d)	Executive’s breach of any material term of this Agreement or the
    Company’s policies and procedures, as in effect from time to time.
	 	 	 	 
	 	11.3	Cure Opportunity. With respect to circumstances described
    in Section 11.2(a), (c), or (d), Executive’s termination for Cause shall be effective only after notice to Executive
    setting forth in reasonable detail the nature of any such alleged Cause circumstance and, if the circumstance is susceptible
    to cure, the action required to cure such circumstance and a period of not less than 30 calendar days during which time Executive
    shall have an opportunity to appear before the Board to demonstrate that he has cured the conduct that constitutes Cause;
    provided, however, that in no event shall the Separation Date be later than the Planned End Date.
	 	 	 	 
	 	11.4	Accrued Compensation. In the event of the Company’s
    termination of Executive’s employment for Cause, the Company shall have no further obligations to Executive under this
    Agreement or otherwise except for the Accrued Compensation.
	 	 	 	 
	12.	Termination Before Planned End Date Without Cause.
	 	 	 	 
	 	12.1	In General. The Company may terminate Executive’s
    employment under this Agreement without Cause at any time before the Planned End Date. For the avoidance of doubt, this Section
    12 shall not apply to the termination of Executive’s employment on the Planned End Date.
	 	 	 	 
	 	12.2	Termination Benefits. If the Company terminates Executive’s
    employment without Cause before the Planned End Date, Executive shall receive, without duplication, the following:
	 	 	 	 
	 	 	12.2.1	Executive shall be entitled to his Accrued Compensation.
	 	 	 	 
	 	 	12.2.2	Executive shall be entitled to a Prorated Bonus payout for the fiscal
    year of termination, based on the duration of his employment during that year. The Bonus will be based on actual results and
    will be paid at the time APP bonuses are paid to other executives.
	 	 	 	 
	 	 	12.2.3	Provided that Executive executes within the 30-day period after the Separation
    Date a General Release, and does not revoke the General Release within seven days after such execution, Executive shall be
    eligible for a lump-sum severance payment equal to his monthly base salary times the lesser of (i) twelve or (ii) the number
    of months between the Separation Date and the Planned End Date.
	 	 	 	 
	 	 	12.2.4	Subject to the Board approval and provided that Executive executes a
    General Release within the 30-day period after the Separation Date, and does not revoke the General Release within seven days
    after such execution, Executive’s termination of employment shall be considered a “Retirement” for purposes
    of his awards under the LTIP. Notwithstanding the foregoing, and for the avoidance of doubt, paragraphs 12.2.3 and 12.2.4
    are mutually exclusive and Executive’s termination shall in no event be considered a “Retirement” for purposes
    of the LTIP if a severance payment or settlement payment is paid to Executive in connection with his providing a General Release.

    	8

    	

    
	13.	Voluntary Separation Before Planned End Date.
	 	 	 	 
	 	13.1	In General. Executive may voluntarily terminate his
    employment for any reason as of a date earlier than the Planned End Date upon at least 90 days’ advance notice. In such
    event, Executive’s Separation Date shall be (x) the date specified in Executive’s notice, or (y) such earlier
    date as of which the Company releases Executive from any further work obligation.
	 	 	 	 
	 	13.2	Termination Benefits.
    If Executive voluntarily terminates his employment in accordance with Section 13.1, he shall receive, without duplication,
    the following:
	 	 	 	 
	 	 	13.2.1	Executive shall be entitled to his Accrued Compensation.
	 	 	 	 
	 		13.2.2	Executive shall not be entitled to a Prorated Bonus payout for the fiscal
    year of termination.
	 	 	 	 
	 		13.2.3	Subject to Board approval and provided that Executive executes a General
    Release within the 30-day period after his Separation Date, and does not revoke the General Release within seven days after
    such execution, his termination of employment will be considered a “Retirement” for purposes of his awards under
    the LTIP. Notwithstanding the foregoing, Executive’s termination will in no event be considered a “Retirement”
    for purposes of the LTIP if a severance payment or settlement payment is paid to him in connection with his providing a General
    Release.
	 	 	 	 
	 		13.2.4	In addition, if the Company elects to release Executive from any further
    work obligation earlier than the date specified in Executive’s notice, the Company shall continue paying Executive’s
    Salary during the period beginning on his Separation Date and ending three months after the date he provided notice of his
    voluntary separation but no later than the Planned End Date.
	 	 	 	 
