Document:

Amended and Restated Agreement

 EXHIBIT 10.4 
 AMENDED AND RESTATED AGREEMENT 
 This Agreement (the “Agreement”) is made effective as of the 1st day of August, 2008 (“Effective Date”), by and between Model Reorg Acquisition LLC, a Delaware limited liability company (“LLC”), a wholly-owned
subsidiary of Perfumania Holdings, Inc. and successor by merger to Model Reorg, Inc. (“Model”), a New York corporation, having its principal place of business at 35 Sawgrass Drive, Bellport, New York 11713, and Michael W. Katz
(“Katz”), having his residence at 4 Gnarled Hollow Circle, Huntington, N.Y. 11743. 
 WHEREAS, Model and Katz entered into an agreement, dated as of the 31st day of January, 2003 (the “2003 Agreement”),
amending, restating and superceding that certain Shareholder’s Agreement, dated as of September 16, 1997, between Model and Katz, which provided for the issuance of certain stock in Model to Katz and which set forth other terms and
conditions governing Katz’ ownership of the stock, the purchase of the stock by Model from Katz and various other rights and obligations of the parties relating thereto, including without limitation non-compete, non-solicitation and
confidentiality covenants by Katz; and 
 WHEREAS, LLC and Katz intend hereby to amend and restate the 2003 Agreement to read in its
entirety as set forth herein so that, upon execution of this Agreement, the terms of the 2003 Agreement will no longer be of any force or effect and neither party shall have any further obligation thereunder; and 
 WHEREAS, Model has agreed to pay Katz the sum of $1,920,000, as an additional payment for his stock in Model which will be payable over a three
year term with interest and evidenced by a promissory note; and 
 WHEREAS, Katz has agreed to enter into non-compete,
non-solicitation and confidentiality covenants, as set forth herein; and 
 WHEREAS, Model merged with and into LLC (the
“Merger”), which Merger was consummated on August 11, 2008. The group of companies that includes Perfumania Holdings, Inc., LLC and its subsidiaries, Perfumania, Inc., Perfumania.com, Inc. and any other subsidiaries of Perfumania
Holdings, Inc. is hereinafter collectively referred to as the “Perfumania Group”. 
 NOW, THEREFORE, in consideration of the
foregoing recitals and the mutual covenants contained herein, the parties agree as follows: 
 1 Termination of the 2003 Agreement.

 (a) The parties acknowledge and agree that the 2003 Agreement is hereby amended and restated to read in its entirety as set forth
herein and the terms of the 2003 Agreement shall have no further force and effect. Neither LLC nor Katz shall have any further obligation whatsoever thereunder. 
 (b) Katz confirms and acknowledges that, upon execution of this Agreement, he will own no stock in Model and will have no further right under the terms of the 2003 Agreement to any stock in Model (including without
limitation any consideration payable in the Merger to stockholders of Model) and, except as required in this Agreement and under the promissory note executed pursuant to paragraph 2 below, shall have no further entitlement to any payment or other
consideration for his stock in Model. 

 2 Payment of Consideration to Katz. 
 LLC and the Perfumania Group shall pay Katz the sum of $1,920,000.00 evidenced by a promissory note (the “Note”) executed by LLC, dated
effective as of August 1, 2008, in the form which is attached hereto as Exhibit A, bearing interest at the annual rate of 4% payable in monthly installments over a three-year period in accordance with the terms and conditions of the Note.

 3 Death or Disability of Katz.  
 Notwithstanding the provisions of Section 2 above, upon the death or determination of disability of Katz, any unpaid balance of the Note and accrued interest thereon payable to Katz shall be accelerated and
become immediately due and payable to Katz, his representative or Katz’ estate. 
 For purposes of this Agreement, Katz shall be deemed
disabled in the following circumstances: 
 (a) In the event that (i) there is a determination by a physician designated jointly by LLC
and Katz that Katz suffers from illness or other physical or mental impairment that would prevent Katz from substantially performing duties Katz customarily performed for LLC but that said disability is not permanent as set forth in (b) below,
or a determination cannot be made as to whether or not the disability is permanent, and (ii) such disability continues for a period of one hundred and twenty (120) consecutive days during any twelve month period or for one hundred and
eighty (180) days, whether or not consecutive, during any 12-month period; or 
 (b) In the event there is a determination by a
physician designated jointly by LLC and Katz, that Katz suffers from a permanent disability, which will preclude him from resuming duties he customarily performed for LLC at any time during the last six months of employment. 
 The physician designated by LLC and Katz to make a determination as to disability shall include in the determination being issued a statement as to
(i) whether or not the disability is permanent as defined in 3(b) above; and (ii) if a determination cannot be made as to whether or not the disability is permanent or if a determination is made that at the time the disability is not
permanent, the determination shall specify when the disabled Katz should be reevaluated. The parties agree that in the event a determination is made that the disabled Katz must be reevaluated at certain intervals, then the disabled Katz shall submit
to such reevaluations. 
 In the event that LLC and Katz cannot agree on a physician to designate to make the determination as to Katz’
disability, then and in that event, the existence of such disability shall be resolved by the opinion of two (2) licensed physicians, one selected by LLC and one selected by Katz. If the two physicians cannot agree as to whether or not Katz is
disabled as defined herein, the two physicians so selected shall designate a third physician and a majority of the three physicians so selected shall determine whether or not Katz is so disabled. 

 Anything in this paragraph to the contrary notwithstanding, Katz shall be conclusively deemed to be
(i) permanently disabled within the meaning of paragraph 3(b) during any period in which he receives disability insurance proceeds, provided that such proceeds are paid pursuant to a policy or benefit payable in the event of a permanent, not
short term, disability; or (ii) disabled under 3(a)(i) above during any period in which he receives disability insurance proceeds. 
 4 Confidentiality, Non-Compete and Non-Solicitation Covenants. 
 (a) It is agreed that Katz’ services to the
Perfumania Group are of an extraordinary and intellectual character, which gives them a peculiar value, and that his position with the Perfumania Group places or will place him in a position of confidence and trust with the customers, vendors and
employees of the Perfumania Group. In addition, Katz acknowledges that, as a result of his position with the Perfumania Group, he will be able to develop relationships with customers and vendors of one or more members of the Perfumania Group that
are vital to the future success and viability of the Fragrance Business, as defined below, and Katz acknowledges that maintaining such relationships and clients is an essential element to preserving the goodwill and reputation of each member of the
Perfumania Group as it relates to the Fragrance Business. Accordingly, Katz agrees that for the period commencing on the date hereof and ending on the date that is one (1) year following the effective date of termination of his employment with
any and all members of the Perfumania Group (the “Covenant Period”), he will not, directly or indirectly, individually, or through a corporate or other business entity, without the prior written consent of the Perfumania Holdings, Inc.
Board of Directors: 
 (i) solicit Competitive Business (as defined below) from any customer or vendor of any member of the Perfumania Group
with respect to Fragrance Business during the Covenant Period; 
 (ii) attempt in any manner to persuade any customer or vendor of any member
of the Perfumania Group with respect to Fragrance Business during the Covenant Period to cease to do Competitive Business or to reduce the amount of Competitive Business which any customer or vendor has customarily done or contemplates doing with
any member of the Perfumania Group whether or not the relationship between any member of the Perfumania Group and such customer or vendor was originally established in whole or in part through his efforts; 
 (iii) except on behalf of any member of the Perfumania Group, employ or attempt to employ any person who is then, or at any time during the preceding year
was, in the employ of any member of the Perfumania Group; or 
 (iv) except on behalf of any member of the Perfumania Group, directly or
indirectly, individually or as a partner, principal, stockholder, equity owner, employee, agent, officer or consultant of any company, corporation, partnership or other entity, engage in a Competitive Business in the Fragrance Business during the
Covenant Period. 
 For purposes hereof, “Fragrance Business” means the wholesale purchase and wholesale and retail sale or
consignment of perfumes, colognes and fragrances. For purposes hereof, “Competitive Business” means any business engaged in any way in the Fragrance Business. 
 Notwithstanding the provisions of Section 4 above, the foregoing covenants shall not be deemed to prohibit Katz from acquiring as an investment not more than five percent (5%) of the capital stock of a
company in the Fragrance Business, whose stock is traded on a national securities exchange. 

