Document:

Employment Agreement

 Exhibit 10.49 
 

 
 October 29, 2010 

Mr. Alexander A. Fitzpatrick 
 [address] 

Dear Alex, 
 We are pleased to
confirm the compensation and employment agreement between you and Verenium Corporation (the “Company”). In consideration of the covenants and agreements set forth below, the Company hereby agrees to employ you, and you hereby
agree to be employed by the Company, on the following terms and conditions: 

1.        Term.    This employment agreement (the
“Agreement”) shall become effective as of                              (the
“Effective Date”) and shall continue until it is terminated by you or the Company in accordance with, and subject to the obligations set forth in, the provisions of Section 5 below (the “Term”).

 2.        Duties and
Responsibilities.    During the Term of this Agreement, you shall have, and you agree to carry out to the best of your ability, the duties and responsibilities of Senior Vice President and General Counsel. You shall have
such responsibilities and duties as are assigned by the President and Chief Executive Officer (“CEO”) and/or the Board of Directors of the Company (the “Board”) and are consistent with the position of
Senior Vice President and General Counsel. In the performance of your duties and responsibilities hereunder, you shall regularly report to Carlos Riva, President and CEO. You agree to devote your full business time, attention and energies to the
business and interests of the Company during the Term of this Agreement and you will not accept any outside position without the prior written consent of the CEO or the Board. You warrant that you are free to enter into and fully perform this
Agreement and are not subject to any employment, confidentiality, non-competition or other agreement which would restrict your performance under this Agreement. You shall fulfill your duties and responsibilities to the Company hereunder primarily
from the Company’s office located in San Diego, CA, provided, however, that the Company may from time to time require you to travel temporarily to other locations in connection with the Company’s business. 

3.        Compensation and Benefits.    Subject to your
adherence to all of your responsibilities under this Agreement, during the Term of this Agreement you shall be entitled to receive the following compensation and benefits. 

(a)        Base Salary.    Commencing on the Effective
Date, and during the Term of this Agreement, the Company will pay you a base salary at not less than the biweekly rate of $10,000 (“Base Salary”), minus withholdings as required by law or other deductions authorized by you,
which amount shall be paid to you in periodic installments in accordance with the Company’s payroll practices then in effect. Your Base Salary shall be subject to review and upward adjustment on an annual basis; provided, however, that subject
to the provisions of Section 5(f), your Base Salary may be reduced at any time in connection with an across-the-board reduction of all senior executives’ annual base salaries. 

(b)        Incentive Bonus.    For each calendar year
during the Term of this Agreement, you will be eligible to receive an annual performance-based incentive bonus, based upon the achievement of milestones set by the Board and/or the CEO, with a target bonus of 40% percent of the

 
Base Salary earned during such period (the “Bonus”). Any incentive bonus earned by you will be paid in accordance with the Company’s standard practices and policies
regarding bonuses, and which shall be paid in the calendar year following the year for which the Bonus was earned. Except as otherwise provided in this Agreement, to be eligible to have earned a Bonus for a calendar year, you must be employed
through the last date of such calendar year. 

(c)        Benefits.    During the Term of this
Agreement, you shall be entitled to participate, to the extent you are otherwise eligible, in all group insurance programs or other fringe benefit plans which the Company shall make available to similarly situated employees. The Company may alter,
modify, add to or delete its employee benefit plans at any time as it, in its sole judgment, determines to be appropriate, without recourse by you. 
 (d)        Vacation.    You will be entitled to four (4) weeks of vacation per calendar year, in accordance with the Company’s
vacation policy as in effect from time to time. 
 (e)        Stock Options
and Restricted Shares.    Subject to approval by Verenium’s Board of Directors, you will be granted an option (in the form of an Incentive Stock Option) to acquire 25,000 shares of Verenium’s common stock at an
exercise price equal to the fair market value at the time of grant. Option vesting will occur as follows: 25% after 12 months of employment, quarterly thereafter on the remaining 75% over the subsequent three years. 

(f)        Change in Control Acceleration of
Vesting.    Upon a Change in Control (as defined below), the vesting of stock options and any other equity awards to purchase Company stock held by you will automatically accelerate as follows: 

(i)        effective immediately prior to such Change in Control, all stock options,
restricted stock, and any other equity awards except your “Undetermined Performance Based Options” (as defined below), shall accelerate vesting and no longer be subject to a risk of forfeiture or a right to repurchase by the Company, if
applicable, as if you had been employed by the Company for an additional period of twenty four (24) months as of the date of the Change in Control. Subject to your continued service with the Company following the Change in Control, any
remaining unvested portion of such accelerated equity awards will continue to vest according to the terms of the applicable equity award agreements, but on the schedule and at the rate of number of shares as such awards would have vested if the
original vesting schedule applicable to such options had been accelerated by twenty-four (24 months.. For example, if at the time of the Change in Control the unvested portion of your equity award is 3,600 shares, which would otherwise continue to
vest in 36 equal monthly installments of 100 shares each, then (A) 2,400 shares shall become vested immediately upon the Change in Control and (ii) the remaining 1,200 shares will vest during your continued service following the Change in
Control in twelve monthly installments of 100 shares, with the result being that your award will be fully vested twenty-four months earlier than it would have been had no Change in Control occurred. 

(ii)        for those Performance Based Options for which, at the time of the Change in
Control, performance assessments have not yet been made by the Board or Compensation Committee that the Performance Goals applicable to such awards have been achieved (the “Undetermined Performance Based Options”) vesting of
the Undetermined Performance Based Options shall be accelerated so that such options shall vest on a pro rata basis monthly, commencing from the date of the Change in Control until the earlier of (x) the original vesting date of such options,
or (y) the date which is four (4) years after the Change in Control. Following a Change in Control, the Undetermined Performance Based Options that accelerate vesting pursuant to this provision shall remain subject to acceleration of
vesting as provided in Section 3(e) based on achievement of the Performance Goals. 

(iii)        in the event that the Company agrees to, approves, enters, or is required to
enter into a transaction, a series of related transactions, or a proceeding, or nominates one or more directors such that any of the foregoing would result in a Change in Control, the Board will assess whether any additional accelerated vesting of
your equity awards should occur. 

  
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 (g)        Change in
Control.    For purposes of this Agreement, “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

 (i)        any Exchange Act Person becomes the Owner, directly or indirectly,
of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction. Notwithstanding the
foregoing, a Change in Control shall not be deemed to occur (A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person from the Company in a transaction or series of
related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities or (B) solely because the level of Ownership held by any Exchange Act Person (the “Subject
Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a
Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities
that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to
occur; 
 (ii)        there is consummated a merger, consolidation or similar
transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly,
either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent
(50%) of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting
securities of the Company immediately prior to such transaction; 

(iii)        the stockholders of the Company approve or the Board approves a plan of
complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur, except for a liquidation into a parent corporation; 

(iv)        there is consummated a sale, lease, exclusive license or other disposition of
all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity,
more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company
immediately prior to such sale, lease, license or other disposition; or 

(v)        individuals who, on the date this Plan is adopted by the Board, are members of
the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment or election (or nomination for election) of any new Board member
was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board. 

For the avoidance of doubt, the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the
purpose of changing the domicile of the Company. Capitalized terms utilized in the foregoing definition of Change in Control shall have the following meanings: 

(vi)        “Exchange Act Person” means any natural person, Entity
or “group” (within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended 

  
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(“Exchange Act”)), except that “Exchange Act Person” shall not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the
Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to an
offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or
“group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the
combined voting power of the Company’s then outstanding securities. 

(vii)        “Entity” means a corporation, partnership, limited
liability company or other entity. 
 (viii)        “Own,”
“Owned,” “Owner,” “Ownership” A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such
person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities. 

(ix)        “Subsidiary” means, with respect to the Company,
(i) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any
other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or
other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital) of more than fifty percent (50%). 

(h)        Business Expense Reimbursement.    The
Company shall reimburse you for the travel, entertainment and all other business related expenses reasonably incurred by you in the performance of your duties hereunder in accordance with the Company’s policies as in effect from time to time
for senior executives. 

(j)        Indemnification.    The Company agrees that
you shall be entitled to indemnification to the fullest extent permitted under the Company’s Articles of Incorporation and Bylaws, and as required by law. In addition, the Company will also provide you with an Indemnity Agreement, in the form
attached hereto as Exhibit A. 
 4.        Confidential and Proprietary
Information; Restrictive Covenants; Non-solicitation; Indemnification. 

(a)        Covenant not to Compete. You acknowledge that by virtue of your
employment pursuant to this Agreement, you will have access to valuable trade secrets and other confidential business and proprietary information of the Company. Except with the prior written consent of the Board you will not, during your employment
by the Company, engage in competition with the Company and/or any of its Affiliates, either directly or indirectly in any manner or capacity, as adviser, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder,
owner, co-owner, consultant, or otherwise, in any phase of the business of researching, developing, manufacturing, or marketing of products or services which are in the same field of use or which otherwise compete with the products or services or
proposed products or services of the Company and/or any of its Affiliates. For purposes of this Agreement, “Affiliate” means any subsidiary of the Company or any other entity that is controlled by or is under common control
with the Company. Except with the prior written consent of the Board, you shall not, during your employment by the Company and for a period of one (1) year thereafter (the “Restricted Period”), engage in competition with
the Company or any of its Affiliates, either directly or indirectly, as adviser, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant, or otherwise, in any phase of the business of the
research, development, manufacturing, production, sales, or marketing of biofuels. Ownership by you, as a passive investment, 

  
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of less than two percent (2%) of the outstanding shares of capital stock of any corporation with one or more classes of its capital stock listed on a national securities exchange or publicly
traded on the Nasdaq Stock Market or in the over-the-counter market shall not constitute a breach of this paragraph. 

(b)        Agreement not to Participate in Company’s
Competitors.    During any period during which you are receiving compensation or consideration from the Company, you will not acquire, assume, or participate in, directly or indirectly, any position, investment, or
interest known by you at the time of such position, investment or interest to be adverse or antagonistic to the Company, its business, or prospects, financial or otherwise, or in any company, person, or entity that is, directly or indirectly, in
competition with the business of the Company or any of its Affiliates. Ownership by you, as a passive investment, of less than two percent (2%) of the outstanding shares of capital stock of any corporation with one or more classes of its
capital stock listed on a national securities exchange or publicly traded on the Nasdaq Stock Market or in the over-the-counter market shall not constitute a breach of this paragraph. 

(c)        Non-solicitation.    During the Restricted
Period you shall not, either directly, or through others: (1) hire or participate in the hiring of any individual who is at that time an employee, consultant or independent contractor of the Company or any Affiliate; (2) solicit or attempt
to solicit any individual who is at that time an employee, consultant or independent contractor of the Company or any Affiliate to terminate his or her relationship with the Company or any Affiliate in order to become an employee, consultant or
independent contractor to or for any person or business entity; or (3) solicit or attempt to solicit the business of any client, customer, supplier, service provider, vendor, or distributor of the Company or any Affiliate that is at that time,
or that was during the one (1) year immediately prior thereto, doing business with the Company or any Affiliate for the purpose of engaging in competition with the Company or any of its Affiliates, provided that the foregoing prohibitions shall
not apply to any employee who responds to a general solicitation or advertisement regarding employment with the Company or its affiliates. 
 (d)        Employee Invention and Non-Disclosure Agreement.    As a condition of employment, you agree to execute and abide by the
Company’s standard Employee Invention and Non-Disclosure Agreement, a copy of which is attached hereto as Exhibit B. 

5.        Termination.    You and the Company shall be
free to terminate this Agreement as follows and subject to the payment obligations set forth herein: 

(a)        By the Company for Cause.    The Company
shall have the right to terminate your employment hereunder at any time for “Cause.” For purposes of this Agreement only, “Cause” shall be defined to include (1) material misconduct in the performance of your
duties and responsibilities hereunder, (2) your material failure, refusal or inability (other than for reasons of disability) to perform your duties and responsibilities hereunder or to carry out any lawful direction of the CEO or the Board,
(3) breach by you of a material term of this Agreement, the Employee Invention and Non-Disclosure Agreement, or any other agreement between you and the Company, (4) conviction of or plea of nolo contendere to, a felony or other
crime involving moral turpitude, or imprisonment for any crime; (5) your material failure to comply with Company written policies, including but not limited to Equal Employment Opportunity and Harassment policies, Professional Conduct policy,
and/or Code of Business Conduct and Ethics policy; and (6) your violation of any statutory or fiduciary duty owed to the Company; provided, however, that in the event of a potential termination under subclauses 2, 3, or 5 above, such
termination may not occur until at least thirty (30) days after the Company has provided you with a detailed written notice of the ground(s) for such potential termination, and then only if in the reasonable determination of the CEO or the
Board you have failed to correct the behavior giving rise to such potential termination. Notwithstanding any other provision of this Agreement, in the event of a termination for Cause pursuant to this paragraph, the Company shall only be obligated
to pay you (i) your Base Salary through the date of your termination, (ii) your accrued but unused vacation, (iii) any earned, but unpaid, Bonus described in Section 3(b) with respect to the calendar year immediately preceding the
year in which your employment is terminated, based on the achievement of the performance milestones established for such calendar year in accordance with Section 3(b), as determined by the Board of Directors, which determination may

  
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occur either before or after your termination of employment so that you may have earned a Bonus described in Section 3(b) notwithstanding your termination of employment following the calendar
year for which the Bonus was earned but prior to the date such determination (or an associated bonus payment) is made (the “Unpaid Bonus”), and (iv) such other benefits and payments to which you may be entitled by law or
pursuant to the benefit plans of the Company then in effect (collectively, the “Accrued Obligations”). Any Accrued Obligations other than Unpaid Bonus shall be paid to you either upon, or as soon as administratively
practicable following, your termination of employment. Any Unpaid Bonus will be paid to you as soon as administratively practicable following the later of: (i) your termination of employment, or (ii) the determination by the Board of
Directors that one or more of the performance milestones applicable to such Bonus amounts have been achieved, provided that following a Change in Control, if the Board of Directors has at any time determined (whether such determination is
made before or after a Change in Control) that one or more pre-established performance milestones (if any) applicable to such Bonus amount have been achieved, any determination by the Board of Directors of the amount of Bonus payable shall be made
without any exercise of negative discretion by the Board of Directors to reduce the Bonus amount. 

(b)        Death; Disability.    Your employment
hereunder shall terminate in the event of your death and in the event that you shall be prevented, by illness, accident, disability or any other physical or mental condition (to be determined by means of a written opinion of a competent medical
doctor chosen by mutual agreement of the Company and you or your personal representative), from substantially performing your duties and responsibilities hereunder, with or without a reasonable accommodation, for one or more periods totaling ninety
(90) days in any twelve (12) month period. In the event of a termination of your employment pursuant to this paragraph, you or your estate, as applicable, shall be entitled to receive payment of the Accrued Obligations. You shall also be
eligible to receive any disability-related benefits provided by the Company at the time of such disability, in accordance with the terms and conditions of such benefit plans. 

(c)        Termination by the Company Other Than for
Cause.    The Company shall have the right to terminate your employment hereunder at any time other than for Cause. In the event of a termination by Company pursuant to this paragraph, you shall be entitled to receive
payment of the Accrued Obligations and the following severance pay and related benefits: 

(i)        the Company will pay you severance pay in the amount of (A) your
then-current annual Base Salary plus (B) the higher of (i) your Bonus for the year in which the termination occurs or (ii) the average percentage of your Base Salary paid to you as Bonus in the two fiscal years prior to the termination
date, in each case pro-rated by the number of days you were employed in the calendar year of the termination, provided however, that if the termination date occurs during the first year of employment, the pro-rated amount of the Bonus, if
any, shall be determined in the sole discretion of the Board or the Compensation Committee (A and B, collectively are the “Severance Pay”). Your Severance Pay shall be paid in equal installments over a period of twelve
(12) months commencing with the first payroll period following the effective date of the Release required by Section 5(e), minus required withholdings, which severance payments will be made to you on the Company’s normal payroll
cycle; 
 (ii)        should you elect to continue your group health and dental
insurance benefits in accordance with the provisions of COBRA following the date of your termination, the Company shall pay the full premium for such health and dental insurance continuation benefits for a period of twelve (12) months after the
termination date; provided, however, that any such payments will cease if you voluntarily enroll in a health insurance plan offered by another employer or entity during the period in which the Company is paying such premiums. You agree to
immediately notify the Company in writing of any such enrollment. 

(iii)        notwithstanding the terms of any stock option grants and/or restricted stock
awards, the vesting of such equity awards will automatically accelerate such that, in addition to any vesting acceleration earned by you pursuant to Section 3(e) or 3(f) of this Agreement prior to the effective date of such termination,
effective on the date of such termination you will be deemed vested as if you had remained employed by the Company for an additional period of twenty four (24) months as of the 

  
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date of termination and all restricted stock held by you that would otherwise vest as if you had been employed by the Company for an additional twenty four (24) months as of the date of
termination shall automatically and immediately vest and no longer be subject to forfeiture or a right to repurchase by the Company as of the date of termination. 

(d)        Termination by the Company Other Than for Cause or by the Executive for
Good Reason Following a Change in Control.    In the event that within fifteen (15) months following the effective date of a Change in Control the Company shall terminate your employment other than for Cause, or you
shall resign from employment for Good Reason, you shall receive all of the benefits specified in Section 5(c) of this Agreement, and, additionally, all equity awards except any Undetermined Performance Based Options that are unvested as of the
effective date of such termination shall be immediately accelerated such that they shall be fully vested and exercisable as of the effective date of such termination. 

(e)        Release and Non-disclosure.    Your right to
receive such severance pay, stock and/or option accelerated vesting benefits, and related benefits as set forth in Sections 5(c) and (d) shall be contingent upon (x) your compliance with all of your obligations under this Agreement and the
Employee Invention and Non-Disclosure Agreement, and (y) your delivery to the Company of a general release of all claims against the Company and its affiliates in the form attached hereto as Exhibit A or in such other form as may be specified by the
Company (the “Release”), within the applicable time period set forth therein but in no event later than forty-five (45) days following your termination of employment, and permitting such release to become fully effective
in accordance with its terms. 
 (f)        Termination by You for Good
Reason.    You shall have the right to terminate your employment hereunder at any time for “Good Reason” (as defined below). In the event that you resign your employment with “Good
Reason,” your resignation shall be deemed to be a termination of your employment by the Company other than for Cause pursuant to paragraph 5(c) above, in which event both you and the Company shall have your respective rights and
obligations under such paragraph 5(c) above in the event of such a termination. In the event that you do not send the Company a written notice of your intent to resign pursuant to this paragraph within ninety (90) days following an event
constituting Good Reason, your rights under this paragraph 5(d) shall cease as to such event. For purposes of this Agreement, the phrase “Good Reason” shall mean any one of the following events which occurs without your consent on or after
the commencement of your employment, provided that you have first provided written notice to any member of the Board (or the surviving corporation, as applicable) within 90 days of the first such occurrence of such condition specifying the event(s)
constituting Good Reason and specifying that you intend to terminate your employment not earlier than 30 days after providing such notice, and the Company (or surviving corporation) has not cured such event(s) within 30 days (or such longer period
as may be specified by you in such notice) after your written notice is received by such member of the Board (or by the surviving corporation) (the “Cure Period”), and you resign within thirty (30) days following the end of the
Cure Period: (i) a material reduction in your duties, authority or responsibilities as described in Section 2 of this Agreement, (ii) a material reduction in your Base Salary, provided, however, that a reduction in your Base Salary shall
not constitute Good Reason if it (A) is made in connection with an across-the-board reduction of all senior executives’ annual base salaries, and (B) does not occur within the fifteen (15) month period following the effective
date of a Change in Control, (iii) material reduction of your ability to participate in the Company’s fringe and benefit plans that effectively constitutes your “involuntary separation from service” for purposes of Treas. Reg.
Section 1.409A-1(n), other than any reduction that (A) is part of a general reduction or other concessionary arrangement affecting all senior officers, and (B) does not occur within the fifteen (15) month period following the
effective date of a Change in Control, (it being understood that, solely for purposes of this paragraph 5(f), such a reduction in the ability to participate in the Company’s fringe and benefit plans is considered a material breach of this
Agreement), (iv) the Company requires you to permanently relocate your office to a location outside the geographic area described in Section 2 of this Agreement which requires a one-way increase in your driving distance of more than
twenty-five (25) miles, or (v) any other conduct that constitutes a material breach by the Company of a material term of this Agreement, or any other written agreement between the Company and you. 

  
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 (g)        Termination by You for Any
Other Reason.    You shall have the right to terminate your employment hereunder at any time for any reason not otherwise covered by paragraph 5(d) by providing ninety (90) days’ prior written notice to the
Company. In the event of a termination by you pursuant to the preceding sentence, the Company shall only be obligated to pay you the Accrued Obligations. The Company shall be obligated, however, to continue to pay your full compensation as described
in Section 3 hereof up to and through the expiration of the ninety (90) day notice period. 

6.        Specific Performance.    You recognize
and agree that the Company’s remedy at law for breach of the Employee Invention and Non-Disclosure Agreement would be inadequate, and further agree that, for breach of such provisions, the Company shall be entitled to seek injunctive relief and
to enforce its rights by an action for specific performance. 

7.        Certain Tax Issues. 

(a)        Withholding.    All payments made to you
pursuant to this Agreement or otherwise in connection with your employment shall be subject to the usual withholding practices of the Company and will be made in compliance with existing federal and state requirements regarding the withholding of
tax. 
 (b)        Application of Internal Revenue Code Section
409A.    Notwithstanding anything to the contrary set forth herein, any Severance Pay amounts that constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code shall not
commence in connection with your termination of employment unless and until you have also incurred a “separation from service” within the meaning of Section 409A of the Code, unless the Company reasonably determines that such amounts
may be provided to you without causing you to incur the additional 20% tax under Section 409A. To the extent any payments or benefits pursuant to Section 5 above (a) are paid following the date of termination of your employment
through March 15 of the calendar year following such termination, such severance benefits are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable pursuant to the
“short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations; (b) are paid following said March 15, such Severance Benefits are intended to constitute separate payments for purposes of
Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary separation from service and payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by said provision, and
(c) are in excess of the amounts specified in clauses (a) and (b) of this paragraph, shall (unless otherwise exempt under Treasury Regulations) be considered separate payments subject to the distribution requirements of
Section 409A(a)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payments or benefits be delayed until
6 months after your separation from service if you are a “specified employee” within the meaning of the aforesaid section of the Code at the time of such separation from service. In the event that a six month delay of any such
separation payments or benefits is required, on the first regularly scheduled pay date following the conclusion of the delay period you shall receive a lump sum payment or benefit in an amount equal to the separation payments and benefits that were
so delayed, and any remaining separation payments or benefits shall be paid on the same basis and at the same time as otherwise specified pursuant to this Agreement (subject to applicable tax withholdings and deductions). 

(c)        Parachute Payment.    In the event the
benefits provided by this Agreement, when aggregated with any other payments or benefits received by you, would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence,
be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be reduced to the Reduced Amount. The “Reduced Amount” shall be either (x) the
largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable
federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some
portion of the Payment may be subject to the Excise Tax. 

