Document:

ASSET PURCHASE AGREEMENT

 Exhibit 10.22 
 ASSET PURCHASE AGREEMENT 
 This ASSET PURCHASE AGREEMENT (the “Agreement”) effective as of
August 11, 2006, dated August 14, 2006, is by and among Elizabeth Arden, Inc., a Florida corporation (the “Buyer”), and Sovereign Sales, LLC, a Michigan limited liability company (the “Seller”). 
 RECITALS 
 The Seller desires to sell,
transfer and assign to the Buyer and the Buyer desires to purchase certain of the assets of the Seller’s fragrance distribution business (the “Business”), in accordance with the terms and subject to the conditions set forth in this
Agreement. 
 NOW, THEREFORE, in consideration of the promises and the mutual representations, warranties and covenants and subject to the
conditions contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows: 
 ARTICLE I 
 SALE OF ASSETS

 Section 1.1 Subject Assets. The Seller hereby agrees to sell, assign and deliver to the Buyer at the Closing (as defined
in Section 3.1), free and clear of all liens, mortgages, pledges, options, claims, security interests, conditional sales contracts, title defects, encumbrances, charges and other restrictions of every kind (collectively, the “Liens”)
all right, title and interest in and to the assets, properties and rights, together with any replacements thereof and additions thereto made between the date hereof and the Closing (as defined in Section 3.1), as hereafter described in this
Section 1.1 and as listed on composite Schedule 1.1 (collectively, the “Subject Assets”), including the following: 
 (a) All
inventories of fragrance, skincare and color products, including, without limitation, finished goods and products, packaging, labeling, raw materials, components, work-in-process, materials, parts, accessories, supplies, tote, corrugate, shippers,
displays, testers, samples, collateral material and gifts with purchase, wherever located (collectively, the “Inventory”); 
 (b)
All finished goods and products relating to the Seller’s inventory which are returned by customers prior to or following the Closing Date (as defined in Section 3.1) and which relate to sales made by the Seller to such customers prior to
the Closing Date and, if returned prior to the Closing Date, are not part of the Inventory, or resold or destroyed directly by the Seller (the “Returns”); 
 (c) All of the Seller’s rights, title and interest in and to the agreements, purchase orders and commitments (including, but not limited to, binding forecasts provided to vendors) related to sales of the
Inventory that are listed on Schedule 1.1(c) and the Deposits (as defined in Section 2.1(iv), and subject to the Buyer’s payment to Seller in accordance with Section 2.1(iv), (collectively, the “Contracts”); 

 (d) All of the Seller’s rights, title and interest in and to the licenses, permits, approvals and
other authorizations (other than Acquired Intellectual Property which is addressed in Section 1.1(h) below), issued to it by any governmental authority, including a court (each, a “Governmental Authority”) which are used in connection
with the sale of the Inventory, including those listed on Schedule 1.1(d), to the extent transferable to the Buyer (the “Regulatory Licenses”); 
 (e) All proceeds, rights, claims, credits, causes of action or rights of set-off against third parties relating to the Subject Assets, including, without limitation, unliquidated rights under manufacturers’ and
vendors’ warranties, but excluding Insurance Claims and claims for refunds or credits of any taxes that relate to any taxable period (or portion thereof) that ends on or before the Closing Date (the “Claims”); 
 (f) All rights and claims pursuant to any policy of property and casualty insurance underwritten by any person (as defined in Section 15.14(e))
arising from any casualty loss or damage to the Subject Assets occurring from the date hereof through the Closing, whether or not then reported, but only to the extent the Buyer pays the allocable portion of the Purchase Price with regard to such
damaged Subject Assets as if such loss had not occurred (the “Insurance Claims”); 
 (g) Copies of all books and records pertaining
to the Subject Assets, including, without limitation, books, records and files relating to customers, manufacturers and suppliers of the Seller, operating data, business and marketing plans, electronic data files, budgets, regulatory filings,
warranties, guaranties, bills of sale, customer and supplier lists, copies of financial and accounting records, executed Contracts, credit records, correspondence and other similar documents and records used and/or useful in connection with the
Subject Assets (collectively, the “Records”); and 
 (h) all copyrights, copyright registrations and applications, trade names
(including, but not limited to, “Sovereign Sales”), UPC codes, trade dress, (whether or not registered or by whatever name or designation), owned, applied for or used by, or registered in the name of, the Seller in connection with the
Inventory (collectively, the “Acquired Intellectual Property”), (ii) customer lists, supplier relationships, all proprietary data, processes, formulations, technical or manufacturing know-how or information (and materials embodying
such information), owned by or used by, the Seller in connection with the Inventory and all goodwill relating to the Subject Assets (collectively with the Acquired Intellectual Property, the “Intangible Assets”). 
 Section 1.2 Assumed Liabilities. At the Closing, the Buyer shall assume and undertake to perform, pay, satisfy or discharge in accordance
with their terms, the liabilities, obligations and commitments of the Seller arising or accruing during the period commencing after the Closing Date under the Contracts to be assigned to it as set forth on Schedule 1.1(c) (the “Assumed
Liabilities”). The parties acknowledge and agree that no other liabilities or obligations, whether accrued, mature, absolute, contingent or otherwise, will be assumed by the Buyer, including, without limitation, any liability or obligation with
respect to any of the following: 
 (a) Any product liability or similar claim for injury to persons or property, regardless of when made or
asserted, which arises out of or is based upon any express or implied representation, warranty or agreement made by the Seller or its agents, or which is imposed by operation of law or otherwise, in connection with any service performed or product
sold by the Seller on or prior to the Closing Date (acknowledging that the Buyer’s product liability and casualty insurance will cover such claims for sales of Inventory after the Closing Date); 
  

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 (b) any liability or obligations to any current or former employees, agents, independent contractors or
creditors of the Seller (other than those set forth above under Assumed Liabilities) or under any plan or arrangement with respect thereto, including, without limitation, liabilities and obligations of the Seller (A) under any life, health,
accident, disability or any other employee benefit plan, and (B) under any pension, profit sharing, stock bonus, deferred compensation, retirement, bonus or other employee pension benefit plan or post-retirement benefit plan to which the Seller
is a party or under which the Seller has any obligation, or which is maintained, or to which contributions have been made, by the Seller or any predecessor or any corporation which is a controlled group or corporations of which the Seller are a
member, or any trade or business (whether or not incorporated) under common control with the Seller, and (C) for wages, salaries, bonuses, commissions, severance, sick pay, vacation or holiday pay, overtime or other benefits not set forth
above; 
 (c) the Seller’s legal, accounting, investment banking or other fees or expenses arising out of the transactions contemplated
by this Agreement or otherwise incurred by the Seller; 
 (d) any liabilities for any tax, assessment or other governmental imposition of any
type or description, including, without limitation, any federal income or excess profits taxes or state, provincial or local income, sales, use, excise, ad valorem or franchise taxes, together with any interest, assessments and penalties thereon
arising out of or attributable to the conduct of the Seller’s operations and the Business prior to the Closing Date or the Seller’s or its members’ federal income or capital gain taxes or state, provincial or local income or franchise
taxes arising by virtue of the transactions contemplated by this Agreement; 
 (e) any liability (i) the existence of which constitutes
an inaccuracy or breach with respect to any representation, warranty, covenant or agreement of the Seller hereunder, (ii) which arises out of or in connection with any violation by the Seller of any requirement of law prior to the Closing Date,
and (iii) which relates to the Subject Assets (including those arising under the Contracts) to the extent relating to periods prior to the Closing Date unless such liabilities are included in the Assumed Liabilities; and 
 (f) to the extent relating to any conduct occurring prior to the Closing Time, any liability arising out of or in connection with litigation or other
legal proceedings, claims or investigations related to the Seller or the Business and operations, regardless of when made or asserted, including, without limitation, contract, tort, intellectual property, infringement or misappropriation, crime,
fraudulent conveyance, workers’ compensation, product liability or similar claim for injury to persons or property which arises out of or is based upon any express or implied warranty, representation or agreement of the Seller or its employees
or agents, or which is imposed by law or otherwise. 
  

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 ARTICLE II 
 PURCHASE PRICE 
 Section 2.1 Purchase Price and Inventory Requirements. 
 (a) Subject to the terms and conditions set forth in this Agreement, including, without limitation, the adjustments set forth in Section 2.2, and in
reliance on the representations, warranties and covenants of the parties hereto, the Subject Assets shall be sold by the Seller and shall be purchased by the Buyer for an aggregate purchase price (the “Purchase Price”) consisting of the
following: 
 (i) Twenty-three Million Dollars ($23,000,000.00) cash, of which $20,500,000 is to be paid at the Closing Date, by wire transfer
of immediately available funds to an account designated by the Seller at least two business days before the Closing Date (the “Account”), and the remaining Two Million Five Hundred Thousand Dollars ($2,500,000.00), which will be paid as
follows: (A) $500,000 on or before September 15, 2006; (B) $1,000,000 on or before October 15, 2006; (C) $500,000 on or before November 15, 2006; (D) $400,000 on or before December 15, 2006; and
(E) $100,000 on or before January 15, 2007. The Buyer and the Seller agree that $800,000 of the Purchase Price represents a fair value for the operating services being provided in support of the Subject Assets through December 31,
2006; 
 (ii) The value of the Inventory (“Inventory Value”) defined as the book value at the Closing Date of the Inventory, as
reflected at the lower of the Seller’s standard cost (as set forth in Schedule 2.2(a), “Standard Cost”) or market, which is good and saleable to U.S. and Canadian accounts, and excluding any obsolete or ineligible Inventory (obsolete
and ineligible Inventory being mutually and reasonably agreed to by the Parties consistent with the same principles as in the Initial Inventory Listing Report set forth in Schedule 2.2(a)), and subject to adjustment as set forth in
Section 2.2(c). The Inventory Value will be paid at the Closing Date by wire transfer of immediately available funds to the Account; and 
 (iii) At the Closing Date, the Buyer will issue to the Seller a non-interest bearing subordinated note in the amount of Eleven Million Dollars ($11,000,000) (the “Note”), in the form set forth in Exhibit A, which is attached
hereto and made a part hereof; and 
 (iv) To the extent that the Seller’s balance sheet at the Closing Date reflects prepaid deposits
(the “Deposits”) on Inventory that has yet to be delivered to the Seller by the Closing Date, and such Inventory is received by the Buyer after the Closing Date with an invoice price corresponding to the purchase price of the Inventory
less the Deposit, the Buyer agrees to remit the Deposit to the Seller within 15 days of the receipt of the corresponding Inventory. 
  