 (b) The terms and conditions of sub-subparagraphs (i) through (v) of this subparagraph
(b) shall apply during Katz’ employment with, and for a period of three years following the termination of Katz’ employment with, any and all members of the Perfumania Group. 
 (i) For purposes of this Agreement, “Confidential Information” means all information, data and knowledge disclosed to or made available to Katz
by any member of the Perfumania Group concerning the organization, business, technology or finances of any member of the Perfumania Group or of any third party company in the Fragrance Business that any member of the Perfumania Group is under an
obligation to keep confidential, including, but not limited to, trade secrets or confidential information such as customer lists or compilations, alternate source vendor information, pricing and cost information, and financial information.

 (ii) Katz shall not publish or otherwise disclose the Confidential Information or any part thereof to any other person, firm or
corporation; provided, however, that the obligation not to publish or disclose the Confidential Information shall not apply to any of the following: (A) information that Katz receives from a third party without restriction or without breach of
this Agreement; (B) information that is approved for release by the written authorization of the Board of Directors of the member of the Perfumania Group to which such information pertains or from which such information was obtained;
(C) information that is or becomes publicly known, except when that information becomes publicly known as a result of an action of Katz; or (E) the disclosure of information which is required or protected by law or court order. 

(iii) Katz shall safeguard the Confidential Information from disclosure or dissemination using a comparable level of diligence that Katz uses in
safeguarding his own confidential information and that the members of the Perfumania Group generally use to safeguard their confidential information. 
 (iv) In the event that Katz is requested or required (by oral questions, interrogatories, requests for information or documents subpoena, civil investigative demand or similar process) to disclose any Confidential
Information, Katz will, if practicable to do so, provide the applicable member of the Perfumania Group with prompt notice of such request(s) so that such member may seek an appropriate protective order and/or waive compliance with the provisions of
this Agreement. 
 (v) All Confidential Information shall remain the sole and exclusive property of the applicable member of the Perfumania
Group at all times. No license in Confidential Information is granted to Katz either directly or indirectly by this Agreement, nor are any rights of ownership in Confidential Information granted by this Agreement. 
 (c) Katz acknowledges and agrees that the covenants and obligations he has with respect to noncompetition, nonsolicitation and confidentiality of LLC and
the members of the Perfumania Group contained in this paragraph relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants and obligations will cause LLC and members of the Perfumania Group
irreparable injury for which adequate remedies are not available at law. Therefore, Katz agrees that LLC or any 

 
member of the Perfumania Group shall be entitled to an injunction, restraining order or such other equitable relief as a court of competent jurisdiction may
deem necessary or appropriate to restrain Katz from committing any violation of the covenants and obligations contained in this paragraph. These injunctive remedies are cumulative and are in addition to any other rights and remedies that LLC or any
member of the Perfumania Group may have at law or in equity. 
 (d) Notwithstanding the foregoing sentence, in the event of a breach of
paragraph 4 of this Agreement alleged by LLC, any payments due to be made to Katz under paragraph 2 of this Agreement shall continue to be made for a period ending on the earlier to occur of (i) the date that is three (3) months following
the commencement of an action for injunctive relief or an arbitration proceeding relating to such breach, or (ii) the determination by the court or arbitration panel, as applicable, that such breach occurred. Thereafter, LLC may discontinue any
further payments to Katz unless and until the court or arbitration panel, as applicable, makes a final determination that Katz did not violate paragraph 4. In any suit for damages resulting from such breach, Katz shall be entitled to a setoff
against any damages recovery made by LLC (the “LLC Damages”) in the amount of any unpaid balance of the promissory note issued pursuant to paragraph 2 above (the “Katz Setoff’), it being understood that if the LLC Damages exceed
the Katz Setoff, then LLC’s recovery shall be limited to the amount of the Katz Setoff and any excess, if any, of the LLC Damages over the Katz Setoff shall be waived by LLC. If the Katz Setoff exceeds the LLC Damages, then Katz shall recover
against LLC for such excess. The limitation on damages recovery by LLC that is specified in this subparagraph shall not in any way impair LLC’s right to obtain injunctive relief for a violation of paragraph 4 of this Agreement. In the event of
an Event of Default, as defined in the Note, and the expiration of thirty (30) days following written notice from Katz of such Event of Default, Katz’s covenants under paragraph 4 hereof and all obligations of Katz under said paragraph 4
will terminate and be null and void unless such Event of Default is cured within said thirty day period. 
 5 Quality King
Guarantee. 
 (a) Quality King Distributors, Inc. (“Quality King”) hereby unconditionally, irrevocably and absolutely
guarantees to Katz and his successors and assigns, the due and prompt performance and payment, as applicable, by LLC of all of LLC’s obligations under or pursuant to this Agreement. (b) Simultaneously with the execution and delivery of the
Note to Katz, Quality King shall deliver to Katz a guaranty substantially in the form attached hereto as Exhibit B signed by an officer of Quality King guaranteeing the due and prompt performance and payment by LLC of all of its obligations under
the Note. 
 6 Entire Agreement: No Waiver. 
 This Agreement contains the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, either oral or written, with
respect to the subject matter hereof, and there are no representations, warranties, promises, covenants or understandings other than those expressly set forth herein. No waiver of a breach of any provision hereof or a default under any provision
hereof shall be deemed a waiver of such provision or of any subsequent breach or default of any kind or nature. No provision of this Agreement may be amended or waived except in writing signed by the party to be charged. 

 7 Severability. 
 In the event that any provision of this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect the
validity or enforceability of the other provision s of this Agreement. 
 8 Successors and Assigns. 
 The terms and provisions of this Agreement shall inure to the benefit and be binding upon (1) LLC and its successors and assigns and all the members
of the Perfumania Group, and (2) Katz and his respective heirs, legal representatives, successors and assigns. 
 9 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 solely within such State by residents thereof, without regard to New York’s internal law governing conflicts of laws. 
 10 Notices. 
 All notices and other communications given hereunder shall be in writing and
shall be sent by registered or certified mail, return receipt requested, or by recognized overnight courier such as Federal Express or UPS, addressed to the party for whom or for which intended, in the case of LLC, to its then principal office, or
at such other address of which LLC shall have given notice to Katz in the manner herein provided, and in the case of Katz, at his residence address as the same is first set forth above or at such other address of which Katz shall have given notice
to LLC in the manner herein provided, with a copy of all such notices and communications to be given concurrently to Alfred R. Paliani, Esq., General Counsel, Quality King Distributors, Inc., 35 Sawgrass Drive, Bellport, New York 11713.
Notwithstanding the death of Katz, any notice intended for his executors or administrators shall be addressed to such party unless and until such executors or administrators shall have furnished evidence of their qualification as such and shall have
given notice of the address to which notices intended for such executors or administrators shall be sent. 
 11 Maintenance of
Copies. 
 The parties hereto agree to cause a copy of this Agreement to be kept on file at the offices of LLC. 
 12 Arbitration. 
 Any
controversy or claim arising out of or relating to this Agreement shall be submitted to arbitration before a single arbitrator and such arbitration shall comply with and be governed by the Commercial Arbitration Rules of the American Arbitration
Association (“AAA”), as are applicable to contracts made and performed entirely within the State of New York. Said arbitration shall take place in the office of AAA located Suffolk County, New York or such other place as mutually agreed
upon by the parties in writing. An award by the arbitrator shall be binding upon both parties. Each party shall bear his or its costs of arbitration, including without limitation, attorneys’ fees and a one half share of the arbitrator’s
fees. Judgment on the award rendered by the arbitrator may be entered by the Supreme Court for the State of New York, County of Suffolk. 