  
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If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless
you elect in writing a different order (provided, however, that such election shall be subject to Company approval if made on or after the effective date of the event that triggers the Payment): reduction of cash payments; cancellation of
accelerated vesting of stock awards; reduction of employee benefits. In the event that acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of
your stock awards unless you elect in writing a different order for cancellation. 
 The accounting firm engaged by the
Company for general audit purposes as of the day prior to the effective date of the Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual,
entity or group effecting the Change in Control, then the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such
accounting firm required to be made hereunder. 
 The accounting firm engaged to make the determinations hereunder shall
provide its calculations, together with detailed supporting documentation, to you and the Company within fifteen (15) calendar days after the date on which your right to a Payment is triggered (if requested at that time by you or the Company)
or such other time as requested by you or the Company. If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish you and the Company with
an opinion reasonably acceptable to you that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon you and the Company. 

8.        Continuation of Employment.    You understand,
acknowledge and agree that this Agreement does not create an obligation for the Company or any other person to continue your employment and, subject to your right to receive compensation and benefits as provided in Section 5, you will be an
at-will employee and the Company may terminate your employment at any time subject to any notice provisions set forth in this Agreement. 
 9.        Choice of Law.    This Agreement, and all disputes arising under or related to it, shall be governed by the law of the
Commonwealth of Massachusetts. 

10.        Arbitration.    All disputes arising out of
this Agreement (other than initial applications for injunctive relief under the Employee Invention Agreement) shall be resolved by final and binding arbitration. The arbitration shall be conducted in Boston, Massachusetts under the American
Arbitration Association’s (“AAA”) National Rules for the Resolution of Employment Disputes employing a single arbitrator selected upon mutual agreement of the parties. The arbitrator will have the power to award any
types of legal or equitable relief that would be available in a court of competent jurisdiction, including an award of attorneys’ fee and costs to the prevailing party. Each party will be responsible for their own costs and attorney’s
fees, other than the costs for AAA and the single arbitrator, which shall be borne by the Company. 

11.        Assignment.    This Agreement, and the rights
and obligations of you and the Company hereunder, shall inure to the benefit of and shall be binding upon, you, your heirs and representatives, and upon the Company and the Company’s successors and assigns. This Agreement may not be assigned by
you. Any assignment in contravention of this Section 12 shall be null and void. 

12.        Severability.    In the event that any one or
more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Moreover, if any one or more
of the provisions contained in this Agreement shall be held to be excessively broad as to duration, activity or subject, such provision shall be construed by limiting or reducing them so as to be enforceable to the maximum extent compatible with
applicable law. 

  
 9 

 13.        Consultation with Counsel; No
Representations.    You agree and acknowledge that you have had a full and complete opportunity to consult with counsel of your own choosing concerning the terms, enforceability and implications of this Agreement. Both
you and the Company acknowledge that neither party has made any representations or warranties to the other party concerning the terms, enforceability or implications of this Agreement other than as are reflected in this Agreement. 

14.        No Mitigation; No Set Off.    In the event of
any termination of employment hereunder, you shall be under no obligation to seek other employment and there shall be no offset against any amounts due to you under this Agreement on account of any remuneration attributable to any subsequent
employment that you may obtain. 
 15.        Company
Representations.    The Company represents and warrants that it is duly authorized to enter into this Agreement, that there is no law, agreement or other legal restriction on its entering into this Agreement, that its
Board has approved this Agreement and that the officer signing this Agreement is duly authorized and empowered to sign this Agreement on behalf of the Company. 
 16.        Effect of Agreement on Other Benefits.    Except as specifically provided in this Agreement, the existence of this Agreement
shall not prohibit or restrict your entitlement to full participation in the employee benefit and other plans or programs in which comparable senior executives of the Company are eligible to participate. 

17.        Integration.    This Agreement, the documents
and Exhibits attached hereto (all of which are incorporated herein by reference), and the documents associated with your stock option grants described in Section 3(e) of this Agreement, set forth the entire agreement of the parties hereto in
respect of the subject matter contained herein and therein and supersede all prior and contemporaneous conflicting agreements, promises, covenants, arrangements, understandings, communications, representations or warranties, whether oral or written,
by any party hereto (or representative of either party hereto). 

18.        Modification; Waiver.    No provision of this
Agreement may be modified, amended, waived or discharged unless such waiver, modification, amendment or discharge is agreed to in writing and signed by you and the Chairman of the Board. No waiver by either party hereto at any time of any breach by
the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent
time. 
 19.        Notices.    All notices
required by this Agreement shall be in writing and shall be deemed to have been duly delivered when delivered in person or when mailed by certified mail, return receipt requested, as follows: 

 

	 	(a)	 If to you: 

  

	 	    	 Mr. Alexander A. Fitzpatrick 

	 	    	 [address] 

	 	

  

	 	(b)	 If to Company: 

  

	 	    	 Verenium Corporation 

	 	    	 55 Cambridge Parkway 

	 	    	 Cambridge, MA 02142 

	 	    	 Attn: Carlos A. Riva 

  
 10 

	 	With	 a copy to: 

Wain Fishburn 
 Cooley Godward Kronish LLP 
 4401 Eastgate Mall 

San Diego, CA 92121-1909 
 or to
such other address as a party hereto shall specify in writing given in accordance with this section. 
 If the foregoing
correctly conforms to your understanding of the agreement between you and Company, please sign and date the enclosed copy of this letter and return it to us. 
 Very truly yours, 
 VERENIUM CORPORATION 

 

			
	By:	 	/S/ CARLOS A. RIVA

			
	 Name:
	 	Carlos Riva
	Title:	 	President and CEO
	
	Agreement Confirmed:
	
	/S/ ALEXANDER A. FITZPATRICK
	Alexander A. Fitzpatrick

			
	
	Enclosures
		 	 Exhibit A:        Indemnity Agreement

		 	 Exhibit B:        Employee Invention and Non-Disclosure Agreement

		 	 Exhibit C:        Release and Waiver of Claims

  
 11 

 EXHIBIT A 
 INDEMNITY AGREEMENT 
 This Agreement is made and entered into this
     day of              by and between Verenium Corporation, a Delaware corporation (the “Corporation”), and
                     (“Agent”). 
 Recitals 
 Whereas, Agent performs a valuable service to the Corporation in his
capacity as Senior Vice President and General Counsel; 
 Whereas, the stockholders of the Corporation have adopted bylaws
(the “Bylaws”) providing for the indemnification of the directors, officers, employees and other agents of the Corporation, including persons serving at the request of the Corporation in such capacities with other corporations or
enterprises, as authorized by the Delaware General Corporation Law, as amended (the “Code”); 
 Whereas, the
Bylaws and the Code, by their non-exclusive nature, permit contracts between the Corporation and its agents, officers, employees and other agents with respect to indemnification of such persons; and 

Whereas, in order to induce Agent to continue to serve as a director and/or officer of the Corporation, the Corporation has
determined and agreed to enter into this Agreement with Agent; 
 Now, therefore, in consideration of Agent’s
continued service as a director and/or officer of the Corporation after the date hereof, the parties hereto agree as follows: 

Agreement 

1.        Services to the Corporation.    Agent will serve, at
the will of the Corporation or under separate contract, if any such contract exists, as a director of the Corporation or as a director, officer or other fiduciary of an affiliate of the Corporation (including any employee benefit plan of the
Corporation) faithfully and to the best of his or her ability so long as he or she is duly elected and qualified in accordance with the provisions of the Bylaws or other applicable charter documents of the Corporation or such affiliate; provided,
however, that Agent may at any time and for any reason resign from such position (subject to any contractual obligation that Agent may have assumed apart from this Agreement) and that the Corporation or any affiliate shall have no obligation under
this Agreement to continue Agent in any such position. 
 2.        Indemnity
of Agent.    The Corporation hereby agrees to hold harmless and indemnify Agent to the fullest extent authorized or permitted by the provisions of the Bylaws and the Code, as the same may be amended from time to time (but,
only to the extent that such amendment permits the Corporation to provide broader indemnification rights than the Bylaws or the Code permitted prior to adoption of such amendment). 

3.        Additional Indemnity.    In addition to and not in
limitation of the indemnification otherwise provided for herein, and subject only to the exclusions set forth in Section 4 hereof, the Corporation hereby further agrees to hold harmless and indemnify Agent: 

(a)        against any and all expenses (including attorneys’ fees), witness fees,
damages, judgments, fines and amounts paid in settlement and any other amounts that Agent becomes legally obligated to pay because of any claim or claims made against or by him or her in connection with any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, arbitrational, administrative or investigative (including an action by or in the right of the Corporation) to which Agent is, was or at any time becomes a party, or is threatened to be made a party, by
reason of the fact that Agent is, was or at any time becomes a director, officer, employee or other agent of Corporation, or is or was 

  
 12 

 
serving or at any time serves at the request of the Corporation as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise; and 
 (b)        otherwise to the fullest extent as may be
provided to Agent by the Corporation under the non-exclusivity provisions of the Code and Section 41 of the Bylaws. 

4.        Limitations on Additional Indemnity.    No Indemnity
pursuant to Section 3 hereof shall be paid by the Corporation: 

(a)        on account of any claim against Agent solely for an accounting of profits made
from the purchase or sale by Agent of securities of the Corporation pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state or local statutory law;

 (b)        on account of Agent’s conduct that Is established by a final
judgment as knowingly fraudulent or deliberately dishonest or that constituted willful misconduct; 

(c)        on account of Agent’s conduct that is established by a final judgment as
constituting a breach of Agent’s duty of loyalty to the Corporation or resulting in any personal profit or advantage to which Agent was not legally entitled; 

(d)        for which payment is actually made to Agent under a valid and collectible
Insurance policy or under a valid and enforceable indemnity clause, bylaw or agreement, except in respect of any excess beyond payment under such insurance, clause, bylaw or agreement; 

(e)        if indemnification is not lawful (and, in this respect, both the Corporation
and Agent have been advised that the Securities and Exchange Commission believes that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims for
indemnification should be submitted to appropriate courts for adjudication); or 

(f)        In connection with any proceeding (or part thereof) initiated by Agent, or any
proceeding by Agent against the Corporation or its directors, officers, employees or other agents, unless (i) such indemnification is expressly required to be made by law, (ii) the proceeding was authorized by the Board of Directors of the
Corporation, (iii) such indemnification is provided by the Corporation, in its sole discretion, pursuant to the powers vested in the Corporation under the Code, or (iv) the proceeding is initiated pursuant to Section 9 hereof. 

5.        Continuation of Indemnity.    All agreements and
obligations of the Corporation contained herein shall begin when the Agent is elected or appointed as a director, officer, employee or other agent of the Corporation (or began serving at the request of the Corporation as a director, officer,
employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise) and continue during the period Agent is a director, officer, employee or other agent of the Corporation (or is or was
serving at the request of the Corporation as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise) and shall continue thereafter so long as Agent shall be
subject to any possible claim or threatened, pending or completed action, suit or proceeding, whether civil, criminal, arbitrational, administrative or investigative, by reason of the fact that Agent was serving in the capacity referred to herein.

 6.        Partial Indemnification.    Agent shall be
entitled under this Agreement to indemnification by the Corporation for a portion of the expenses (including attorneys’ fees), witness fees, damages, judgments, fines and amounts paid in settlement and any other amounts that Agent becomes
legally obligated to pay in connection with any action, suit or proceeding referred to in Section 3 hereof even if not entitled hereunder to indemnification for the total amount thereof, and the Corporation shall indemnify Agent for the portion
thereof to which Agent is entitled. 

  
 13 

 7.        Notification and Defense of
Claim.    Not later than thirty (30) days after receipt by Agent of notice of the commencement of any action, suit or proceeding, Agent will, if a claim in respect thereof is to be made against the Corporation under this
Agreement, notify the Corporation of the commencement thereof; but the omission to so notify the Corporation will not relieve it from any liability which it may have to Agent otherwise than under this Agreement. With respect to any such action, suit
or proceeding as to which Agent notifies the Corporation of the commencement thereof: 

(a)        the Corporation will be entitled to participate therein at its
own expense; 
 (b)        except as otherwise provided below, the
Corporation may, at its option and jointly with any other indemnifying party similarly notified and electing to assume such defense, assume the defense thereof, with counsel reasonably satisfactory to Agent. After notice from the Corporation to
Agent of its election to assume the defense thereof, the Corporation will not be liable to Agent under this Agreement for any legal or other expenses subsequently incurred by Agent in connection with the defense thereof except for reasonable costs
of investigation or otherwise as provided below. Agent shall have the right to employ separate counsel in such action, suit or proceeding but the fees and expenses of such counsel incurred after notice from the Corporation of its assumption of the
defense thereof shall be at the expense of Agent unless (i) the employment of counsel by Agent has been authorized by the Corporation, (ii) Agent shall have reasonably concluded, and so notified the Corporation, that there is an actual conflict
of interest between the Corporation and Agent in the conduct of the defense of such action or (iii) the Corporation shall not in fact have employed counsel to assume the defense of such action, in each of which cases the fees and expenses of
Agent’s separate counsel shall be at the expense of the Corporation. The Corporation shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Corporation or as to which Agent shall have made
the conclusion provided for in clause (ii) above; and 

(c)        the Corporation shall not be liable to Indemnify Agent under
this Agreement for any amounts paid in settlement of any action or claim effected without its written consent, which shall not be unreasonably withheld. The Corporation shall be permitted to settle any action except that it shall not settle any
action or claim in any manner which would impose any penalty or limitation on Agent without Agent’s written consent, which may be given or withheld in Agent’s sole discretion. 

8.        Expenses.    The Corporation shall advance, prior to
the final disposition of any proceeding, promptly following request therefor, all expenses Incurred by Agent in connection with such proceeding upon receipt of an undertaking by or on behalf of Agent to repay said amounts if it shall be determined
ultimately that Agent is not entitled to be indemnified under the provisions of this Agreement, the Bylaws, the Code or otherwise. 
 9.        Enforcement.    Any right to indemnification or advances granted by this Agreement to Agent shall be enforceable by or on behalf of Agent
in any court of competent jurisdiction if (i) the claim for indemnification or advances is denied, in whole or in part, or (ii) no disposition of such claim is made within ninety (90) days of request therefor. Agent, in such
enforcement action, if successful in whole or in part, shall be entitled to be paid also the expense of prosecuting his or her claim. It shall be a defense to any action for which a claim for indemnification is made under Section 3 hereof
(other than an action brought to enforce a claim for expenses pursuant to Section 8 hereof, provided that the required undertaking has been tendered to the Corporation) that Agent is not entitled to indemnification because of the limitations
set forth in Section 4 hereof. Neither the failure of the Corporation (including its Board of Directors or its stockholders) to have made a determination prior to the commencement of such enforcement action that indemnification of Agent is
proper in the circumstances, nor an actual determination by the Corporation (including its Board of Directors or its stockholders) that such indemnification is improper shall be a defense to the action or create a presumption that Agent is not
entitled to indemnification under this Agreement or otherwise. 

10.        Subrogation.    In the event of payment under this
Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of Agent, who shall execute all 

  
 14 

 
documents required and shall do all acts that may be necessary to secure such rights and to enable the Corporation effectively to bring suit to enforce such rights. 

11.        Non-Exclusivity of Rights.    The rights conferred on
Agent by this Agreement shall not be exclusive of any other right which Agent may have or hereafter acquire under any statute, provision of the Corporation’s Certificate of Incorporation or Bylaws, agreement, vote of stockholders or directors,
or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding office. 
 12.        Survival of Rights. 

(a)        The rights conferred on Agent by this Agreement shall continue after Agent has
ceased to be a director, officer, employee or other agent of the Corporation or to serve at the request of the Corporation as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise and shall inure to the benefit of Agent’s heirs, executors and administrators. 

(b)        The Corporation shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Corporation, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be
required to perform if no such succession had taken place. 

13.        Separability.    Each of the provisions of this
Agreement is a separate and distinct agreement and independent of the others, so that if any provision hereof shall be held to be invalid for any reason, such invalidity or unenforceability shall not affect the validity or enforceability of the
other provisions hereof. Furthermore, if this Agreement shall be invalidated in its entirety on any ground, then the Corporation shall nevertheless indemnify Agent to the fullest extent provided by the Bylaws, the Code or any other applicable law.

 14.        Governing Law.    This Agreement shall be
interpreted and enforced in accordance with the laws of the State of Delaware. 

15.        Amendment and Termination.    No amendment,
modification, termination or cancellation of this Agreement shall be effective unless in writing signed by both parties hereto. 
 16.        Identical Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to
be an original but all of which together shall constitute but one and the same Agreement. Only one such counterpart need be produced to evidence the existence of this Agreement. 

17.        Headings.    The headings of the sections of this
Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction hereof. 
 18.        Notices.    All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly
given (i) upon delivery if delivered by hand to the party to whom such communication was directed or (ii) upon the third business day after the date on which such communication was mailed if mailed by certified or registered mail with postage
prepaid: 
  

	 	(a)        if	 to Agent, at the address indicated on the signature page hereof. 

 

	 	(b)        if	 to the Corporation, to: 

Verenium Corporation 
 55 Cambridge
Parkway 
 Cambridge, MA 02142 

  
 15 

 or to such other address as may have been furnished to Agent by the Corporation 

In Witness Whereof, the parties hereto have executed this Agreement on and as of the day and year first above written. 

VERENIUM CORPORATION 

By:                          
                           
 Title:         President and Chief Executive Officer 

AGENT 
  

	
	
	/S/ ALEXANDER A. FITZPATRICK
	

 Address: 
 Mr.
Alexander A. Fitzpatrick 
 [address] 

  
 16 

 EXHIBIT B 
 Verenium Corporation 
 EMPLOYEE INVENTION AND NON-DISCLOSURE AGREEMENT 

This Employee Invention and Non-Disclosure Agreement (this “Agreement’) is made this      day of
            , 20     (“Effective Date”) by and between Verenium Corporation, a Delaware corporation (“Verenium”), with a principal place of business
at 55 Cambridge Parkway, Cambridge, MA 02142, and Alexander A. Fitzpatrick (“Employee”), an individual having an address at 4584 Granger Street, San Diego, CA 92107. 

In consideration of the mutual promises and other good and valuable consideration, and as part of the terms of employment of
Employee by Verenium, the parties agree as follows: 
 INVENTIONS 
  

	 	1.	 During the period of Employee’s employment with Verenium and for six months after termination of such employment, Employee shall fully disclose to
Verenium promptly and in writing, to the extent such disclosure will not directly violate any confidentiality agreement with a new employer that Employee may be a party to, any and all inventions, developments, discoveries, improvements, trade
secrets, mask works, processes, formulas, source and object codes, data, programs, other works of authorship, know-how, discoveries, designs, techniques and ideas, whether or not patentable or registrable under copyright or similar statutes
(collectively, “Inventions”), which are authored, developed, made, discovered, conceived, learned and/or reduced to practice by Employee either alone or jointly with others during the term of Employee’s employment with Verenium
(“Developed Technology”). To the extent required by contracts between Verenium and the United States or any of its agencies, Employee agrees to assign all of Employee’s right, title and interest in, to and under any particular
Developed Technology to the United States as directed by the Company. 

  

	 	2.	 Employee agrees that all Developed Technology is, and shall remain, the sole and exclusive property of Verenium, its successors and assigns. Employee
irrevocably agrees to assign and does assign to Verenium and its nominees, successors and assigns, all right, title and interest in and to Developed Technology. Employee agrees to execute, verify and deliver any and all documents and perform any and
all acts as may be necessary to perfect, evidence and sustain such assignment and acknowledges that Employee’s obligation under this sentence shall continue beyond the termination of Employee’s employment with Verenium.

  

	 	3.	 Inventions, if any, which Employee made prior to the commencement of Employee’s employment with Verenium are excluded from the scope of this Agreement.
To preclude any possible uncertainty, Employee has set forth on Exhibit A attached hereto a complete list of all Inventions that Employee has, either alone or jointly with others, authored, developed, made, discovered, conceived,
learned and/or reduced to practice prior to the commencement of Employee’s employment with Verenium, that Employee considers to be Employee’s property or the property of third parties and that Employee wishes to have excluded from the
scope of this Agreement (collectively referred to as “Prior Inventions”). If disclosure of any Prior Invention would cause Employee to violate any prior confidentiality agreement, Employee understands that Employee is not to list such
Prior Inventions in Exhibit A but is only to disclose a cursory name for each such Invention, a listing of the party(ies) to whom it belongs and the fact that full disclosure as to such Prior Inventions has not been
made for that reason. If no Prior Inventions are listed on Exhibit A, Employee represents and warrants that there are no Prior Inventions. If, in the course of Employee’s employment with Verenium, Employee incorporates a
Prior Invention into a Verenium product, process or machine, Verenium is hereby granted and shall have a 

  
 17 

	 	 
non-exclusive, perpetual, fully-paid and royalty-free, irrevocable and worldwide license, with rights to sublicense through multiple levels of sublicensees, to reproduce, make derivative works
of, distribute, publicly perform, and publicly display in any form or medium, whether now known or later developed, make, have made, use, sell, import, offer for sale, and exercise any and all present or future rights in, such Prior Invention.
Notwithstanding the foregoing, Employee agrees that Employee will not incorporate, or permit to be incorporated, Prior Inventions into any Developed Technology without Verenium’s prior written consent. 

 

	 	4.	 With regard to the copyright laws of the United States, Employee acknowledges and agrees that all original works of authorship which are made by Employee,
either solely or jointly with others, within the scope of Employee’s employment with Verenium and which are protectable by copyright are “works made for hire” under the U.S. Copyright Act. Employee acknowledges and understands that
the §201(b) of the U.S. Copyright Act provides that “[i]n the case of a work made for hire, the employer or other person for whom the work was prepared is considered the author for purposes of this title, and, unless the parties have
expressly agreed otherwise in a written instrument signed by them, owns all of the rights comprised in the copyright.” Employee further acknowledges that the judicial decisions under the U.S. Copyright Act broadly interpret the phrase
“within the scope of his or her employment”. This phrase has been applied to cover, among other things, some works created by an employee at home on his own time and for no additional pay, without any request by the employer. Verenium
intends to assert Its ownership and other rights in this “work made for hire” area to the fullest legally permissible extent. 

  

	 	5.	 Employee shall assist Verenium in every proper way to obtain, and from time to time enforce, United States and foreign trade secret, patent, copyright, mask
work and other intellectual property rights (collectively, the “Proprietary Rights”) relating to the Developed Technology. Employee shall execute, verify and deliver all such documents, including, but not limited to, applications for
patents, copyright registration, and trademark registration, as Verenium reasonably requests to enable Verenium and Its nominees, successors and assigns to apply for, obtain, perfect, evidence, sustain and enforce the Proprietary Rights relating to
such Developed Technology. Employee further agrees to render all such assistance and perform such other acts as Verenium may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary
Rights, including, without limitation, in connection with any patent or copyright office proceeding, litigation, or other administrative, judicial or related proceeding in the United States or foreign country, involving Developed Technology.
Employee’s obligation to assist Verenium under this Paragraph 5 with respect to Developed Technology in any and all countries shall continue beyond the termination of Employee’s employment, but Verenium shall compensate Employee at a
reasonable rate after Employee’s termination for the time actually spent by Employee at Verenium’s request on such assistance. 