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 Section 2.2 Inventory Reports; Adjustment to Purchase Price. 
 (a) Schedule 2.2(a) (the “Initial Inventory Listing Report”) sets forth the Inventory on the date of this Agreement based on the lower of the
Seller’s Standard Cost or market, excluding any obsolete or ineligible Inventory and other credits (as determined by agreement of the parties). 
 (b) Intentionally omitted. 
 (c) Within ten (10) business days following the Closing Date, the Seller
and the Buyer shall make a mutual physical count of the Inventory and shall review the market value of the items in the Initial Inventory Report that were not listed on the inventory schedule delivered by the Seller to the Buyer on August 2,
2006 (by way of email from Tony Khouri to Joel Ronkin), and the parties shall agree on such market values in good faith taking into account market conditions existing as of the Closing Date. On the basis of such Inventory count and review, the Buyer
and the Seller shall determine if any adjustments to the Purchase Price paid to the Seller based on the Inventory Closing Update needs to be made. In the event that any adjustments are necessary, the Purchase Price shall be adjusted as follows: for
each dollar below the Inventory Closing Update amount, the cash portion of the Purchase Price shall be reduced by one dollar and for each dollar above the Inventory Closing Update amount, the cash portion of the Purchase Price shall be increased by
one dollar. The Seller or the Buyer shall remit to the other party the difference in immediately available funds within 3 business days of the Inventory reconciliation. 
 (d) Requests for Returns from retailers received after the Closing Date that relate to sales by the Seller will be submitted to the Seller for approval. The Seller will act reasonably with respect to such approval.
The Seller will reimburse the Buyer for the sales price of the product to which the Returns relate. The Buyer shall purchase Returns that are good and saleable to U.S. mass-market retailers as normal goods at a price equal to 90% of Seller’s
cost. If the Returns are not saleable as normal goods, Buyer and Seller shall reasonably agree on Buyer’s purchase price for the Returns. After the Closing Date, the Buyer shall pay for Returns received by the Buyer during a month within 15
days of the end of the month in which the Returns are received. 
 Section 2.3 Allocation of Purchase Price. Schedule 2.3 hereof
sets forth allocations with respect to the Subject Assets, which shall be used by the parties for purposes of reporting to the Internal Revenue Service (the “IRS”) on Form 8594. The Buyer and the Seller agree to cooperate with each other
in connection with the preparation and filing of any information required to be furnished to the IRS under Section 1060 of the Internal Revenue Code of 1986, as amended (the “Code”), and any applicable regulations thereunder, and
shall not take any position in any income tax return, before any Governmental Authority charged with the collection of income tax, or in a judicial proceeding inconsistent with the terms of this subsection. 
 Section 2.4 Expenses. Any transfer tax or sales tax or recording or filing fees imposed upon the sale, assignment and delivery of the Subject
Assets (other than the fees payable in 

  

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connection with the Initial HSR Filing (as hereinafter defined) which are identified in Section 8.1 and which shall be paid in equal parts by the
parties) shall be paid by the Seller, provided that freight and insurance charges on delivery of the Subject Assets shall be paid by the Buyer. 
 ARTICLE III 
 CLOSING 
 Section 3.1 Time and Place of the Closing. The closing (the “Closing” or “Closing Date”) of the transaction contemplated by this Agreement shall take place on August 14, 2006,
effective August 11, 2006, provided that all of the conditions to Closing shall have been met. The Closing shall take place on the Closing Date at such time as the transactions are complete, but shall be deemed to have occurred effective as of
11:59 p.m. on the Closing Date (the “Closing Time”) for all purposes. 
 Section 3.2 Procedure at the Closing. At the
Closing, the parties agree to take the following steps in the order listed below (provided, however, that upon their completion all of these steps shall be deemed to have occurred simultaneously): 
 (a) The Seller shall deliver to the Buyer evidence reasonably satisfactory to the Buyer that each of the conditions to the obligations of the Buyer set
forth in Article IX of this Agreement has been satisfied and a certificate of an officer of the Seller to such effect; 
 (b) The Buyer shall
deliver to the Seller evidence reasonably satisfactory to the Seller that each of the conditions to the obligations of the Seller set forth in Article X of this Agreement has been satisfied and a certificate of an officer of the Buyer to such
effect; 
 (c) Each of the Seller and the Buyer shall deliver to the other a copy of the resolutions of its Board of Directors and, as to the
Seller, also its members, authorizing the transactions contemplated by this Agreement, certified by a person authorized under the Seller’s Articles of Organization or Operating Agreement to so certify; 
 (d) Each of the Seller and the Buyer shall deliver to the other a good standing certificate of such party (which is dated not more than 15 days prior to
the Closing) and the Seller shall deliver to the Buyer such bills of sale, endorsements and assignments in the forms attached hereto as Exhibit B, and other customary instruments and documents and certificates reasonably satisfactory to the Buyer as
shall be sufficient to vest in the Buyer good, valid and marketable title to the Subject Assets, free and clear of all Liens, except as otherwise specifically permitted by this Agreement; 
 (e) The Seller shall deliver to the Buyer possession of all tangible personal property constituting the Subject Assets which, to the extent not delivered
to the Buyer’s designated location, shall be held in trust for the Buyer and designated as being the property of the Buyer, the originals of the Books and Records, the Regulatory Licenses and the Contracts; 
 (f) The Buyer shall deliver the Purchase Price in accordance with Sections 2.1 and 2.2; and 
  

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 (g) Each of the Buyer and the Seller shall execute and deliver documents acknowledging receipt from the
other, respectively, of the Subject Assets and the Purchase Price. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE SELLER 
 In order to induce the Buyer to enter into this Agreement and to consummate the transactions contemplated under this Agreement, the Seller makes the following representations, warranties and covenants, each of which is relied upon by the
Buyer in consummating the transactions contemplated hereby regardless of any other investigation made or information obtained by the Buyer: 
 Section 4.1 Organization, Power and Authority. The Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Michigan, and is duly qualified in each other
jurisdiction in which the conduct of its business or the ownership of its assets requires such qualification. The Seller has full legal power and authority (a) to own or lease its properties and to carry on the Business as it is now being
conducted, (b) to enter into this Agreement and, subject to the Consents (as defined in Section 4.2) to assign, transfer and deliver the Subject Assets to the Buyer as provided in this Agreement, and (c) to perform the other
transactions and agreements contemplated by this Agreement (the “Ancillary Agreements”). 
 Section 4.2 Authorization;
Binding Obligation: Consents. The execution, delivery and performance of this Agreement and the Ancillary Agreements has been duly authorized by all necessary shareholders or members and other requisite action on the part of the Seller or its
affiliates. This Agreement and the Ancillary Agreements have been duly executed and delivered by the Seller and are legal, valid and binding obligations of the Seller enforceable in accordance with its terms. The Seller represents and warrants that
SDC Enterprises, Inc. and Sovereign Management, Inc. are the sole members of the Seller. The execution and delivery of this Agreement, and the consummation of the transactions contemplated hereby by the Seller does not and will not, violate or
result in the breach of any term or provision of (a) the charter documents or operating agreements of the Seller, (b) to the best knowledge of the Seller, any law, treaty, ordinance, rule, regulation, judgment, order, decree or injunction
of a Governmental Authority applicable to any of the Seller or the Subject Assets, or (c) to the best knowledge of the Seller, any mortgage, indenture, lease, license, agreement, instrument, plan, document or understanding, oral or written, to
which the Seller is a party, or to which the assets, properties or business of such organization are subject, or give any party with rights thereunder the right to terminate, accelerate, modify or change the existing rights or obligations of the
Seller. To the best of the Seller’s knowledge, except for filings and consents required pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) and the consents set forth in Schedule 4.2 (the
“Consents”), no consent, action, permit, license, approval or authorization of, or material registration, declaration or filing with, any person is required or necessary to be obtained by the Seller in connection with the execution,
delivery and performance by them of this Agreement and the Ancillary Agreements, including the consummation of the transactions contemplated hereby and thereby. 
  

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 Section 4.3 Financial Statements. Attached as part of Schedule 4.3 to this Agreement are the
audited financial statements for the Seller for the fiscal years ended December 31, 2003, 2004 and 2005, and the unaudited financial statements for the six month period ending June 30, 2006, certified as to the six month period by the
Chief Financial Officer of the Seller, together with the related notes and schedules attached to the audited financial statements (collectively the “Financial Statements”). The Financial Statements are true, correct and complete, are in
accordance with the books and records of the Seller, were prepared in accordance with generally accepted accounting principles applied on a consistent basis (other than any unaudited Financial Statements) and fairly present the financial condition
and results of operation and other information presented for the periods so indicated. Except as provided in the Financial Statements, or as fully disclosed in Schedule 4.3, the Seller has no liabilities or obligations (whether accrued, absolute,
contingent, whether due or to become due or otherwise) which might be or become a charge or Lien against the Subject Assets or be asserted against the Buyer after the Closing, including any “loss contingencies” considered
“probable” or “reasonably possible” within the meaning of the Financial Accounting Standard Board’s Statement of Financial Accounting Standards No. 5, except trade payables and similar liabilities and obligations
incurred in the ordinary course of business since the date of the Financial Statements. 
 Section 4.4 Good Title to and Condition of
the Subject Assets. The Seller has good and marketable title to the Subject Assets, free and clear of all Liens, except those set forth in Schedule 4.4(a) (which shall be satisfied and discharged in full on or prior to the Closing). There are no
unpaid taxes or other matters that are or could become a Lien on the Subject Assets. Schedule 4.4(b) sets forth a list of all of the physical locations of the Subject Assets other than the Inventory, including a street address for each such
location. 
 Section 4.5 Acquired Intellectual Property. 
 (a) Schedule 4.5(a) sets forth a list of all of the Acquired Intellectual Property specifying as to each, as applicable: (i) the nature of such
Acquired Intellectual Property; (ii) the record owner of any such Acquired Intellectual Property which is registered, applied for or pending; (iii) the jurisdictions in which such registered Acquired Intellectual Property exists or in
which an application for registration has been filed including the respective registration or application numbers; and (iv) any agreements to which the Seller is a party with respect to the Acquired Intellectual Property. 
 (b) Except as set forth in Schedule 4.5(b), during the two (2) years preceding the date of this Agreement, (i) no claim has been asserted or,
to the knowledge of the Seller, threatened against the Seller to the effect that the operation of the Business or the use or registration of the Acquired Intellectual Property in connection therewith infringes upon or conflicts with the rights of
any person in any country or is otherwise void and unenforceable, and (ii) no restrictions exist relating to the use of the Acquired Intellectual Property in connection with their use for the manufacture, marketing and distribution of fragrance
products in the United States. 
  

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 Section 4.6 Compliance With Law. To the best of knowledge of the Seller, the Seller has
complied with all applicable foreign, federal, state, and local laws, statutes, regulations, orders of any Governmental Authority and legal requirements of any kind in respect of the Subject Assets and the conduct of the Business, in each instance
where the failure to comply would result in any material adverse effect on the Subject Assets, including, without limitation, those relating to the packaging, distribution, labeling, advertising and marketing of the products in the Inventory and
those relating to foreign, federal, state and local environmental laws, regulations, orders and restrictions. To the best knowledge of the Seller, no event has occurred, and no condition or circumstance exists, that might (with or without notice or
lapse of time, or both) reasonably constitute or result, directly or indirectly, in a violation by the Seller of, or a failure on the part of the Seller to comply with, any of the above legal requirements. 
 Section 4.7 Litigation. Except as set forth on Schedule 4.7, there is no (i) action, arbitration, mediation, suit, claim, proceeding or
investigation pending and, to the best knowledge of the Seller, threatened against or affecting the Seller or the Subject Assets, or to the best knowledge of the Seller, there are no unasserted claims or assessments that are considered to be
probable of assertion (within the meaning of Financial Accounting Standard Board’s Statement of Financial Accounting Standards No. 5); or (ii) action, suit, claim, proceeding or inquiry of a Governmental Authority inquiry pending or
threatened relating to or involving the transactions contemplated by this Agreement. Except as described in Schedule 4.7, all the actions, suits, proceedings or investigations described in such schedule are being diligently prosecuted and are
covered by insurance or adequate provisions have been made to cover the potential liabilities. There are no outstanding orders, decrees or stipulations issued by a Governmental Authority in any proceeding related to the Business or the Subject
Assets. 
 Section 4.8 No Adverse Changes. To the best of knowledge of the Seller, other than as described on Schedule 4.8, since
the date of the last fiscal year end audited balance sheet (the “Balance Sheet”), there has not been (except as otherwise contemplated or permitted by this Agreement): 
 (a) any sale or other disposition of any of the Subject Assets, other than in the ordinary course of business; 
 (b) any damage, destruction, loss or other change (whether or not insured) materially and adversely affecting the Subject Assets or operation of the
Business; 
 (c) any loans or advances or charges that in any way create Liens on the Subject Assets; 
 (d) any change in the accounting methods relating to the Subject Assets followed by the Seller or in the methods of preparing Inventory reports;

 (e) any material adverse change in the Subject Assets or the Business; or 
 (f) agreement or commitment, whether or not in writing, to do any of the foregoing by or on behalf of the Seller or its members. 
  