 13 Counterparts. 
 This Agreement may be executed in several counterparts, each of which shall be deemed an original, and said counterparts shall constitute but one and the
same instrument. In addition, signed signature pages transmitted by facsimile or scanned into an image file and transmitted via email shall be deemed due execution of the Agreement. 
 IN WITNESS WHEREOF, Katz has hereunto set his hand and LLC has caused this Agreement to be executed and its corporate seal affixed by its officers
thereunto duly authorized on the date first above written. 
  

											
		 		 		 		 	MODEL REORG ACQUISITION LLC
					
	 /s/    Michael W. Katz
	 		 		 	By:	 	 /s/    Donna Dellomo

		 		 		 		 	Name:	 	Donna Dellomo
		 		 		 		 	Title:	 	Secretary and Treasurer
					
		 		 		 		 	QUALITY KING DISTRIBUTORS, INC.
		 		 		 		 	As to Paragraph 5 Only
						
		 		 		 		 	By:	 	 /s/    Glenn Nussdorf

		 		 		 		 	Name:	 	Glenn Nussdorf
		 		 		 		 	Title:	 	President

 EXHIBIT A 
 PROMISSORY NOTE 
  

					
	$1,920,000.00	  		  	 Bellport, New York
 Dated: As of August 1, 2008

 FOR VALUE RECEIVED, the undersigned MODEL REORG ACQUISITION LLC, a Delaware limited liability
company (the “Maker”), and its successors and assigns, having an office at 35 Sawgrass Drive, Bellport, New York 11713, promises to pay to the order of MICHAEL W. KATZ (the “Holder”), having his residence at 4 Gnarled Hollow
Circle, Huntington, N.Y. 11743, the principal sum of one million nine hundred twenty thousand dollars and no cents ($1,920,000.00) as hereinafter provided, together with interest (computed on the basis of a 360-day year of twelve 30-day months) at a
rate equal to four percent (4%) per annum on the sum of the unpaid principal amount hereof from the date hereof until the principal amount hereof and accrued interest thereon is paid in full, whether upon maturity or by acceleration or
otherwise. The agreement (the “Agreement”), dated as of August 1, 2008, between Holder and Maker, respecting, among other things, the payment to Holder of the remaining purchase price for Holder’s stock of Model Reorg, Inc., the
Maker’s predecessor, among other obligations of the parties thereto, is hereby incorporated by reference in its entirety and made a part hereof, excluding paragraph 12 thereof relating to arbitration of disputes. 
 The principal amount of this Note, which is equal to one million nine hundred twenty thousand dollars and no cents ($1,920,000.00), and all interest
accruing thereon for the period commencing on the date hereof through and including the date that the principal balance hereof is paid in full, shall be payable in thirty-six (36) equal installments of principal in the amount of $53,333.33
each, payable monthly commencing on September 1, 2008, with each subsequent installment payable on the first day of each month thereafter, and the final installment payable on August 1, 2011, each such installment to be paid together with
all interest accrued on the unpaid principal balance hereof as of the date of each such installment. 
 The Maker hereby waives all
applicable exemption rights as well as valuation and appraisement, presentment and demand for payment, protest and notice of protest, notice of dishonor, protest and demand, demand and dishonor, and non-payment of this Note, and expressly agrees
that its liability under this Note shall not be affected by any renewal or extension in the time of payment of the principal and/or interest due and payable hereunder, regardless of the number of such renewals and extensions. No failure or delay by
the Holder in exercising any right, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any rights, power or privilege.

 If this Note (a) is not paid when due or (b) is collected through a bankruptcy, receivership or other court proceeding, whether
before or after this Note is due, or (c) is placed in the hands of attorneys for collection, the undersigned agrees to pay, in addition to the then outstanding balance of the principal sum, any accrued and unpaid interest thereon and all other
fees, sums, charges and amounts due and payable under this Note, all costs of collecting or attempting to collect the same (including, but not limited to, reasonable attorneys’ fees and disbursements) incurred by the Holder hereof. 

 This Note may not be altered, amended, canceled, changed, discharged, modified, terminated or waived
orally, but only by an agreement in writing dated and executed by the party against which enforcement of such alteration, amendment, change, cancellation, discharge, modification, termination or waiver is sought. 
 Any notice, request, demand, consent, approval or other communication which the Holder hereof or the undersigned is obligated or may elect to give
hereunder (“Notice”) shall be given by registered or certified mail, return receipt requested, postage prepaid, or by recognized overnight courier such as Federal Express or UPS, addressed to the party to receive such Notice at such
party’s address first above set forth. Either party may, by Notice given as aforesaid, change its address for all subsequent Notices. Notices shall be deemed given as of the second business day following the date when mailed as aforesaid.

 This Note may be prepaid in whole or in part at any time without premium or penalty. 
 Upon the happening of any of the following events, each of which constitutes a default (“Event of Default”), all sums due will thereupon or at
any time thereafter, at Holder’s option, without notice or demand, become immediately due and payable: 
 (1) failure of any Obligor (which term means
and includes Maker and any endorser, surety, guarantor or other party liable for payment of this Note) to pay an installment of principal and interest on or before the expiration of ten (10) days following written notice from Holder to Maker of
its failure to make timely payment of such installment hereunder; (2) the filing of any petition under the Bankruptcy Code or any similar federal or state statute by or against any Obligor or the insolvency of any Obligor; or (3) the
making of a general assignment by any Obligor for the benefit of creditors, appointment of or taking possession by a receiver, trustee or custodian or similar official for any Obligor or for any assets of any such Obligor or institution by or
against any Obligor of any kind of insolvency proceedings or any proceeding for dissolution or liquidation of any Obligor which is not dismissed within 90 days of the filing thereof; or (4) failure of Obligor (which term means and includes the
Maker and any endorser, surety, guarantor or other party liable for payment of this Note) to pay unpaid principal balance of this Note and any accrued interest thereon upon acceleration in accordance with paragraph 3 of the Agreement. 
 Holder will have all of the rights and remedies of a creditor under all applicable law. Without limiting the generality of the foregoing, upon the
occurrence of an Event of Default, Holder may, at his option, and without notice or demand declare the entire unpaid principal and accrued interest accelerated and due and payable at once. 
 The provisions of this Note shall be binding upon and inure to the benefit of the undersigned Maker and the Holder hereof and their respective heirs,
legal representatives, successors and assigns,. For the purposes of this Note, the phrase “Holder” shall also mean and include all subsequent holders of this Note. 

 In case any one or more of the provisions contained in this Note shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, but this Note shall be construed as if such invalid, illegal or unenforceable provision had never been
included. 
 This Note shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, without giving
effect to New York’s internal law governing conflicts of laws. 
  