  

	 	6.	 In the event Verenium is unable after reasonable effort to secure Employee’s signature on any of the documents referenced in Paragraphs 2 and 5
whether because of Employee’s physical or mental incapacity or for any other reason whatsoever, Employee hereby irrevocably designates and appoints Verenium and its duly authorized officers and agents as Employee’s agent and
attorney-in-fact, coupled with an interest, to act for and on Employee’s behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of Paragraphs 2 and 5 with the same legal
force and effect as if such documents were executed by Employee. Employee hereby waives and quitclaims to Verenium any and all claims, of any nature whatsoever, which Employee now or may hereafter have for infringement of any Proprietary Rights
relating to the Developed Technology assigned hereunder to Verenium. 

  
 18 

 CONFIDENTIAL INFORMATION 
  

	 	7.	 For purposes of this Agreement, the phrase “Verenium Proprietary Information” shall mean any and all confidential and/or proprietary knowledge, data
or information of Verenium and/or its Affiliates (as defined below) that was, is or will be developed, created or discovered by or on behalf of Verenium at any time during Employee’s employment with the Company. By way of illustration but not
limitation, Verenium Proprietary Information includes: 

  

	 	a)	 technical information, including patent strategy, inventions, mask works, ideas, information encompassed by Developed Technology or trade secrets, locations
and sources of bio-material, methods of harvesting bio-material, experiment and research design, results, techniques and processes, source and object codes, data, programs, know-how, improvements, discoveries, developments, designs, techniques,
formulas, biological materials, including but not limited to enzymes and clones; work in progress; manufacturing and process know-how; laboratory notebooks, research journals, idea notebooks, notes, and letters; concepts; ideas; apparatus and
equipment design; and computer software; 

  

	 	b)	 technical management information, including technical manuals, product proposals, status reports, performance objectives and criteria, and analyses of areas
for business development; and 

  

	 	c)	 business information, including cost, pricing, project, financial, accounting and personnel information, notes, letters, business strategies, plans,
proposals, projections and forecasts, customer lists, customer information and sales, marketing plans, proposals, projections, efforts, information, plans for research and development, new products, marketing and selling, licenses, prices and costs,
suppliers and data. 

  

	 	    	 As used herein, “Affiliate” means, with respect to any specific entity, any other entity that, directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with such specified entity. 

  

	 	8.	 At all times during Employee’s employment with Verenium and thereafter, Employee shall hold in strictest confidence any and all Verenium Proprietary
Information and shall not disclose to any person or entity, lecture upon, publish, or use any Verenium Proprietary Information for any purpose, except as required in connection with Employee’s performance of job duties for Verenium. Employee
agrees to obtain Verenium’s written approval before publishing or submitting for publication any material (written, verbal, or otherwise) that relates to Employee’s work at Verenium and/or incorporates any Verenium Proprietary Information.
At all times during Employee’s employment with Verenium and thereafter, Employee shall hold all Third Party Information (as defined below) in the strictest confidence and shall not disclose to anyone (other than Verenium personnel who need to
know such information in connection with their work for Verenium) or use, except in connection with Employee’s performance of job duties for Verenium, Third Party Information unless expressly authorized by an officer of Verenium in writing. As
used herein, “Third Party Information” shall mean all information and materials received by Verenium or Employee from a third party and subject to a duty on Verenium’s part to maintain confidentiality and/or non-disclosure and/or to
use it only for certain limited purposes. 

  

	 	9.	 During Employee’s employment by Verenium, Employee shall not improperly use or disclose any confidential information or trade secrets, if any, of any
former employer or any other person to whom Employee has an obligation of confidentiality, and shall not bring onto the premises of Verenium any unpublished documents or any property

  
 19 

	 	 
belonging to any former employer or any other person to whom Employee has an obligation of confidentiality unless consented to in writing by that former employer or person. Employer shall use in
the performance of Employer’s duties only information which is generally known and used by persons with training and experience comparable to Employee’s own, which is legally in the public domain, or which is otherwise provided or
developed by Verenium. 

 COMPETITIVE ACTIVITIES 
  

	 	10.	 During the term of Employee’s employment with Verenium, Employee shall not, without the prior written approval of Verenium, alone or as a partner,
officer, director, consultant, employee, stockholder, agent, contractor or otherwise, engage in any employment, consulting, business or other activity or occupation competitive with Verenium or would otherwise conflict with Employee’s
employment by the Company. 

  

	 	11.	 During the term of Employee’s employment with Verenium, and for a period of one year after the termination or cessation of Employee’s employment
with Verenium, Employee shall not directly or indirectly disrupt, damage, impair or interfere with Verenium or its business, whether by way of interfering with, raiding, hiring, soliciting its employees, disrupting its relationships with customers,
agents, representatives or vendors or otherwise, or by attempting to do any of the foregoing. 

  

	 	12.	 Employee acknowledges that Employee has carefully read and construed the provision of the preceding paragraphs and believes that Employee has received and
will receive sufficient consideration and other benefits in connection with Employee’s employment relationship with Verenium to justify such restrictions. Employee further acknowledges and agrees that nothing in this Agreement shall confer any
right with respect to continuation of Employee’s employment by Verenium, nor shall it Interfere in any way with Employee’s right or Verenium’s right to terminate Employee’s employment at any time, with or without cause.

 VERENIUM PROPERTY 
  

	 	13.	 At the request of Verenium, and in any event at the time of leaving Verenium’s employment, Employee shall return to Verenium any and all materials and
documents, and copies thereof, in the possession of or under the control of Employee, whether prepared by Verenium, Employee or anyone else, when such materials or documents are, include, incorporate, or refer to Verenium Proprietary Information,
Developed Technology or Third Party Information. The term “document” is used in its broadest sense, and includes, without limitation, drawings, blueprints, laboratory notebooks, binders, research journals, idea notebooks, memoranda,
specifications, formulas, devices, documents, list and files (including those pertaining to employees, customers, and suppliers), equipment, apparatus, correspondence, computer hardware, systems, programs, software, storage media (whether on or in
the form of computer discs, tapes, hard drives, or other method whether now known or devised in the future), manuals, printouts, routines, sub-routines, price lists, pricing information, devices, and writings of any and every kind or nature. Prior
to leaving, Employee shall cooperate with Verenium in completing Verenium’s termination statement. 

  

	 	14.	 During the term of Employee’s employment with Verenium, Employee shall not remove from Verenium’s offices or premises any documents, records, files,
correspondence, reports, memoranda or similar materials of or containing Verenium Proprietary Information, or other materials or property of any kind belonging to Verenium, unless necessary or appropriate in accordance with the duties and
responsibilities of Employee. In the event that such materials or property are removed, all of the above-referenced documents and materials shall be returned to their proper files or places of safekeeping 

  
 20 

 
as promptly as possible after the removal shall serve its specific purpose. Notwithstanding the foregoing, laboratory notebooks shall not be removed from Verenium’s offices or premises at
anytime for any reason, other than for offsite storage of the notebooks. Employee further acknowledges and agrees that any property situated on Verenium’s premises and owned by Verenium, including disks and other storage media, filing cabinets
or other work areas, is subject to inspection by Verenium personnel at any time with or without notice. 
  

	 	15.	 Employee agrees to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that may be required by
Verenium) of all Verenium Proprietary Information developed by Employee and all Developed Technology, which records shall be available to and remain the sole property of Verenium at all times. 

 

	 	16.	 In the event that Employee leaves the employ of Verenium, Employee hereby consents to the notification of Employee’s new employer of Employee’s
rights and obligations under this Agreement. 

 GENERAL PROVISIONS 

 

	 	17.	 Employee represents and warrants to Verenium that there are no restrictions, agreements or understandings whatsoever to which Employee is a party which would
prevent or make unlawful Employee’s execution of this Agreement or Employee’s employment by Verenium or would cause Employee to breach any agreement to keep in confidence information acquired by Employee in confidence or trust prior to
Employee’s employment by Verenium. Employee further represents and warrants that there are no restrictions, agreements or understandings whatsoever to which Employee is a party, which are or would be inconsistent or in conflict with this
Agreement or Employee’s employment, or would prevent, limit or impair in any way the performance by Employee of the obligations set forth in this Agreement and agrees not to enter into any such agreement, whether in written or oral form.

  

	 	18.	 No rights or licenses, express or implied, in or to any Verenium Proprietary Information or Developed Technology are granted to Employee under this Agreement.

  

	 	19.	 The obligations set forth In Paragraphs 1 through 9 of this Agreement shall apply to any time during which Employee was previously employed, or will in the
future be employed, by Verenium as a consultant if no other agreement governs nondisclosure and assignment of inventions during such period. This Agreement constitutes the entire and exclusive agreement between Employee and Verenium with respect to
the subject matter and supersedes and merges any and all prior or contemporaneous discussions, agreements, representations and understandings of the parties with respect to the employment of Employee with Verenium. No supplement, modification or
amendment, nor any waiver of any rights under this Agreement shall be binding upon Verenium or Employee unless set forth in a written agreement executed by Verenium and Employee and signed by the party to be charged, which agreement specifically
references this Agreement. Any subsequent change or changes in Employee’s duties, salary or compensation will not affect the validity or scope of this Agreement. 

 

	 	20.	 Neither this Agreement nor any benefits of this Agreement are assignable by Employee, however, Verenium may assign this Agreement to, and this
Agreement’s terms and provisions shall Inure to the benefit of, any parent, subsidiary, affiliate, successor or other assignee of Verenium. 

  

	 	21.	 The waiver of the breach of any term or provision of this Agreement shall not operate as or be construed to be a waiver of any other or subsequent breach of
this Agreement. No 

  
 21 

 
waiver by Verenium of any right under this Agreement shall be construed as a waiver of any other right. Verenium shall not be required to give notice to enforce strict adherence to all terms of
this Agreement. 
  

	 	22.	 Employee acknowledges that, because Employee’s services are personal and unique and because Employee may have access to and become acquainted with
Verenium Proprietary Information, it is impossible to measure fully, in money, the injury that will be caused to Verenium in the event of a breach or threatened breach of any of the provisions of this Agreement, and therefore agrees and acknowledges
that Verenium has no adequate remedy at law. Accordingly, Employee shall not, in any action or proceeding to enforce any of the provisions of this Agreement, assert the claim or defense that such an adequate remedy at law exists. Verenium shall be
entitled to enforce the provisions of this Agreement by injunction, specific performance or other equitable relief, without bond and without prejudice to any other remedy Verenium may have for a breach of this Agreement.

  

	 	23.	 The periods of time set forth in Paragraphs 10 and 11 of this Agreement shall not include, and shall be deemed extended by, any time required for
litigation to enforce the relevant covenant periods, provided that Verenium is successful on the merits in any such litigation. The “time required for litigation” is defined to mean the period of time from service of process upon Employee
through the expiration of all appeals related to such litigation. 

  

	 	24.	 If an action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to recover, in
addition to any other relief, reasonable attorney’s fees, costs and disbursements. 

  

	 	25.	 The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any of the parties hereto.

  

	 	26.	 If any provision of this Agreement is adjudged to be void or otherwise unenforceable, in whole or in part, such adjudication shall not affect the validity of
the remainder of the Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. If, moreover, any one or more of the provisions contained in this Agreement shall for any
reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

  

	 	27.	 This agreement shall be interpreted and governed by the laws of the State of Massachusetts without reference to its choice of law principles.

  

	 	28.	 The provisions of this Agreement shall survive the termination of Employee’s employment and the assignment of this Agreement by Verenium to any successor
in interest or other assignee. 

  

	 	29.	 This Agreement shall be effective as of the first day of Employee’s employment with Verenium. 

 

	 	30.	 Any notice by either party shall be given by personal delivery or by sending such notice by certified mail, return-receipt requested, or by confirmed
facsimile, addressed to the other party at its address set forth below or at such other address designated by notice in the manner provided in this Paragraph 30. Such notice shall be deemed to have been received upon the date of actual delivery
if personally delivered or, in the case of mailing, two days after deposit with the U.S. mail, or, in the case of facsimile transmission, when confirmed by the facsimile machine report. 

  
 22 

  

			
	 If to Verenium, to:
	 	 If to Employee, to:

	 Verenium Corporation
	 	 [address]

	 55 Cambridge Parkway
	 	
	 Cambridge, MA 02142
	 	

 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date
referenced above. EMPLOYEE HEREBY ACKNOWLEDGES THAT EMPLOYEE HAS READ THIS AGREEMENT CAREFULLY AND UNDERSTANDS ITS TERMS AND THAT EMPLOYEE HAS COMPLETED EXHIBIT A TO THIS AGREEMENT. 

 

									
	VERENIUM CORPORATION	 		 	EMPLOYEE
					
	By:	 	/S/ CARLOS A. RIVA	 		 	By:	 	/S/ ALEXANDER A. FITZPATRICK

									
					
	Title:	 	     President and CEO
	 		 	Title	 	  

 Attachments: Exhibit A: Inventions 

  
 23 

 EXHIBIT A 
 INVENTIONS 
  

	1.	 Prior Inventions Disclosure. The following is a complete list of all Prior Inventions: 

 

	þ	 None 

  

	 ̈	 See immediately below: 

  

 
  

 

  
 24 

 EXHIBIT C 
 RELEASE AND WAIVER OF CLAIMS 
 TO BE SIGNED FOLLOWING TERMINATION WITHOUT CAUSE OR
RESIGNATION FOR 
 GOOD REASON 
 In consideration of the payments and other benefits set forth in Section 5 of the Employment Agreement dated October 29, 2010, to which this form is attached, I, Alexander A. Fitzpatrick, hereby
furnish VERENIUM CORPORATION (the “Company”), with the following release and waiver (“Release and Waiver”). 
 In exchange for the consideration provided to me by the Employment Agreement that I am not otherwise entitled to receive, I hereby generally and completely release the Company and its directors, officers,
employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, Affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are
in any way related to events, acts, conduct, or omissions occurring prior to my signing this Release and Waiver. This general release includes, but is not limited to: (1) all claims arising out of or in any way related to my employment with the
Company or the termination of that employment: (2) all claims related to my compensation or benefits from the Company, including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe
benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims,
including, but not limited to, claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including, but not limited to, claims for discrimination,
harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as
amended) (“ADEA”), the federal Employee Retirement Income Security Act, the California Fair Employment and Housing Act (as amended). the Massachusetts Fair Employment Practice Act, the Massachusetts law
prohibiting age discrimination, the Massachusetts Equal Rights Act, the Massachusetts Sexual Harassment law, and the Massachusetts Equal Pay Law. 
 I acknowledge that, among other rights, I am waiving and releasing any rights I may have under ADEA, that this Release and Waiver is knowing and voluntary, and that the consideration given for this Release and
Waiver is in addition to anything of value to which I was already entitled as an executive of the Company. If I am 40 years of age or older upon execution of this Release and Waiver, I further acknowledge that I have been advised, as required
by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein does not relate to claims under the ADEA which may arise after this Release and Waiver is executed; (b) I should consult with an attorney prior to
executing this Release and Waiver; (c) I have twenty-one (21) days in which to consider this Release and Waiver (although I may choose voluntarily to execute this Release and Waiver earlier); (d) I have seven (7) days following
the execution of this Release and Waiver to revoke my consent to this Release and Waiver; and (e) this Release and Waiver shall not be effective until the eighth day after I execute this Release and Waiver and the revocation period has expired.

 I acknowledge my continuing obligations under my Employee Invention and Non-Disclosure Agreement
(“NDA”). Pursuant to the NDA I understand that among other things, I must not use or disclose any confidential or proprietary information of the Company and I must immediately return all Company property and
documents (including all embodiments of proprietary information) and all copies thereof in my possession or control. I understand and agree that my right to the severance pay I am receiving in exchange for my agreement to the terms of this Release
and Waiver is contingent upon my continued compliance with the NDA. 

  
 25 

 This Release and Waiver constitutes the complete, final and exclusive embodiment of
the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated herein. This Release and Waiver may only be modified by a writing
signed by both me and a duly authorized officer of the Company. 
  

							
	Date:	  	  
	    	By:	  	  

  
 26EX-10.14

 Exhibit 10.14 
 PERFUMANIA 
 HOLDINGS INC. 

December 23, 2011 
 S.
Carter Enterprises, LLC 
 1411 Broadway 

New York, NY 10019 
 Attn: Shawn C. Carter

 Artistic Brands Development, LLC 
 1800 N.W.
84th Avenue, Suite 100 

Miami, FL 33126 
 RE: Shawn
Carter Licensing Transaction 
 Ladies and Gentlemen: 
 Reference is made to the Agreement and Plan of Merger (the “Merger Agreement”), dated the date hereof, by and among Perfumania Holdings, Inc. (“Parent”), PFI Merger
Corp., a wholly-owned subsidiary of Parent (“Merger Sub”), and Parlux Fragrances, Inc. (the “Company”). Capitalized terms used herein without definition shall have the meaning given to them in the Merger Agreement.

 1. As of the Effective Time, (i) Artistic Brands Development, LLC (“Artistic”), Shawn Carter (only as to
certain specified provisions in the License Agreement), and S. Carter Enterprises, LLC (“SCE”) agree to enter into the License Agreement in the form of Exhibit A attached hereto, (ii) Parent (or its wholly-owned
subsidiary), Artistic and Shawn Carter (only as to certain specified provisions in the Sublicense) agree to enter into the Sublicense in the form attached hereto as Exhibit B, and (iii) Parent (or its wholly-owned subsidiary), SCE
and Artistic agree to enter into the side letter regarding net profits assignment in the form of Exhibit C attached hereto (collectively, the “Carter Licensing Documents”). 

2. The provisions of this letter agreement shall be effective if, but only if, (a) the Merger is consummated in accordance with the
terms of the Merger Agreement (x) as in effect on the date hereof or (y) as amended following the date hereof; provided that such amendments shall not (i) adversely affect any of the principal rights and benefits of Artistic or SCE
intended hereby, (ii) affect the Merger Consideration or the Exchange Ratio (each as defined in the Merger Agreement), (iii) affect any holder of a Licensor Warrant (as defined in the Merger Agreement) adversely and disproportionately to
any other holder of a Licensor Warrant without the former holder’s written consent, or (iv) adversely affect any of the other rights and benefits afforded Artistic or SCE hereunder other than in an immaterial and de minimis respect and
(b) the other transactions contemplated by the side letter agreement among Parent, Parlux Fragrances, Inc., Artistic and Rene Garcia attached hereto as Exhibit D are consummated. This letter agreement shall automatically terminate
and shall be of no further force or effect upon the termination of the Merger Agreement in accordance with the terms thereof. 

 3. This letter agreement shall be construed in accordance with and governed by the internal
laws (without regard to the conflict of laws provisions) of the State of New York. 
 4. The parties agree that irreparable
damage would occur in the event that any of the provisions of this letter agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to seek an
injunction or injunctions to prevent breaches of this letter agreement and to enforce specifically the terms and provisions of this agreement in the United States District Court for the Eastern District of New York or in New York Supreme Court
sitting in Suffolk County, New York, without bond or other security being required, this being in addition to any other remedy to which they are entitled at law or in equity. 
 5. This letter agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and each of which shall be deemed an original. 

[Remainder of Page Intentionally Left Blank.] 

 Parent, SCE, Artistic and Shawn Carter each agree to the foregoing by signing a counterpart of this letter
agreement where indicated below. 
 Sincerely, 
  

			
	Perfumania Holdings, Inc.
		
	By:	 	/s/    Michael W. Katz         
	Name:	 	Michael W. Katz
	Title:	 	President and Chief Executive Officer

  

			
	Artistic Brands Development, LLC
		
	By:	 	/s/    Rene Garcia         
	Name:	 	Rene Garcia
	Title:	 	Manager

  

			
	S. Carter Enterprises, LLC
		
	By:	 	/s/    Shawn Carter         
	Name:	 	Shawn Carter
	Title:	 	CEO and Managing Member

			
	Shawn Carter
	
	 /s/    Shawn Carter
        

	Shawn Carter

 Exhibit A 
 License Agreement 

 LICENSE AGREEMENT 

THIS AGREEMENT made and entered into as of the
            day of
                                    20     
   , by and between S. CARTER ENTERPRISES, LLC, a Delaware limited liability company, f/s/o Shawn Carter, with offices at 1411 Broadway, 38th Floor, New York, N.Y. 10018 Attn: John Meneilly (collectively, “Licensor”), and ARTISTIC BRANDS DEVELOPMENT
LLC (formerly known as ICONIC FRAGRANCES, LLC), a Delaware limited liability company with offices at 1600 N.W.
84th Avenue, Miami, FL 33126 (“Licensee” or
“Artistic”) (together the “Parties”). 
 W I T N E S S E T H : 

WHEREAS, Licensor and its Affiliates (as defined below) own or have the right to grant licenses of the Licensed Mark (as defined below),
which is to be licensed herein solely in connection with the Licensed Products (as defined below); and 
 WHEREAS, Licensee is
engaged in the business of manufacturing, promoting and/or selling fragrance and related skin care and personal beauty care products, and Licensor desires to obtain the services of Licensee in connection with the manufacture, promotion and sale of
the Licensed Products, bearing the Licensed Mark; and 
 WHEREAS, in accordance with the terms and conditions of this Agreement,
Licensor is willing to grant to the Licensee and Licensee desires to obtain from Licensor, the exclusive right and license to use the Licensed Mark in the Territory (as hereinafter defined) for use on and solely in connection with the manufacture,
promotion, distribution and sale of Licensed Products in the Licensed Channels of Distribution (as defined below); 
 NOW,
THEREFORE, in consideration of the premises and mutual agreements contained herein, the parties hereto covenant and agree as follows: 

 ARTICLE 1 

Definitions 
 The following definitions shall apply: 
 A. Territory. All countries of the
world and all duty-free-shops, ships, airplanes, military bases and diplomatic missions of every country of the world, including the worldwide web, in accordance with the Licensed Channels of Distribution. Licensee will supply Licensor with a plan
at least 180 days prior to the projected First Shipment Date, as defined below, that will set forth a timetable for introducing the Licensed Products into specified foreign countries (“Roll Out Schedule”). Licensor and Licensee
shall agree upon the foregoing Roll Out Schedule based upon Licensee’s reasonable judgment as to where there is substantial profit potential and taking into account the availability of the Licensed Mark and any secondary marks in the foreign
country of intended distribution. Licensor shall not unreasonably withhold its agreement with Licensee’s proposed Roll Out Schedule. Licensor shall have the right, in the exercise of its reasonable discretion, to prohibit
distribution and sale in a particular foreign country in the event that there is a substantial impediment to use of the Licensed Mark or any words, phrases, images or logos to be associated with the Licensed Mark (collectively, “Associated
Matter”) so that it is unlikely that registration of said Licensed Mark, either alone or together with such Associated Matter, will be obtained in said country. In the event that the difficulty in registration pertains only to the Licensed Mark
and not to any or all of the Associated Matter, and the country in which such difficulty arises and in which Licensor exercises its discretion hereunder to prohibit distribution and sale represents a material market (defined as France, Italy, United
Kingdom, and other foreign countries of similar economic scope based on historic sales figures for products competitive with or comparable to the Licensed Products) (hereinafter, a “Material Market”) for the Licensed Products, the parties
will negotiate in good faith to attempt to achieve a mutually agreeable adjustment to the Net Sales Minimum to reflect the loss of such market for the applicable period(s) of the Term. In the event that the difficulty in registration pertains to any
or all of the Associated Matter and not to the Licensed Mark, and Licensor 

 
exercises its discretion hereunder to prohibit distribution and sale in such market, and the country in which such difficulty arises is a Material Market, the parties will negotiate in good faith
to attempt to achieve a mutually agreeable adjustment to the Net Sales Minimum to reflect the loss of such market for the applicable period(s) of the Term, but in such event the adjustment shall be no greater than a ten (10%) reduction of the
Net Sales Minimum for the applicable Sales Year. 
 B. Licensed Products. Men’s and women’s fragrances, skin
care products and solely the following related personal fragrance enhanced beauty care products: body lotions, body crème, hand crème, body butter, body mist, bath and shower gel, bath oil, body oil, dusting powder, after shave
balm or gel, deodorant stick, bath soap, incense, room fragrances and scented candles (but excluding cosmetic products, hair care products and other skin care products not set forth herein), which are manufactured, produced, sold, distributed,
promoted and advertised by Licensee in the Licensed Channels of Distribution, as defined below, and which bear the Licensed Mark, as defined below, under this Agreement, provided any Licensed Products other than fragrances shall require
Licensor’s written consent. Licensee shall not develop any set of Licensed Products that includes as one or more items in the set any of the fragrance enhanced beauty care products referred to above without Licensor’s prior written
approval, which approval shall not be unreasonably withheld. Licensee shall cause the Licensed Products to be launched on retail shelves in commercially reasonable quantities (the “Product Launch Date”) no later than December, 2013.