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 Section 4.9 Books and Records. The books and records of the Seller relating to the Subject
Assets, all of which have been made available to the Buyer, are complete and correct and have been maintained in accordance with sound business practices and generally accepted accounting principles. 
 Section 4.10 Material Agreements. 
 (a) Set forth in the respective schedules described below is a list of all agreements, obligations and commitments of the Seller in relation to the Inventory to which the Seller is a party or by which it or the Subject Assets may be bound
and that: 
 (i) provide for the sale, marketing or distribution of products or services relating to the Inventory which provides for payments
in excess of $15,000 per annum, including, without limitation, advertising agreements, sales agreements and a description of agreements with retail accounts, fulfillment houses and other third parties relating to other advertising, merchandising and
promotions entered in the ordinary course of business as set forth in Schedule 4.10(a)(i); 
 (ii) relate to the acquisition or manufacturing
of the Inventory and, where accomplished by means of purchase order, a listing of such outstanding purchase orders as set forth in Schedule 4.10(a)(ii); or 
 (iii) are otherwise material to the Business or the Subject Assets as set forth in Schedule 4.10(a)(iii). 
 Section 4.11 Governmental Filings. Any and all filings required to be made pursuant to any local, state or federal law, regulation or ordinance due as of or before the Closing Date and which may be due as a result of the Closing
or for periods ending prior to the Closing Time has or will be timely filed by the Seller. 
 Section 4.12 Labor Relations;
Independent Contractors. Except as set forth in Schedule 4.12(a), and except as would not have a material adverse effect on the Subject Assets or the Business: (a) to the best knowledge of the Seller, the Seller is in compliance with all
federal, state and local laws regarding employment and employment practices, conditions of employment, wages and hours with respect to the Business; (b) the Seller is not engaged in unfair labor practices, and there are no unfair labor practice
complaints or grievances pending or, to the best knowledge of the Seller, threatened against the Seller before the National Labor Relations Board relating to employees of the Seller who are employed in connection with the Business, (c) there
are no violations of employment or labor laws, or age, sex, racial or other employment discrimination claims charged, pending or, to the best knowledge of the Seller, threatened against the Seller relating to employees of the Business, and
(d) there is no labor strike, dispute or work stoppage pending or, to the best knowledge of the Seller, threatened against or involving the Business or at the current customer locations which may affect the Business or which may interfere with
its continued operation, and there has been no strike, walkout or work stoppage involving any of the employees of the Seller employed with respect to 

  

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the Business or at the current customer locations during the twenty-four (24) months prior to the date of this Agreement. The Seller has no arrangements
with independent contractors except as set forth on Schedule 4.12(b), all such arrangements with independent contractors are terminable at will by the Seller without penalty. 
 Section 4.13 Employee Benefits. The Seller does not maintain or contribute to: (a) any non-qualified deferred compensation or retirement
plans or arrangements; (b) any qualified defined contribution retirement plans or arrangements; (c) any qualified defined benefit pension plan; (d) any other plan, program, agreement or arrangement under which former employees of the
Seller or its beneficiaries are entitled, or current employees of the Seller will be entitled following termination of employment, to medical, health or life insurance or other benefits other than pursuant to benefit continuation rights granted by
state or federal law; or (e) any other employee benefit, health, welfare, medical, disability, life insurance, stock, stock purchase or stock option plan, program, agreement, arrangement or policy, except as described in Schedule 4.13 attached
to this Agreement, and as to which the Buyer is assuming no obligation or liability. 
 Section 4.14 Inventory. The Initial
Inventory Listing Report is, and the Inventory Closing Update will be, true, complete and correct and prepared in a manner disclosed to the Buyer. All Inventory consists of a quality and quantity which are saleable and merchantable in the ordinary
course of business to U.S. and Canadian accounts, except for obsolete items and items of below-standard quality all of which have been written off or written down to the lower of Standard Cost or market. Schedule 4.14(a) sets forth a list of all of
the physical locations of the Inventory, including a street address for each such location. Schedule 4.14(b) sets forth a list of all of the Seller’s customers who have returned finished goods or products relating to the Inventory for 2005 and
2006, as well as customers who have indicated to the Seller that they anticipate returning finished goods or products, the current returns policies of the Seller with respect to its customers and their approximate rate of returns for 2005 and 2006,
which schedule shall be updated as of the Closing Date. Except as disclosed in Schedule 4.14(b), all of the Returns received by the Seller on or before the date hereof, and on or before the Closing Date, have been returned in the ordinary course of
business and are from sales made to customers for which the Seller accepts returns in the ordinary course of business. In addition, the reserve for returns set forth in the Financial Statements and, subsequent to the date thereof, Schedule 4.14(b)
includes the amounts of products relating to the Inventory that Seller’s customers have received authorization to return or destroy in addition to the Seller’s customers who have rights to return or have indicated an intent to return that
the Company is considering for credit by requesting the right to return any of the products sold by the Seller and shall include a reserve for returns by Wal-Mart. From and after Closing, the Buyer will be entitled to sell the Inventory in the
ordinary course of business without violating any applicable law, order, judgment, agreement or understanding that is binding on the Seller or the Subject Assets prior to the transfer thereof to the Buyer. 
 Section 4.15 Report of Orders by Customer and by Item. Schedule 4.15 sets forth the Seller’s sales history by customer and by item for
calendar year ended December 31, 2005 and for the period beginning January 1, 2006 and ending August 7, 2006 (the “Gross Sales Report”). The Gross Sales Report is true, complete and correct, except where such misstatement in
the aggregate does not have a material adverse effect on the Subject Assets or the Business. 
  

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 Section 4.16 Customer Commitments. Schedule 4.16 contains a true, complete and correct
listing of the agreements or commitments to retailers with respect to all promotional activities or other sales activities relating exclusively to the Inventory to occur after the Closing Date (the “Customer Commitments”), and identifies
the amount of such activities. 
 Section 4.17 Lease. Schedule 4.17 sets forth a true and correct copy of the Seller’s lease
for its facility at 38200 Amrhein Road, Livonia, Michigan 48150 (the “Lease”). The Lease is in good standing and, to the best of the knowledge of the Seller, the Seller is not aware of any defaults under the Lease or of matters that would
cause the Lease to be in default. 
 Section 4.18 Finders or Brokers. The Seller nor any of its shareholders or members has
retained any investment banker, broker, finder or intermediary in connection with the transactions contemplated hereby who might be entitled to a fee or commission in connection with this Agreement or the transactions contemplated hereby.

 Section 4.19 Accuracy of Information. No representation, statement or information made or furnished by the Seller or their
respective representatives to the Buyer, including those contained in this Agreement and the various schedules attached to this Agreement and the other information and statements referred to in this Agreement and furnished by the Seller or its
representatives to the Buyer pursuant to this Agreement, contains or shall contain any untrue statement of a material fact or omits or shall omit any material fact necessary to make the information contained in this Agreement and the schedules not
misleading. Buyer may not assert a claim for a breach of a representation if the Buyer had actual knowledge of the misrepresentation; provided that the Seller shall have the burden of proof with respect to such actual knowledge by the Buyer.

 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF THE BUYER 
 The Buyer represents and warrants that: 
 Section 5.1 Organization. The Buyer is a corporation duly organized and validly existing in good standing under the laws of the state of
Florida and has the corporate power and authority to carry on its business as presently conducted. 
  

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 Section 5.2 Corporate Authority. The execution, delivery and performance by the Buyer of this
Agreement and the Ancillary Agreements to which the Buyer is or will be a party and the consummation by the Buyer of the transactions contemplated hereby and thereby are within the corporate powers of and have been duly authorized by all necessary
corporate action on the part of the Buyer. This Agreement constitutes and, when executed and delivered, such Ancillary Agreements will constitute, valid and binding agreements of the Buyer enforceable against the Buyer in accordance with their
respective terms. Except as set forth in Schedule 5.2, the execution and delivery of this Agreement, and the consummation of the transactions contemplated hereby by the Buyer does not and will not, violate or result in the breach of any term or
provision of (a) the charter documents or bylaws of the Buyer, (b) any existing law, treaty, ordinance, rule, regulation, judgment, order, decree or injunction of a Governmental Authority applicable to the Buyer or its acquisition of the
Subject Assets or its assumption of the Assumed Liabilities, or (c) to the best knowledge of the Buyer’s legal department, any mortgage, indenture, lease, license, agreement, contract, instrument, plan, document or understanding, oral or
written, to which the Buyer is a party, which breach has not been waived or consented to by the necessary parties. 
 Section 5.3
Consents; No Violation. To the best knowledge of the Buyer, except for filings and consents required pursuant to the HSR Act, and the consent set forth in Schedule 5.3, no consent, action, permit, license, approval or authorization of, or
material registration, declaration or filing with, any person or a governmental authority is required or necessary to be obtained by the Buyer in connection with the execution, delivery and performance by the Buyer of this Agreement, including the
consummation of the transactions contemplated hereby. 
 Section 5.4 Finders or Brokers. The Buyer has not retained any
investment banker, broker, finder or intermediary in connection with the transactions contemplated hereby who might be entitled to a fee or commission in connection with this Agreement or upon consummation of the transactions contemplated hereby.