			
	MODEL REORG ACQUISITION LLC
		
	By:	 	 /s/    Donna Dellomo

	Name:	 	Donna Dellomo
	Title:	 	Secretary and Treasurer

 EXHIBIT B 
 GUARANTY 
 In consideration of, and to induce Michael W. Katz (“Katz”) to execute, that
certain agreement (the “Agreement”) by and between Katz and Model Reorg Acquisition LLC (the “LLC”), a Delaware limited liability company, dated as of August 1, 2008, and to induce Katz to accept a promissory note (the
“Note”), dated as of August 1, 2008, from the LLC for the sum of $1,920,000 plus interest as described in the Note, as part of the payment for Katz’s stock in the Model Reorg, Inc., the LLC’s predecessor, the undersigned,
Quality King Distributors, Inc., a New York corporation (“Guarantor”), intending to be legally bound, hereby unconditionally, irrevocably and absolutely guarantees, to Katz and his successors and assigns, the due and prompt payment
and performance by the LLC of all of the LLC’s obligations and liabilities (the “Obligations”) under or pursuant to the Note, as defined more particularly below. 
 The word “Obligations” is used herein in its most comprehensive sense and includes, without limitation, any indemnity obligations, agreements,
payment obligations, covenants, warranties or representations of the LLC under or pursuant to the Note, whether existing now or arising after the date of this Guaranty. 
 The liability of Guarantor hereunder is primary and shall be enforceable against Guarantor without first resorting to the LLC or exhausting remedies against the LLC and regardless of the solvency or insolvency of the
LLC at any time. Any forbearances, acceptance of payments on account, extensions of time for payment of charges in the form of indebtedness, acceptance or release of security, invalidity or enforceability of the Obligations and any change in the
status of the LLC shall not release Guarantor from any liability under this Guaranty. Guarantor understands and acknowledges that by virtue of this Guaranty, Guarantor has specifically assumed any and all risks of a bankruptcy or reorganization
proceeding with respect to the LLC. Guarantor agrees that in the event a settlement is made with the LLC for less than the amount due Katz, Guarantor shall not be released from liability for the balance still due Katz even though the LLC shall have
been released from said Obligations. 
 This is an absolute, continuing and unconditional Guaranty, and Guarantor’s obligations
hereunder shall not be affected by (i) the validity, regularity or enforceability of the Note; or (ii) any other circumstance whatsoever (with or without notice to or knowledge of the LLC) which constitutes, or might be construed to
constitute, an equitable or legal discharge of the LLC from the Obligations, in bankruptcy or in any other instance. This Guaranty shall remain in full force and effect from this date until all the Obligations have been paid or otherwise satisfied
or performed in full. 
 Guarantor hereby waives notice of acceptance of this Guaranty, notice of presentment and protest of the Note,
diligence, notice of any default by the LLC, and all other notices to which Guarantor might be entitled or which may be required by law. Guarantor waives the benefit of any statutes of limitations affecting Guarantor’s liability hereunder or
the enforcement this Guaranty. The Guarantor hereby absolutely subordinates to the Obligations, both in right of payment and in the time of payment, any present or future debts or obligations of the LLC to Guarantor, except to the extent that
Guarantor’s senior secured bank lenders have a prior perfected security interest in such present or future debts or obligations of the LLC to Guarantor. 

 Guarantor agrees to pay Katz all costs, reasonable attorneys’ fees and reasonable expenses paid or
incurred by Katz in enforcing any of his rights under this Guaranty, as well as interest, on any unpaid Obligations of the Corporation to Katz under the Note at the rate set forth in the Note. 
 Guarantor hereby represents and warrants (i) that it is duly organized and validly existing in good standing under the laws of the jurisdiction
under which it is organized, and is duly qualified to do business and is in good standing in every other jurisdiction as to which the nature of the business conducted by it makes such qualification necessary; (ii) that it has power and
authority to enter into and perform this Guaranty; (iii) that the execution, delivery and performance of this Guaranty by it have been duly authorized by proper action and are not in contravention of law or of the terms of its articles of
incorporation or bylaws, or equivalent charter documents, or any agreement, instrument, indenture or other undertaking to which it is a party or by which it is bound; (iv) that all registrations and approvals of any governmental agency,
department or commission necessary for the execution, delivery and performance of this Guaranty and for the validity and enforceability thereof, have been obtained and are in full force and effect; (v) that this Guaranty is the legal, valid and
binding obligation of the Guarantor, enforceable against Guarantor in accordance with its terms; and (vi) that no legal proceedings are pending, or to the best of Guarantor’s knowledge threatened, before any court or governmental agency
which would reasonably be expected to adversely affect in a material manner its financial condition, operations or any licenses or its ability to perform under this Guaranty. All representations and warranties made by Guarantor herein shall survive
the execution hereof. 
 Guarantor is an affiliate of the LLC and has received, or will receive, direct or indirect benefit from the making
of this Guaranty with respect to the Obligations. 
 This Guaranty shall be construed, interpreted and applied in accordance with the
internal laws of the State of New York, exclusive of its choice of law provisions and regardless of the laws that might otherwise govern under applicable principles of conflict of laws. 
 GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTY, OR
THE RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE JURISDICTION AND VENUE OF THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE EASTERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY FINAL JUDGMENT
THEREOF. 
 In case any provision of this Guaranty shall be invalid, illegal or unenforceable, such provision shall be severable from the
rest of this Guaranty and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

 Guarantor agrees that this Guaranty shall be binding on its successors and permitted assigns;
provided, however, that this Guaranty may not be assigned by Guarantor without the prior express written consent of Katz, which consent shall not be unreasonably withheld or delayed. Any assignment made in contravention of this paragraph
shall be null and void. 
 None of the terms or provisions of this Guaranty may be waived, amended, supplemented or otherwise modified except
by a written instrument executed by Guarantor and Katz. 
 This Guaranty may be executed in one or more counterparts, including facsimiles
thereof, all of which shall be considered one and the same Guaranty. 
 IN WITNESS WHEREOF, this Guaranty is signed as of the 1st day of
August, 2008. 
  

			
	GUARANTOR:
	
	QUALITY KING DISTRIBUTORS, INC.
		
	By:	 	 /s/    Glenn Nussdorf

	Name:	 	Glenn Nussdorf
	Title:	 	President

 Acknowledged and agreed: 
  

	
	 /s/    Michael W. Katz

	Michael W. KatzEmployment Agreement

 EXHIBIT 10.5 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) is made as of February 7, 2008 by and between JACAVI, LLC, a Delaware limited liability company (the “Company”), and RENE A. GARCIA
(the “Executive”). 
 The parties hereto are entering into this Agreement in order to set forth the terms and conditions under
which the Executive shall be employed by the Company. 
 NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, and in
consideration of the mutual covenants contained herein, agree as follows: 
 1. Employment. The Executive is and shall continue to be
employed by the Company on the terms and conditions set forth herein. 
 2. Term of Employment. The term (“Term”) of the
Executive’s employment by the Company commenced on October 5, 2007 and ends on December 31, 2010. Notwithstanding the foregoing, either party hereto may earlier terminate this Agreement, but only as provided herein. 
 3. Position. During the Executive’s employment with Company, the Executive shall serve as the president and chief executive officer of the
Company and of Distribution Concepts, LLC, a Florida limited liability company (the “Operating Subsidiary”). The Executive shall perform those duties generally required of persons in the position of president and chief executive officer,
including but not limited to managing the day-to-day affairs of the Company and its subsidiaries, including the Operating Subsidiary, as well as such other duties, not inconsistent with this Agreement or the positions of president and chief
executive officer, as the Company’s Board of Managers (the “Board”) may from time to time direct. The Executive shall report and be responsible to the Board. 
 4. Scope of Services. During the Term, the Executive agrees to perform in good faith and to the best of his ability and shall devote such time,
attention and skill as is reasonably necessary to the business affairs of the Company and all of its subsidiaries (and any of its Affiliates in accordance with the terms of this Agreement), and the performance of the Executive’s duties
hereunder. The Executive may, to the extent not otherwise prohibited by this Agreement, devote such amount of time to other activities as does not interfere or compete with the performance of the Executive’s duties under this Agreement or with
the provisions of Article 9 of hereunder. 
 5. Salary, Compensation and Benefits. 
 5.1 Base Salary. The Company agrees to pay to the Executive for all services to be rendered by the Executive hereunder an initial salary
(“Base Salary”) at an annual rate of $300,000. The Base Salary shall be payable in equal monthly installments at the same time and in the same manner as the Company pays its employees generally. 

