Document:

Exhibit 10.1

Exhibit 10.1

SECOND AMENDMENT TO

EXECUTIVE EMPLOYMENT AGREEMENT

THIS SECOND AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT (this “Second Amendment”) is entered into as of the 30th day of March, 2012 by and between Parlux Fragrances, Inc. (the “Company”) and Frederick E. Purches (the “Executive” and, together with the Company, the “Parties”).

WHEREAS, the Company and the Executive entered into an Executive Employment Agreement dated November 8, 2010 (the "Agreement"); and

WHEREAS, the Company and the Executive amended the Agreement on March 18, 2011 (“First Amendment”); and

WHEREAS, the Company and the Executive wish to further amend the Agreement on the terms and conditions set forth in this Second Amendment (defined terms used in this Second Amendment shall have the respective meanings ascribed to such terms in the Agreement, unless redefined in this Second Amendment); 

WHEREAS, the terms of this Second Amendment have been reviewed and approved by the members of the Compensation Committee of the Board of Directors of the Company (the “Committee”).

NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other valuable consideration the receipt and adequacy of which is hereby acknowledged, the Parties hereby agree as follows:

1.

Term of Agreement and Employment. Section #2 of the Employment Agreement “Term of Agreement and Employment” is deleted in its entirety and replaced with the following:

a)

 “The term of the Executive’s employment as an employee under this Agreement will continue through January 31, 2013, unless terminated at an earlier date by mutual written agreement. Compensation shall be as defined under section 3(a) of the Agreement.

b)

At the termination of this Agreement on January 31, 2013 or earlier should the parties agree, the company shall continue to engage the executive as a consultant at the rate of $15,000 (Fifteen Thousand) per month for an additional six (6) months and shall continue to provide full healthcare coverage for himself and spouse in accordance with the terms provided to other executives during this period.

c)

At the completion of the six months period noted in (b) above, the company shall continue to provide the retired executive with full healthcare coverage for himself and spouse for a period of eighteen (18) months in accordance with the terms provided to other executives during this period.

d)

At the completion of the 18 months period noted in (c) above, the retired executive shall qualify for an additional eighteen (18) months of healthcare coverage in accordance with the COBRA guidelines then in effect, and the premium shall be paid in full by the Executive.

2.

Section #4 “Executive Benefits” in the Employment Agreement is deleted in its entirety and replaced with the following:

Executive Benefits. The Executive is entitled to four weeks of paid vacation during the fiscal year commencing April 1, 2012. The Executive will generally be able to participate in the benefit plans available to other executive officers of the Company, and shall be provided with an automobile allowance of $800 per month at the Company's expense. Executive shall participate in the group 

health, dental, disability, and life insurance benefit plans of the Company to the extent and as set forth on Exhibit A, as such plans may exist from time to time. Executive shall pay, through payroll deductions, the employee portion of the benefits as is indicated on Exhibit A. Upon (a) expiration of the Term or (b) termination of this Agreement or termination of a consultant engagement pursuant to Section 1.b above, other than for Cause (meaning Executive’s willful misconduct, commission of a felony, repeated disregard of his duties hereunder, or material breach of this Agreement), the amended provisions of Section #2 of the Employment Agreement will apply.

3.

Stock Options. As additional consideration for the Executive's services hereunder and the covenants contained herein, the Company shall grant Executive an option (the "Option") to purchase 50,000 shares of common stock of the Company (the "Common Stock") pursuant to the Company's 2007 Stock Incentive Plan. The Option (i) shall provide for an exercise price equal to the market price of the Common Stock as of the close of trading on the Nasdaq National Market on the date of this Agreement, and (ii) shall further provide that the Option shall vest and be exercisable immediately with respect to 50,000 shares of the Common Stock covered by the Option. 

4.

Governing Law. This Amendment shall be governed by the laws of Florida without regard to the application of conflicts of laws.

5.

Entire Agreement. This Second Amendment, together with the Agreement and the First Amendment, constitutes the only agreement between Company and the Executive regarding the Executive’s employment by the Company. This Second Amendment, together with the Agreement and the First Amendment, supersedes any and all other agreements and understandings, written or oral, between the Company and the Executive regarding the subject matter hereof. A waiver by either party of any provision of the Agreement or any breach of such provision in an instance will not be deemed or construed to be a waiver of such provision for the future, or of any subsequent breach of such provision. The Agreement, as amended by the Amendment, may be further amended, modified or changed only by further written agreement between the Company and the Executive, duly executed by both Parties. Except as modified by the Amendment, the Agreement remains in full force and effect between the Parties.

IN WITNESS WHEREOF, the Parties hereto have executed and delivered this under seal as of the date first above written.

							
	 
	PARLUX FRAGRANCES, INC.