 Section 5.5 Litigation. There is no action, suit, investigation or proceeding pending against, or to the best knowledge of the
Buyer, threatened before any governmental authority which in any manner challenges or seeks to prevent or enjoin the transactions contemplated hereby. 
 ARTICLE VI 
 ADDITIONAL COVENANTS OF THE SELLER 
 Section 6.1 COBRA and WARN Obligations. From and after the Closing Date, the Seller agrees to pay and be liable for, and shall assume,
indemnify, defend and hold harmless the Buyer from and against and in respect of, any Liabilities (as defined in Section 12.1) incurred by or assessed against the Buyer that pertain to any of the employees or former employees of the Seller,
including, but not limited to, those that arise under (a) Sections 4980B and 5000 of the Code and with respect to any failure to comply by the Seller with the continuation health care coverage requirements of Section 4980B of the Code and
Sections 601 through 608 of ERISA, which failure occurs with respect to any person who is or was a current or former employee of the Seller or any qualified beneficiary of such employee (as defined in Section 4980B(g)(1) of 

  

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the Code), and (b) the Worker Adjustment and Retraining Notification Act of 1988. For purposes of this Section, references to the Code and ERISA shall
include references to any provision of such statutes as they may be amended from time-to-time. 
 Section 6.2 Inspections. At any
time following the Closing Date at which the Buyer has Subject Assets in the Seller’s facility to which the Lease relates, the Buyer and its representatives shall have full and complete access to the books, records and properties of the Seller
(in addition to receiving the Records) and to the officers, members, accountants and attorneys of the Seller relating to the Business and the Subject Assets and may make such reasonable inspections of such books, records and properties as they may
deem reasonably necessary or advisable, and the Seller hereby agrees to cooperate fully with the Buyer to facilitate such inspections and investigations. The Buyer shall also have reasonable access to the Seller’s employees, accountants,
attorneys and customers with respect to the Business. The availability or actual delivery to the Buyer of information concerning the Business and its investigation thereof shall not affect the covenants, representations, warranties, and indemnities
of the Seller contained in this Agreement nor the Buyer’s right to rely thereon. 
 Section 6.3 Confidentiality. The Seller
agrees that it will, and will cause its officers, other personnel and authorized representatives to, hold in strict confidence all information obtained from the Buyer or which relates to this Agreement (other than information which is a matter of
public knowledge or which has heretofore been or is hereafter published in any publication for public distribution or filed as public information with any Governmental Authority other than a result of a breach of this covenant) and will not, and
will ensure that such other persons do not, disclose such information to others without the prior written consent of the Buyer, provided that the Seller may provide such data and information: (a) in connection with obtaining any of the consents
necessary to consummate the transactions contemplated by this Agreement; (c) in any filing required of the Seller by the Federal Trade Commission, the Department of Justice or other regulatory authority; and (c) in response to legal
process or applicable government regulations, but only that portion of the data and information which, in the written opinion of the Seller’s counsel, is legally required to be furnished and further provided that the Seller notifies the Buyer
of its obligation to provide such confidential information and fully cooperates with the Buyer to protect the confidentiality of such data and information pursuant to the applicable provisions of the Freedom of Information Act. If this Agreement is
terminated for any reason, the Seller and such other persons shall not use the Buyer’s information and shall promptly return to the Buyer or destroy all tangible evidence thereof, including copies, which have been furnished to the Seller or
such other persons. 
 ARTICLE VII 
 ADDITIONAL COVENANTS OF THE BUYER 
 Section 7.1 Confidentiality. The Buyer agrees that it will, and will cause
its officers, other personnel and authorized representatives to, hold in strict confidence all data and information obtained from the Seller (other than information which is a matter of public knowledge or which has heretofore been or is hereafter
published in any publication for public distribution or filed as public information with any Governmental Authority other than as a result of a breach of this covenant) and will not, and will ensure that such other persons do not, disclose 

  

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such information to others without the prior written consent of the Seller, provided that the Buyer may provide such data and information: (a) to any
financial institution, investment banking firm, banking institution or investors providing financing or contemplating providing financing to the Buyer for the purposes hereof; (b) in connection with obtaining any of the consents necessary to
consummate the transactions contemplated by this Agreement; (c) in any filing required of the Buyer by the Securities and Exchange Commission, the Federal Trade Commission, the Department of Justice or other regulatory authority; and
(d) in response to legal process or applicable government regulations, but only that portion of the data and information which, in the written opinion of the Buyer, is legally required to be furnished and further provided that the Buyer
notifies the Seller of its obligation to provide such confidential information and fully cooperates with the Seller to protect the confidentiality of such data and information pursuant to the applicable provisions of the Freedom of Information Act.
If this Agreement is terminated for any reason, the Buyer and such other persons shall not use the Seller information and shall promptly return to the Seller or destroy all tangible evidence thereof, including copies, which have been furnished to
the Buyer or such other persons. 
 ARTICLE VIII 
 HART-SCOTT RODINO COMPLIANCE 
 Section 8.1 HSR Filings. The Buyer and the Seller have
each completed and filed with the United States Federal Trade Commission (“FTC”) and Department of Justice (“DOJ”) the Premerger Notification and Report Form and related affidavits (collectively, the “Initial HSR
Filing”) required under the HSR Act with respect to the transactions contemplated by this Agreement and received early termination of the applicable waiting periods under the HSR. To the extent that the Seller has not reimbursed the Buyer for
$22,500 of the filing fee prior to the date hereof, the Buyer shall deduct such amount from the Purchase Price. 
 ARTICLE IX

 CONDITIONS TO THE OBLIGATIONS OF THE BUYER 
 The obligation of the Buyer to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment at or prior to the Closing of each of the following conditions: 
 Section 9.1 Accuracy of Representations and Warranties and Compliance with Obligations. The representations and warranties of the Seller in
this Agreement shall be true and correct in all respects on the date of this Agreement. The Seller shall have performed and complied with all of its obligations required by this Agreement to be performed or complied with at or prior to the Closing.

 Section 9.2 Certified Resolutions. The Seller shall have delivered to the Buyer copies of resolutions adopted by the Board of
Directors and Members of the Seller authorizing the transactions contemplated by this Agreement, certified as of the Closing by the Members of the Seller. 
  

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 Section 9.3 Receipt of Necessary Consents. All consents, waivers, estoppel letters,
authorizations or approvals of third parties and governmental entities with respect to any of the transactions contemplated by this Agreement, including, without limitation, consent to assignment of the Contracts where required shall have been
obtained and confirmed by written evidence reasonably satisfactory to the Buyer. In the event any necessary consent is not obtained prior to the Closing and the Buyer elects to close this transaction, the same shall not constitute a waiver of the
Buyer’s rights and the Seller will nonetheless (a) continue to use its commercially reasonable efforts to obtain the necessary consents, and (b) cooperate with the Buyer in any interim arrangement necessary to obtain for the Buyer the
practical benefits of the Contract or other arrangement for which the consent has not been obtained. 
 Section 9.4 No Adverse
Action. There shall not be pending or threatened any action or proceeding by or before any court or other Governmental Authority which shall seek to restrain, prohibit or invalidate the assignment, transfer or delivery of the Subject Assets to
the Buyer or any other transaction contemplated by this Agreement, or which might materially adversely affect the right of the Buyer to own in its entirety the Subject Assets. The Subject Assets shall not have been materially and adversely affected
by any event or circumstance after the date of this Agreement. 
 Section 9.5 Lien Searches. The Seller shall have delivered to
the Buyer prior to the Closing Date the results of lien and judgment searches dated no earlier than 30 days prior to the date of delivery thereof to the Buyer with respect to the Subject Assets performed by the Seller at the office of the Secretary
of State of the State of Michigan, and the appropriate offices in each county therein in which any of the Subject Assets are located. 
 Section 9.6 UCC Statements. The Seller shall have delivered to the Buyer prior to the Closing Date UCC-3 termination statements from secured creditors, releasing the Subject Assets from all financing statements, and file such
statements promptly after the Closing. 
 Section 9.7 Employment Agreement. Elias Khouri shall have executed and delivered to the
Buyer on the Closing Date a three-year employment agreement, in a form reasonably acceptable to the Buyer and Mr. Khouri. 
 Section 9.8 Services Agreement. The Seller shall have executed and delivered to the Buyer on the Closing Date a services agreement in the form set forth in Exhibit C, which is attached hereto and made a part hereof. 

Section 9.9 Consent Subordination Agreement. The Seller shall have delivered to the Buyer an executed consent subordination agreement in
the form set forth in Exhibit D, which is attached hereto and made a part hereof. 
 Section 9.10 Minimum Inventory. The
Inventory Value set forth on the Inventory Listing Report after adjustments identified on the Inventory Closing Update shall be no less than Sixty Million Dollars ($60,000,000). 
  

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 ARTICLE X 
 CONDITIONS TO OBLIGATIONS OF THE SELLER 
 The obligations of the Seller to consummate the
transactions contemplated by this Agreement shall be subject to the fulfillment at or prior to the Closing Time of each of the following conditions: 
 Section 10.1 Accuracy of Representations and Warranties and Compliance with Obligations. The representations and warranties of the Buyer contained in this Agreement shall be true and correct in all respects at the date of this
Agreement. The Buyer shall have performed and complied with all of its obligations required by this Agreement to be performed or complied with at or prior to the Closing. 
 Section 10.2 No Adverse Litigation. There shall not be pending or threatened any action or proceeding by or before any court or other governmental body which shall seek to restrain, prohibit or invalidate
the transactions contemplated hereby. 
 Section 10.3 Receipt of Necessary Consents. All consents, waivers, estoppel letters,
authorizations or approvals of third parties and governmental entities with respect to any of the transactions contemplated by this Agreement shall have been obtained and confirmed by written evidence reasonably satisfactory to the Buyer.

 ARTICLE XI 
 CERTAIN
ACTIONS AFTER THE CLOSING 
 Section 11.1 Further Assurances. After the Closing, upon the reasonable request of the other,
each party shall execute and deliver all further documents and instruments and shall take such other steps as may be reasonably necessary to effectuate the transactions contemplated hereby. 
 Section 11.2 Litigation. It is recognized by the parties to this Agreement that litigation may arise at some time in the future relating to
the Seller, the Buyer, or the Subject Assets which may be related directly or indirectly to the period prior to the Closing or the period subsequent to the Closing, or both. Each of the parties to this Agreement agrees, therefore, that to the extent
reasonable under the circumstances, it will fully cooperate with and provide information, records, documents and assistance of employees to the other parties with respect to any litigation or potential litigation in which the other party is or may
be involved. 
 Section 11.3 Misdirected Funds. If, after the Closing, the Seller shall receive any payment on account of the
Subject Assets, specifically including but not limited to payments by customers who purchase the Inventory after the Closing, it shall hold such funds in trust for the Buyer and shall promptly endorse over and remit such payments promptly to the
Buyer. 
  