 5.2 Incentives, Savings and Retirement Plans. The Executive shall be entitled to participate in
all incentive, savings, and retirement plans, policies and programs made available by Model Reorg, Inc. to its executive-level employees generally (“Plans”). 
 5.3 Fringe Benefits. During the Term, the Executive shall be entitled to the benefits of such group medical, dental, travel and accident, short and long-term disability and term life insurance, if any, as Model
Reorg, Inc. shall make generally available from time to time to its executive-level employees. 
 5.4 Reimbursement of Business Expenses.
The Company shall reimburse the Executive (or, in the Company’s sole discretion, shall pay directly), upon presentation of vouchers and other supporting documentation as the Company may reasonably require, for reasonable out-of-pocket
expenses incurred by the Executive relating to the business or affairs of the Company or the performance of the Executive’s duties hereunder, including, without limitation, reasonable expenses with respect to entertainment, travel and similar
items, provided that the incurring of such expenses shall have been approved in accordance with the Company’s regular reimbursement procedures and practices in effect from time to time. 
 5.5 Withholding. The Company may withhold from the Executive’s compensation all applicable amounts required by law. 
 6. Termination of Employment. 
 6.1 If
the Executive’s employment with the Company terminates for any reason (including death or Disability (as hereinafter defined)), the Company shall pay to the Executive any Base Salary, business expense reimbursements, compensation and benefits
under any Plans and any and all benefits and other similar amounts, accrued but unpaid as of the date of termination. In the event of termination due to Disability, the Company shall continue to pay the Executive his Base Salary and those benefits
to which the Executive was entitled at the time of such termination for a period of one (1) year from such termination. 
 6.2 In
addition to the amounts set forth in paragraph 6.1 above, upon termination of the Executive’s employment with the Company without Cause or upon the Executive’s resignation for Good Reason, contingent upon the Executive’s execution and
delivery of a general release reasonably satisfactory to the Company releasing the Company, its officers, agents, stockholders, members and Affiliates from any liability for any matter other than for payments under this Section 6 and
contractual obligations under other written agreements, the Executive shall be entitled to receive severance from the Company in an amount equal to 12 months of the Base Salary then in effect (“Severance”), such Severance to be paid over a
like number of months consistent with the Company’s normal payroll schedule, and the Executive shall have no further obligation under Section 9 of this Agreement. 

 6.3 Notwithstanding anything contained in this Agreement or the Related Agreement, upon the
Executive’s material breach of any provision of Section 9 hereof, which such breach is reasonably capable of cure within thirty (30) days but shall not have been cured within thirty (30) days of written notice thereof by any
manager of the Company to the Executive, or in the event of the termination of the Related Agreement due to the Executive’s breach thereunder, the Company’s obligation to pay Severance and the Term hereof shall immediately terminate.

 6.4 Notwithstanding any conflicting or inconsistent provisions of any related stock option plan, agreement or other document, in the event
of termination by Executive for Good Reason or following a Change of Control, Executive shall not have a duty to seek other employment or otherwise mitigate the amount of compensation payable to him under the terms of this Section 6, and the
amounts payable pursuant to this Section 6 shall be payable to Executive notwithstanding the subsequent engagement of the Executive by a third party that does not breach the terms and conditions of Section 9 hereof. 
 7. Related Agreement. The Related Agreement is that certain Limited Liability Company Agreement of Jacavi LLC dated as of October 31, 2006
(as may be amended from time to time, the “Related Agreement”) to which the Executive is a party, which Related Agreement memorializes, among other things, (a) the indirect ownership interest in the Company of the Executive and his
family members, and (b) certain rights, authority and obligations of the Executive with respect to the operations of the Company in the ordinary course of its business. 
 8. Executive’s Representations and Warranties. The Executive represents and warrants that the Executive is not a party to any other
employment, non-competition, or other agreement or restriction which could interfere with the Executive’s employment with the Company or the Executive’s or the Company’s rights and obligations hereunder and that the Executive’s
acceptance of employment with the Company and the performance of the Executive’s duties hereunder will not breach the provisions of any contract, agreement, or understanding to which the Executive is party or any duty owed by the Executive to
any other person. 
 9. Non-Competition and Non-Solicitation. 
 9.1 The Executive shall not, directly or indirectly, for the Executive or on behalf of or in conjunction with any other person, persons, company,
partnership, limited liability entity, corporation or business of whatever nature (other than for or on behalf of Model Reorg, Inc. and/or its Affiliates or Jacavi Beauty Sales LLC) during the period of the Executive’s employment by or with the
Company, and for the 12 months immediately following the termination of the Executive’s employment under this Agreement, for any reason whatsoever (with or without Cause or Good Reason), except as provided in Subsection 6.2 above. 

 

	 	(i)	engage, as an officer, director, stockholder, member, owner, partner, joint venturer, or in a managerial, consulting or advisory capacity, whether as an employee, independent
contractor, consultant or advisor, or as a sales representative, in any business which offers any services or products in direct competition with the Operating Subsidiary within the United States of America (“USA”);

	 	(ii)	contact any person who is, at that time, within the USA, an employee of the Company or the Operating Subsidiary in a managerial capacity for the purpose or with the intent of
enticing such employee away from or out of the employ of the Company or the Operating Subsidiary; 

  

	 	(iii)	contact any person or entity which is, at that time, or which has been, within one (1) year prior to that time, a client of the Company or the Operating Subsidiary within the
USA for the purpose of soliciting or selling products or services in direct competition with the Company or the Operating Subsidiary within the USA; 

  

	 	(iv)	contact any prospective acquisition candidate, on the Executive’s own behalf or on behalf of any competitor, which candidate for which, to the Executive’s knowledge the
Company or the Operating Subsidiary made an acquisition analysis, for the purpose of acquiring such entity; or 

  

	 	(v)	induce or attempt to induce any person known by the Executive to be a customer, supplier, licensee or business relation of the Company or the Operating Subsidiary to cease doing
business with the Company or the Operating Subsidiary or in any way interfere with the relationship between the Company and any person known by the Executive to be a customer, supplier, licensee, or business relation of the Company or the Operating
Subsidiary. 

 Notwithstanding the above, the foregoing covenants shall not be deemed to prohibit the Executive from acquiring
as an investment not more than five (5%) percent of the capital stock of a competing business, whose stock is traded on a national securities exchange or over-the-counter. 
 9.2 Because of the difficulty of measuring economic losses to the Company as a result of a breach of the foregoing non-competition and non-solicitation
covenants, and because of the immediate and irreparable damage that could be caused to the Company for which the Company would have no other adequate remedy, the Executive agrees that the foregoing non-competition and non-solicitation covenants may
be enforced by the Company in the event of breach by the Executive, by injunctions and restraining orders. 
 9.3 The non-competition and
non-solicitation covenants in Section 9.1 are severable and separate, and the unenforceability of any specific covenant shall not affect the provisions of any other covenant. Moreover, in the event any court of competent jurisdiction shall
determine that the scope, time or territorial restrictions set forth are unreasonable, then it is the intention of the parties that such restrictions be enforced to the fullest extent which the court deems reasonable, and this Agreement shall
thereby be reformed. 