 C. Licensed Mark. The trademark “JAY-Z” and any approved secondary marks, approved logos, the approved
signature of SHAWN CARTER professionally known as “JAY-Z” (the “Artist”), and the approved likeness of Artist, and such other trademarks as are, from time to time, agreed to and approved in writing by Licensor, which approval
will not be unreasonably withheld. 
 D. Net Sales. The term “Net Sales” shall mean the gross invoice
price of all Licensed Products shipped by or on behalf of the Licensee (including but 

 
not limited to its Subsidiaries, Affiliates or any sub-licensees), minus (i) any documented actual allowances for damaged or returned Licensed Products, (ii) any documented credits for
the return of Licensed Products to Licensee actually accepted or destroyed in the field, and (iii) any documented and bona fide trade and quantity discounts or allowances (including margin or markdown allowances) actually taken with respect to
the Licensed Products (collectively, “Permitted Reductions”). The total Permitted Reductions in any Sales Year during the Initial Term and Renewal Term for all customers other than department store customers (“Non-Department
Store Customers”) shall in no event exceed ten (10%) percent of the gross invoice price of all Licensed Products shipped by or on behalf of the Licensee to such Non Department Store Customers in such Sales Year. The total Permitted
Reductions in any Sales Year during the Initial Term and Renewal Term for all department store customers shall in no event exceed twenty (20%) of the gross invoice price of all Licensed Products shipped by or on behalf of the Licensee to such
department store customers in such Sales Year. In computing Net Sales, no costs incurred in manufacturing, selling, advertising or distributing the Licensed Products and no indirect expenses shall be deducted, nor shall there be any deduction for
uncollectible accounts. Licensed Products shall be deemed sold when shipped, distributed, billed, sold or paid for, whichever occurs first. 
 In the event of sales by Licensee of Licensed Products to a marketing organization, individual, distributor or any other company in whole or in part controlled by Licensee, for ultimate sale to a
retailer, or in any transaction other than an arm’s length transaction, the invoice price used to determine Net Sales hereunder shall be the invoice price at which the Licensed Products are resold by any such entity to an unrelated retailer in
an arm’s length transaction. Licensed Products shall be deemed sold when shipped, distributed, billed, sold or paid for, whichever occurs first. Notwithstanding the foregoing, any sale made by Quality King Fragrance, Inc. into the mid-tier or
mass markets, or by Perfumania.com, Inc., Perfumania, Inc. or Magnifique Parfumes & Cosmetics, Inc. d/b/a Perfumania to a retail customer, or by Scents of Worth, Inc., a wholly owned subsidiary of Perfumania Holdings, Inc., to the retail
customer of one of its consignment retailers as part of a leased department arrangement, shall be 

 
deemed to be at a discount from the then-current manufacturer suggested retail list price that is consistent with the discount historically given by Parlux Fragrances, Inc. in sales to Perfumania
Holdings, Inc. and its subsidiaries. 
 Notwithstanding the foregoing, there shall be no other sub-licensees in the United States other than
Perfumania Holdings, Inc. (or a Subsidiary thereof) and no sub-licensees outside the United States absent prior written consent by Licensor. 
 E. Subsidiary. Any person, corporation or other entity that is more than 50%, directly or indirectly, owned by Licensee. 
 F. Affiliate. Any person, corporation or other, which directly or indirectly controls, is controlled by, or is under common control with a party. “Control” shall mean possession, directly
or indirectly, of power to direct or cause the direction of management or policies of any such person, corporation or entity, through ownership of voting securities, by contract or otherwise. 

G. Sales Year. Each twelve (12) month period during the Term, as defined below, of this Agreement, commencing on the first
date of shipment of Licensed Products by Licensee or its distributor or sub-licensee in commercially reasonable quantities (the “First Shipment Date”) currently scheduled to occur December, 2013. If the First Shipment Date in Sales Year 1
occurs on other than the first day of the month, then Sales Year 1 shall end on the last day of the month in which the anniversary of the First Shipment Date occurs and all subsequent Sales Years shall end on the anniversary of such date.

 ARTICLE 2 
 Grant Of License 
 A. Upon the terms and conditions of this Agreement,
Licensor hereby grants to Licensee, during the Term, as defined below, of this Agreement, the sole and exclusive right and license to use the Licensed Mark solely in the Licensed Channels of Distribution, as defined below, solely in the Territory as
a trademark solely in connection with the manufacture, promotion, sale and 

 
distribution solely of the Licensed Products and on all related packing materials, containers, promotional material, publicity, sales, advertising, newspaper, magazine, radio, television, cinema
and similar media presently existing or that may exist in the future, in connection solely with the creation, manufacture, introduction, marketing, distribution, sale and advertising of the Licensed Products, through the channels used to
manufacture, sell, distribute, advertise and promote Licensed Products of comparable prestige design and quality as described in paragraphs 7A(i) and 7B of Article 7 below (collectively, the “Licensed Channels of Distribution”).

 B. Licensor shall not, during the Term, as defined below, of this Agreement and in the Territory, grant to any third party
any rights to use the Licensed Mark in connection with Licensed Products in Licensed Channels of Distribution. It is understood and agreed that this Agreement shall pertain only to the Licensed Products for sale in the aforesaid Licensed
Channels of Distribution and does not extend to any other product or service or other territory or other distribution channel, unless otherwise agreed to by the parties as evidenced by a mutually executed written amendment of this Agreement,
specifically setting forth the further intention and agreement of Licensee and Licensor to do so. Except for the rights to use the Licensed Mark solely in connection with the manufacture and sale of the Licensed Products in the Territory through the
Licensed Channels of Distribution expressly provided for herein, Licensor reserves all rights to the use of the Licensed Mark. Licensee is contemporaneously herewith sub-licensing the Licensed Mark to a subsidiary of Perfumania Holdings, Inc.
(collectively, “Perfumania”), subject to and on the same terms and conditions as set forth in this Agreement pursuant to a sublicense agreement between Licensee and Perfumania dated as of even date herewith (the “Sublicense”),
the form of which is annexed hereto as Exhibit __. Pursuant to the Sublicense, Perfumania is inter alia guaranteeing to Licensor and Artist the performance by Perfumania and Licensee of all the terms, obligations, warranties, restrictions,
payments and conditions contained in this Agreement as though Perfumania were a party hereto. It is the essence of this Agreement that Licensee contemporaneously enter into the Sublicense and that Perfumania guarantees in writing to Licensor the
performance by Licensee and 

 
Perfumania of all the terms, obligations, restrictions, warranties, payments and conditions contained in this Agreement and any exhibits or agreements incorporated by reference herein.

 C. Licensor and Artist each agree not to promote any products described herein as Licensed Products utilizing any other brand
during the Term of this Agreement; provided however, that neither Artist nor Licensor, or any party affiliated with either of them, shall be in breach of this Agreement in the event any sponsors of any events in which Artist participates, including
but not limited to any tours, television programs, films or special events, are companies in the business of selling fragrance products, provided that the sale of fragrance products is not their primary business (neither Artist nor Licensor shall be
in breach of the foregoing in the event that Artist does not have final control over the engagement of any such sponsors) and provided further that Artist shall not be precluded from using or wearing any products whatsoever in the ordinary course,
but Artist shall not publicly disclose that he wears any fragrance brands that are not Licensed Products hereunder, except those fragrance brands in which Iconic Brands Group, Inc. has an interest. Artist represents and warrants that he has not
authorized, solely during the Term hereof, and will not authorize or permit during the Term, use of the Licensed Mark on any brand of Licensed Product that is not governed by this Agreement. 

D. Artist and Licensor hereby represent and warrant that Licensor owns and/or controls (or has valid rights necessary for this Agreement)
with respect to all of the trademark and merchandising rights relating to Artist’s commercial persona, image and signature in the product categories governed by this Agreement, including the trademark “Jay-Z.” In addition, Artist is
the owner of all of his rights of publicity in his name, likeness and image and that, on or before the date of this Agreement, Licensor acquired the license for the right to exploit and commercialize the name “Jay-Z” and Artist’s
commercial persona, image and signature for the products governed by this Agreement, including the right to enter into license agreements with licensees such as Licensee hereunder. 

 ARTICLE 3 

Exclusivity of License 
 Licensor will not grant any other license effective during the Term, as defined below, of this Agreement for the use of the Licensed Mark on or in connection with Licensed Products through Licensed
Channels of Distribution in the Territory. Licensor may use or grant others the right to use the Licensed Mark on or in connection with goods of all other types and descriptions in the Territory. Licensor acknowledges that Licensee or its
sub-licensees or distributors presently manufacture and/or distribute in parts of the Territory products similar to or the same as the Licensed Products covered by this Agreement, which bear other trademarks. Licensor further acknowledges that
Licensee will be obtaining other licenses for the manufacture and/or distribution of other similar lines during the Term, as defined below, of this Agreement. Licensee will not, during the Term, as defined below, of this Agreement and thereafter,
attack either Licensor’s title in and to the Licensed Mark or the validity of this License. Licensee covenants and agrees that the bottles, logos, packaging and scents of any other fragrance brands distributed by Licensee or its sub-licensee
Perfumania will be sufficiently distinguishable from those of the Jay-Z brand so as avoid to the extent possible any consumer confusion between such brands. 
 ARTICLE 4 
 Term of Agreement 

Subject to the rights of termination set forth in this Agreement, the initial term of this Agreement (the “Initial Term”),
shall commence on the date of execution hereof (the “Effective Date”) and shall terminate five (5) years following the First Shipment Date, but in no event shall it terminate later than December 31, 2018. Licensee shall have the
option to renew this Agreement for an additional three-year period under the terms set forth in this Agreement applicable to such renewal period (the “Renewal Term”) provided: 

	 	A.	The Guaranteed Minimum Royalty (as hereinafter defined) for each Sales Year of the Initial Term of this Agreement which, by the terms of this Agreement, are due to be
paid prior to the expiration of the Initial Term have been paid in full prior to the expiration of the Initial Term; 

  

	 	B.	Licensee has achieved in Sales Years 1 through 4 Net Sales, in the aggregate, of at least $* and has paid its Sales Royalty on such Net Sales; 

 

	 	C.	Licensee is not otherwise in material breach of any terms or conditions of the Agreement, unless Licensor waives in writing any such breach; 

 

	 	D.	Licensor has not otherwise exercised its rights set forth herein to terminate this Agreement. 

 

	 	E.	Licensee gives Licensor notice in writing of its intent to renew no later than one hundred eighty (180) days following the end of Sales Year 4 and no earlier than
the end of Sales Year 4. 

 The Initial Term and the Renewal Term are collectively referred to in this Agreement as the
“Term.” 
 ARTICLE 5 
 Confidentiality-Publicity 
 A. Each party (each a “Restricted
Party”) (i) shall, and shall cause its officers, directors, managers, members, employees, attorneys, accountants, auditors and agents (collectively, “Representatives”), to the extent such persons have received any
Confidential Information, and their Affiliates and their Representatives, to the extent such entities have received any Confidential Information, as a result of or in connection with or in relation to the conduct and performance of this Agreement,
to maintain in strictest confidence the terms of this Agreement and any and all information relating to the parties that is proprietary to each party, as applicable, or otherwise not available to the general public including, but not limited to,
this Agreement, any of the terms of 

  

	*	Confidential terms omitted and provided separately to the Securities and Exchange Commission. 

 
this Agreement, information about royalties, warrants, marketing strategies, marketing plans, customer lists, supplier information, distribution channels, contacts at such suppliers, customers
and distributors, information related to costs and profits, employees, finances, businesses and operations and activities of each party or their Affiliates, and all notes, analyses, compilations, studies, forecasts, interpretations or other
documents prepared by a party or its Representatives or Affiliates which contain, reflect or are based upon, in whole or in part, the information furnished to or acquired by such party (“Confidential Information”) and
(ii) shall not disclose, and shall cause its Representatives, its Affiliates and their Representatives not to disclose, Confidential Information to any entity except as required by law, regulation or legal process or by the requirements of any
securities exchange on which the securities of a party hereto are listed or quoted (as reasonably determined by such party) and (iii) shall not use, and shall cause its Representatives, its Affiliates and their Representatives not to use, the
Confidential Information other than for the purposes anticipated by this Agreement. The provisions of this paragraph shall not apply with respect to: 
 1. any information that is generally available to the public other than as a result of disclosure in violation of the foregoing; 
 2. any information that is known to the recipient thereof prior to disclosure thereof by the disclosing party or independently developed by the recipient; 

3. any otherwise confidential information that is disclosed to a Party by a third party and such disclosure by the third party is not, to
the best knowledge of such receiving Party, in violation of any confidentiality agreement that such third party has with the other Party to this Agreement; or 
 4. information that is required to be disclosed by judicial or administrative order or required to be disclosed to enforce the terms and conditions hereof. 

 B. The parties agree that certain sensitive information and material concerning Artist
(whether personal, professional or otherwise) and his respective businesses has been or will be provided to or become known by the Licensee (the “Artist Confidential Information”). Accordingly, the parties hereby agree that, except
as otherwise expressly provided herein and except for such information or material as Artist may authorize to be publicly disclosed, they will not, at any time hereafter, disclose or divulge to anyone other than Artist or his counsel, financial
advisors, or other representatives designated by Artist, any Artist Confidential Information. Without limiting the foregoing, except as otherwise expressly agreed to by Artist or as expressly provided in this Agreement, Licensee shall not
photograph, tape, film, record or otherwise duplicate any likeness or activities of Artist, any conversations with Artist or any other activities relating to Artist. Further, no party shall, without Artist’s prior written consent, give any
interviews (whether written or oral), write, prepare or assist in the preparation of, any books or articles, or make any disparaging remarks, which interviews, articles or remarks concern or discuss Artist. Notwithstanding the foregoing, Artist
Confidential Information may be disclosed (i) to the extent expressly provided in this Agreement or any other agreement to which Artist and Licensee, or their respective Affiliates, are parties; (ii) to the extent required by law, rule,
regulation or subpoena or other court order, (iii) to the professional advisors of Licensee on a privileged and confidential basis or (iv) in connection with the enforcement of rights, or the defense of any claims, arising under this
Agreement or any other agreement to which Artist and Licensee, or their respective Affiliates, are parties. Artist Confidential Information shall not include information which (i) becomes generally available to the public other than as a result
of a disclosure by Licensee or its representatives in violation of this provision, or (ii) was or becomes available to Licensee on a non-confidential basis from a source other than Artist or his representatives, provided that the source is or
was (at the time of such disclosure) not bound by a confidentiality agreement or other confidentiality obligation to Artist. All references to Licensee in this Section shall also include its subsidiaries, sublicensees, if applicable, employees and
affiliates. 

 C. All press releases and other public announcements related to this Agreement and the
business contemplated herein shall, subject to applicable law and applicable disclosure obligations as required by law, be produced and released by Licensee or Licensor, subject to, if being released by Licensee the prior written reasonable approval
of Licensor and Artist, and if being released by Licensor or Artist the prior written reasonable approval of Licensee. Licensor shall refer all press inquiries concerning this Agreement and Licensed Products to Licensee for handling. The provisions
of this Article 5 and the parties’ obligations hereunder shall survive the expiration or termination of the Term. For purposes hereof, the Artist shall be free without prior approval of Licensee to handle impromptu media interviews and question
and answer sessions in which the subject of this Agreement or Licensed Products is raised. 
 ARTICLE 6 

Duties of Licensee 
 A. Best Efforts. During the Term of this Agreement, Licensee will use its best efforts to exploit the rights herein granted throughout the Territory and to sell directly or through its Licensor
approved sub-licensee through the Licensed Channels of Distribution the maximum quantity of Licensed Products consistent with the high standards and prestige represented by the Licensed Mark. 

B. Design and Sample Making. Licensor shall not be responsible for the production, design or sample making of the Licensed
Products and Licensee shall bear all costs related thereto. 
 ARTICLE 7 

Quality Standards 
 A. Manufacture of Licensed Products; Quality Control. 
 (i) The contents
and workmanship of Licensed Products shall be at all times of the highest quality consistent with the reputation, image and prestige of the Licensed Mark, and Licensed Products shall be distributed and

 
sold with packaging and sales promotion materials appropriate for such high quality products. The Parties agree that the Licensed Products shall be of the same or similar premium quality and
prestige as that of the Paris Hilton, Britney Spears and Jennifer Lopez fragrance brands as of the date of this Agreement. 

(ii) All Licensed Products shall be manufactured, labeled, sold, distributed and advertised in accordance with all applicable national,
state and local laws and regulations. 
 (iii) Licensee shall submit to Licensor the fragrance, scent, packaging and other
material, designs, pre-production samples, design concepts, sketches, colors, tags, containers and labels and advertising and marketing materials and any other matter utilizing the Licensed Mark or Associated Matter for Licensor’s review and
approval, which approval shall not be unreasonably withheld; however, should Licensor fail to respond to written requests for approval within twenty (20) business days of receipt of such requests, Licensor shall be deemed to have
approved the item or items for which approval was requested. 
 (iv) During the Term of this Agreement, Licensee shall submit,
free of charge to Licensor, a then current production sample of each Licensed Product marketed. Production samples submitted by Licensee for this purpose may be retained by Licensor and Licensor will pay Licensee for any additional production
samples Licensor requests and retains at prices equal to Licensee’s actual costs. All Licensed Products to be sold hereunder shall be at least equal in quality to the samples presented to Licensor. Notwithstanding the foregoing, Licensor or
Artist shall be entitled to up to 300 pieces of Licensed Products at no charge to be handed out for promotional purposes at parties and other promotional events. Should Licensor or Artist require more than 300 pieces free of charge for an event,
prior consent from Licensee shall be required. The cost of any Licensed Products provided free of charge shall be credited to Licensee’s Consumer Advertising and Promotion spending minimum set forth in Article 11 below. Licensor and its duly
authorized representatives shall have the right, upon reasonable advance notice and during normal business hours, at Licensor’s expense, to examine Licensed Products in the process of being

 
manufactured and to inspect all facilities utilized by Licensee or its sub-licensee in connection therewith. 
 B. Distribution. In order to maintain the reputation, image and prestige of the Licensed Mark, during the first six (6) months following the initial launch of any new line of Licensed
Products, subject to the limitations set forth below, Licensee and its sub-licensee or distributor shall only sell Licensed Products to better department stores (as defined below) and specialty stores (including those better department and specialty
stores in Canada and Puerto Rico), including perfumeries and travel retail outlets, but thereafter may sell Licensed Products to those retailers and distributors that sell prestige designer and celebrity fragrances such as the Paris Hilton, Britney
Spears and Jennifer Lopez fragrance brands. For purposes hereof, the term “better department stores” shall describe the category and type of department stores that includes without limitation those stores identified on Schedule 7B hereto.
Notwithstanding the foregoing, Licensor shall be kept informed of the general make up of the Licensed Channels of Distribution with respect to each product line of the Licensed Products. For each line of Licensed Products, Licensee shall not be
permitted to begin selling into the mass market until at least twelve months after the First Shipment Date of such line. However, if requested by Licensor, in the event that the Artist is in the midst of another campaign that Licensor reasonably
believes will be impaired by sales of Licensed Products into the mass market, such twelve-month period will be extended for an additional three months. If Licensee has a First Shipment Date for a new line of Licensed Products within the first
fifteen months following the First Shipment Date for the previous line of Licensed Products, then Licensee shall be free to begin selling the previously launched line to mass market upon the First Shipment Date of the new line, but in no event
earlier than twelve months following the First Shipment Date of the previous line. The previous line may be shipped to customers in the mass market up to thirty days before it may first be sold hereunder, provided that it does not appear on mass
market retail shelves until the date which is twelve to fifteen months (as applicable) following the First Shipment Date of each previous line. Sales into the mid-tier market, which shall include without limitation international (excluding Canada
and 

 
Puerto Rico, which are included above in the department store and specialty store category) and stores such as JC Penney and Sears, shall be permitted no earlier than six (6) months after
the First Shipment Date with respect to each line of Licensed Product. 
 C. Product Design. Throughout the Term
of this Agreement, Licensor and Licensee shall work together in good faith in deciding the types of articles of Licensed Products that Licensee may manufacture, sell, and market, all subject to Licensor’s reasonable approval. Licensee shall
provide Licensor with a product development plan for each line of all Licensed Products, which plan may include Licensee’s assessment of market needs and competitive positioning, and such additional information as reasonably requested by
Licensor. 
 (i) Licensee and Licensor shall jointly establish product development calendars, under which at appropriate agreed
points throughout the development process of Licensed Products, Licensee shall make available to Licensor the concepts, materials, fabrications (if applicable), packaging and other relevant contents of each line of all Licensed Products for
Licensor’s prior written approval as to concept interpretation, workmanship and quality and to assure that Licensed Products are consistent in quality with comparable prestige products such as those referred to in Section 7A(i) above and
with Licensor’s standing and reputation with the public. The parties shall make every reasonable effort to adhere to the product development calendars. 
 (ii) For each new line of Licensed Products (other than items from prior lines to be continued), Licensee shall prepare and deliver to Licensor, for its prior written approval, product concepts and
specifications for those Licensed Products that it proposes to include in such line in accordance with the approved product development plan. The various lines of Licensed Products shall be created from such initial concepts and specifications,
which shall then be modified and developed cooperatively by Licensor and Licensee until Licensor has approved, in writing, a line which, including items from prior lines to be continued, is consistent with the approved product development plan.