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 Section 11.4 Transition Services. 
 (a) Operating Services. The Seller agrees to maintain its facility at 38200 Amrhein Road, Livonia, Michigan 48150 (the “Facility”), and
sufficient employee staffing for the maintenance, security and shipping of the Subject Assets and order fulfillment and shipping to customers of fragrance products as requested by the Buyer for a period of up to twelve (12) months following the
Closing Date. The Buyer shall give written notice to the Seller before December 1, 2006 if the Buyer needs to use the Facility for January 2007 and its intended requirements for that month and the Seller will provide a budget of the
Reimbursable Costs (as defined in this Section 11.4(a) relating thereto. The Buyer and the Seller shall repeat this process for each month after January 2007, with the Buyer providing notice of its requirements at the Facility at least 30 days
before the first day of the applicable month and the Seller providing a budget of Reimbursable Costs relating thereto. To the extent the Buyer is using the Facility for the Subject Assets during a month, the Buyer and the Seller shall reasonably
agree on an operating budget, which shall include, to the extent applicable and related to the performance of services for the Buyer, the categories of costs to be reimbursed as set forth in Schedule 11.4(a) (the “Reimbursable Costs”) and
estimates of the Reimbursable Costs to provide the requested services, provided that the Buyer and the Seller agree that the costs set forth in Schedule 11.4(b)(the “Excluded Costs”) shall not be included as part of the Reimbursable Costs.
The Buyer will pay the estimate of Reimbursable Costs as described in Section 11.4(c) below. 
 (b) The Buyer will have the right to
cease its use of the Facility and remove the Subject Assets at any time after December 31, 2006 so long as it gives Seller written notice at least 30 days before the date it will cease its use of the Facility (the “Facility Use Termination
Date”). The Buyer shall undertake commercially reasonable efforts to give Seller written notice earlier than the 30-day period if Buyer has determined earlier that it will not need the Facility. Before the first day of each month starting
January 1, 2007 during which the Buyer is using the Facility for the Subject Assets, the Buyer agrees to pay the monthly estimate of the Reimbursable Costs on the first business day of such month. If the Seller or any third party is also using
the Facility for revenue generating activities and other than any reasonable winding down of its investment in the Business, the Seller shall deduct the pro rata portion of the Reimbursable Costs corresponding to such use and operation of the
Facility from amounts charged to the Buyer. The Buyer’s obligation to pay is pro rata portion of the Reimbursable Costs shall cease on the Facility Use Termination Date except for any outstanding amounts due the Seller. Prior to the last day of
each month starting with January 31, 2007, the Seller and the Buyer shall reconcile the actual Reimbursable Costs incurred by the Seller against the estimates paid to the Seller for those periods. The Seller shall remit any overpayment of such
costs to the Buyer, and the Buyer shall remit any underpayment of such costs to Seller, in either case within 3 business days of the date of reconciliation. 
 (c) The Buyer shall give written notice to the Seller at least 10 days before the start of each calendar month following the Closing Date during which the Facility and Seller’s employees are being used for
manufacturing, customization and other product-related services on behalf of the Buyer. The notice shall set forth the Buyer’s intended requirements for that month and the Seller will provide a budget of the Manufacturing Costs (as defined in
this Section 11.4(c) relating thereto on or before the start of the month. To the extent that the Seller incurs any costs in providing product assembly, customization or other services, including receiving and shipping costs associated
therewith all as listed in Schedule 11.4(c) and that are not already 

  

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in the cost of the Inventory acquired at the Closing (“Manufacturing Costs”), the Buyer shall reimburse the Seller for such Manufacturing Costs to
the extent paid by the Seller. The Buyer shall make a payment to the Seller, at such times that enable the Seller to pay bills without the Seller having to advance any amounts for or on behalf of the Buyer (provided that the Buyer agrees to pay any
open vendor commitments of the Seller assumed by the Buyer pursuant to this Agreement on timely basis consistent with Seller’s past practice), of the estimate of the Manufacturing Costs to be incurred during such month and the parties shall
reconcile such payments against amounts paid by the Seller at the end of each month, with supporting documentation, so that if the Manufacturing Costs exceed the amounts previously received by the Seller, the Buyer remits the difference to the
Seller within 3 business days of the reconciliation date and if the amounts previously received by the Seller exceed the Manufacturing Costs, the Seller remits the difference to the Buyer within 3 business days of the reconciliation date.

 (d) The Buyer agrees to pay for fifty percent (50%) of any rent payments and associated Facility maintenance, insurance, taxes and
utilities costs (if not already included in the rent payments and excluding any (i) late charges, or (ii) amounts due as a result of a default in the Lease)(the “Post Termination Facility Expenses”), which become due under the
Lease during a period from the Facility Use Termination Date until the end of the current lease term; provided, that the Seller shall undertake commercially reasonable efforts to return the Facility to the landlord or sublet the Facility or assign
the Lease as soon as practicable but no later than four (4) months after the Facility Use Termination Date, in each case subject to the prior written consent of the Buyer, which shall not be unreasonably withheld. In the event of a return of
the Facility to the landlord, the Buyer will only be responsible for one-half of the termination fee paid to the landlord that gives effect to the early return by the Seller. In the event of a sublease of the Facility or assignment of the Lease, the
Buyer shall only be responsible for fifty percent (50%) of any amount by which the payments due under the Lease exceed the amount received by the Seller or the payments due under the Lease exceed the amount received by the landlord under the
assigned Lease. The Buyer’s portion of the Post Termination Facility Expenses shall be paid at the end of each month following the Facility Use Termination Date within ten (10) days of receipt of supporting documentation from the Seller
demonstrating the amounts and payment by the Seller of the Post Termination Facility Expenses. The Facility shall not be used for any business purpose by the Seller or the Buyer from the Facility Use Termination Date through the expiration of the
Lease, other than the reasonable winding down operations of the Seller prior to any sublease of the Facility to a third-party or the return of possession of the Facility to the landlord, but in any case no later than four (4) months following
the Facility Use Termination Date unless the Buyer consents in writing. 
 Section 11.5 Payment of Creditors of the Seller. From
and after the Closing Date, the Seller agrees to pay and be liable for, and shall assume, indemnify, defend and hold harmless the Buyer from and against and in respect of, any Liabilities (as defined in Section 12.1) incurred by or assessed
against the Buyer that arise from any creditors of the Seller or any party claiming by, through or under such creditor, including, but not limited to, any bankruptcy trustee or debtor-in-possession. 
  

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 Section 11.6 Landlord Waiver of Lien. The Seller shall use commercially reasonable efforts to
deliver to the Buyer an executed landlord waiver of lien in the form set forth in Exhibit E, which is attached hereto and made a part hereof with respect to the landlord of the Facility and the landlord of the public warehouse where part of the
Inventory is held. The Seller shall also use commercially reasonable efforts to assist the Company in obtaining consent subordination agreements substantially in the form set forth in Exhibit D from any co-packers where the Inventory is located.

 Section 11.7 Auditor Fees. BDO Seidman, LLP, the Seller’s independent public accountants, has agreed to perform a review
of Seller’s Financial Statements for the six-month periods ended June 30, 2005 and 2006. The Buyer shall pay the reasonable fees for such accountants. 
 ARTICLE XI 
 INDEMNIFICATION 
 Section 12.1 Indemnity by the Seller. The Seller agrees to indemnify and hold the Buyer and its affiliates and their respective officers,
directors, employees and agents and (collectively, the “Buyer Indemnitees”) harmless from all Liabilities incurred or suffered by any of the Buyer Indemnitees. For this purpose, “Liabilities” shall mean all suits, proceedings,
claims, expenses, losses, costs, liabilities, judgments, deficiencies, assessments, actions, investigations, penalties, fines, settlements, interest and damages (including reasonable attorneys’ fees and expenses), whether suit is instituted or
not and, if instituted, whether at any trial or appellate level, and whether raised by the parties hereto or a third party, incurred or suffered by the Buyer Indemnitees or any of them arising from, in connection with or as a result of (a) any
false or inaccurate representation or warranty made by or on behalf of the Seller in or pursuant to this Agreement; (b) any default or breach in the performance of any of the covenants or agreements made by the Seller in or pursuant to this
Agreement or the Ancillary Agreements; (c) the operation of the Subject Assets and the Business prior to the Closing Time; or (d) any obligation or liability of the Seller which is not an Assumed Liability, including, but not limited to,
any Liabilities arising out of the claims of creditors of the Seller or any party claiming by, through or under such creditor, including, but not limited to, any bankruptcy trustee or debtor-in-possession. 
 Section 12.2 Indemnity by the Buyer. The Buyer agrees that it will indemnify and hold the Seller harmless from all Liabilities incurred or
suffered by the Seller. For this purpose, “Liabilities” incurred by the Seller means all suits, proceedings, claims, expenses, losses, costs, liabilities, judgments, deficiencies, assessments, actions, investigations, penalties, fines,
settlements, interest and damages (including reasonable attorneys’ fees and expenses), whether suit is instituted or not and, if instituted, whether at any trial or appellate level, and whether raised by the parties hereto or a third party,
incurred or suffered by the Seller, arising from, in connection with or as a result of (a) any false or inaccurate representation or warranty made by or on behalf of the Buyer in or pursuant to this Agreement; (b) any default or breach in
the performance of any of the covenants or agreements made by the Buyer in this Agreement or the Ancillary Agreements; (c) the operation of the Subject Assets and the Business after the Closing Time by the Buyer; or (d) the Assumed
Liabilities. 
  

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 Section 12.3 Indemnification Limitations 
 (a) Notwithstanding the general provisions of this Article 12, and absent intentional misrepresentation (as distinguished from negligent or reckless
misrepresentation) and common law fraud, the Seller shall have no obligation to provide indemnification for matters arising under Section 12.1 above: 
 (1) unless and until the aggregate of all claims made with respect to matters arising under Section 12.1 above is more than One Hundred Twenty Five Thousand Dollars ($125,000) (the “Threshold Amount”)
after which point (i.e. when the aggregate amount of all such indemnification claims hereunder equals or exceeds the Threshold Amount), the Buyer Indemnities will be entitled to indemnification of all claims or portion thereof in excess of Fifty
Thousand Dollars ($50,000); 
 (2) to the extent the aggregate amount of all indemnification claims hereunder exceeds (i) $20,000,000
plus (ii) the Inventory Value plus (iii) amounts paid to the Seller under the Note (the “Maximum Amount”) (after which point the Seller will have no obligation to indemnify the Buyer Indemnities from and against further claims
arising under Section 12.1(a) above in excess of the Maximum Amount). 
 (b) Buyer Indemnities may not assert any claim for
indemnification under this Article 12 if Buyer had actual knowledge of the specific breach or misrepresentation on or prior to the Closing Date; provided, however, that the Seller shall have the burden of proof with respect to such actual knowledge
by the Buyer. 
 (c) The amount of any loss suffered by an indemnified party under this Agreement shall be determined after taking into
account all amounts to which the indemnified party is entitled and actually receives under the provisions of any applicable insurance policies (i.e., actual insurance policies, and not self-insurance or retention programs). The parties agree
to use reasonable efforts to collect amounts available under any such insurance policy. 
 (d) The amount of any loss suffered by an
indemnified party under this Agreement shall be determined after deduction of any net, actual tax benefit (measured, in all cases by the net, actual tax benefit to the indemnified parties and their subsidiaries, if any, on a consolidated basis)
which may accrue to the indemnified party after giving effect to (i) the loss giving rise to the claim for indemnification, (ii) the payment by such party of any such loss, and (iii) the receipt by such party of any indemnity or
damage payment pursuant to this Agreement. 
 Section 12.4 Procedure for Indemnification. 
 (a) In the event any person or entity not a party to this Agreement shall make any demand or claim or file or threaten to file or continue any lawsuit,
which demand, claim or lawsuit may result in Liabilities, the indemnified party shall give written notice to such effect to the indemnifying party promptly upon becoming aware thereof. In such event, within 20 days after written notice by the
indemnified party (the “Notice”) of such demand, claim or lawsuit, the indemnifying party shall have the right, at its sole cost and expense, to take and assume full 

  