	14.	Death. In the event
    of Executive’s death while employed by the Company, this Agreement shall automatically terminate. Thereafter, Executive’s
    designated beneficiary (or, if there is no such beneficiary, Executive’s estate) shall receive any Accrued Compensation
    as of the date of Executive’s death. In no event shall a payment pursuant to this Section 14 be made later than the
    60th day after Executive’s death.
	 	 	 	 
	15.	Disability.
	 	 	 	 
	 	15.1	In General. The Company, in its sole discretion, may
    terminate this Agreement by reason of Executive’s Disability by giving notice to Executive of termination for Disability.
    “Disability” means an illness, injury or other incapacitating condition as a result of which Executive
    is unable to perform, with reasonable accommodation, the services required to be performed under this Agreement for a period
    or periods aggregating more than 120 days in any 12 consecutive months. Executive agrees to submit to such medical examinations
    as may be necessary to determine whether a Disability exists or the efficacy of proposed reasonable accommodations, pursuant
    to such reasonable requests made by the Company. Any determination as to the existence of a Disability shall be made by a
    physician mutually selected by Executive and the Company.

    	9

    	

    
	 	15.2	Termination Benefits. In the event Executive’s
    employment is terminated by the Company for Disability, Executive shall receive any Accrued Compensation as of the date of
    Executive’s termination.
	 	 	 
	16.	Other Consequences of Termination of Employment.
	 	 	 
	 	16.1	Termination of Benefits. Except as otherwise provided in this
    Agreement, Executive’s participation in all Company benefit plans and programs shall be governed by the terms of the
    applicable plan and program documents and award agreements. For the avoidance of doubt, Executive’s Accrued Compensation
    as of his termination of employment for any reason shall not include any APP amount except to the extent provided by the terms
    of the APP.
	 	 	 
	 	16.2	Resignation from Positions. If Executive’s employment with
    the Company terminates for any reason, Executive shall be deemed to have resigned at that time from all officer positions
    that Executive may have held with Coty. If for any reason this Section 16.2 is deemed insufficient to effect such resignation,
    Executive hereby authorizes the Secretary and any Assistant Secretary of the Company to execute such documents or instruments
    as the Company may deem reasonably necessary or desirable to effect such resignation or resignations, and to act as Executive’s
    attorney-in fact solely for the purpose of so effecting such resignation or resignations.
	 	 	 
	 	16.3	Return of Company Property. Upon terminating his employment for
    any reason or whenever so directed by the Company, Executive shall return any documents, papers, drawings, plans, diskettes,
    tapes, data, manuals, forms, notes, tables, calculations, reports, or other items which Executive has received, or in or on
    which Executive has stored or recorded Coty data or information, in the course of his employment as well as all copies and
    any material into which any of the foregoing has been incorporated and any other Coty property which may be in his possession
    or control, to the Company or to such entity as Coty may direct, without right of retention.
	 	 	 
	17.	Deductions and Withholdings.
	 	 	 
	 	17.1	Except as otherwise expressly provided in this Agreement or in any Company
    benefit plan applicable to Executive, all amounts payable under this Agreement shall be paid in accordance with the Company’s
    ordinary payroll practices less such deductions and income and payroll tax withholding as may be required under applicable
    law. Any property, benefits and perquisites provided to Executive under this Agreement shall be taxable to Executive as provided
    by law.
	 	 	 
	 	17.2	In the event of the termination of Executive’s employment for any
    reason, the Company reserves the right, to the extent permitted by law and in addition to any other remedy the Company may
    have, to deduct from any monies that are otherwise payable to Executive and that do not constitute deferred compensation within
    the meaning of Section 409A of the internal Revenue Code of 1986, as amended, and the regulations thereunder (“Section
    409A”) all monies Executive may owe to the Company at the time of or subsequent to the termination of Executive’s
    employment with the Company (including, without limitation, any negative vacation balance). To the extent any law requires
    an employee’s consent to the offset provided in this Section 17.2 and permits such consent to be obtained in advance,
    this Agreement shall be deemed to provide the required consent.

    	10

    	

    
	18.	Section 409A.
	 	 	 
	 	18.1	In General. All payments and benefits under this Agreement are
    intended either to be exempt from, or to comply with, the requirements of Section 409A, and this Agreement shall be interpreted
    and administered in a manner consistent with such intent.
	 	 	 