	EXECUTIVE

	 

	 
	 
	 
	 
	 
	 
	 

	 
	By:

	/s/ Frank A. Buttacavoli

	 
	By:

	/s/ Frederick E. Purches

	 

	 
	 
	Frank A. Buttacavoli, Exec. VP and COO

	 
	 
	Frederick E. Purches, CEO and Chairmanex105tos1a207827004_040212.htm

Exhibit 10.6

March 22, 2012

 

Cheval Holdings, Ltd.

Attn: Dale B. Chappell

PO Box 309 Ugland House

Grand Cayman, KY1-1104

Cayman Islands

 

Ladies and Gentlemen:

 

This amendment to letter agreement (this “Amendment”) hereby amends that certain letter agreement (the “Letter Agreement”), dated January 3, 2011, by and between Footstar Corporation (“Footstar”) and Cheval Holdings, Ltd. (“Cheval”) regarding non-exclusive consulting and advisory services to be provided by Cheval and made in connection with that certain Agreement and Plan of Merger (the “Merger Agreement”) dated as of January 3, 2011, by and among FCB I Holdings Inc. (“Holdings”), FCB I Acquisition Corp. and CPEX Pharmaceuticals, Inc. (“CPEX”). The parties hereby confirm their mutual understanding that the Amendment is intended solely to clarify the parties’ original understanding of the terms of the Letter Agreement as it was intended to be implemented starting April 15, 2011, and is consistent with the actual non-exclusive advisory and consulting work performed by Cheval since closing the transactions contemplated by the Merger Agreement on April 5, 2011. Accordingly, Footstar and Cheval hereby agree to amend the Letter Agreement as follows:

 

Paragraph (a) of the Letter Agreement is hereby amended and restated in its entirety to state:

 

“(a) A consulting and advisory fee (the “Consulting Fee”) in the annual amounts described in Schedule I to the this letter shall be paid to Cheval relating to the performance of non-exclusive advisory and consulting services to Footstar relating to (1) Footstar’s indirect investment in CPEX and in connection therewith, CPEX’s patent technologies and their use, application, monetization and relicensing, (2) future investments, acquisitions, joint ventures, partnerships and the like that are compatible with Footstar’s indirect investment in CPEX, and (3) future investments, acquisitions, joint ventures, partnerships and the like unrelated to Footstar’s indirect investment in CPEX, to the extent funds are available to Holdings at the indicated times.  The Consulting Fee shall be paid to an escrow account as specified by Cheval over which Cheval shall have sole investment authority; and shall be released to Cheval upon the earlier of (i) six years following the filing of the consolidated tax return by Footstar relating to the period for which such Consulting Fee was paid, to the extent such tax return was not audited by any governmental or regulatory agency and if so audited, it shall not be paid until such time as the audit is completed with no additional tax or penalty payments due, or (ii) the approval of Footstar’s Board.  The Consulting Fee shall be paid to Cheval and shall not be terminated until the conclusion of the monetization of CPEX’s intellectual property, including the period during which royalties are received by any FCB Entity (as such term is defined in that certain Stockholders Agreement dated January 3, 2011, by and among Footstar, Cheval and Holdings) with respect to the license of Testim® gel for testosterone replacement therapy or any other gel for testosterone replacement or dihydrotestosterone therapy, provided, however, the Consulting Fee shall terminate at anytime as the aggregate annual license fee income received by the FCB Entities is below $1,000,000 per annum (the “Fee Termination Date”). Payments shall be made no later than thirty (30) days following the end of each calendar year.  Some or all of the funds in such escrow account may be reclaimed by Holdings to the extent necessary to provide an appropriate reserve, or to make payments, for taxes. The parties understand that, through affiliated entities, Cheval manages and renders services to other private investment entities and accounts, including those with investment objectives that are substantially similar or identical to Footstar’s.  As a result, Cheval and its respective affiliates and employees will need to allocate their time, as well as investment opportunities, among Footstar and such other entities and accounts.  Cheval and its respective affiliates and employees are required to devote only such amount of time to Footstar as they, in their discretion, deem necessary in good faith, and may also devote a substantial portion of their time and attention to other entities, accounts, investments and activities.”

 

Except as set forth herein, the terms and provisions of the Letter Agreement shall remain in full force and effect.  On or after the date of this Amendment, this Amendment shall be deemed to be a part of the Letter Agreement.

 

If you are in agreement with the foregoing, please countersign this Amendment where indicated below.

 

	
Very truly yours,

	  
	
FOOTSTAR CORPORATION

	  
	
By:

	

/s/ Jonathan M. Couchman

	
Name: Jonathan M. Couchman

	
Title:  Chief Executive Officer

Agreed to and accepted as of

March 22, 2012

	
CHEVAL HOLDINGS, LTD.

	  
	  
	
By:

	

/s/ Dale B. Chappell

	
Name:

	
Dale B. Chappell

	
Title:

	
Director

 

	
By:

	

/s/ Mary E. Chappell

	
Name:

	
Mary E. Chappell

	
Title:

	
Director

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