 21 

 
control of the defense thereof and to hire counsel (which counsel shall be reasonably satisfactory to the indemnified party) to defend any such demand, claim
or lawsuit (provided, however, that the failure to give such Notice shall not relieve the indemnifying party of its obligations hereunder unless, and only to the extent that, such failure caused the damages for which the indemnifying party is
obligated to be greater than they would otherwise have been had the indemnified party given prompt notice hereunder). Thereafter, the indemnified party shall be permitted to participate in such defense at its sole cost and expense, provided that, if
the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party or if the indemnifying party proposes that the same counsel represent both the indemnified party and the
indemnifying party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them, then the indemnified party shall have the right to retain its own counsel at the cost and
expense of the indemnifying party. In the event that the indemnifying party shall fail to respond within 20 days after receipt of the Notice from the indemnified party of any such demand, claim or lawsuit, then the indemnified party may retain
counsel and conduct the defense of such demand, claim or lawsuit, as it may in its sole discretion deem proper, at the sole cost and expense of the indemnifying party. 
 (b) To the extent that the Seller fails to indemnify the Buyer for any Liabilities, the Buyer shall have the right to set off the Liabilitites against the unpaid principal amount of the Note; provided that if it is
determined by a court or mutually acceptable arbitrator that the amount set off by the Buyer was not appropriate and payment on amount set off under the Note was due, the portion of the amount that was not appropriate shall be paid by the Buyer to
the Seller along with interest at the current rate under the Buyer’s revolving credit facility from the date the payment under the Note was due. 
 Section 12.5 Limitations; Survival. The representations, warranties and covenants of the parties shall survive the Closing for a period of twenty (20) months from the Closing Date, in each such case
notwithstanding any investigation made by or on behalf of the Buyer, provided that the representations and warranties as to Tax Claims (as hereinafter defined) shall survive for a period of the statute of limitations relating thereto from the
Closing Date. For purposes hereof, Tax Claims means any claim based upon, arising out of, or otherwise in respect of, any inaccuracy in or breach of any representation, warranty, covenant or agreement of the Seller contained in this Agreement
relating to taxes. Notwithstanding anything to the contrary contained in this Agreement, these limited survival periods shall not apply to a fraudulent act or omission. No action or proceeding may be brought with respect to any of the
representations and warranties unless written notice thereof shall have been delivered to the Buyer or the Seller, as the case may be, prior to the expiration of such applicable survival period. 
 ARTICLE XIII 
 Intentionally omitted.

  

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 ARTICLE XIV 
 RESTRICTIVE COVENANTS 
 Section 14.1 Covenant Not to Compete, Solicit or Interfere. In
consideration of the purchase price paid to the Seller, the Seller, for itself and on behalf of its members and affiliates (Sovereign Management, Inc., SDC Enterprises, Inc., Bruce H. Rosen and Richard A. Lewis, but not Elias Khouri), hereby
covenants and agrees to the terms and conditions of the restrictive covenants and agreements set forth in this Section 14.1 as set forth below: 
 (a) During the period commencing on the date hereof and ending three (3) years from the Closing Date, the Seller, its members will not, directly, indirectly or through an affiliate: 
 (i) as an individual proprietor, owner, partner, stockholder, officer, employee, director, consultant, agent, joint venture partner, investor, lender, or
in any other capacity whatsoever (other than as the holder of not more than five percent of the total outstanding stock of any company the securities of which are traded on a regular basis on recognized securities exchanges or any national
over-the-counter market), alone or in association with others, or in any capacity, own, manage, operate, control, consult with, provide financing to, be employed by, or invest in, any business that is engaged in the development, manufacture,
distribution, sale, marketing and licensing of fragrances, or department store-sold cosmetics or department store-sold skin care products in the United States and Canada; 
 (ii) recruit or otherwise solicit or induce any person who is or becomes an employee or consultant of the Buyer or any of its affiliates to terminate his or her employment with, or otherwise cease his or her
relationship with, the Buyer or any of its affiliates, or hire any such employee or consultant who has left the employ of the Buyer or its affiliates within one year after termination of such employee’s or consultant’s employment with the
Buyer or its affiliates; or 
 (iii) solicit or attempt to solicit any licensors, licensees, suppliers, manufacturers, customers or clients
of the Buyer or its affiliates, in each case only with respect to their manufacturing, marketing, purchase and sale of fragrances, department store-sold cosmetics and department-store sold skin care products in the United States and Canada;

 (b) The Seller acknowledges and agrees that the obligations set forth in this Section 14.1 are necessary and desirable to ensure that
the Buyer obtains the benefit of its bargain under this Agreement and that the covenants contained therein are a material and integral part of this Agreement and necessary and reasonable to protect the legitimate business interest of the Buyer. The
Seller further acknowledges and agrees that, due to its knowledge of the Business and the Buyer’s business, any subsequent competition would irreparably harm the Buyer and that the only effective way of protecting the Buyer is to enter into the
non-competition and non-solicitation agreements on the terms and conditions contained herein. In view of the substantial harm, which would result from a breach or threatened breach by the Seller, its members or affiliates of the covenants contained
in this Section 14.1, the parties agree that such covenants shall be enforced to the maximum extent permitted by law. In the event of a breach or threatened breach of the covenants of this Section 14.1, the parties acknowledge and agree
that the Buyer would suffer irreparable harm and that monetary damages would be inadequate. 

  

 23 

 
Accordingly, in addition to all other remedies to which the Buyer may be entitled, at law or in equity, the Buyer shall be entitled to seek specific
performance and/or injunctive relief without the necessity of posting a bond in the event of any such breach or threatened breach by the Seller, its members or affiliates. 
 (c) The three-year period set forth in this Section 14.1 shall be tolled for any period(s) of time as to which the Seller was adjudicated to have
been violating the covenants herein in the event a preliminary injunction is not issued against the Seller, its members or affiliates and the Buyer is the prevailing party. If any covenant or portion thereof is found by any court of competent
jurisdiction to be illegal, void or unenforceable because it extends for too long a period of time or over too broad a range of activities or in too large a geographic area or for any other reason, then such restriction shall be interpreted to
extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable or otherwise so as to render the covenant enforceable. 
 ARTICLE XV 
 MISCELLANEOUS 
 Section 15.1 Amendment and Modification. This Agreement may only be amended by written instrument signed by the parties hereto. 

Section 15.2 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns. 
 Section 15.3 Entire Agreement. This Agreement and the schedules and exhibits attached hereto constitute the
entire agreement of the parties with respect to the sale of the Subject Assets and the other transactions contemplated in this Agreement, and supersede all prior understandings, agreements and oral representations and warranties of the parties with
respect to the subject matter of this Agreement. Any reference in this Agreement shall be deemed to include the schedules and exhibits hereto. 
 Section 15.4 Headings. The descriptive headings in this Agreement are inserted for convenience only and do not constitute a part of this Agreement. 
 Section 15.5 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original. Delivery of executed signature pages hereof by facsimile
transmission shall constitute effective and binding execution and delivery hereof. 
 Section 15.6 Notices. Any notice, request,
information or other document to be given hereunder to any of the parties by any other party shall be in writing and shall be (as elected by the person giving such notice) hand delivered by messenger or courier service, telecommunicated, or mailed
by registered or certified mail (postage prepaid), return receipt requested, addressed to: 
  

 24 

			
	 If to Buyer

		
	addressed to:	 	Elizabeth Arden, Inc.
		 	200 Park Avenue South
		 	New York, NY 10003
		 	Attn: General Counsel
		 	Facsimile: (212) 261-1060
		 	
	 If to the Seller
 addressed to:
	 	Richard A. Lewis, CEO
		 	Sovereign Sales, LLC
		 	38200 Amrhein Road
		 	Livonia, Michigan 48150
		 	Facsimile: (734) 464-6654
		
	With copy to:	 	Jaffe, Raitt, Heuer & Weiss
		 	27777 Franklin Road, Suite 2500
		 	Southfield, Michigan 48034-8214
		 	Attn: Arthur A. Weiss, Esq.
		 	Facsimile: (248) 351-3082

 Any such notice shall be deemed delivered (a) on the date delivered if by personal delivery,
(b) on the date telecommunicated if by telegraph or telecopy, (c) on the date of transmission with confirmed answer back if by telecopy, and (d) on the date upon which the return receipt is signed or delivery is refused or the notice
is designated by the postal authorities as not deliverable, as the case may be, if mailed. Any party may change the address to which notices under this Agreement are to be sent to it by giving written notice of a change of address in the manner
provided in this Agreement for giving notice. 
 Section 15.7 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made and to be performed in New York, without regard to conflicts of law principles thereunder. 
 Section 15.8 Expenses. Except as otherwise provided in this Agreement, all legal, accounting and other costs and expenses incurred in connection with this Agreement and transactions contemplated by this
Agreement shall be paid by the party incurring the expenses. 
 Section 15.9 Waiver. Any party to this Agreement may extend the
time for or waive the performance of any of the obligations of the other, waive any inaccuracies in the representations or warranties by the other, or waive compliance by the other with any of the covenants or conditions contained in this Agreement.
Any such extension or waiver shall be in writing and signed by an officer of the Buyer or the Seller, as appropriate. No such waiver shall operate or be construed as a waiver of any subsequent act or omission of the parties. 
 Section 15.10 Severability. If at any time subsequent to the date of this Agreement, any provision of this Agreement shall be held by any
court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon and shall not impair the enforceability of any
other provision of this Agreement. 
  

 25 

 Section 15.11 Publicity. Except as otherwise required by law or regulation, no press release
or other public announcement related to this Agreement or the transactions contemplated by this Agreement will be issued by either party without the prior written approval of the other party. 
 Section 15.12 Assignment. No party shall assign its rights or delegate its duties hereunder without the prior written consent of the other
party, provided that the Buyer may assign all or a portion of its rights to an affiliate. 
 Section 15.13 No Third Party Rights.
The provisions of this Agreement are for the exclusive benefit of the parties hereto and no other party (including, without limitation, any creditor of any of the parties) shall have any right or claim against the parties by reason of those
provisions or be entitled to enforce any of those provisions against the parties. 
 Section 15.14 Definitions. For purposes of
this Agreement, the following terms shall have the meanings ascribed below: 
 (a) “affiliate” of any person or entity shall mean
any person, entity or group (currently existing or hereafter created) controlling, controlled by or under common control with, the specified person or entity, and “control” of a person or entity (including, with correlative meaning, the
terms “control by” and “under common control with”) means the power to direct or cause the direction of the management, policies or affairs of the controlled person, whether through ownership of securities or partnership or other
ownership interests, by contract or otherwise. 
 (b) “knowledge of the Seller” or words of similar import shall mean the actual or
constructive knowledge of the members, directors and officers of the Seller, including, but not limited to, Richard A. Lewis, Julie Wiener, Eli Khouri, Tony Khouri, Vincent Killewald, Steve Mauro and Trey Crow. 
 (c) Intentionally omitted. 
 (d)
“ordinary course of business” shall mean an action taken by a person if: 
 (i) such action is recurring in nature, is consistent
with the past practices of such person and is taken in the ordinary course of the normal day-to-day operations of such person; 
 (ii) such
action is not required to be authorized by the Members or Board of Directors or such other person as organizational documents may require and does not require any special or separate authorization of any nature; and 
  

 26 

 (iii) such action is similar in nature and magnitude to actions customarily taken, without any special or
separate authorization, in the ordinary course of the day-to-day operations of other persons that are in the same line of business as the person in question. 
 (e) “person” shall mean any individual, corporation (including, without limitation, any non-profit corporation), general partnership, limited partnership, joint venture, estate, trust, cooperative,
foundation, union, syndicate, league, consortium, coalition, committee, society, firm, company or other enterprise, association, organization or Governmental Authority. 
 (f) “threatened” shall mean a claim, proceeding, investigation, dispute, action or other matter shall be deemed to have been “threatened” if any demand, statement or notice shall have been made or
given, verbally or in writing, that might lead a prudent person to conclude that there is a reasonable probability that such a claim, proceedings, investigation, dispute, action or other matter might be asserted, commenced, taken or otherwise
pursued in the future. 
 Section 15.15 Subrogation of the Buyer. In the event that the Buyer shall subsequent to the Closing
Date become liable for or suffer any damage with respect to any matter which was covered by insurance maintained by the Seller on the Subject Assets at or prior to the Closing, the Seller agrees that the Buyer shall be subrogated to any rights of
the Seller under the insurance coverage, and, in addition, the Seller agrees to promptly remit to the Buyer any insurance proceeds which either of them may receive on account of any such liability or damage. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 27 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above
written. 
  