	 	18.2	Separation from Service. References in this Agreement to “termination
    of employment” and similar terms shall mean a “separation from service” as determined under Section 409A.
    A separation from service shall be deemed to occur if it is anticipated that the level of services Executive will perform
    after a certain date (whether as an employee or as an independent contractor) will permanently decrease to no more than 20%
    of the average level of services provided by Executive in the immediately preceding 36 months.
	 	 	 
	 	18.3	Payments Contingent on General Release. If the timing of Executive’s
    execution of a General Release could (but for this Section 18.3) affect whether an amount that is subject to Section 409A
    is paid in the taxable year of termination or is instead paid in the next succeeding year (the “Second Year”),
    then payment of such amount shall be made no earlier than January 1 of the Second Year.
	 	 	 
	 	18.4	Six-Month Delay. If Executive is a “specified employee”
    as defined in Section 409A at the time of his termination of employment, no amount that is subject to Section 409A and that
    becomes payable by reason of Executive’s termination of employment shall be paid before the expiration of the 6-month
    period beginning on Executive’s termination of employment, or, if earlier, Executive’s death.
	 	 	 
	 	18.5	Reimbursement of Expenses or In-Kind Benefits. Reimbursements
    of expenses and in-kind benefits shall be treated as follows: (i) the amount of such expenses eligible for reimbursement
    or in-kind benefits provided in any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits
    provided in any other taxable year, except as otherwise allowed by Section 409A; (ii) any reimbursement shall be made on or
    before the last day of the calendar year following the calendar year in which the expenses to be reimbursed were incurred;
    and (iii) no right to reimbursement or in-kind benefits may be liquidated or exchanged for another benefit.
	 	 	 
	 	18.6	Amendment. The Company may, without Executive’s consent,
    amend any provision of this Agreement to the extent that, in the reasonable judgment of the Company, such amendment is necessary
    or advisable to avoid the imposition on Executive of any tax, interest or penalties pursuant to Section 409A. Any such amendment
    shall maintain, at a minimum, the original economic benefit to Executive of the applicable provision.
	 	 	 
	 	18.7	Separate Payments. If Executive becomes entitled to be paid Salary
    continuation under any provision of this Agreement, then each payment of Salary during the relevant continuation period shall
    be considered, and is hereby designated as, a separate payment for purposes of Section 409A.
	 	 	 
	19.	Survival; Remedies.
	 	 	 
	 	19.1	Survival. The respective rights and obligations of the parties
    under this Agreement shall survive any termination of this Agreement to the extent necessary for the intended preservation
    of such rights and obligations.

    	11

    	

    
	 	19.2	Dispute Resolution.
	 	 	 	 
	 		19.2.1	Any dispute or controversy arising under or in connection with this Agreement
    that cannot be mutually resolved by the parties to this Agreement and their respective advisors and representatives shall
    be resolved exclusively in the federal or state courts located in the State of New York. Each party hereto hereby irrevocably
    accepts and submits to the exclusive jurisdiction of such courts for purposes of this Agreement.
	 	 	 	 
	 		19.2.2	The parties shall maintain strict confidentiality with respect to any
    proceeding commenced or maintained under the provisions of this Agreement, except as may be required by law.
	 	 	 	 
	 	19.3	Injunctive Relief. The Company has entered into this
    Agreement in order to obtain the benefit of Executive’s unique skills, talent, and experience. It is understood by both,
    parties to this Agreement that the protections to Coty provided herein are meant for the reasonable protection of the business
    of Coty and not to impair the ability of Executive to earn a living. Executive acknowledges and agrees that any violation
    of Section 7, 8, or 9 shall result in irreparable damage to the Company, and accordingly the Company may obtain injunctive
    and other equitable relief for any breach or threatened breach of such sections, in addition to any other remedies available
    to the Company. To the extent permitted by applicable law, Executive hereby waives any right to the posting of a bond in connection
    with any injunction or other equitable relief sought by the Company and Executive agree not to seek such relief in Executive’s
    opposition to any application for relief the Company shall make.
	 	 	 	 