 (iii) Upon Licensor’s approval in accordance with this Section, Licensee shall prepare
and deliver product assortments/samples for each line of Licensed Products, together with the carding, tags, labels and packaging (“Packaging Materials”) intended to be used with them and Licensee’s internal sales materials for that
product introduction, and all advertising and promotional materials to be used in connection therewith, for Licensor’s prior written approval. Once Licensor approves the bottle design and execution and the cap and collar thereto, Licensee shall
be permitted to commence production of the bottle, cap and collar. Such production may proceed even if Licensor has not yet approved the bottle contents, packaging materials and any advertising or promotional materials associated therewith.
Notwithstanding the foregoing, should Licensor not subsequently approve the bottle contents and/or packaging materials, then the costs of production for the bottle, cap and collar shall be at Licensee’s expense. Subject to the foregoing,
Licensee shall not commence commercial production of any item or matter utilizing the Licensed Mark, including but not limited to the Packaging Materials, until Licensor has approved in writing, using the approval form attached hereto as [Exhibit
__], a final product assortment and the associated Packaging Materials and all other items or matter utilizing the Licensed Mark. Licensee expressly acknowledges that all approved sample Licensed Products and all original, approved production
specification drawings, models, molds and patterns therefor (collectively “Sample Materials”) will be Licensor’s property and Licensee shall surrender these Sample Materials to Licensor immediately upon the expiration or termination
of the Term. Approval of an item or Licensed Product which uses particular artwork does not imply approval of such artwork with a different item or Licensed Product or of such item or Licensed Product with different artwork. Licensee acknowledges
that Licensor’s approval of an item or Licensed Product does not imply approval of, or license to use, any non-Licensor controlled elements contained in any item or Licensed Product. After a sample of an item has been approved, Licensee shall
not make any changes without resubmitting the modified item for Licensor’s written approval. All decisions by Licensor shall be subject to the approval timing and other approval procedures that are set forth in Section 7A above and any
disapproval of any Licensed Product shall be made in Licensor’s reasonable discretion, and 

 shall be accompanied with an explanation and, if possible, a proposed solution or alternative design,
concept and/or execution. Should Licensor fail to give its approval, Licensor agrees to engage in good faith negotiations with Licensee to solve whatever objections Licensor may have. After such negotiations conclude and an agreement is not reached,
then Licensor’s disapproval shall be final and binding and shall not be subject to review in any proceeding. 
 (iv) All
Packaging Materials shall be submitted to Licensor with product affixed in either actual form or actual digital image for review and final approval in accordance with the terms hereof. All fees, if any, associated with the acquisition of any image
of the Artist to be used in connection with the Packaging Materials shall be the responsibility of Licensee. 
 D. Legal
Notices/Quality Control. The license granted hereunder is conditioned upon Licensee’s full and complete compliance with the marking provisions of the trademark, patent and copyright laws of the United States and other countries in
the Territory. 
 (i) The Licensed Products, as well as all promotional, packaging and advertising material relative thereto,
shall include all appropriate legal notices as required by applicable law. 
 (ii) The Licensed Products shall be of a quality
at least equal to comparable prestige fragrance products as set forth in Article 7, and marketed by Licensee, in conformity with a standard sample reasonably approved in writing by Licensor. 

(iii) Licensee covenants and agrees that all the Licensed Product shall be manufactured, sold, marketed and advertised in compliance with
all applicable laws, rules and regulations (collectively, “Laws”). Licensee shall pretest a sampling of all proposed and approved Licensed Products and shall cause truthful labeling regarding the care, maintenance, and use to be affixed to
the Licensed Products as required by the Laws. Licensee shall immediately inform Licensor in writing of any complaint by any governmental or other regulatory or self-regulatory body relevant to the Licensed Products, and the

 
status and resolution thereof. Licensee shall act expeditiously to resolve any such complaint. Licensee covenants on behalf of itself and on behalf of all of Licensee’s manufacturers, that
it shall not use child labor, prison labor and shall only employ persons whose presence is voluntary, and shall otherwise provide employees with a safe and healthy workplace in compliance with all applicable Laws, including but not limited to wage
and hour Laws, including minimum wage, overtime, and maximum hours, shall comply with all discrimination and other labor Laws, and all environmental Laws. 
 (iv) In the event of Licensee’s unapproved or unauthorized manufacture, distribution, use or sale of any Licensed Products or any packaging materials bearing any reference to the Licensed Mark,
including promotional and advertising materials, or the failure of Licensee to comply with any provisions of this Section 7, Licensor shall have the right to: (a) immediately revoke Licensee’s rights with respect to any such Licensed
Products licensed under this Agreement, and/or (b) at Licensee’s expense, confiscate or order the destruction of such unapproved, unauthorized or non-complying products, packaging materials or other materials. Such right(s) shall be in
addition to and without prejudice to any other rights Licensor may have under this Agreement or otherwise. 
 (v) Licensee
covenants and agrees that: (a) All Licensed Products manufactured, sold and distributed hereunder will be merchantable and fit for the purpose for which they are intended; (b) the Licensed Products will conform at all times to all
applicable federal, state and local laws, rules, regulations, ordinances and other enactments provided in the Territory or otherwise applicable, and all applicable industry standards, including but not limited to, those relating to product safety;
and (c) all Licensed Products will conform in all respects to the samples approved by Licensor and that Licensee will not distribute or sell any Licensed Products which are of a quality or standard inferior to or different from the approved
quality or are injurious to the reputation and goodwill associated with the Licensed Mark. 

 ARTICLE 8 

Guaranteed Minimum Royalty 
 In consideration of the license granted hereunder and the other covenants and obligations of Licensor hereunder, Licensee shall pay to Licensor the greater of (A) the Sales Royalty provided by
Section 9(A) based on Licensee’s Net Sales during each Sales Year, or (B) the Guaranteed Minimum Royalty as follows: 
 The
Initial Term 
  

			
	  	  	 
	 Sales Year 1
	  	$*
		  	
	 Payable as follows:
	  	$*         as an advance on the date of execution hereof.
		  	
	Sales Year 2	  	$*
		  	
	 Payable as follows:
	  	$*         due by the 1st day of Sales Year 2
		  	$*         due by the 91st day of Sales Year 2
		  	$*         due by 181st day of Sales Year 2
		  	$*         due by 181st day of Sales Year 2
		  	
	Sales Year 3	  	$*
		  	
	 Payable as follows:
	  	$*         due by the 1st day of Sales Year 3
		  	$*         due by the 91st day of Sales Year 3
		  	$*         due by the 181st day of Sales Year 3
		  	$*         due by the 271st day of Sales Year 3
		  	
	Sales Year 4	  	$*
		  	
	 Payable as follows:
	  	$*         due by the 1st day of Sales Year 4
		  	$*         due by the 91st day of Sales Year 4
		  	$*         due by the 181st day of Sales Year 4
		  	$*         due by the 271st day of Sales Year 4
		  	
	Sales Year 5	  	$*
		  	
	Payable as follows: 	  	$*         due by the 1st year of Sales Year 5
		  	$*         due by the 91st day of Sales Year 5
		  	$*         due by the 181st day of Sales Year 5
		  	$*         due by the 271st day of Sales Year 5
		  	

 The Guaranteed Minimum Royalty for the entire Initial Term shall be $*. The Guaranteed Minimum Royalty for each
Sales Year during the Initial Term shall be credited only against the Sales Royalty due during the Initial Term. 

  

	*	Confidential terms omitted and provided separately to the Securities and Exchange Commission. 

			
	 The Renewal Term
	  	 
		  	
	Sales Year	  	
		  	
	Sales Year 6	  	$*
		  	
	Payable as follows:	  	$*         due by the 1st day of Sales Year 6
		  	$*         due by the 91st day of Sales Year 6
		  	$*         due by the 181st day of Sales Year 6 
		  	$*         due by the 271st day of Sales Year 6
		  	
	Sales Year 7	  	$*
		  	
	Payable as follows: 	  	$*         due by the 1st day of Sales Year 7
		  	$*         due by the 91st day of Sales Year 7
		  	$*         due by the 181st day of Sales Year 7
		  	$*         due by the 271st day of Sales Year 7
		  	
	Sales Year 8	  	$*
		  	
	Payable as follows:	  	$*         due by the 1st day of Sales Year 8
		  	$*         due by the 91st day of Sales Year 8
		  	$*         due by the 181st day of Sales Year 8
		  	$*         due by the 271st day of Sales Year 8
		  	

 The Guaranteed Minimum Royalty for the entire Renewal Term shall be $*. The Guaranteed Minimum Royalty for each
Sales Year during the Renewal Term shall be credited only against the Sales Royalty due during the Renewal Term. 
 With respect to the Renewal
Term, on a quarterly basis, Licensee shall pay to Licensor the greater of an amount equal to the Minimum Guaranteed Royalty or the actual Sales Royalty, as defined below, due on Net Sales for such quarterly period. 

The Sales Royalty, as defined below, paid for any Sales Year of the Initial Term in excess of the Guaranteed Minimum Royalty due in such Sales Year
(hereinafter, the “Initial Term Excess Royalty”), shall be credited against the Guaranteed Minimum Royalty due to Licensor for any other Sales Year of the Initial Term (“Rollover Guaranteed Minimum Royalty Credit”). The Sales
Royalty, as defined below, paid for any Sales Year of the Renewal Term in excess of the Guaranteed Minimum Royalty due in such Sales Year (hereinafter, the “Renewal Term Excess Royalty”), shall be credited against the Guaranteed Minimum
Royalty due to Licensor for any other Sales Year of the 
  

  

	*	Confidential terms omitted and provided separately to the Securities and Exchange Commission. 

 
Renewal Term. In no event shall any Initial Term Excess Royalty be credited against any Sales Year in the Renewal Term or any Renewal Term Excess Royalty be credited against any Sales Year in the
Initial Term. Notwithstanding the foregoing, on a quarterly basis, Licensee shall pay to Licensor the greater of an amount equal to the Guaranteed Minimum Royalty (subject to any Rollover Guaranteed Minimum Royalty Credit set forth in the previous
sentence) or the actual Sales Royalty due on the Net Sales for such quarterly period. 
 ARTICLE 9 

Sales Royalty; Accountings; Withholding Taxes 
 A. Licensee shall pay to Licensor a royalty of * percent (*%) on Net Sales in each Sales Year (the “Sales Royalty”). 
 B. The Sales Royalty hereunder shall be accounted for and paid quarterly within thirty (30) days after the close of each quarterly period ending
March 31, June 30, September 30 and December 31 during the Term of this Agreement (or portion thereof in the event of prior termination for any reason if the First Shipment Date occurs on any date other than the first
or last day of a calendar quarter). The Sales Royalty payable for each quarterly period during each Sales Year shall be computed on the basis of Net Sales during such Sales Year, with a credit for any Guaranteed Minimum Royalty and Sales Royalty
payments made to Licensor for said Sales Year. It is the essence of this Agreement that payment of the Sales Royalty, the Guaranteed Minimum Royalty and any other amounts payable under this Agreement shall be guaranteed in writing by Perfumania.

 C. All payments made hereunder by Licensee to Licensor shall be made in dollars in lawful currency of the United States of
America. All payments, along with a copy of all reports, shall be sent to the address of Licensor first above written, or to such other address as Licensor may designate in writing. The receipt or acceptance by Licensor of any royalty statement, or
the receipt or acceptance of any royalty payment made, shall not 

  

	*	Confidential terms omitted and provided separately to the Securities and Exchange Commission. 

 
prevent Licensor from challenging the validity or accuracy of such statement or payment in accordance with the provisions of Section 9E below. Late payments shall incur interest at the rate
of one half percent (0.5%) per month from the date such payments were originally due provided written notice of default in payment is provided by Licensor to Licensee. 
 D. Licensee’s obligations for the payment of the Sales Royalty as provided herein shall survive expiration or termination of this Agreement, and will continue for so long as Licensee and/or its
affiliates or sub-licensees continue to sell or otherwise market the Licensed Products in accordance with the terms hereof. 

E. All payments made by Licensee under this Agreement shall be made free and clear of, and without deduction or withholding for or on
account of, any present or future income, turnover, sales, value added stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings (individually or collectively, “Taxes”), now or hereafter imposed, levied,
collected, withheld or assessed by any tax or other governmental authority (a “Governmental Authority”), excluding all present and future income taxes imposed on the Licensor or any of its direct or indirect members (“Excluded
Taxes”). In the event that any Taxes (other than any Excluded Taxes) are now or hereafter required to be imposed, levied, collected, withheld, paid and/or assessed under applicable law from, or in respect of, any amount otherwise payable to the
Licensor hereunder (including any turnover, sales, value-added or similar type of Taxes imposed by any Governmental Authority and for which the Licensor and/or any of its direct or indirect members or beneficial owners are liable)(individually or
collectively, the “Non-Excluded Taxes”), then the amount so payable by Licensee to the Licensor shall be increased and grossed-up to the extent necessary to yield to the Licensor and its direct and indirect members and beneficial owners
(after payment, and/or the taking into account, of all such Non-Excluded Taxes) the amount specified in the Agreement as being payable to the Licensor. Whenever any Non-Excluded Taxes are payable by the Licensee, as promptly as possible thereafter
Licensee shall send to the Licensor a certified copy of an original official receipt received or other 

 
documentary evidence by Licensee showing payment thereof. If Licensee fails to pay any Non-Excluded Taxes when due to the appropriate Government Authority or fails to remit to the Licensor the
required receipts or other required documentary evidence, Licensee shall indemnify the Licensor and all of its direct and indirect members and other beneficial owners for any incremental Taxes and any interest or penalties that may become payable by
the Licensor or any of its direct or indirect members or beneficial owners as a result of any such failure. The agreements in this subsection shall survive the termination of this Agreement and the payment of all amounts payable hereunder. The
requirements of this Section 9E shall apply, provided that Licensor is a domestic (United States) business such as a corporation or limited liability company. If Licensor is a domestic partnership, then such requirements shall only apply if
Licensor has no foreign partners. 
 ARTICLE 10 

Net Sales Minimums 
  

					
	 A.
	 	 Initial Term
	 	
		 	Net Sales Minimum for Sales Year 1: 	 	$ *
		 	 Net Sales Minimum for Sales Year 2: 
	 	 $ *

		 		 	
		 	 Net Sales Minimum for Sales Year 3: 
	 	 $ *

		 		 	
		 	 Net Sales Minimum for Sales Year 4: 
	 	 $ *

		 		 	
		 	 Net Sales Minimum for Sales Year 5: 
	 	 $ *

		 		 	
		 	 Total Net Sales Minimum: 
	 	$ *
		 		 	
	 B.
	 	Renewal Term	 	
		 		 	
		 	Net Sales Minimum for Sales Year 6:	 	$ *
		 	 Net Sales Minimum for Sales Year 7:
	 	$ *
		 	 Net Sales Minimum for Sales Year 8: 
	 	$ *
		 	 Total Net Sales Minimum:
	 	$ *
		 		 	

  

  

	*	Confidential terms omitted and provided separately to the Securities and Exchange Commission. 

 D. In the event that Licensee fails to meet its Net Sales Minimum in any Sales Year (including during the
Renewal Term if applicable), provided that it promptly pays its Guaranteed Minimum Royalty for such Sales Year within thirty (30) days after the close of such Sales Year, Licensee shall not be deemed in breach of the Agreement on account of any
shortfall in Net Sales against the Net Sales Minimum for such Sales Year. Failure to pay the Guaranteed Minimum Royalty within the time provided, shall afford Licensor an automatic right to terminate the Agreement with no further obligations by
Licensee subsequent to termination. If Licensee fails to meet the Net Sales Minimum in any Sales Year after the first three (3) Sales Years (including such failure during the Renewal Period if applicable), Licensor may terminate this Agreement,
upon notice to Licensee, notwithstanding Licensee’s payment of the Guaranteed Minimum Royalty for the Sales Year in which Licensee failed to meet its Net Sales Minimum resulting in such termination. Licensee shall have no obligation to pay the
Guaranteed Minimum Royalty or to make any further sales of Licensed Products for any period following the date of termination. Notwithstanding the foregoing, such termination shall not relieve Licensee of any other obligations that survive
termination in accordance with paragraph 18N below. 
 ARTICLE 11 

Advertising and Promotion 

Licensee and its sub-licensee and distributors will jointly spend in the Territory for “Consumer Advertising and Promotion” (as defined below)
no less than the following: 
 A. Initial Term 
 Sales Year 1 40% of the greater of the Net Sales Minimum or actual Net Sales (for purposes of Sales Year 1, expenditures for Consumer Advertising and Promotion that are made after the Effective Date and
prior to the commencement of Sales Year 1 shall be credited to Sales Year 1 for purposes of this required minimum). In the event that the expenditure for Consumer Advertising and Promotion in a Sales Year is less than the minimum

 
required under this Article 11, Licensee or its sub-licensee or distributor must spend the shortfall on Consumer Advertising and Promotion during the first quarter of the next Sales Year. Any
shortfall remaining at the end of such first quarter shall be remitted to Licensor. 
  

			
	 Sales Year 2
	  	25% of the greater of the Net Sales Minimum or actual
	 Net Sales
	  	
		  	
	 Sales Year 3
	  	 20% of the greater of the Net Sales Minimum or actual 

	 Net Sales
	  	
		  	
	 Sales Year 4
	  	 20% of the greater of the Net Sales Minimum or actual

	 Net Sales
	  	
		  	
	 Sales Year 5
	  	 20% of the greater of the Net Sales Minimum or actual

	 Net Sales
	  	
		  	
	 B.    Renewal Term
	  	
		  	
	 Sales Year 6
	  	20% of the greater of the Net Sales Minimum or actual
	 Net Sales
	  	
		  	
	 Sales Year 7
	  	20% of the greater of the Net Sales Minimum or actual
	 Net Sales
	  	
		  	
	 Sales Year 8
	  	20% of the greater of the Net Sales Minimum or actual
	Net Sales	  	
		  	

 C. In the event that Licensee launches a new line of Licensed Products in any of Sales Years 2 through 5 of
the Initial Term or Sales Years 6 through 8 of the Renewal Term, in the Sales Year in which launch occurs, the Consumer Advertising and Promotion commitment for such Sales Year for the new line shall be increased by 15%. For example, if a new line
is launched in Sales Year 4, the Consumer Advertising and Promotion commitment for the new line in that year would be 35% (20% as required above plus a 15% increment for just the year of launch with respect to Net Sales of only the new line).
Notwithstanding the foregoing, the Consumer Advertising and Promotion commitment, expressed as a percentage of aggregate Net Sales in any Sales Year, cannot be less than the Guaranteed Minimum Royalty in such Sales Year, expressed as a percentage of
Net Sales. 
 D. “Consumer Advertising and Promotion” shall be understood to include newspapers, magazines, television, radio,
signage/billboards (including related artwork and production charges for these five categories) cooperative advertising, retailer demonstration charges, retailers’ catalogues, gifts-with-purchase (including the free portion of seasonal value
sets), marketing collateral materials, direct mail, remittance envelopes, blow-ins, billing inserts (both scented and unscented), product samples, pamphlets, free goods (including those to Licensor for events and other public relations activities),
free aspect of seasonal value sets, selling assistant programs, window and counter displays (including testers, dummies, counter cards and other visual aids), in-store demonstrators and models, special events, contests, publicity and promotions and
all aspects of social media promotion. 
 E. Licensor undertakes, at Licensee’s sole expense and subject to Artist’s prior
professional commitments, at Licensee’s request to make Artist available at reasonable intervals and for reasonable periods (which shall involve at least three (3) appearances in each Sales Year of the Term, at least one of which shall
take place in New York City) for promotional tie-ins serving to associate Artist with the Licensed Products. During the Term and in the Territory, Licensee shall also be entitled to the non-exclusive use of Artist’s approved likeness, and
approved signature solely for advertising, packaging and promotional purposes upon Licensor’s approval first being obtained in each instance, which approval shall not be unreasonably withheld or delayed. Licensor’s failure to approve any
representation of Artist’s signature or likeness within twenty (20) business days of written request therefor shall be deemed an approval thereof. Licensor shall make every reasonable effort, in light of his busy schedule and subject to
his prior professional commitments, at the request of the Licensee and upon at least twenty (20) business days written notice, to arrange for Artist’s cooperation for a reasonable number of publicity events (which shall be included in
Artist’s obligations of three (3) appearances discussed above). Licensee shall pay for all reasonable costs involved in providing Artist and two of Artist’s personal assistant/manager(s) with private

 
aircraft travel (including ground transportation) and five star hotel accommodations (separate rooms), food and other related expenses mutually agreed upon in advance of each appearance attended
by Artist at Licensee’s request. Licensee shall pay for the costs involved in providing Artist’s stylist, production person and two security guards with round-trip first-class or private air travel and lodging, food and other related
expenses mutually agreed upon in advance of each appearance attended by Artist at Licensee’s request. If Artist fails to appear for a scheduled Licensor approved event due to his willful acts or omissions, Licensee will have the right to deduct
its non-refundable, directly related, reasonable out of pocket expenses incurred in connection with each specific event from the Sales Royalty. The failure to appear at a scheduled event could have a material adverse effect on the
Licensee’s ability to market the Licensed Products. Budgets for the above travel shall be discussed and agreed upon by the Parties prior to travel bookings. Expenses incurred by Licensee under this paragraph shall be included in the Consumer
Advertising and Promotion commitment. 
 F. Licensee shall not advertise or promote any of the Licensed Products in any publication or
communications medium that is reasonably likely to damage the goodwill of the Licensed Mark and shall not offer any premiums, bundling or tie-ins with other products without Licensor’s prior written consent. Licensor and Artist and their
respective reputations and businesses shall not in any way be used in any illegal, vulgar, obscene, immoral, unsavory or offensive manner. Licensee shall obtain, at its sole cost and expense, all third party consents and approvals necessary in
connection with advertising and promotional activities. Moreover, if at any time during the Term, the commercial value of Artist’s name and image is substantially impaired by reason of his conviction of a felony or any other crime
involving moral turpitude and that such conduct will materially diminish the ability of Licensee to sell the Licensed Products, Licensee shall have the right to terminate this Agreement following which the parties shall have no further obligations
hereunder except those that by the terms of this Agreement are to survive its termination. 

 ARTICLE 12 

Sales Statement; Books and Records; Audits 
 A. Sales Statement. Licensee shall deliver to Licensor and Artist at the time each Sales Royalty payment is due, a reasonably detailed report in accordance with Generally Accepted Accounting
Principles signed by an officer of Licensee and Perfumania and certified as true, accurate and complete, identifying separately by SKU number the items, quantities and Net Sales of each style of Licensed Product broken out by customer account and by
country sold by Licensee and/or its Affiliates, Subsidiaries, distributors and/or sub-licensees during the quarter for which payment is being made and then at the end of each Sales Year for the entire Sales Year, and any other information reasonably
requested by Licensor in connection therewith. Each such report shall include, in addition to the total number of each Licensed Product sold and the royalty due thereon, a detailed presentation of the computation of royalties, including the
quantities and Net Sales of each item sold, and the application of any credits. A statement shall be rendered for each quarter whether or not any royalties are due. Such information shall be maintained in confidence by and on behalf of Licensor,
subject to disclosure only as required by law. Notwithstanding the foregoing, Licensor acknowledges and agrees that Licensee shall not be selling the Licensed Products into the market. Sales will actually be made by Perfumaniaand the books and
records reflecting such sales shall be in the exclusive control and possession of Perfumania so that any reporting required herein shall be generated by Perfumania based on the accounting records of Perfumania. 

Licensee and Perfumania shall deliver to Licensor, not later than ninety (90) days after the close of each Sales Year during the
Term of this Agreement (or portion thereof in the event of prior termination for any reason), a statement, prepared in accordance with GAAP, signed by a duly authorized officer relating to said entire Sales Year, setting forth the same information
required to be submitted by Licensee in accordance with the first paragraph of this Article and also setting forth the information concerning expenditures for the Consumer Advertising and Promotion of Licensed Products during such Sales Year
required by Article 11 hereof. 