			
	ELIZABETH ARDEN, INC.
		
	 By:
	 	 /s/ Oscar E. Marina
  

	 Name:
	 	 Oscar E. Marina

	 Title:
	 	 Executive Vice President

	
	SOVEREIGN SALES, L.L.C.
		
	 By:
	 	 /s/ Richard A. Lewis
  

	 Name:
	 	 Richard A. Lewis

	 Title:
	 	 C.E.O.

  

 28 

 EXHIBITS 
  

					
	Exhibit A	 	–	  	Note
	Exhibit B	 	–	  	General Conveyance, Bill of Sale and Assignment and Assumption Agreement
	Exhibit C	 	–	  	Services Agreement
	Exhibit D	 	–	  	Consent Subordination Agreement
	Exhibit E	 	–	  	Landlord Waiver

 SCHEDULES 
 Schedule 1.1 Subject Assets 
 1.1(c) Contracts 
 1.1(d) Regulatory Licenses 
  

			
		
	Schedule 2.2(a)	  	Initial Inventory Listing Report
		
	Schedule 2.3	  	Allocation of Purchase Price
		
	Schedule 4.3	  	Seller’s Financial Statements
		
	Schedule 4.2	  	Seller’s Consents
		
	Schedule 4.4(a)	  	Liens on Subject Assets
		
	Schedule 4.4(b)	  	Locations of Subject Assets other than Inventory
		
	Schedule 4.5(a)	  	Acquired Intellectual Property
		
	Schedule 4.5(b)	  	Claims and Restrictions Relating to Acquired Intellectual Property
		
	Schedule 4.7	  	Litigation
		
	Schedule 4.8	  	Description of Adverse Changes
		
	Schedule 4.10(a)(i)	  	Material Agreements for Sale, Marketing and Distribution of the Subject Assets
		
	Schedule 4.10(a)(ii)	  	Agreements for the Acquisition or Manufacturing of Inventory
		
	Schedule 4.10(a)(iii)	  	Other Material Agreements
		
	Schedule 4.12(a)	  	Labor Law Noncompliance Description
		
	Schedule 4.12(b)	  	Independent Contractor Agreements
		
	Schedule 4.13	  	Employee Benefit Plans
		
	Schedule 4.14(a)	  	Inventory Locations
		
	Schedule 4.14(b)	  	Returns
		
	Schedule 4.15	  	Gross Sales Report
		
	Schedule 4.16	  	Customer Commitments
		
	Schedule 4.17	  	Lease
		
	Schedule 5.2	  	Buyer’s Corporate Authority
		
	Schedule 5.3	  	Buyer’s Consents
		
	Schedule 11.4(a)	  	Reimbursable Costs
		
	Schedule 11.4(b)	  	Excluded Costs
		
	Schedule 11.4(c)	  	Manufacturing Costs

  

 29Lease and Sublease Termination Agreement

 Exhibit 10.4 
 LEASE AND SUBLEASE 
 TERMINATION AGREEMENT 
 THIS LEASE AND SUBLEASE TERMINATION AGREEMENT (this “Agreement”), dated for reference purposes only as of July 31, 2006, is made by
and between CARR NP PROPERTIES L.L.C., a Delaware limited liability company (successor in interest to CarrAmerica Realty Operating Partnership, L.P.) (“Landlord”), SCHLUMBERGER TECHNOLOGY CORPORATION, a Texas corporation
(successor in interest to Schlumberger Technology, Inc.) (“Tenant”) and CREDENCE SYSTEMS CORPORATION, a Delaware corporation (“Credence”). 
 R E C I T A L S: 
 A. Landlord and Tenant are parties to that certain Lease dated June 7, 1999,
as amended by that certain First Amendment to Lease dated January 5, 2000 (as amended, the “Master Lease”) for certain premises consisting of approximately 150,000 rentable square feet (the “Premises”), within
those certain Buildings A and C located at 150 and 160 Baytech Drive, San Jose, California, as more particularly described in the Master Lease. 
 B. Tenant subleased the entire Premises to NPTest, Inc., a Delaware corporation (“NPTest”) in accordance with a certain sublease (the “Sublease”) dated July 29, 2003. 
 C. Credence acquired NPTest Holding Corporation, the prior parent of NPTest (the “Prior Parent”) by merger of the Prior Parent into a
subsidiary of Credence. As a result of said merger, the Prior Parent became a wholly owned subsidiary of Credence. Subsequently, NPTest and the Prior Parent have been merged into Credence and, therefore, Credence is the current subtenant of the
entire Premises in accordance with the Sublease. 
 D. The term of the Master Lease and the Sublease are scheduled to expire on
October 31, 2009 (the “Expiration Date”). 
 E. Landlord, Tenant and Credence desire to terminate the Master Lease, the
Sublease and any other rights or interests that Tenant or Credence may have in the Premises prior to the Expiration Date, upon the terms and conditions set forth below. 
 A G R E E M E N T: 
 NOW, THEREFORE, in consideration of the respective promises and covenants of the
parties hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1. Definitions; Incorporation of Recitals; Conflicts with Lease. Unless the context clearly requires otherwise, capitalized terms used in this Agreement which are not otherwise defined herein shall have the
meaning given such terms in the Master Lease. All of the Recitals above are hereby incorporated herein. In the event of any conflict between the Master Lease or the Sublease and this Agreement, the terms of this Agreement shall control. 

2. Termination of Lease and Sublease. Landlord, Tenant and Credence hereby agree to terminate the Master Lease and the Sublease as of 11:59
p.m. on July 31, 2006 (the “Termination Date”). 

 3. Termination Payments. As a material inducement to Landlord’s agreement to terminate the
Lease before the Expiration Date, 
 (a) Tenant agrees that Landlord may retain the Security Deposit presently held by Landlord, in the amount
of Two Hundred Forty-Seven Thousand Five Hundred Dollars ($247,500.00); 
 (b) Credence agrees to pay to Landlord, (i) no later than
12:00 p.m. on August 1, 2006, the amount of Two Million Dollars ($2,000,000.00), by wire transfer or other immediately available funds; and (ii) in accordance with the terms of the promissory note attached hereto as Exhibit A, which
shall be delivered by Credence to Landlord concurrently with Tenant’s and Credence’s execution and delivery of this Agreement to Landlord, an additional amount equal to Five Million Nine Hundred Thirty-Nine Thousand Dollars
($5,939,000.00); 
 (c) Tenant, Credence, and Landlord recognize and agree that the transfers and payments made and to be made under this
Paragraph 3, and under the promissory note attached hereto as Exhibit A, are intended by the parties hereto to be contemporaneous exchanges for new value given by Landlord to Tenant and Credence, and in fact are substantially contemporaneous
exchanges; and 
 (d) Tenant, Credence, and Landlord recognize and agree that the transfers and payments made and to be made under this
Paragraph 3, and under the promissory note attached hereto as Exhibit A, are in payment of a debt incurred by Tenant and Credence in the ordinary course of business or financial affairs of Tenant, Credence and Landlord, and that such
transfers and payments are made in the ordinary course of business or financial affairs of Tenant, Credence and Landlord and/or are made according to ordinary business terms. 
 4. Surrender of Premises/Termination of Contracts and Agreements. 
 (a) Surrender of Premises. On or before the Termination Date, Credence shall vacate and surrender the Premises in accordance with the provisions of the Master Lease, including, without limitation,
Section 15 of the Master Lease; provided, however, that, notwithstanding any provision of the Master Lease or Sublease to the contrary, neither Credence nor Tenant shall have any obligation to remove any of the existing leasehold improvements
or furniture systems (“Furniture Systems”) located in the Premises, or restore the Premises to their condition prior to the installation or construction of such items. Furthermore, notwithstanding any provision of the Master Lease
or Sublease to the contrary, but without limiting all other obligations of Tenant and Credence contained in Section 15 of the Master Lease, including, without limitation, the removal of all personal property other than the Furniture Systems,
the replacement of any burned out or broken light bulbs or ballasts, etc., neither Tenant nor Credence shall have any obligation to make minor repairs to walls, prepare walls for paint, replace broken, marred or nonconforming acoustical ceiling
tiles, wash windows, clean floors or carpets (other than broom clean). Prior to the Termination Date, Credence shall deliver to Landlord records showing the HVAC system is in good working order. 
 (b) Furniture Systems. Credence hereby sells, transfers, assigns and conveys to Landlord title to the Furniture Systems, and agrees that Landlord
shall have the exclusive use and possession of the Furniture Systems from and after the Termination Date. 

 (c) Termination of Contracts and Agreements. On or prior to the Termination Date, Tenant and
Credence shall terminate, effective as of the Termination Date, all contracts and agreements to which Tenant and/or Credence is a party which concern the Premises. 
 5. Liability Under Lease and Sublease. After 11:59 p.m. on the Termination Date, (a) Tenant and Landlord shall have no further rights, obligations, or claims with respect to each other arising under the
Master Lease, except for any obligation of Tenant under the Master Lease which by their terms expressly survive termination, and any obligation arising under this Agreement; and (b) Tenant and Credence shall have no further rights, obligations,
or claims with respect to each other arising under the Sublease, except for any obligation of Credence under the Sublease which by their terms expressly survive termination, and any obligation arising under this Agreement. 
 6. Representations, Warranties, and Covenants of Tenant and Credence. 
 (a) Tenant Representations. Tenant represents, warrants and covenants to Landlord that (i) it has not assigned, encumbered or otherwise
transferred the Master Lease, or any interest under the Master Lease, or any claim, obligation, action or cause of action arising from the Master Lease, or sublet all or any part of the Premises except pursuant to the Sublease; (ii) nothing
will be (or, to Tenant’s knowledge, has been) done or suffered whereby any alterations, decorations, installations, additions or improvements in and to the Premises or any part thereof, have been or will be encumbered in any way whatsoever;
(iii) no proceeding has been commenced by or against Tenant which seeks to declare Tenant a bankrupt or an insolvent or to liquidate or dissolve Tenant, Tenant has made no general assignment of its assets for the benefit of its creditors, and
no corporate action has been taken by Tenant authorizing any such proceeding, assignment or action; (iv) Landlord is not in default under the Lease by reason of its failure to perform any obligations thereunder, and, to Tenant’s knowledge,
there is no circumstance, event, condition or state of facts which, by the passage of time or the giving notice, or both, could result in such a default; and (v) this Agreement constitutes a legal, valid and binding Agreement of Tenant
enforceable against Tenant in accordance with its terms. 
 (b) Credence Representations. Credence represents, warrants and covenants
to Landlord that (i) it has not assigned, encumbered or otherwise transferred the Sublease, or any interest under the Sublease, or any claim, obligation, action or cause of action arising from the Sublease, or further sublet all or any part of
the Premises; (ii) nothing will be (or, to Credence’s knowledge, has been) done or suffered whereby any alterations, decorations, installations, additions or improvements in and to the Premises or any part thereof, have been or will be
encumbered in any way whatsoever; (iii) no proceeding has been commenced by or against Credence which seeks to declare Credence a bankrupt or an insolvent or to liquidate or dissolve Credence, Credence has made no general assignment of its
assets for the benefit of its creditors, and no corporate action has been taken by Credence authorizing any such proceeding, assignment or action; (iv) to Credence’s knowledge, Landlord is not in default under the Master Lease by reason of
its failure to perform any obligations thereunder, nor is there any circumstance, event, condition or state of facts which, by the passage of time or the giving notice, or both, could result in such a default; and (v) this Agreement constitutes
a legal, valid and binding Agreement of Credence enforceable against Credence in accordance with its terms. 