 9.4 The Executive acknowledges that the non-competition and non-solicitation covenants in
Section 9.1: (i) are agreed to by the Executive as an inducement for and in consideration of the Company’s entering into this Agreement; and (ii) contain limitations as to time, geographic area and scope of activity to be
restrained that are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interests of Company. 
 9.5 The Executive agrees that all of the non-competition and non-solicitation covenants in Section 9.1 shall be construed as an agreement independent of any other provision in this Agreement, that the Company
shall be the beneficiary of and have the right to enforce such covenants, and that the existence of any claim or cause of action of the Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense
to the enforcement by the Company of such covenants. It is specifically agreed that the period of one (1) year following termination of the Executive’s employment stated at the beginning of this Section 9, during which the agreements
and covenants of the Executive made in this Section 9 shall be effective, shall be computed by excluding from such computation any time during which the Executive is in violation of any provision of this Section 9. 
 10. Definitions. Capitalized terms used in this Agreement but not otherwise defined herein shall have the meaning hereby assigned to them as
follows: 
 10.1 “Affiliate” shall mean any “person” (as such term is utilized in Section 13d and
Section 14(d)(2) of the Securities Exchange Act of 1934, as amended and in effect on the date of this Agreement), who or which directly or indirectly controls, is controlled by or is under common control with, another person. For purposes of
this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of management and policies, whether through ownership of voting securities, by contract or otherwise. 
 10.2 “Cause” shall mean the Executive’s: (i) dishonesty of a material nature (including, but not limited to, theft or
embezzlement of Company funds or assets); (ii) conviction of, or guilty plea or no contest plea, to any felony, or the entry of a consent decree with any governmental body regarding any such felony; (iii) noncompliance in any material
respect with any laws or regulations, foreign or domestic, materially affecting the operation of the Company’s business; (iv) violation of any express direction or any rule, regulation or policy established by the Board that is consistent
with the terms of this Agreement; (v) material breach of this Agreement or of the Executive’s fiduciary duties to the Company; or (vi) abuse of alcohol or drugs which interferes with the Executive’s performance of his duties;
provided that in the case of (iii), (iv) or (v), which noncompliance, violation or breach, if reasonably capable of cure within thirty (30) days shall not have been cured within thirty (30) days of written notice thereof by any
manager of the Company to the Executive. 
 10.3 “Change of Control” shall be deemed to occur if and when one or more of
Stephen, Glenn and Arlene Nussdorf no longer own at least 51% of Model Reorg, Inc. A Change of Control shall not be deemed to occur in connection with any business combination between the Company and any entity at least 50% owned and controlled by
Model Reorg, Inc. or the E Corn transaction contemplated under the Related Agreement. 

 10.4 “Disability” means either (i) the Executive is deemed disabled for purposes of
any group or individual disability policy paid for by the Company and at the time in effect, or (ii) in the good faith judgment of the Board, the Executive is substantially unable to perform the Executive’s duties under this Agreement for
more than (180) days, whether or not consecutive, in any twelve (12) month period, by reason of a physical or mental illness or injury. 
 10.5 Termination by the Executive for “Good Reason” shall mean a resignation that occurs within thirty (30) days following the occurrence of any one or more of the following: 
 A. the reassignment of the Executive by Company, without the Executive’s express written consent, to a position with the Company other than that of
president and chief executive officer of the Company and its Operating Subsidiary or a material adverse change in the nature or scope of the Executive’s authorities, powers, functions, duties or responsibilities in those positions inconsistent
with the provisions of this Agreement or the Related Agreement; 
 B. the Company’s breach or failure to perform its material
obligations under this Agreement in any respect, including, without limitation, the failure by Company to pay compensation in accordance with this Agreement (provided that if such breach is capable of being cured within 30 days, such breach or
failure shall continue for 30 days after Executive given the Company notice thereof) and such breach or failure has a material and adverse effect on the Executive; 
 C. Company’s requiring the Executive, without the Executive’s express written consent, to change his place of permanent residency to or to spend more than 5% of the time in which he performs his duties for
Company in a place more than 50 miles outside of Miami-Dade County, Florida; 
 D. the occurrence of a Change of Control; or 
 E. the Executive has terminated the Related Agreement on the basis of a Model Termination Event as described in subsection (a) of the definition
thereof in the Related Agreement. 
 11. Waivers and Amendments. The respective rights and obligations of the Company and the
Executive under this Agreement may be waived (either generally or in a particular instance, either retroactively or prospectively, and either for a specified period of time or indefinitely) or amended only with the written consent of a duly
authorized representative of the Company and the Executive. 
 12. Successors and Assigns. The provisions hereof shall inure to the
benefit of, and be binding upon, the Company’s successors and assigns. 
 13. Entire Agreement. This Agreement and the Related
Agreement constitute the full and entire understanding and agreement of the parties with regard to the subjects hereof and supersede in their entirety all other or prior agreements, whether oral or written, with respect thereto. 

 14. Notices. All demands, notices, requests, consents and other communications required or
permitted under this Agreement shall be in writing and shall be personally delivered or sent by facsimile machine (with a confirmation copy sent by one of the other methods authorized in this Section), reputable commercial overnight delivery service
(including Federal Express and U.S. Postal Service overnight delivery service) or, deposited with the U.S. Postal Service mailed first class, registered or certified mail, postage prepaid, as set forth below: 
 If to the Company, addressed to: 
 Model
Reorg, Inc. 
 2060 Ninth Avenue 
 Ronkonkoma, New York 11779 
 Attention: Michael Katz 
 Fax: (631) 439-2333 
 with a copy to: 
 Edwards Angell Palmer & Dodge LLP 
 750 Lexington Avenue 
 New York, New York 10022 
 Attention: Patricia L. Kantor, Esq. 
 Fax: (212) 308-4844 
 If to the Executive, to the address set forth on the signature page of this Agreement, 
 with a copy to: 
 Berger Singerman, PA

 200 S. Biscayne Blvd, Suite 1000 
 Miami, Florida 33131 
 Attention: Daniel Lampert, Esq. 
 Fax: (305) 714-4340 
 or at the current
address listed in the Company’s records. 
 Notices shall be deemed given upon the earlier to occur of (i) receipt by the party to
whom such notice is directed; (ii) if sent by facsimile machine, on the day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) such notice is sent if sent (as evidenced by the facsimile
confirmed receipt) prior to 5:00 p.m. Eastern Time and, if sent after 5:00 p.m. Eastern Time, on the day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) after which such notice is sent;
(iii) on the first business day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) following the day the same is deposited with the commercial courier if sent by commercial overnight delivery
service; or (iv) the fifth day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) following deposit thereof with the U.S. Postal Service as aforesaid. Each party, by notice duly given in
accordance therewith, may specify a different address for the giving of any notice hereunder. 