 B. Books and Records; Audits. Licensee and Perfumania shall prepare and maintain, in
such manner as will allow its accountants to audit same in accordance with GAAP complete, accurate and separate books of account and records (specifically including without limitation the originals or copies of documents supporting entries in the
books of account) in which accurate entries will be made covering all transactions, including advertising expenditures, arising out of or relating to this Agreement. Licensee and Perfumania shall keep separate general ledger accounts for such
matters that do not include matters or sales related to this Agreement. Licensor and Artist and their duly authorized representatives shall have the right, for the duration of this Agreement and for three (3) years thereafter, during regular
business hours and upon seven (7) business days advance notice (unless a shorter period is appropriate in the circumstances), to audit said books of account and records and examine all other documents and material in the possession or under the
control of Licensee and/or Perfumania with respect to the subject matter and the terms of this Agreement, including, without limitation, invoices, credits and shipping documents, and to make copies of any and all of the above. All such books of
account, records, documents and materials shall be kept available by Licensee and/or Perfumania for at least three (3) years after the end of the Sales Year to which they relate. 

If, as a result of any audit of Licensee’s and/or Perfumania’s books and records, it is shown that Licensee’s and/or
Perfumania’s payments were less than the amount which should have been paid by an amount equal to five (5%) percent or more of the payments actually made with respect to sales occurring during the period in question, Licensee and/or
Perfumania shall reimburse Licensor for the cost of such audit and shall make all payments required to be made to eliminate any discrepancy revealed by said audit together with interest accruing thereon within ten (10) days after
Licensor’s demand therefor. 
 C. Licensee shall submit to Licensor and Artist for its prior written approval an annual
business plan, which shall include specific product offerings, advertising and marketing strategies for distribution and sale of the Licensed Products, and sales forecasts. Such plan shall be delivered to Licensor at least ninety (90) days
prior to the beginning of each Sales Year, 

 
except that with respect to Sales Year 1 the plan shall be delivered within one hundred and twenty (120) days prior to the First Shipment Date. 

D. Licensee’s and/or Perfumania’s obligations to maintain the records and provide audit rights as provided herein shall survive
expiration or termination of this Agreement, and will continue for three (3) years after Licensee and/or its distributors or sub-licensees have ceased to manufacture, to have manufactured, sell or otherwise market the Licensed Products in
accordance with the terms hereof. 
 ARTICLE 13 

Indemnification and Insurance 
 A. Indemnification of Licensor. Licensee hereby agrees to save and hold Licensor and its officers, directors, agents and employees harmless of and from and to indemnify them against any and all
claims, suits, injuries, losses, liability, demands, damages and expenses (including, subject to subparagraph D below, Licensor’s reasonable attorneys’ fees and expenses) which Licensor may incur or be obligated to pay, or for which either
may become liable or be compelled to pay in any action, claim or proceeding against it, for or by reason of any acts, whether of omission or commission, that may be committed or suffered by Licensee or any of its servants, agents or employees in
connection with Licensee’s performance of this Agreement, including but not limited to those arising out of (i) any use of any of Licensor’s intellectual property by Licensee, its subsidiaries and/or affiliates or sub-licensees in
connection with the Licensed Products not expressly authorized under this Agreement (ii) the sale or use of the Licensed Products, (iii) any allegedly unauthorized use of any patent, process, idea, method, or device in connection with the
Licensed Products except as authorized by this Agreement, (iv) any claims, suits, losses and damages arising out of alleged defects in the Licensed Products or resulting from any failure of Licensee, or any person, firm, or entity acting under
or through Licensees, to comply with the provisions of this Agreement or to comply with any applicable laws including, without limitation any of the foregoing, (v) the manufacture, labeling, sale, distribution or advertisement of

 
any Licensed Product by Licensee in violation of any national, state or local law or regulation or the breach of Article 5 hereof, or (vi) the death of, or injury to, persons or damage to
property, and (vii) third party claims of infringement of intellectual property rights, including copyrights, trademark (other than the Licensed Mark), trade dress and/or patent claims. The provisions of this paragraph and Licensee’s
obligations hereunder shall survive the expiration or termination of this Agreement. This indemnity shall not apply to the extent any claim, suit, injury, loss, liability, demand, damage or expense arises out of the negligence or willful misconduct
of Licensor. Licensee shall give Licensor prompt written notice of any such claim, demand or suit. 
 B. Insurance
Policy. Licensee shall procure and maintain at its own expense in full force and effect at all times during which Licensed Products are being sold, with a qualified AA or higher rated insurance carrier acceptable to Licensor, a public liability
insurance policy with a general liability insurance, products liability insurance, errors and omissions insurance and worker’s compensation insurance having the minimum coverages specified as follows: 

Commercial General Liability Insurance for limits of $2,000,000 per occurrence Bodily Injury and Property Damage Combined, $1,000,000 per
occurrence Personal & Advertising Injury, $2,000,000 aggregate Products and Completed Operations Liability, Workers Compensation of $1,000,000 per occurrence and $10,000,000 umbrella coverage each occurrence for General Liability and
Product Damage, with Cargo coverage of up to $25,000,000. 
 Such insurance policies shall provide for at least thirty (30) days prior
written notice to said parties of the cancellation or substantial modification thereof. Licensor and Artist shall be a named insured on each such policy. Such insurance may be obtained by Licensee in conjunction with a policy which covers products
other than Licensed Products. 

 C. Evidence of Insurance. Licensee shall, from time to time upon reasonable request
by Licensor, promptly furnish or cause to be furnished to Licensor evidence in form and substance satisfactory to Licensor of the maintenance of the insurance required by subparagraph B above, including, but not limited to, copies of policies,
certificates of insurance (with applicable riders and endorsements) and proof of premium payments. Nothing contained in this paragraph shall be deemed to limit in any way the indemnification provisions of the subparagraph A above. 

D. Notice. Licensor will give Licensee notice of any action, claim, suit or proceeding in respect of which indemnification may be
sought and Licensee shall defend such action, claim, suit or proceeding on behalf of Licensor. In the event appropriate action is not taken by Licensee within thirty (30) days after its receipt of notice from Licensor, then Licensor shall have
the right, but not the obligation, to defend such action, claim, suit or proceeding and in such defense Licensor may, subject to Licensee’s indemnity obligation under subparagraph A above, be represented by its own counsel. In any case, the
Licensor and the Licensee shall keep each other fully advised of all developments and shall cooperate fully with each other in all respects in connection with any such defense as is made. Nothing contained in this paragraph shall be deemed to limit
in any way the indemnification provisions of the subparagraph A above except that in the event appropriate action is being taken by Licensee by counsel reasonably acceptable to Licensor, with respect to any non-trademark or intellectual property,
action, claim, suit or proceeding. Licensor shall not be permitted to seek indemnification from Licensee for attorneys’ fees and expenses incurred without the consent of Licensee. In connection with the aforesaid actions, claims and
proceedings, the parties shall, where no conflict of interest exists, seek to be represented by common reasonably acceptable counsel. In connection with actions, claims or proceedings involving trademark or other intellectual property matters which
are subject to indemnification hereunder, Licensor shall at all times be entitled to be represented by its own counsel, for whose reasonable fees and disbursements it shall be entitled to indemnification hereunder. 

 ARTICLE 14 

The Licensed Mark 
 A. Licensee shall not join any name or names with the Licensed Mark so as to form a new mark, unless and until Licensor consents thereto in writing. Licensee acknowledges the validity of the Licensed
Mark, the secondary meaning associated with the Licensed Mark, and the rights of Licensor with respect to the Licensed Mark in the Territory in any form or embodiment thereof and the goodwill attached or which shall become attached to the Licensed
Mark in connection with the business and goods in relation to which the same has been, is or shall be used. Sales by Licensee shall be deemed to have been made by Licensor for purposes of trademark registration and all uses of the Licensed Mark by
Licensee shall inure to the benefit of Licensor. Licensee shall not, at any time, do or suffer to be done, any act or thing which may in any way materially adversely affect any rights of Licensor in and to the Licensed Mark or any registrations
thereof or which, directly or indirectly, may materially reduce the value of the Licensed Mark or detract from its reputation. 

B. At Licensor’s request, Licensee shall execute any documents, including registered user agreements, reasonably required by
Licensor to confirm the respective rights of Licensor in and to the Licensed Mark in each jurisdiction in the Territory and the respective rights of Licensor and Licensee pursuant to this Agreement. Licensee shall cooperate with Licensor, in
connection with the filing and the prosecution by Licensor of applications to register or renew the Licensed Mark for Licensed Products sold hereunder in each jurisdiction in the Territory where Licensee has reasonably requested the same in
accordance with this Agreement. Such filings and prosecution shall be at the expense of Licensor and Licensor shall own Licensed Mark. Nothing contained herein shall obligate Licensor to prosecute any trademark application outside the U.S. which is
opposed or rejected in any country after the application is filed, provided, however, that any such prosecution shall go forward if (a) Licensee requests same; (b) Licensee pays for same directly; and (c) such prosecution is in
Licensor’s name and directed by Licensor. Licensor shall cooperate fully with any such prosecution. If the prosecution fails, Licensee shall receive no credit for the monies it expended in connection therewith; if the prosecution succeeds,
Licensee shall be entitled to receive a credit for the monies it expended in connection therewith against any Sales Royalty due Licensor from sales derived in the country of such prosecution. 

 C. Licensee shall use the Licensed Mark in each jurisdiction in the Territory strictly in
compliance with the legal requirements obtaining therein and shall use such markings in connection therewith as may be required by applicable legal provisions. Licensee shall cause to appear on all Licensed Products and on all materials on or in
connection with which the Licensed Mark is used, such legends, markings and notices as may be reasonably necessary in order to give appropriate notice of any trademark, trade name or other rights therein or pertaining thereto. 

D. Licensee shall never challenge the validity of the Licensed Mark or any application for registration thereof, or any trademark
registration thereof, or any rights of Licensor therein. The foregoing shall not be deemed to prevent Licensee from asserting, as a defense to a claim of breach of contract brought against Licensee by Licensor for failure to perform its obligations
hereunder, that its ceasing performance under this Agreement was based upon Licensor’s failure to own the Licensed Mark in the United States of America, provided that it is established in a court of law that Licensor does not own the Licensed
Mark, that the Licensed Mark is owned by a third party so as to preclude the grant of the license provided herein. 
 E.
Licensee shall promptly notify Licensor of any counterfeiting or other infringement of the Licensed Mark, or any diversion of the Licensed Products from the Licensed Channels of Distribution, of which Licensee becomes aware. Licensor shall have the
right, but not the obligation, to institute legal action or take any other actions which it deems necessary to protect its interest in the Trademarks, and Licensee shall fully cooperate with Licensor in any such action, provided that any
out-of-pocket expenses of Licensee incurred in connection therewith are paid or reimbursed by Licensor or credited against any Sales Royalty due thereafter to Licensor. Any monetary recovery (the “Licensor Recovery”) resulting from any
such action shall be allocated between Licensor and Licensee as follows: first, all out of pocket expenses incurred by Licensor and Licensee in prosecuting such action (the “Recovery Expenses”)

 
shall be paid to Licensor and Licensee as actually incurred by each; second, Licensor shall be paid an amount equal to the balance of the Licensor Recovery, after deducting the Recovery Expenses,
times the Royalty Rate; and third, Licensor shall receive fifty (50%) percent and Licensee shall receive fifty (50%) percent of the remaining balance of the Licensor Recovery. If Licensor declines to institute or continue any legal action,
Licensee may, with the consent of Licensor, which will not be unreasonably withheld, institute or continue same in its name, at its sole expense, in which event any monetary recovery (the “Licensee Recovery”) resulting therefrom shall be
allocated between Licensor and Licensee as follows: first, the Recovery Expenses shall be paid to Licensor and Licensee in the amounts actually incurred by each; second, Licensor shall be paid an amount equal to the balance of the Licensee Recovery,
after deducting the Recovery Expenses, times the Royalty Rate; and third, Licensor shall receive fifty (50%) percent and Licensee shall receive fifty (50%) percent of the remaining balance of the Licensee Recovery. Should the amount of the
recovery under this paragraph not be sufficient to pay 100% of the Recovery Expenses, then the allocation hereunder shall be adjusted on a pro-rata basis in proportion to the relative amounts of Recovery Expenses incurred by each of Licensor and
Licensee. 
 F. Licensor shall not be required to protect, indemnify or hold Licensee harmless against, or be liable to Licensee
for, any liabilities, losses, expenses or damages which may be suffered or incurred by Licensee as a result of any infringement or allegation thereof by any other person, firm or corporation, other than by reason of Licensor’s breach of the
representations made and obligations assumed herein. 
 G. Ownership of all intellectual property rights, whether recognized
currently or in the future, including, without limitation, copyright, patent, trade secret and trademark rights, in the Licensed Products and in all formulae, designs, logos, artwork, packaging, copy, literary text, advertising material and
promotion material of any sort utilizing the Licensed Mark, including all such material developed by Licensee (collectively, the “Work”), shall vest in Licensor, and title thereof shall be in the name of Licensor. All such items and all
Licensed Products shall bear the copyright and trademark notices as are 

 
reasonable and customary and any other legal notices, which Licensor may from time to time prescribe. Notwithstanding the foregoing, the parties hereto understand and agree that the formulae and
scents shall be owned by a third-party fragrance house, which fragrance house shall agree, using the form of agreement annexed hereto as Exhibit __, directly with either Licensee or Perfumania and Licensor that, during and after the Term of
the Agreement such formulae and scents shall be exclusive to Licensor. Any and all additions to, and new renderings, modifications or embellishments of the Work shall, notwithstanding their invention, creation and use by Licensee and/or its
representatives, affiliates and/or sub-licensees, if applicable, be and remain the property of Licensor, and Licensor may use, and license others to use the Work, subject only to the provisions of this Agreement. Licensee shall advise Licensor of
specific Work to be developed, designed and/or manufactured by third parties (collectively, “Developers”) and shall provide Licensor with the names and addresses of all such Developers. Licensee shall impose restrictions on such
Developers, including but not limited to having such Developers execute confidentiality, trademarks acknowledgement and anti-pirating and anti-infringement agreements and/or letter agreements guaranteeing the Developers’ compliance with the
provisions of this Agreement. Licensee shall obligate each Developer to covenant in its agreement that it will not subcontract any of its obligations to develop, design or manufacture Licensed Products or Work without the prior written approval by
the Licensor. The right, title and interest in and to any samples or prototypes of the Work, including any modifications or improvements thereto, that are submitted by Licensee or Perfumania to Licensor for approval, but (i) which are not
approved by Licensor (ii) not then used in connection with the Licensed Mark or the Licensed Products and (iii) are not confusingly similar to the Work ultimately approved or used by the Licensor in connection with the Licensed Mark
(provided that any reference to or inclusion of the Licensed Mark is removed from such Work), shall revert to Licensee or, as applicable, to the designer or fragrance house that designed, developed prepared and provided such Work. Licensee agrees,
if requested by Licensor, to utilize anti-counterfeiting stickers on the Licensed Products sold to customers who consent to the inclusion of such stickers on Licensed Products they purchased from Licensee or its sub-licensee or distributors.

 H. Licensee shall not use any other tradenames, trademarks or other designations including,
without limitation, Licensee’s own corporate name or tradename in connection with the Licensed Mark in any consumer advertising and publicity, labeling, packaging or printed matter utilized by Licensee in connection with the Licensed Products.
Licensee may, however, use its own corporate name or tradename in connection with the Licensed Products in transactions between and among the parties hereto, and with Manufacturers, merchants, wholesale customers and others relating to: the
manufacture of Licensed Products; the creation and development of designs, styles, advertising, promotional materials, packaging, printed matter and labeling of the Licensed Products; and the wholesale sale of the Licensed Products. Licensee shall
not use its corporate name as a brand to associate it with or promote any Licensed Products. Licensee shall not use the Licensed Mark in combination with any other names or marks to form a new mark and shall not use the Licensed Mark as a tradename
or in any other manner other than in connection with the manufacture, distribution, sale and promotion of Licensed Products under this Agreement. Licensee will at all times make reference on the Licensed Products and on all packaging and promotional
materials used in connection therewith that the Licensed Mark is under license from the Licensor. For clarification purposes and avoidance of doubt, Licensee and its sub-licensees and distributors may use their corporate names on the labeling of
Licensed Products to indicate the identity and location of the manufacturer and/or distributor of Licensed Products as is customary solely in order to comply with applicable labeling laws and regulations. Moreover, Licensee and its sublicensee
Perfumania shall be permitted in trade press articles and media interviews or question and answer sessions, on their websites, in their catalogues and company literature to identify the Artist and the Licensed Products as one of several licensors
and brands included in Licensee’s or its sublicensees’ or distributors’ catalogue of brands and product lines. 

 ARTICLE 15 

Defaults; Termination 
 A. The following conditions and occurrences shall constitute “Events of Default” by Licensee: 
 (i). the failure to pay Licensor the full amount due it under any of the provisions of this Agreement by the prescribed date for such payment; 

(ii). the failure to deliver full and accurate reports pursuant to any of the provisions of this Agreement by the prescribed due date
therefor; 
 (iii). the making or furnishing of a knowingly false statement in connection with or as part of any material aspect
of a report, notice or request rendered pursuant to this Agreement; 
 (iv). the failure to maintain the insurance required by
Article 12; 
 (v). the use of the Licensed Mark in an unauthorized or unapproved manner; 

(vi). Licensee’s use of other trademarks on or in association with the Licensed Products, without prior written consent of Licensor;

 (vii). the commencement against Licensee of any proceeding in bankruptcy, or similar law, seeking reorganization,
liquidation, dissolution, arrangement, readjustment, discharge of debt, or seeking the appointment of a receiver, trustee or custodian of all or any substantial part of Licensee’s property, not dismissed within sixty (60) days, or
Licensee’s making of an assignment for the benefit of creditors, filing of a bankruptcy petition, its acknowledgment of its insolvency or inability to pay debts, or taking advantage of any other provision of the bankruptcy laws; 

(viii). the material breach of any other material promise or agreement made herein (or any agreements or exhibits incorporated by
reference herein) including but not limited to (1) the failure of Licensee to enter into a sublicense agreement with Perfumania as set forth in this Agreement including Section 2 hereof or (2) the failure of Licensee to launch the
Licensed Products on retail shelves in commercially reasonable quantities by December, 2013. 

 B. In the event Licensee or Licensor fails to cure an Event of Default, (in the event such
Event of Default is curable) within fifteen (15) days after written notice of default is transmitted to Licensee or within such further period as the non-defaulting party may allow, this Agreement shall, at the option of the non-defaulting
party, be terminated, on notice to the defaulting party. 
 C. Upon the expiration or termination of this Agreement for any
reason, in the event this Agreement is not renewed as provided in Article 4 above, or in the event of the termination or expiration of a renewal term of this Agreement, Licensee, except as specified in Article 16 below, will immediately discontinue
use of the Licensed Mark, will not resume the use thereof or adopt any colorable imitation of the Licensed Mark or any of its parts, will promptly deliver and convey to Licensor within no later than ninety (90) days from such termination (free
of all liens and encumbrances) (i) all plates, engravings, silk-screens, or the like used to make or reproduce the Licensed Mark and its designs, but not the bottle mold or tooling (that may not be used by Licensee following the termination of
the Agreement other than to the extent that the components created using such molds or tooling or not distinctive and would not cause any consumer confusion as to source or origin between Licensee or Perfumania on the one hand and Licensor or Artist
on the other hand), but which Licensor shall be entitled to purchase or recover as provided below; and (ii) all items affixed with likeness or reproductions of the Licensed Mark, whether Licensed Products, labels, bags, hangers, tags or
otherwise, and, upon request by Licensor, will assign to Licensor such rights as Licensee may have acquired in the Licensed Mark. In the event that this Agreement expires or is terminated by Licensor due to Licensee’s default, Licensor shall
have an option, but not an obligation, to purchase the bottle mold and tooling for the Licensed Products, free of all liens and other encumbrances, at a price equal to Licensee’s cost for same established by submission of bill(s) from supplier
and satisfactory proof of payment for same. Licensor shall pay such cost as follows: by wire transfer in advance. Licensor shall exercise its aforesaid option within 

 
thirty (30) days after Licensee’s submission of documents establishing cost. Notwithstanding the foregoing, if Licensor has terminated this Agreement due to Licensee’s default,
Licensor, at its option, shall be entitled, in exercising its purchase option, to deduct from the cost price an amount equal to the Sales and Guaranteed Minimum Royalties Licensor is entitled to recover, for which deduction Licensee shall receive a
credit. In the event Licensor exercises its aforesaid option, Licensee shall be precluded forever from using the bottle molds or tools and from selling or otherwise transferring or licensing any rights whatsoever in the molds or tools to any third
party. In the event that Licensor does not exercise its aforesaid option, Licensee shall not use the bottle molds or tools or sell or otherwise transfer or license any rights whatsoever in the bottle mold or tools to any third party for a period of
two (2) years after the determination of the fair market value. In the event of any permitted use of the bottle mold and/or tools by Licensee, Licensee shall not use in connection therewith the Licensed Mark, any trademark confusingly similar
thereto, any trade dress associated with the Licensed Products, any advertising or promotional materials used in connection with the Licensed Products or any other markings or materials which would cause a reasonable consumer to believe that any new
items sold using the bottle mold and tools are authorized by Licensor or in some way associated with the Licensed Mark. Any permitted sale or license of the bottle mold and/or tools by Licensee shall prohibit in writing the purchaser or licensee
from using the Licensed Mark, and confusingly similar trademark and any such trade dress, advertising, promotional materials, markings or other materials and shall expressly make Licensor a third party beneficiary of such provision. 

ARTICLE 16 
 Rights on Expiration or Termination 
 A. If this Agreement expires or is
terminated for any reason, Licensee shall cease to manufacture Licensed Products (except for work in process or to balance component inventory) but shall be entitled, for an additional period of six (6) months only, on a non-exclusive basis, to
sell and dispose of its inventory subject, however, to the provisions of paragraph D of this Article. 

 
Such sales shall be made subject to all of the provisions of this Agreement and to an accounting for and the payment of Sales Royalty thereon but not to the payment of Guaranteed Minimum
Royalties. Such accounting and payment shall be made monthly. If Licensor has entered into a license agreement with a new distributor to replace Licensee, then Licensor shall be permitted to purchase Licensee’s remaining inventory at
Licensee’s cost plus ten (10%) percent to cover carrying and handling charges for purposes of distribution by the new licensee. Upon termination of this Agreement, Licensee shall take commercially reasonable efforts to allocate appropriate
stock of Licensed Product in order not to have excess stock at the end of the Term. In the event excess stock of Licensed Product is not sold at the end of the Term, Licensee shall have the non-exclusive right for six (6) months (the
“Sell-Off Period”) from the end of the Term to sell through the Licensed Product pursuant to this Agreement. Licensee agrees to refrain from “dumping” any articles of Licensed Products in the market during the Sell-Off Period.
“Dumping” shall mean the distribution of the Licensed Products at volume levels significantly above Licensee’s prior sales practices with respect to Licensed Products, and at price levels so far below prior sales practices with
respect to Licensed Products as to disparage the Licensed Products. 
 B. In the event of termination in accordance with Article
14 above, Licensee shall pay to Licensor, the Sales Royalty then owed to it pursuant to this Agreement for Net Sales made through the date of termination or otherwise. 
 C. Notwithstanding any termination in accordance with Article 15 above, Licensor shall have and hereby reserve all rights and remedies which it has, or which are granted to it by operation of law, to
enjoin the unlawful or unauthorized use of the Licensed Mark, and to collect royalties payable by Licensee pursuant to this Agreement and to be compensated for damages for breach of this Agreement. 