 7. Miscellaneous. 
 (a) Time of the Essence. Time is of the essence for each and every obligation arising under this Agreement. 
 (b) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
 (c) Survival. The covenants, representations and warranties and releases under this Agreement shall survive the termination of the Lease.

 (d) Governing Laws. This Agreement shall be construed under and shall be governed by the laws of the State of California.

 (e) Construction; Severability. This Agreement is the product of negotiations between the parties and shall not be construed
strictly for or against either party. If any provision of this Agreement shall be held to be invalid or unenforceable, it shall be adjusted rather than voided, if possible, in order to give effect to the intent of the parties, and all other
provisions of this Agreement shall continue in full force and effect to the extent permitted by law. 
 (f) Attorneys’ Fees. In
any arbitration, quasi-judicial or administrative proceedings or any action in any court of competent jurisdiction, brought by any party to enforce any covenant or any of such party’s rights or remedies under this Agreement, including any
action for declaratory relief, or any action to collect any payments required under this Agreement or to quiet title against the other party, the prevailing party shall be entitled to reasonable attorneys’ fees and all costs, expenses and
disbursements in connection with such action, including the costs of reasonable investigation, preparation and professional or expert consultation, which sums may be included in any judgment or decree entered in such action in favor of the
prevailing party. 
 (g) Brokers/Finders. Each party represents and warrants to the other that no broker or finder has been engaged by
it in connection with the early termination of the Lease, except for Cornish & Carey Commercial (“Broker”), who shall be paid by Landlord a fee of $261,000 within fifteen (15) days following the Termination Date. In
the event any claim for brokers’ or finders’ fees or commissions is made by any party other than Broker in connection with the negotiation, execution or consummation of the transaction contemplated by this Agreement, then each party shall
indemnify, save harmless and defend the other parties from and against such claim and all losses, damages and costs, including reasonable attorneys’ fees and disbursements, if such claim is based upon any statement, representation or agreement
made or alleged to have been made by such party. 
 (h) Further Assurances. Landlord, Tenant and Credence agree without further
consideration to execute and deliver such other documents and to take such other action as may be necessary to consummate the purposes of this Agreement. 
 (i) Counterparts. This Agreement may be executed in three counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same Agreement. 
 (j) Entire Agreement. This Agreement sets forth the entire understanding of the parties in connection with the subject matter hereof. None of the
parties hereto has made 

 any statement, representation or warranty in connection herewith except those expressly set forth herein, which has been
relied upon by the parties hereto or which has acted as inducement for the parties to enter into this Agreement. 
 (k) Faxed or PDF
Signatures. This Agreement may be executed by a party’s signature transmitted by facsimile (“fax”) or by electronic mail in pdf format (“pdf”), and copies of this Agreement executed and delivered by means of faxed or pdf
signatures shall have the same force and effect as copies hereof executed and delivered with original signatures. All parties hereto may rely upon faxed or pdf signatures as if such signatures were originals. Any party executing and delivering this
Agreement by fax or pdf shall promptly thereafter deliver a counterpart of this Agreement containing said party’s original signature. All parties hereto agree that a faxed or pdf signature page may be introduced into evidence in any proceeding
arising out of or related to this Agreement as if it were an original signature page. 
 IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first set forth above. 
  

							
	LANDLORD:	  	TENANT:
		
	 CARR NP PROPERTIES L.L.C.,
 a Delaware
limited liability company
 (successor in interest to CarrAmerica Realty
 Operating Partnership, L.P.)
	  	 SCHLUMBERGER TECHNOLOGY
 CORPORATION, a Texas corporation
 (successor in interest to Schlumberger Technology, Inc.)

				
		 		  	By:	 	  

				
	By:	 	  
	  	Name:	 	  

		 	Marshall Findley	  		 	
		 	Managing Director and Vice President	  	Title:	 	
			
	CREDENCE:	  		 	
			
	 CREDENCE SYSTEMS CORPORATION,
 a
Delaware corporation
	  		 	
				
	By:	 	 /s/    JOHN C. BATTY
	  		 	
		 	John C. Batty	  		 	
		 	Chief Financial Officer	  		 	

 Exhibit A 
 PROMISSORY NOTE 
 See Attached 

 PROMISSORY NOTE 
  

			
	$5,939,000	 	__________, __________
		 	July 31, 2006

 FOR VALUE RECEIVED ,the undersigned, CREDENCE SYSTEMS CORPORATION, a Delaware corporation
(the “Payor”), hereby promises to pay to the order of CARR NP PROPERTIES, L.L.C., a Delaware limited liability company (the “Lender”) the sum of Five Million Nine Hundred Thirty-Nine Thousand Dollars ($5,939,000)
(“Principal”) without interest except as herein provided. The Principal shall be due in four (4) payments in the amounts and on the dates set forth below (the “Payment Dates”), or on such earlier date as the Principal may
become due and payable by the terms of this Note. 
  

			
	November 1, 2006	  	$2,000,000.00
	August 1, 2007	  	$1,313,000.00
	August 1, 2008	  	$1,313,000.00
	August 1, 2009	  	$1,313,000.00

 The Principal shall be paid in the lawful currency of the United States of America at such address
as Lender may designate or, in the absence of such designation, at the address provided below for notice to Lender. This Promissory Note (“Note”) may be prepaid, without penalty, in whole or in part, at any time. All payments made
hereunder shall be first applied to reduce the Principal on this Note. 
 Each of the following events, acts, occurrences or conditions shall
constitute an event of default (“Event of Default”) under this Note: 
 (a) Payor shall fail to pay any amounts owed pursuant to
this Note on or before the respective Payment Dates. 
 (b) Payor shall fail to perform or observe any other material agreement, covenant or
obligation arising under this Note. 
 (c) Payor shall be in default under any material obligation for repayment of borrowed money from a
bank or other financial institution and such default shall continue beyond any applicable notice and cure period. 
 (d) (i) Payor shall
commence a voluntary case concerning itself under the Bankruptcy Code; (ii) an involuntary case is commenced against Payor and the petition is not controverted within fifteen (15) days or if timely controverted is not dismissed within
thirty (30) days, after commencement of the case; (iii) a custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge of, all or substantially all of the property of Payor, or Payor commences any other proceedings under
any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to Payor, or there is commenced against Payor any such
proceeding which remains active for a period of sixty (60) days; (iv) an order of relief or other order approving any such case or proceeding is entered; (v) Payor is adjudicated insolvent or bankrupt; (vi) Payor suffers any
appointment of any custodian or the like for it or any substantial part of its property to continue undischarged or unstayed for a period of thirty (30) days; (vii) Payor makes a general assignment for the benefit of creditors; or
(viii) Payor shall by any act or failure to act consent to, approve of or acquiesce in any of the foregoing. 

 Upon the occurrence of any Event of Default, all accrued Principal due under this Note shall become
immediately due and payable, without necessity of prior notice or demand. If this Note is not paid as required on the Payment Dates, or on such earlier date as all accrued Principal shall become due and payable, interest thereafter shall accrued at
the greater of (1) ten percent (10%) per annum, or (2) the Prime Rate plus five percent (5%) per annum, not to exceed the maximum rate permitted by law. As used herein, the term “Prime Rate” means the prime rate (or
base rate) reported in the Money Rates column or section of The Wall Street Journal as being the base rate on corporate loans at large U.S. money center commercial banks (whether or not such rate has actually been charged by any such bank) on the
first day on which The Wall Street Journal is published in the month preceding the month in which the subject sums are payable or incurred. 
 Payor shall pay to Lender all reasonable costs and expenses, including, without limitation, the fees and expenses of counsel and court costs, incurred in connection with any Event of Default or the enforcement by the Lender of any of its
rights or remedies with respect thereto. 
 Any written notice hereunder shall be delivered to Payor or Lender at the address for notice to
such party set forth below, or to such other person at such other address as the parties may designate by notice to the other. 
 To Lender
as follows: 
 Carr NP Properties L.L.C. 
 1810 Gateway Drive, Suite 150 
 San Mateo, CA 94404 
 Attn: Market Officer 
 with a copy to: 
 Carr NP Properties L.L.C. 
 1850 K Street, N.W., Suite 500 
 Washington, D.C. 20006 
 Attn: Lease Administration 
 To Payor as follows: 
 Credence Systems Corporation 
 1421 California Circle 
 Milpitas, CA 95035 
 Attn: Chief Financial Officer 
 with a copy to: 
 Credence Systems Corporation 
 5975 NW Pinefarm Place 
 Hillsboro, OR 97124 
 Attn: Legal 
 Payor waives presentment, demand for payment, notice of nonpayment and all other defenses to the enforcement of this Note other than prior payment.

 All agreements between Payor and Lender are expressly limited, so that in no event or contingency,
whether because of the advancement of the proceeds of this Note, acceleration of maturity of the unpaid principal balance, or otherwise, shall the amount paid or agreed to be paid to Lender for the use, forbearance, or retention of the money to be
advanced under this Note exceed the highest lawful rate permissible under applicable usury laws. If, under any circumstances, fulfillment of any provision of this Note or any other agreement pertaining to this Note, after timely performance of such
provision is due, shall involve exceeding the limit of validity prescribed by law that a court of competent jurisdiction deems applicable, then, ipso facto, the obligations to be fulfilled shall be reduced to the limit of such validity. If under any
circumstances, Lender shall ever receive as interest an amount that exceeds the highest lawful rate, the amount that would be excessive interest shall be applied to reduce the unpaid principal balance under this Note and not to pay interest, or, if
such excessive interest exceeds the unpaid principal balance under this Note, such excess shall be refunded to Payor. This provision shall control every other provision of all agreements between Payor and Lender. 
 Time is of the essence with respect to all obligations of Payor under this Note. 
 This Note shall be governed by and construed in accordance with the laws of the State of California without regard to the conflicts of law provisions of
the State of California or any other state. If any provision hereof is found to be invalid or unenforceable by a court of competent jurisdiction, the invalidity thereof shall not affect the enforceability of the remaining provisions of this Note.

  

			
	CREDENCE SYSTEMS CORPORATION,
	a Delaware corporation
		
	By:	 	 /s/    JOHN C. BATTY

		 	John C. Batty
		 	Chief Financial Officer

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