 15. Governing Law. This Agreement shall be construed and enforced in accordance with and governed
by the laws of State of Florida (without giving effect to any conflicts or choice of laws provisions thereof that would cause the application of the domestic substantive laws of any other jurisdiction). 
 16. Consent to Jurisdiction 
 (a) EACH
OF THE PARTIES HERETO HEREBY CONSENTS TO THE JURISDICTION OF ALL STATE AND FEDERAL COURTS LOCATED IN DADE COUNTY, FLORIDA, AS WELL AS TO THE JURISDICTION OF ALL COURTS TO WHICH AN APPEAL MAY BE TAKEN FROM SUCH COURTS, FOR THE PURPOSE OF ANY SUIT,
ACTION OR OTHER PROCEEDING ARISING OUT OF, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING, WITHOUT LIMITATION, ANY PROCEEDING RELATING TO ANCILLARY MEASURES IN AID OF ARBITRATION, PROVISIONAL REMEDIES
AND INTERIM RELIEF, OR ANY PROCEEDING TO ENFORCE ANY ARBITRAL DECISION OR AWARD. EACH PARTY HEREBY EXPRESSLY WAIVES ANY AND ALL RIGHTS TO BRING ANY SUIT, ACTION OR OTHER PROCEEDING IN OR BEFORE ANY COURT OR TRIBUNAL OTHER THAN THE COURTS DESCRIBED
ABOVE AND COVENANTS THAT IT SHALL NOT SEEK IN ANY MANNER TO RESOLVE ANY DISPUTE OTHER THAN AS SET FORTH IN THIS SECTION OR AS PROVIDED IN THE NONDISCLOSURE AND DEVELOPMENTS AGREEMENT, OR TO CHALLENGE OR SET ASIDE ANY DECISION, AWARD OR JUDGMENT
OBTAINED IN ACCORDANCE WITH THE PROVISIONS HEREOF. 
 (b) EACH OF THE PARTIES HERETO HEREBY EXPRESSLY WAIVES ANY AND ALL OBJECTIONS IT MAY
HAVE TO VENUE, INCLUDING, WITHOUT LIMITATION, THE INCONVENIENCE OF SUCH FORUM, IN ANY OF SUCH COURTS. IN ADDITION, EACH OF THE PARTIES CONSENTS TO THE SERVICE OF PROCESS BY PERSONAL SERVICE OR ANY MANNER IN WHICH NOTICES MAY BE DELIVERED HEREUNDER
IN ACCORDANCE WITH SECTION 14 OF THIS AGREEMENT. 
 17. Equitable Remedies. The parties hereto agree that irreparable harm would occur
in the event that any of the agreements and provisions of this Agreement were not performed fully by the parties hereto in accordance with their specific terms or conditions or were otherwise breached, and that money damages are an inadequate remedy
for breach of this Agreement because of the difficulty of ascertaining and quantifying the amount of damage that will be suffered by the parties hereto in the event that this Agreement is not performed in accordance with its terms or conditions or
is otherwise breached. It is accordingly hereby agreed that the parties hereto shall be entitled to an injunction or injunctions to restrain, enjoin and prevent breaches of this Agreement by the other parties and to enforce specifically such terms
and provisions of this Agreement, such remedy being in addition to and not in lieu of, any other rights and remedies to which the other parties are entitled to at law or in equity. 

 18, Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES
TRIAL BY JURY IN ANY ACTION OR OTHER PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY. 
 19. Severability; Titles and Subtitles; Gender; Singular and Plural; Counterparts; Facsimile. 
 (a) In case any provision of
this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby. 
 (b) The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this
Agreement. 
 (c) The use of any gender in this Agreement shall be deemed to include the other genders, and the use of the singular in this
Agreement shall be deemed to include the plural (and vice versa), wherever appropriate. 
 (d) This Agreement may be executed in any number
of counterparts, each of which shall be an original, but all of which together constitute one instrument. 
 (e) Counterparts of this
Agreement (or applicable signature pages hereof) that are manually signed and delivered by facsimile transmission shall be deemed to constitute signed original counterparts hereof and shall bind the parties signing and delivering in such manner.

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above specified. 
  

							
	COMPANY:	  		  	EXECUTIVE:
			
	JACAVI, LLC	  		  	
				
	By:	 	 /s/    Rene Garcia
	  		  	 /s/    Rene Garcia

	Name:	 	Rene Garcia	  		  	Address: 1608 NW 84th Ave.
	Title:	 	President	  		  	Miami, FL 33126

 SEPARATION AGREEMENT 
 This Separation Agreement (the “Agreement”) is entered into among Rene A.
Garcia, an individual residing at 1608 NW 84th Avenue, Miami, FL 33126 (“Garcia”), and Jacavi, LLC, a Delaware limited
liability company (the “Employer” or the “Company”). 
 WHEREAS, Garcia and the Company are
parties to that certain Amended and Restated Employment Agreement dated as of January 2008 (the “Employment Agreement”); and 
 WHEREAS, the undersigned desire to enter into this Agreement in order to (i) terminate the Employment Agreement and (ii) resolve any claims, controversies, disputes or outstanding issues that may exist
between them. 
 NOW, THEREFORE, in consideration of the mutual covenants, conditions and agreements set forth herein, including the
agreement to release Garcia from his obligations under the restrictive covenants contained in Section 9 of the Employment Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows: 
 1. Termination. Effective December 15, 2008, the Employment Agreement is hereby
terminated in all respects and is of no further force or effect (such time to be hereinafter referred to as the “Termination Date”) Garcia waives any notice provisions, termination provisions, early termination penalties and
severance obligations in the Employment Agreement. In addition, Garcia hereby resigns any and all positions Garcia held with the Company, whether as officer, director or otherwise. 
 2. Release. In consideration of the benefits promised by the Company under the terms of this Agreement and as a condition of the Company entering
into this Agreement, and except for the “Preserved Matters”, as defined in paragraph 4, below, Garcia, on behalf of himself, his agents, representatives, attorneys, heirs, executors, administrators, successors and assigns (collectively the
“Executive”), hereby agrees to forever release and forever discharge the Company and any of its parent companies (including, without limitation, Model Reorg Acquisition, LLC (“Model Reorg”) and Perfumania Holdings,
Inc. (“Perfumania Holdings”)), subsidiary companies, companies under common control with any of the foregoing or affiliated or related business entities or any of their respective successors or assigns, or any of the foregoing
entities’ current or former shareholders, directors, officers, managers, agents, employees or attorneys (collectively the “Released Parties”), whether as legal entities or individuals acting as agents for any of the
Released Parties or in their individual capacities, of and from all manner of actions, proceedings, causes of action, suits, debts, sums of money, accounts, contracts, controversies, agreements, promises, damages, judgments, claims, liabilities,
terms, sanctions and demands, of whatsoever character, nature or kind, actual or potential, known or unknown, suspected or unsuspected, whether arising in law or in equity out of any federal, state or city constitution, statute, ordinance, by-law or
regulation (including, but not limited to, any and all claims for discrimination under the Age Discrimination in Employment Act, The Older Worker Benefits Protection Act, Title VII of the Civil Rights Act of 1964, Sections 1981 through 1988 of Title
42 of the United States Code, the Americans with 

 
Disabilities Act of 1990, the Family and Medical Leave Act of 1993 and all claims for breach of contract and wrongful discharge and any and all claims
relating to Executive’s employment at the Company and the termination thereof, all claims under any statute, state or federal, and all claims for attorneys’ fees, costs, disbursements or the like), which Executive ever had, now has, or may
have for, or by reason of, any matter, cause, event or thing whatsoever, from the beginning of the world to the date of this Agreement. 
 Executive’s decision to enter into this Agreement is based solely on the mutual considerations described above and Executive affirms that it is his free act and deed. Before signing this Agreement, Executive has had the opportunity to
carefully consider the terms and ramifications of the Agreement and the opportunity to consult with advisors, legal or otherwise, which the Company has encouraged Executive to do. Executive acknowledges that the benefits provided for by this
Agreement are in addition to any payment, benefit or other thing of value to which Executive might otherwise be entitled under any policy, plan or procedure of the Company or pursuant to any prior agreement or contract with the Company. 