D. Upon the expiration or termination of this Agreement and no later than 20 days after such expiration or termination, Licensee shall
deliver to Licensor a complete and accurate schedule of Licensee’s inventory of Licensed Products, and of related work in process then on hand, including components 

 
and products and materials in the process of manufacture (including any such items held by Subsidiaries, Affiliates, sublicensees or others on behalf of Licensee) (hereinafter referred to as
“Inventory). Such schedule shall be prepared as of the close of business on the date of such expiration or termination and shall reflect Licensee’s cost of each such item. Notwithstanding anything contained to the contrary in this
Agreement, Licensor thereupon shall have the option, exercisable by notice in writing delivered to Licensee within thirty (30) days after its receipt of the complete Inventory schedule, to purchase all, but no less than all, of the Inventory,
free of all liens and other encumbrances, for an amount equal to the lowest Licensee’s selling price. In the event such notice is sent by Licensor, Licensee shall deliver to Licensor or its designee all of the Inventory referred to therein
within thirty (30) days after Licensor’s said notice and, in respect of any Inventory so purchased, assign to Licensor all then outstanding orders from Licensee to its suppliers and to Licensee from its customers. Licensor shall pay
Licensee for such Inventory by wire transfer within in advance of the delivery of such Inventory to Licensor. No Sales Royalty shall be payable to Licensor with respect to any such inventory purchased by Licensor. 

E. Immediately upon the expiration or termination of this Agreement for any reason, Licensor shall have the free and unrestricted right
to grant other parties one or more licenses to use the Licensed Mark in connection with the manufacture, sale, distribution or advertising and promotion of Licensed Product in the Territory or to enter into such other transactions as it desires for
the use of the Licensed Mark with Licensed Products or in any other manner, without any obligation of any kind to Licensee. The right of Licensee to sell items of Inventory under this Section is non-exclusive only and shall not in any manner limit
Licensor’s right to enter into other licenses or transactions. 
 ARTICLE 17 

Sublicensing and Distribution 
 A.(i) The performance of Licensee hereunder is of a personal nature. Therefore, neither this Agreement nor the license or other rights granted hereunder may be assigned, sublicensed (other than to
Perfumania) or 

 
transferred by Licensee, whether to a Subsidiary or Affiliate, nor may Licensee delegate any of Licensee’s obligations under this Agreement without Licensor’s prior written approval,
such approval not to be unreasonably withheld or delayed. Any attempted assignments, transfer, or sublicenses by Licensee without such approval shall be void and a material breach of this Agreement. Notwithstanding the foregoing, Licensee
shall have the obligation, subject to the terms of this Agreement including but not limited to Section 2 hereof, to sub-license the Licensed Mark to Perfumania or to assign this Agreement to Perfumania. 

(ii) Consolidation. This Agreement shall not terminate if Licensee is merged with, acquired by or otherwise consolidated with or
into another entity if all of the following has occurred: (a) the surviving entity has a net worth under GAAP equal to or greater than that of Licensee, (b) the surviving entity owns or controls, directly or indirectly, a majority of the
stock or assets of Licensee, (c) the surviving entity has assumed all of Licensee’s obligations hereunder, and (d) the surviving entity has retained substantially all of the infrastructure of Licensee’s sub-licensee, Perfumania,
for the development, marketing, merchandising, manufacturer and sales of prestige fragrance brands to department and specialty stores. 
 B. Subject to the Licensed Channels of Distribution set forth in this Agreement, Licensee shall be entitled to use distributors in the Territory in connection with its sale of Licensed Products under this
Agreement with the prior written approval of Licensor. No such distributor, however, shall be entitled to exercise any of Licensee’s rights hereunder except for the sale of Licensed Products which have been approved by Licensor hereunder.

 ARTICLE 18 
 Miscellaneous 
 A. Representations. The Parties respectively
represent and warrant that they have full right, power and authority to enter into this Agreement and perform all of their obligations hereunder and that they are under no legal impediment which would prevent their signing this Agreement or
consummating 

 
the same. Licensor represents and warrants that it has the right to license to Licensee the Licensed Mark and that Licensor has not granted any other existing license to use the Licensed Mark in
connection with Licensed Products in the Territory and that no such license will be granted during the term of this Agreement except in accordance with the provisions hereof. Licensor makes no representations or warranties except as expressly
provided herein. 
 B. Licensor’s Rights. Notwithstanding anything to the contrary contained in this Agreement
(except for the provisions of Section 17A(ii), to which this Section 18B shall be subject), Licensor shall not have the right to negotiate or enter into agreements with third parties pursuant to which it may grant a license to use the
Licensed Mark in connection with the manufacture, distribution and/or sale of Licensed Products covered hereunder in the Territory or provide consultation and design services with respect to such Licensed Products in the Territory prior to the
termination or expiration of this Agreement. 
 C. Licensor’s Retail Stores. In the event Licensor opens one or more
retail stores or boutiques selling various products bearing the Licensed Mark, Licensee agrees to sell Licensed Products to Licensor for sale in such stores at regular listed retail prices less a 60% (sixty) percent discount. Licensee further agrees
that any sales pursuant to this paragraph shall be included in the computation of Net Sales for any applicable Sales Year hereunder. 
 D. Governing Law; Entire Agreement. This Agreement shall be construed and interpreted in accordance with the laws of the State of New York applicable to agreements made and to be performed in said
State, contains the entire understanding and agreement between the parties hereto with respect to the subject matter hereof (including all exhibits referred to herein), supersedes all prior oral or written understandings and agreements relating
thereto and may not be modified, discharged or terminated, nor may any of the provisions hereof be waived, orally. 
 E. No
Agency. Nothing herein contained shall be construed to constitute the Parties hereto as partners or as joint venturers, or either as agent of the other, and licensee shall have no power to obligate or bind Licensor in any manner whatsoever.

 F. No Waiver. No waiver by either party, whether express or implied, of any provision
of this Agreement, or of any breach or default thereof, shall constitute a continuing waiver of such provision or of any other provision of this Agreement. Acceptance of payments by Licensor shall not be deemed a waiver by Licensor of any violation
of or default under any of the provisions of this Agreement by Licensee. 
 G. Void Provisions. If any provision or any
portion of any provision of this Agreement shall be held to be void or unenforceable, the remaining provisions of this Agreement and the remaining portion of any provision held void or unenforceable in part shall continue in full force and effect.

 H. Construction. This Agreement shall be construed without regard to any presumption or other rule requiring
construction against the party causing this Agreement to be drafted. If any words or phrases in this Agreement shall have been stricken out or otherwise eliminated, whether or not any other words or phrases have been added, this Agreement shall be
construed as if those words or phrases were never included in this Agreement, and no implication or inference shall be drawn from the fact that the words or phrases were so stricken out or otherwise eliminated. 

I. Force Majeure. Neither party hereto shall be liable to the other for delay in any performance or for the failure to render any
performance under the Agreement (other than payment to any accrued obligation for the payment of money) when such delay or failure is by reason of lockouts, strikes, riots, fires, explosions, blockade, civil commotion, epidemic, insurrection, war or
warlike conditions, terrorism or threat of terrorism, the elements, embargoes, act of God or the public enemy, compliance with any law, regulation or other governmental order, whether or not valid, or other similar causes beyond the control of the
party effected. The party claiming to be so affected shall give notice to the other party promptly after it learns of the occurrence of said event and of the adverse results thereof. Such notice shall set forth the nature

 
and extent of the event. The delay or failure shall not be excused unless such notice is so given. Notwithstanding any other provision of this Agreement, either party may terminate this Agreement
if the other party is unable to perform any or all of its obligations hereunder for a period of three (3) months by reason of one or more of the foregoing force majeure events as if the date of termination were the date set forth herein
as the expiration date hereof. If either party elects to terminate this Agreement under this paragraph, Licensee shall have no further obligations for the Guaranteed Minimum Royalty beyond the date of termination (which shall be prorated if less
than a Sales Year is involved) and Licensee shall be obligated to pay any Sales Royalty which is then due or becomes due. 
 J.
Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the parties, their respective successors, Licensor’s transferees and assigns and Licensee’s permitted transferees and assigns. 

K. Governing Law, Trademarks. In the event of a dispute between the parties hereto arising out of trademark infringement or
ownership of trademarks and trademark registrations, such dispute shall be brought in a court of competent jurisdiction in the New York County, New York and the parties hereby irrevocably submit to personal jurisdiction in such venue for all such
proceedings. Any such lawsuit shall be construed and enforced in accordance with the laws of the State of New York, excluding any conflicts of law rule or principle which might refer such construction to the laws of another state or country. In such
event each party hereby (i) submits to personal jurisdiction in the State of New York for the enforcement of this Agreement and (ii) waives any and all personal rights under the law of any other state or country to object to jurisdiction
within the State of New York for the purposes of litigation to enforce this Agreement. 
 L. Consolidation.
Notwithstanding anything contained to the contrary in this Agreement (a) this Agreement shall not terminate if Licensor is merged or otherwise consolidated into another entity, which is the surviving entity. (b) Licensor shall be entitled
to assign this Agreement to any entity to which the Licensed Mark is assigned. . 

 M. Survival. The provisions of paragraphs 12, 13, 16, 17, and 18 (together with such
other provisions herein which expressly survive expiration or termination of this Agreement) shall survive any expiration or termination of this Agreement. 
 N. Paragraph Headings. The paragraph headings in this Agreement are for convenience of reference only and shall be given no substantive effect. 

O. Entire Agreement; Amendments. This Agreement, inclusive of the Exhibits hereto contains the entire understanding of the parties
hereto with regard to the subject matter contained herein, and supersedes all other prior representations, warranties, agreements, understandings or letters of intent between or among any of the parties hereto. This Agreement shall not be amended,
modified or supplemented except by a written instrument or agreement signed by each of the parties. 
 ARTICLE 19

 Notices 
 Any notice or other communications required or permitted by this Agreement to be given to a party will be in writing and will be considered to be duly given three (3) days after sent by certified
mail or registered mail, return receipt requested, or by recognized overnight courier such as UPS or Federal Express, to the party concerned to the following persons or addresses (or to such other persons or addresses as a party may specify by
notice to the other): 
 If to Licensor: 

Andrew D. Kupinse, Esq. 
 Cummings & Lockwood, LLC 
 Six Landmark Square

 Stamford, CT 06901 
 With simultaneous copies to: 
 John Meneilly 

1411 Broadway, 38th Floor 
 New York, N.Y. 10018 

 If to Licensee: 
 Artistic Brands Development, LLC 
 1600 N.W.
84th Avenue 

Miami, FL 33126 
 Attention: Rene Garcia 
 Notice of the change of any of the foregoing addresses
shall be duly given by either party to the other in the manner herein provided. 
 ARTICLE 20 

Conditions 
 A. This Agreement shall only be effective upon satisfaction of the following conditions (hereinafter, collectively, the “Conditions”) which conditions the parties have agreed to satisfy pursuant
to a letter agreement among Licensor, Licensee and Perfumania. dated as of even date herewith: (a) contemporaneously with the execution hereof Perfumania executes the Sublicense in the form of Exhibit
            ; and (b) contemporaneously with the execution hereof, Perfumania issues to Licensor or its designees warrants to purchase 266,667 shares of Perfumania Holdings, Inc.
common stock at an exercise price of $8.00 per share which warrants shall be in substantially the same form and contain all of the same rights and benefits as the warrants previously issued to Artist in connection with his ownership of Artistic, as
amended pursuant to an Amendment to warrant certificates among Carter, Perfumania and others dated as of December             , 2011; and (c) contemporaneously with the execution
hereof, Licensee shall issue a letter to Perfumania (the “Assignment Letter”), the form of which is attached hereto as Exhibit __, that shall be countersigned by Perfumania and in turn delivered to Licensor, pursuant to which Licensee
shall irrevocably assign to Licensor *% of the Net Profits, as defined in the Assignment Letter, of Perfumania and/or any of its subsidiaries, affiliates or sub-licensees (including but not limited to Licensor) on sales of Licensed Products, payable
to Licensor on a quarterly basis during each Sales Year of the Term of the License Agreement and continuing thereafter for so long as the Licensed Products are sold by Licensee, Perfumania and/or any of their subsidiaries, affiliates or
sub-licensees, and acknowledging Licensor’s direct right to recover such Net Profits from Perfumania, and in the event Perfumania fails to remit such Net Profits 

  

	*	Confidential terms omitted and provided separately to the Securities and Exchange Commission. 

 
directly to Licensor, then (without prejudice to Licensor’s right to exercise all of its other legal or equitable remedies) Licensee agrees to guarantee the obligation of Perfumania to pay
such Net Profits to Licensor in accordance with the Assignment Letter. 
 B. The quarterly payment to Licensor of *% of the Net
Profits of Perfumania and/or any of its subsidiaries, affiliates or sub-licensees (including but not limited to Licensee) (the “Profit Share”) on sales of Licensed Products shall be computed as follows: an amount equal to *% of the
cumulative Net Profits (which shall include all negative Net Profits and positive Net Profits to date) for the period commencing on the Effective Date of the License Agreement through the end of the quarterly period for which the Profit Share is
being computed (the “Current Quarter”) (the period from the Effective Date through the end of the Current Quarter being referred to as the “Period To Date”), less the aggregate, cumulative amount of Profit Share previously paid
to Licensor for the Period To Date, provided that, if such aggregate, cumulative amount of Profit Share previously paid for the Period To Date shall exceed *% of the aggregate, cumulative amount of Net Profits for the Period To Date, there shall be
no Profit Share payment to Licensor for the Current Quarter. Licensee will obtain from Perfumania an accounting of Perfumania’s profits on the sale of Licensed Products on a quarterly basis, which accounting Licensee shall provide to Licensor.
Licensor shall have the right, at its option and expense, to conduct an annual audit of Perfumania’s profits on sales of Licensed Products by Perfumania. Licensor shall be given the right, at its option and expense, to audit the books of
Perfumania directly in order to confirm the accuracy of Perfumania’s computation of Net Profits to be paid to Licensor pursuant to the Assignment Letter. The definition of Net Sales of all Perfumania fragrance and related cosmetic and skin care
brands (inclusive of the Licensed Products) for purposes of computing Overhead Expense shall be the same definition as set forth in this Agreement. 
 The aforementioned Perfumania guaranty (which may be incorporated into the Sublicense) shall, among other things, provide Licensor and Artist with direct audit rights with Perfumania. Additionally,
Licensor and Artist shall have a direct claim against Perfumania on the guaranty for breaches of the 

  

	*	Confidential terms omitted and provided separately to the Securities and Exchange Commission. 

 
Agreement (including but not limited to dilution of trademark, failure to obtain artist approval, violation of child labor laws etc). The Agreement will have no force and effect and will
terminate in its entirety with no further obligation by either party in the event that any of the foregoing Conditions is not satisfied. 
 ARTICLE 21 
 Most Favored Nations 

If the financial terms of any license agreement Licensee enters into with Kanye West in the same or similar product categories as is
covered by this Agreement, whether entered into before or after the Effective Date, are more favorable to Kanye West than the financial terms provided to Licensor under this Agreement, then the financial terms of this Agreement shall thereupon be
modified so as to be no less favorable to Licensor than the financial terms of any license agreement entered into with Kanye West, whether entered into before or after the Effective Date. Such modifications shall be effective on a retroactive basis
hereunder so that such modifications shall be deemed effective as of the Effective Date, and Licensee shall make all payments to Licensor and take such actions as may be required to effect same upon the execution of any such agreement with Kanye
West. 

 IN WITNESS WHEREOF the parties have executed this Agreement on the date first above written.

  

					
	 LICENSEE:
  

ARTISTIC BRANDS DEVELOPMENT, LLC
	    		 	
			
	BY:	    	Date:	 	  
	Print name: Rene Garcia	    		 	
	Title: Manager	    		 	

  

					
	 LICENSOR:

 
 S. CARTER ENTERPRISES, LLC
	    		 	
			
	BY:	    	Date:	 	  
	Print name:	    		 	
	Title:	    		 	

  

			
	 ARTIST:
  
	    	
		
	  	    	
	 Shawn Carter
	    	
	 As to Articles 2C, 2D and 11E Only
	    	

 SCHEDULE 7B 

 

	
	
	 MACY’S

	 BLOOMINGDALES

	 ULTA

	 DILLARD’S

	 BELK

	 BON-TON/ CARSON PIRIE SCOTT

	 BOSCOV’S

	 GOTTSCHALKS

	 VON MAUR

	 SAKS INC

	 NORDSTROM

	 LORD & TAYLOR

	 YOUNKERS

	 MILITARY EXCHANGE

	 STAGE STORES

	 DUNLAPS

	 NEIMAN MARCUS

	 ROGERS DEPARTMENT STORES

	 SEPHORA

	 VICTORIA’S SECRET

	

 AND THE ABOVE RETAILERS’ WEBSITES 

 Exhibit B 
 Sublicense 

 SUBLICENSE AGREEMENT 

This Sublicense Agreement (the “Sublicense”) is made as of this
            day of             , 20__, by and among             , a
            corporation and a wholly-owned subsidiary of Perfumania Holdings, Inc., with its principal offices at 35 Sawgrass Drive, Bellport, New York 11713 (“Sub-Licensee”), and
Artistic Brands Development, LLC, a Delaware limited liability company, with its principal offices at 1800 N.W. 84th Avenue, Suite 100, Miami, FL 33126 (“Sub-Licensor”). 

WHEREAS, Sub-Licensor, Shawn Carter (“Artist”) and S. Carter Enterprises, LLC, an entity or representative owning/and or
controlling the rights to market such Artists name and the related trademark, “Jay-Z” (“Licensor”) have entered into that certain License Agreement, dated as of
            (the “License Agreement”), pursuant to which Sub-Licensor holds the exclusive right and license to use the Licensed Mark in the Territory for use on and solely in
connection with the manufacture, promotion, distribution and sale of Licensed Products in the Licensed Channels of Distribution (as all of such terms are defined in the License Agreement); and 

WHEREAS, Sub-Licensor has the right and obligation pursuant to the License Agreement to sublicense its rights and obligations
under the License Agreement to Sub-Licensee; and 
 WHEREAS, in accordance with that certain Agreement entered into by
Parlux Fragrances, Inc. and Sub-Licensor dated April 3, 2009 (the “Parlux-Iconic Agreement”), Sub-Licensor desires to sublicense the License Agreement to Sub-Licensee, and Sub-Licensee desires to sublicense the License Agreement from
Sub-Licensor; and 
 WHEREAS, the Artist and Licensor desire to permit the Sublicense between Sub-Licensee and
Sub-Licensor to be entered into. 
 NOW, THEREFORE, the parties hereto agree as follows: 

1. Grant of Exclusive Sublicense. Sub-Licensor hereby grants to Sub-Licensee, and Sub-Licensee hereby accepts, the exclusive
sublicense of the License Agreement, on the terms and subject to the conditions set forth in this Sublicense, pursuant to which the Sub-Licensee shall be responsible for performing all of Sub-Licensor’s obligations under the License Agreement
directly for the benefit of the Licensor, and the Sub-Licensee shall be entitled directly to all of the rights and benefits of the Sub-Licensor under the License Agreement. The Sub-Licensee hereby assumes all of Sub-Licensor’s obligations to
the Licensor under the License Agreement and guarantees to the Licensor and Artist that it will fully perform as the licensee under the License Agreement, as if the License Agreement were directly entered into with the Sub-Licensee. All capitalized
terms used in this Sublicense shall have the meaning assigned to such terms in the License Agreement, except as otherwise defined in this Sublicense. 
 2. Term. The Initial Term of this Sublicense shall be for the same Initial Term as the License Agreement, as may be extended by the Sub-Licensee’s exercise of the Licensee’s option
to extend the License Agreement for a Renewal Term, in accordance with the terms and conditions of the License Agreement. 
 3.
Royalties. Without limiting the Sub-Licensee’s assumed obligations as set forth in Section 1 above, the Sub-Licensee shall assume the Sub-Licensor’s obligation to make payments of Sales Royalties to the Licensor on
account of Sub-Licensee’s Net Sales for the applicable Licensed Products covered by the License Agreement including the payment of any Guaranteed Minimum Royalties required in the License Agreement. The Sub-Licensee shall remit payment of such
Sales Royalties 

 
directly to the Licensor under the License Agreement in accordance with the terms and conditions of the License Agreement. The Licensor shall be entitled to enforce its rights to be paid Sales
Royalties under the License Agreement directly from the Sub-Licensee, and the Licensor need not proceed against the Sub-Licensor to enforce its rights against the Sub-Licensee. The Sub-Licensee agrees, and represents to the Licensor and Artist that
the Licensor and the Artist under the License Agreement shall have the right to enforce against Sub-Licensee the obligations of the Licensee under the License Agreement. 
 4. Audit. Sub-Licensee shall permit Licensor’s and Sub-Licensor’s employees, agents and other representatives to audit, review and inspect Sub-Licensee’s books and records in
accordance with the License Agreement and the Parlux-Iconic Agreement. Licensor and Sub-Licensor agree to coordinate their audit rights so that no more than one joint audit on behalf of Licensor and Sub-Licensor per period is conducted for the
benefit of Licensor and Sub-Licensor, if any audit is conducted. 
 5. Indemnity by Sub-Licensee. Sub-Licensee
assumes full responsibility for the conduct of its business and shall indemnify and hold harmless Licensor, Artist and Sub-Licensor (each, an “Indemnified Party,” and collectively, the “Indemnified Parties”), from and against any
and all losses, liabilities, claims, charges, actions, proceedings, demands, judgments, settlements, costs and expenses (including, without limitation, reasonable attorneys’ fees) which any of them may incur as a result of any claim or demand
which may be made against any of them arising in any way out of this Sublicense including, without limitation, claims alleging negligence in connection with the conduct of the business operated by Sub-Licensee or any product liability or other
defects or any inherent danger in or from the business conducted by Sub-Licensee or the products it sells or manufactures, and for any breach by Sub-Licensee of any representation, warranty, covenant, agreement or obligation of Sub-Licensee in this
Sublicense or in the Parlux-Iconic Agreement. Furthermore, Sub-Licensee shall indemnify and hold harmless Sub-Licensor from and against any and all losses, liabilities, claims, charges, actions, proceedings, demands, judgments, settlements, costs
and expenses (including, without limitation, reasonable attorneys’ fees) which Sub-Licensor may incur as a result of any claim or demand by Licensor or Artist against Sub-Licensor alleging that Sub-Licensee failed to perform any obligations of
Sub-Licensor under the License Agreement. The foregoing indemnification obligations shall not limit, but shall be in addition to, any indemnification obligation of Licensee provided by the License Agreement, all of which are hereby expressly assumed
by Sublicensee. 
 6. Indemnity by Sub-Licensor. Sub-Licensor shall indemnify and hold harmless Sub-Licensee from
and against any and all losses, liabilities, claims, charges, actions, proceedings, demands, judgments, settlements, costs and expenses (including, without limitation, reasonable attorneys’ fees) which Sub-Licensee may incur as a result of any
claim or demand which may be made against Sub-Licensee arising in any way out of this Sublicense including, without limitation, claims alleging that the Licensed Mark infringes on another person’s intellectual property rights, negligence in
connection with the conduct of the business operated by Licensor, for any breach by Licensor or Artist of any representation, warranty, covenant, agreement or obligation of the Licensor or Artist under the License Agreement, and for any claim for
income taxes due and payable by Licensor with respect to Sales Royalties or other sums paid to Licensor under the License Agreement or pursuant to any assignment of rights to Licensor by the Sub-Licensor under the Parlux-Iconic Agreement. For the
avoidance of doubt, neither Licensor nor Artist shall have any obligations to any party arising out of this Section 6. 
 7.
Governing Law. The provisions of, and all rights and obligations under, this Sublicense shall be governed by and construed in accordance with the laws of the State of Florida. 