	20.	Severability. If a court determines that any portion
    of this Agreement is invalid or unenforceable, the remainder of this Agreement shall not thereby be affected and shall be
    given full effect without regard to the invalid provisions. If the final judgment of a court of competent jurisdiction or
    other authority (including an arbitrator) declares that any term or provision is invalid or unenforceable, the parties agree
    that the court or other authority making such determination shall have the power to reduce the scope, duration, area, or applicability
    of the term or provision, to delete specific words or phrases, or to replace any invalid, void, or unenforceable term or provision
    with a term or provision that is valid and enforceable and that comes closest to expressing the intent of the invalid or unenforceable
    term or provision.
	 	 	 	 
	21.	No Duplication. The payments and benefits provided
    in this Agreement in respect of a termination of employment are in lieu of any other salary, bonus or benefits payable by
    the Company, including, without limitation, any severance or income continuation or protection under any Company plan that
    may now or hereafter exist. All such payments and benefits shall constitute liquidated damages, paid in full and final settlement
    of all obligations of the Company to Executive under this Agreement.
	 	 	 	 
	22.	Notices. Notices under this Agreement must be given
    in writing and shall be delivered by hand, or mailed by United States certified mail, return receipt requested, postage prepaid,
    or sent by FedEx or similar overnight courier service, to the parties at the following addresses (or at such other address
    for a party as shall be specified by such party by like notice):

    	12

    	

    
	 	To Executive: at his last known address in the Company’s
    records 

    

    To the Company at:
	 	 
	 	Coty Inc.
	 	Two Park Avenue
	 	New York, New York 10016
	 	Attention: General Counsel

 

	 	Any notice delivered personally under this Section 22 shall
    be deemed given on the date delivered, and any notice sent by United States certified mail, postage prepaid, return receipt
    requested, or by FedEx or similar overnight service, shall be deemed given on the date mailed.
	 	 	 
	23.	Assignment. This Agreement is for the performance
    of personal services by Executive and may not be assigned by Executive, except that the rights of Executive hereunder shall
    pass upon Executive’s death to Executive’s designated beneficiary (or, if there is no such beneficiary, Executive’s
    estate), provided that Executive shall be entitled, to the extent not prohibited by applicable law, to select and change a
    beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following Executive’s death by
    giving the Company written notice thereof. This Agreement shall be binding upon and inure to the benefit of the Company’s
    successors and assigns. Without limiting the foregoing, the Company may assign its rights and delegate its duties hereunder
    in whole or in part to any transferee of all or a portion of the assets or business to which Executive’s employment
    relates.
	 	 	 
	24.	Governing Law. This Agreement shall be governed by
    the laws of the State of New York, without regard to its conflict of laws provisions.
	 	 	 
	25.	No Implied Contract. Nothing in this Agreement shall
    be construed to impose any obligation on the Company or Executive to renew this Agreement or any portion hereof or on the
    Company to establish or maintain any benefit, welfare or compensation plan or program or to prevent the modification or termination
    of any benefit, welfare or compensation plan or program or any action or inaction with respect to any such benefit, welfare
    or compensation plan or program.
	 	 	 
	26.	Counterparts. This Agreement may be executed in several
    counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same
    instrument. An electronically scanned copy of an executed counterpart shall be given the same effect as the original for purposes
    of the preceding sentence.
	 	 	 
	27.	Construction.
	 	 	 
	 	27.1	Headings. All descriptive headings in this Agreement are intended
    solely for convenience, and no provision of this Agreement is to be construed by reference to any heading.
	 	 	 
	 	27.2	Contra Proferentem Doctrine Inapplicable. This Agreement
    shall not be construed for or against any party to this Agreement because that party drafted or caused that party’s
    legal representative to draft any of its provisions.

    	13

    	

    
	28.	Entire Agreement. This Agreement and any documents
    referred to herein constitute the entire agreement by the parties with respect to the matters covered herein and supersedes
    any prior agreement, condition, practice, custom, usage and obligation with respect to such matters insofar as any such prior
    agreement, condition, practice, custom, usage or obligation might have given rise to any enforceable right; provided, however,
    the lock-up agreement executed by you on April 11, 2013 shall remain in full force and effect. No agreements, understandings
    or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either
    party that are not expressly set forth in this Agreement.

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date and year first above written.

 

COTY INC.

 

	By: 	/s/ Géraud-Marie Lacassagne	 
	 	Géraud-Marie Lacassagne
	 	Senior Vice President Human Resources, Coty
	 	September 16, 2013

 

	DARRYL MCCALL	 
	 	 
	/s/ Darryl McCall	 
	26.7.13	 

    	14

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