3. Unknown Claims Released. Executive understands that he is releasing claims that he may not know about. This is Executive’s
knowing and voluntary intent, even though he recognizes that someday he might learn that some or all of the facts he currently believes to be true are untrue and even though he might then regret having signed this Agreement. Nevertheless, Executive
assumes that risk and agree that this Agreement shall remain effective in all respects in any such case. Executive expressly waives all rights he might have under any law that is intended to protect him from waiving unknown claims, and he
understands the significance of doing so. 
 4. Claims Not Released. Executive understands that he is not releasing, and the parties
agree that Executive’s releases do not affect or impair any of the “Preserved Matters”, which term shall mean and consist of: (a) any claim that relates to the right to enforce this Agreement, (b) any claim as a shareholder
of Perfumania Holdings or arising under the agreements to which Executive is a party relating to the merger of Model Reorg into Perfumania Holdings (other than the Employment Agreement), (c) Executive’s rights to indemnity and advancement
of expenses for defense costs under the organizational documents of the Company, Model Reorg or Perfumania Holdings (including the benefits under any Directors’ & Officers insurance coverages in effect) or (d) any rights or claims
that arise after the signing of this Agreement. 
 5. COBRA. Executive will retain coverage and benefits under the Company’s
medical plans through midnight on December 31, 2008. Effective January 1, 2009, Executive will have the right to COBRA medical insurance continuation coverage as to any Company-provided medical plan in which he participates in accordance
with the provisions of COBRA. 
 6. Revocation of Agreement. Executive acknowledges that Executive has had the opportunity to consider
this Agreement for a period of up to twenty-one (21) days and understands that Executive may revoke this Agreement at any time during the period of seven (7) days following the day Executive executes this Agreement. Any revocation within
this period must be submitted, in writing, to Model Reorg Acquisition, LLC, 35 Sawgrass Drive, 

  

 2 

 
Suite 2, Bellport, New York 11713, Attn: Michael W. Katz, and state, “I hereby revoke my acceptance of our Agreement terminating my employment
effective December 15, 2008.” This Agreement shall not become effective or enforceable until the revocation period has expired. If the last day of the revocation period is a Saturday, Sunday, or legal holiday, then
the revocation period shall not expire until the next following day which is not a Saturday, Sunday, or legal holiday. Executive agrees that any modifications, material or otherwise, made to this Agreement do not restart or affect in any manner the
original twenty-one (21) day consideration period. 
 7. No Participation in Claims. Executive understands that if this
Agreement were not signed, he would have the right to voluntarily assist other individuals or entities in bringing claims against the Released Parties. Executive hereby waives that right and will not provide any such assistance, other than
assistance in an investigation or proceeding conducted by a federal or state agency. To the extent that the law prohibits Executive from waiving his right to bring and/or participate in the investigation of a claim, he nevertheless waives his right
to seek or accept any monetary damages or relief in any proceeding. 
 8. Prohibited Statements. As part of this Agreement,
Executive agrees to refrain from taking action or making statements, written or oral, which disparage or defame the goodwill or reputation of the Released Parties. 
 9. Confidentiality. The parties hereto represent that they have not and agree that, except as required by law, they shall not publicize or disclose the terms, contents, conditions or existence of this
Agreement, whether in writing or orally, to any person, except to an accountant, tax preparer, financial or legal consultant or spouse, if requested by such person or entity, and then only if reasonably necessary in the performance of such
person’s or entity’s professional services or within the marital relationship. The parties hereto further agree not to solicit or initiate any demand by others not a party to this Agreement for any disclosure of the terms and conditions of
this Agreement. 
 Executive also agrees to continue to maintain the confidentiality of, and not to divulge, furnish, publish or use to the
detriment of the Company, the Company’s Confidential Information. “Confidential Information” means any and all information, whether or not reduced to written or recorded form, that is related to the Company or any
of its parent companies (including, without limitation, Model Reorg Acquisition, LLC and Perfumania Holdings, Inc.), subsidiary companies and companies under common control with any of the foregoing, that is not generally known or accessible to
members of the public and/or competitors of the Company nor intended for general dissemination, whether furnished by the Company or compiled by Executive, including, without limitation, information relating to the Company’s past, present, or
future research, development, business methodologies or business affairs such as trade secrets, inventions (whether or not patentable), product development, software, software and technology architecture, networks, facilities, billing records,
policies, financial and operational information, contracts, officer, director and member information (including professional and personal information regarding such member), suppliers, client lists, client data and information, client pricing,
client bidding information, marketing or sales prospects, projected projects, Company “know how,” and all copies, reproductions, notes, analyses, compilations, studies, interpretations, summaries and other
documents. “Confidential Information” does not include 

  

 3 

 
information that has become publicly known and made generally available through no wrongful act of Executive or others or that Executive obtained or
developed prior to his employment by the Company.
 10. Return of Company Property. Executive acknowledges that he has returned all
Company property and Company Confidential Information in his possession. 
 11. Nonadmission of Liability. Executive recognizes
and agrees that this Agreement is not intended to imply any wrongdoing on the Company’s part with respect to his employment or its termination, or any other reason, and shall not constitute evidence of the same. 
 12. Assignment of Claims. Executive hereby represents and warrants that Executive has not assigned or transferred, or purported to assign or
transfer, to any person or entity, any claim against the Released Parties or any portion thereof or interest therein. Executive also waives the right to all remedies in any such action that may be brought on Executive’s behalf. 
 13. No Further Rights. Notwithstanding the terms and conditions of the Employment Agreement, the parties hereto agree, with the sole exceptions
that (a) Executive shall remain liable for actions and omissions, and obligations arising, under the Employment Agreement prior to the Termination Date, and (b) Executive’s rights to medical benefits under paragraph 5, above, which
shall remain in full force and effect, that there shall be no continuing rights or obligations of either party under the Employment Agreement, including, without limitation, any obligation of the Company to provide Executive with any severance,
compensation or other benefits upon termination of employment, and any non-compete or non-solicitation covenant of the Executive. 
 14.
Representations and Warranties. Each party hereto represents and warrants to the other party that he/it has all requisite power and authority to execute and perform this Agreement, and that this Agreement constitutes his/its legal, valid and
binding obligation, enforceable against his/it in accordance with its terms. Each party hereto also represents that he/it has consulted, or has been provided the opportunity to consult, with legal counsel prior to signing this Agreement. 

15. Further Assurance. Subject to the terms and conditions of this Agreement, each party hereto will use its commercially reasonable efforts to
take, or cause to be taken, all such actions and to do or cause to be done, all things necessary or proper to effectuate the termination of the Employment Agreement. 
 16. Entire Agreement. This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any prior agreements or understandings between the parties hereto as set forth herein. No
modifications, alterations or changes to this Agreement shall be binding unless in writing and signed by each of the parties hereto. 
 17.
Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
  

 4 

 18. Governing Law. This Agreement shall be governed, construed and enforced in accordance with the
laws of the State of Florida (without regard to its choice of law principles). Any action, suit or other proceeding initiated by any party hereto under or in connection with this Agreement must be brought in any federal or state court in the State
of Florida and both parties hereto consent to the jurisdiction and venue of any federal or state court in the State of Florida and agree to waive any claim that Florida is not a convenient forum for such dispute. 
 19. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which
together shall be deemed to be one and the same instrument. A signature sent by telecopy or facsimile transmission shall be as valid and binding upon a party hereto as an original signature of such party. 
 [Remainder of Page Intentionally Left Blank] 
 [Signature Page to Follow] 
  

 5 

 IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this
Agreement as of the date first written below. 
  

			
	JACAVI, LLC
		
	By:	 	/s/ Michael W. Katz
		 	Name: Michael W. Katz
		 	Title: President
	Date: 12/15/08

  

			
	
	
	
	RENE A. GARCIA
	
	/s/ Rene A. Garcia
	
	Date: 12/15/08

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