8. Modification of Sublicense. No modification of any provision of this Sublicense shall be effective against Sub-Licensor
unless the same shall be in writing and signed by all parties hereto, 

 
and then such modification or consent shall be effective only in the specific instance and for the purpose for which given. 

9. Successors and Assigns. This Sublicense shall be binding upon the parties hereto and their respective successors and
assigns, and shall inure to the benefit of the parties hereto and, to the extent permitted, their respective successors and assigns. 
 10. Invalidity. Any provision of this Sublicense which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction only, be ineffective only to the extent of such
prohibition or unenforceability, without invalidating the remaining provisions of this Sublicense or affecting the validity or enforceability of such provision in any other jurisdiction. 

11. Notices. Except as otherwise set forth herein, any agreement, approval, consent, notice, request or other communication
required or permitted to be given by any party under this Sublicense shall be in writing and shall be deemed to have been given when received and delivered (i) by hand or by courier, (ii) by a nationally-recognized over-night courier
service such as Federal Express, or (iii) upon transmittal by facsimile with confirmation of receipt to the number set forth below: 
 If to Sub-Licensor: 
 Artistic Brands Development, LLC 

1800 N.W. 84th Avenue 
 Miami, FL 33126 
 Attention: Rene Garcia, Manager 

Facsimile: 305-448-4068 
 With a copy to 
 Littman Krooks LLP 

655 Third Avenue 
 New York, NY 10017 
 Attention: Mitchell C. Littman, Esq.

 Facsimile: 212-490-2990 

If to Sub-Licensee: 
 Perfumania Holdings, Inc. 
 35 Sawgrass Drive 

Bellport, N.Y. 11713 
 Attention: Michael W. Katz, Chief Executive Officer 
 Facsimile:
631-            -             
 With a copy to 
 Edwards Wildman Palmer, LLP 

750 Lexington Avenue 
 New York, N.Y. 10022 
 Attention: Patricia Kantor, Esq.

 Facsimile:
212-            -             

 or to such other address as the recipient party shall have designated by notice given in accordance with
this Section. 
 12. Further Assurances. Each of the parties hereby agrees to execute such further documentation
and perform such other actions as may be reasonably requested to evidence and effect the purposes and intent of this Sublicense. 

13. Entire Agreement. This Sublicense constitutes the entire agreement of the parties relating to its subject matter and
supersedes all prior oral or written understandings or agreements relating thereto. No promise, understanding, representation, inducement, condition or warranty not set forth herein has been made or relied upon by either party hereto. 

14. Counterparts. This Sublicense may be executed in counterparts, each of which shall constitute an original, but all of
which taken together shall constitute one and the same instrument. 
 15. Headings. The headings in this Sublicense
are for reference purposes only, do not constitute a part of this Sublicense and shall not affect its meaning or interpretation. 

16. Licensor and Artist Consent; Enforcement. The undersigned Licensor and Artist hereby consent to the above Sublicense and
agree, and represent to the Sub-Licensee, that the Sub-Licensee has the right to enforce the obligations of the Licensor and Artist under the License Agreement, to the same extent as the Sub-Licensor. The Sub-Licensee agrees, and represents to the
Licensor and Artist, that the Licensor and/or the Artist shall have the right to enforce against Sub-Licensee (and/or the Licensee) the obligations of the Licensee under the License Agreement, as well as enforce the terms and conditions of this
Agreement. 
 [SIGNATURE PAGE TO FOLLOW] 

 IN WITNESS WHEREOF, the parties have caused this Sublicense to be executed as of the date
first written abov e, with intent to be bound hereby. 
  

			
	SUB-LICENSEE:
	
	                           
                                     , a wholly owned
subsidiary of PERFUMANIA HOLDINGS, INC.
		
	By:	 	 
		 	Michael W. Katz, CEO

  

			
	SUB-LICENSOR:
	
	 ARTISTIC BRANDS DEVELOPMENT, LLC

		
	By:	 	 
		 	Rene Garcia, Manager

  

			
	LICENSOR:
	
	 S. CARTER ENTERPRISES, LLC

		
	By:	 	 
		 	(as to Paragraph 16 only)
	Name	 	 
	Title:	 	 

  

			
	ARTIST:
	
	 SHAWN CARTER

		
		 	 
		 	Shawn Carter
		 	(as to Paragraph 16 only)

  

 Exhibit C 
 Profits Assignment 

 ARTISTIC BRANDS DEVELOPMENT, LLC 

1600 N.W. 84th Avenue 
 Miami, FL 33126 
             , 20__

 Perfumania Holdings, Inc. 
 35
Sawgrass Drive 
 Bellport, N.Y. 11713 

Mr. Sirs: 
 This letter of instruction is
delivered pursuant to Section 3.1 of that certain Agreement, dated April 3, 2009, by and between Parlux Fragrances, Inc. (“Parlux”) and Iconic Fragrances, LLC (“Iconic”), now known as Artistic Brands Development, LLC
(“Artistic”) (the “Agreement”). Capitalized terms used and not defined in this letter have the meanings given to them in the Agreement. 
 Artistic hereby irrevocably assigns a portion of the Net Profits (as defined in the Agreement and reprinted below) of Perfumania and/or any of its subsidiaries, affiliates or sub-licensees to the assignee
identified below (the “Assignee”) and in the amount set forth below: 
  

			
	 Name and Address of Assignee
	 	 Assigned Share (Not to exceed *% of the Net
Profits)

	 S. Carter Enterprises, LLC

1411 Broadway
 38th
Floor
 New York, N.Y. 10018 Attn: John Meneilly
	 	*%

 Artistic hereby relinquishes any and all further right and entitlement to such Assigned Share and hereby grants to the
Assignee listed above full right and title to such Assigned Share. 
 The definition of Net Profits, as set forth in the Agreement, is reprinted
below: 
 “For purposes hereof, “Net Profits” derived with respect to any Sublicense between Parlux and Iconic shall mean
‘Net Sales’ (as defined in the applicable License) from the sale of ‘Licensed Products’ (as defined in the applicable License) less Direct Expenses (as defined below) related to the Licensed Products, less Overhead
Expenses (as defined below) from inception of each Sublicense to the last day of the period for which Net Profits is being computed. Net Profits may be a positive number or (if Direct Expenses plus Overhead Expenses, as limited below, exceed Net
Sales) a negative number. For purposes hereof, “Direct Expenses” incurred with respect to any Sublicense between Parlux and Iconic includes cost of goods sold, Royalties (as defined in Section 3.3 below), the cost of a Brand
Marketing Manager and a Brand Planner/Buyer (each as defined below) to the extent dedicated to the ‘Licensed Mark’ (as defined in the applicable License), advertising and promotion expenses, depreciation and amortization expense, and any

  

  

	*	Confidential terms omitted and provided separately to the Securities and Exchange Commission. 

 
other out-of-pocket (not overhead) expenses payable by Parlux to third parties, in each case directly related to the Licensed Products under that Sublicense. For purposes hereof, “Overhead
Expense” for each quarter in any Sales Year shall be the product computed by multiplying a fraction, the numerator of which shall be Net Sales of the Licensed Products under that Sublicense for the period in question and the denominator of
which shall be total Net Sales of all Parlux fragrance and related cosmetic and skin care brands for the period in question, by the general and administrative and selling and distribution expenses with respect to all Parlux fragrance and related
cosmetic and skin care brands (inclusive of the Licensed Products) consistent with the reporting of such expenses in Parlux’s financial statements for period that corresponds to or ends shortly after each quarter in the Sales Year (the
“SG&A Expenses”) filed with the SEC. For purposes hereof, “Overhead Expense” related to such Licensed Products shall not exceed 20% of SG&A Expenses (as defined herein) for the Sublicense with regard to the female Initial
Artist and 15% of SG&A Expenses for the Sublicense with regard to all other Artists, for any period being measured. Any Direct Expenses deducted from Net Sales for purposes of determining Net Profits or any expenses included in the calculation
of Overhead Expense for purposes of determining Net Profits shall not be duplicated and may not also be deducted from the gross invoice price of sales of Licensed Products in the computation of Net Sales. If any SG&A Expenses constitute Direct
Expenses related specifically to the Licensed Products and Licensed Mark, such Direct Expenses shall not be duplicated but shall be deducted from SG&A Expenses prior to the application of the foregoing formula in determining Overhead Expense.
For purposes hereof, all start up and other costs incurred by Perfumania prior to the initial product shipment date which commences the first Sales Year for any License shall be amortized as Direct Expenses (provided such costs meet the definition
of Direct Expenses set forth herein) during the first Sales Year as and when incurred (except those expenditures that, pursuant to GAAP as consistently applied by Perfumania, must be amortized over a multi-year period), and to the extent that the
amount of Net Profits for any Sales Year is a negative number, such negative number will be carried forward to the subsequent Sales Year to reduce the amount of Net Profits otherwise derived in such subsequent Sales Year for purposes of computing
the Net Profits Share to be paid for such Sales Year (e.g., a loss in Sales Year 1 will be carried forward to Sales Year 2), so that Net Profits for any Sales Year will be determined net of any loss incurred during the prior Sales Year.”

 By acceptance of this letter of instruction, Perfumania acknowledges that the Assignee of the Assigned Share listed above shall have a direct
right to audit Perfumania’s books and records in the manner described in Section 3.4 of the Agreement and to confirm the accuracy of Perfumania’s computation of the Net Profits under the relevant Sublicense, provided that to the
extent either Artistic or the Assignee, or both Artistic and the Assignee together, conducts an audit of any period, then neither will be able to subsequently conduct a separate audit of the same period. Artistic and the Assignee hereby agree with
Perfumania to coordinate audit rights so that only one audit of any period is conducted for the benefit of Artistic and the Assignee. 
 The
audit rights set forth in Section 3.4 of the Agreement are reprinted below: 
 “Iconic for all Sublicenses, and each Licensor for such
Licensor’s own License, and Iconic’s assignee of the Assigned Share, if any, for the applicable Sublicense, shall have the right, at any time with at least ten (10) days’ prior written notice, to audit any and all of
Perfumania’s books and records related to the business conducted in connection with the applicable Sublicense(s) and 

 
the determination of the Net Profits Share. For purposes of this Section 3.4, such books and records shall include, but not be limited to, the manner and methodology of the
determination of the Net Profits Share. In connection with any such audit, Perfumania shall provide access during normal business hours to its premises and to all of Perfumania’s employees as are reasonably necessary for the completion of such
audit. Perfumania shall not bear the costs of any audit hereunder; provided, however, that if after the first year of a Sublicense an audit of a Sublicense reveals under-reporting of Net Profits by (i) *% or more for any Sales
Year or (ii) $* for any Sales Year, whichever is greater, the costs of such audit shall be reimbursed by Perfumania and failure by Perfumania to so reimburse shall constitute a breach of this Agreement. Iconic agrees to coordinate all audit
demands by Iconic, by its assignee(s) of the Assigned Share, and by the Licensor, so that only one audit of any period with respect to any Sublicense is conducted.” 
 Artistic and Perfumania confirm that the Assignee shall have a direct right to recover any Assigned Share of Net Profits hereunder from Perfumania, and in the event Perfumania fails to remit such Assigned
Share of Net Profits directly to Assignee in accordance herewith, then (without prejudice to Assignee’s right to exercise all of its other legal or equitable remedies) Artistic agrees to guarantee the obligation of Perfumania to pay such Net
Profits to Assignee in accordance with this letter of instruction. Perfumania hereby agrees to indemnify and hold harmless Artistic from and against any and all losses, liabilities, claims, charges, actions, proceedings, demands, judgments,
settlements, costs and expenses (including, without limitation, reasonable attorneys’ fees) which Artistic may incur as a result of any claim or demand which may be made against Artistic by Assignee arising in any way out of Perfumania’s
failure to pay the Assigned Share of Net Profits to Assignee as required hereunder. 
  

			
	Sincerely,
	
	 ARTISTIC BRANDS DEVELOPMENT, LLC
 (FORMERLY ICONIC FRAGRANCES, LLC)

		
		 	 
		 	Rene Garcia
		 	Manager

  
  
  

			
	 ASSIGNEE:
  

S. CARTER ENTERPRISES, LLC

		
	By:	 	 
		 	Name:
		 	Title:

 Accepted by: 
  

  

	*	Confidential terms omitted and provided separately to the Securities and Exchange Commission. 

  

			
	
	 PERFUMANIA HOLDINGS, INC.

		
		 	 
		 	Name:
		 	Title:

  
  

 Exhibit D 
 Letter Agreement 

 PERFUMANIA 
 HOLDINGS INC. 
 December 23, 2011 

Parlux Fragrances, Inc. 
 5900 N. Andrews Avenue

 Suite 500 
 Fort Lauderdale, FL 33309

 Artistic Brands Development, LLC 
 1850 N.W.
84th Avenue, Suite 100 

Miami, Florida 33126 
 Rene Garcia 

1850 N.W. 84th Avenue, Suite 100 
 Miami, Florida 33126 
  

	 	RE:	Agreement and Plan of Merger (the “Merger Agreement”), dated the date hereof, by and among Perfumania Holdings, Inc. (“Parent”), PFI
Merger Corp., a wholly-owned subsidiary of Parent (“Merger Sub”) and Parlux Fragrances, Inc. (the “Company”) 

 Ladies and Gentlemen: 
 Reference is made to the Merger Agreement. Capitalized
terms used herein without definition shall have the meaning given to them in the Merger Agreement. 
 As of the Effective Time,
the Company will merge with and into Merger Sub and each of the Company Shareholders shall receive the Merger Consideration set forth in the Merger Agreement. In connection with the Merger, it is hereby acknowledged that, concurrently with the
execution of the Merger Agreement (i) the Company, Rene Garcia and Artistic Brands Development, LLC (f/k/a Iconic Fragrances, LLC) (“Licensor”) are executing an amendment (the “Letter Amendment”) to the Letter
Agreement dated April 3, 2009 (as amended, the “Letter Agreement”) by and between the Company, Rene Garcia and Licensor to provide among other matters that the Merger and the Second Merger shall not be deemed a
“Fundamental Transaction” as defined in and for purposes of the Letter Agreement and (ii) the Company and the holders of outstanding Licensor Warrants exercisable for a majority of the shares Company Common Stock issuable under such
Licensor Warrants are executing an amendment to all of the outstanding Licensor Warrants (the “Licensor Warrant Amendment”) to govern treatment of the Licensor Warrants in connection with the Merger and the Transactions. 

Licensor and Parent have agreed, pursuant to a letter agreement dated as of December 23, 2011 among Licensor, Parent and S. Carter
Enterprises, LLC, to enter into a Sublicense dated as of the Effective Time, in the forms attached hereto as Exhibit B and Exhibit C, respectively, and Licensor and S. Carter Enterprises, LLC have agreed pursuant to such letter
agreement to enter into a License Agreement as of the Effective Time, in the form attached hereto as Exhibit D (the “Carter License and Sublicense”). 
  

 It is acknowledged and agreed that this agreement shall terminate and be null and void ab
initio if (a) the Merger is not consummated in accordance with the terms of the Merger Agreement (x) as in effect on the date hereof or (y) as amended following the date hereof; provided that such amendments shall not
(i) adversely affect any of the principal rights and benefits of Licensor or Rene Garcia intended hereby, (ii) affect the Merger Consideration or the Exchange Ratio (each as defined in the Merger Agreement), (iii) affect any holder of
a Licensor Warrant (as defined in the Merger Agreement) adversely and disproportionately to any other holder of a Licensor Warrant without the former holder’s written consent, or (iv) adversely affect any of the other rights and benefits
afforded Licensor or Rene Garcia hereunder other than in an immaterial and de minimis respect, or (b) the transactions contemplated by the Letter Amendment and the Licensor Warrant Amendment are not consummated. 

Parent, the Company, Licensor and Rene Garcia hereby agree as follows: 

1. Except as set forth in paragraph 2 below, Licensor and Rene Garcia shall, and each shall cause each of their Affiliates to, use
commercially reasonable efforts to cause each of their Representatives to (a) not solicit or take other action to facilitate any inquiries or the making of any proposal that constitutes or may reasonably be expected to lead to an Artistic
Brands Proposal, as defined below, (b) not participate in any way in any discussions or negotiations relating thereto or in furtherance thereof or accept any Artistic Brands Proposal, except to notify such person as to the existence of the
provisions of this agreement, and (c) not enter into any letter of intent, agreement or agreement in principle with respect to an Artistic Brands Proposal. 
 2. The Company may receive one or more Acquisition Proposals in the manner and at the times specified in Section 5.3 of the Merger Agreement. If, in accordance with the requirements of
Section 5.3 of the Merger Agreement, the Company and the Independent Committee determine to engage in discussions or negotiations with the third Person that submits the Acquisition Proposal (the “Third Person”), then the
Company shall promptly notify Parent (in accordance with the requirement of the Merger Agreement), Licensor and Rene Garcia in writing of such determination (a “Notice”), and following receipt thereof by Licensor and Rene Garcia,
Licensor and Rene Garcia shall be permitted to (a) enter into, participate in and/or engage in discussions or negotiations as to the proposed treatment of the Licensor Warrants and the Letter Agreement and a license and/or sublicense as to the
same subject matter as the Carter License and Sublicense in connection with such Acquisition Proposal with the Third Person upon such terms and conditions that such parties may agree (any such proposed treatment being referred to as an
“Artistic Brands Proposal”), and (b) upon or following the execution by the Company of an Alternative Acquisition Agreement as to a Superior Proposal in accordance with the Merger Agreement, enter into agreements with respect
to a related Artistic Brands Proposal. The Company shall promptly notify Licensor and Rene Garcia if it terminates or ceases negotiations or discussions with respect to an Acquisition Proposal, and Licensor and Rene Garcia shall promptly thereafter
terminate discussions or negotiations as to the related Artistic Brands Proposal; provided, however, if a subsequent Acquisition Proposal is received by the Company, the foregoing provisions of this Section 2 shall once again apply.

 3. Licensor and Rene Garcia shall have the same obligations with respect to an Artistic
Brands Proposal as the Company has with respect to a Superior Proposal pursuant to Section 5.3(e)(W) through (Y) of the Merger Agreement, and Parent and Merger Sub shall have the same rights with respect to such Artistic Brands Proposal as
they have with respect to a Superior Proposal pursuant to Section 5.3(e)(W) through (Y) of the Merger Agreement, including without limitation obligations and rights relating to notice and information with respect to the Superior Proposal
and negotiations relating to it and Parent’s right to revise the Merger Agreement, the Financing Letter, the Related Person Investment Commitment, the Letter Amendment and the Licensor Warrant Amendment with respect to a Superior Proposal.

 4. Within five (5) business days of the Effective Time, Licensor, or its designees, shall be issued 300,000 shares of
Parent Common Stock, which shares shall be afforded the same registration rights as contemplated under that certain Amendment to Warrant Certificates of even date herewith by and among the Company and certain holders of Warrants as if such
provisions were set forth herein, conditioned upon receipt by Parent of a representation letter in the form attached hereto as Exhibit A duly executed by Licensor, or its designees, as the case may be, or an authorized signatory of Licensor
or its designees. The parties acknowledge and agree that the issuance of such 300,000 shares shall be in consideration for the transactions contemplated by this letter and not with respect to the amendment or modification of the Licensor Warrants.
If, after the date of this agreement and at or prior to the issuance of such 300,000 shares, the outstanding shares of Parent Common Stock are changed into a different number of shares or type of securities by reason of any reclassification,
recapitalization, split-up, stock split, subdivision, combination or exchange of shares, or any dividend payable in stock or other securities is declared thereon or rights issued in respect thereof with a record date within such period, or any
similar event occurs (any such action, an “Adjustment Event”), the 300,000 shares to be issued hereunder shall be adjusted accordingly to provide to Licensor, or its designee, the same economic effect as contemplated by this
agreement prior to such Adjustment Event. Each of Parent and the Company covenants and agrees not to treat the issuance of the shares of Parent Common Stock to be issued hereunder to Licensor or its designees in any manner that would preclude
Licensor or its designees from treating the receipt of such shares as generating capital gain for federal or state tax purposes, and both Parent and Company further covenant and agree not to claim any deduction in connection with the issuance of
such shares that would be inconsistent with the treatment of the receipt of such shares as generating capital gain to the Licensor or its designees. 
 5. The Company acknowledges and agrees that the Carter License and Sublicense will be entered into as of the Effective Time. 
 6. This agreement shall be construed in accordance with and governed by the internal laws (without regard to the conflict of laws provisions) of the State of New York. 

7. The parties agree that irreparable damage would occur in the event that any of the provisions of this agreement were not performed in
accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent breaches of this agreement and to enforce specifically the terms and
provisions of this agreement in the United States District Court for the Eastern District of New York or in New York Supreme Court sitting in Suffolk County, New York, without bond or other security being required, this being in addition to any
other remedy to which they are entitled at law or in equity. 
 8. This agreement may be executed in one or more counterparts,
all of which shall be considered one and the same agreement and each of which shall be deemed an original. 
 [Remainder of Page
Intentionally Left Blank.] 

 The Company, Rene Garcia and Licensor agree to the foregoing by signing a counterpart of this agreement
where indicated below. 
  

			
	 Sincerely,
  

Perfumania Holdings, Inc.

		
	By:	 	 
	Name:	 	
	Title:	 	

  
  

			
	 AGREED AND ACCEPTED:
  

Parlux Fragrances, Inc.

		
	By:	 	 
	Name:	 	
	Title:	 	

  
  
  

			
	 Artistic Brands Development, LLC

 

		
	By:	 	 
	Name:	 	
	Title:	 	

			
	
	
	  

	Rene Garcia, individually

 EXHIBIT A 

FORM OF REPRESENTATION LETTER 
 Date:                                
             
 Perfumania Holdings, Inc. 

35 Sawgrass Drive, Suite 2 
 Bellport, NY 11713

 Attn: Donna Dellomo 
 Edwards
Wildman Palmer LLP 
 111 Huntington Avenue Boston, MA 02199 
 Attn: Matthew C. Dallett 
 The undersigned (the “Holder”) is entitled to
receive shares of the common stock, $0.01 par value, of Perfumania Holdings, Inc. (the “Licensor Shares”) pursuant to the Letter Agreement, dated December __, 2011, by and among Perfumania Holdings, Inc., Parlux Fragrances, Inc., Artistic
Brands Development, LLC and Rene Garcia (the “Letter Agreement”). Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Letter Agreement. 

In connection with this request, the Holder hereby represents and warrants to Parent and its counsel and transfer agent as follows:

 1. Holder is acquiring the Licensor Shares as principal for his, her or its own account and not with a view to or any present
intention of distributing such Licensor Shares or any part thereof in violation of the Securities Act and has no direct or indirect arrangement or understandings with any other persons regarding the distribution of such Licensor Shares in violation
of the Securities Act. 
 2. Holder is an accredited investor, as defined in Rule 501(a) under the Securities Act, because
Holder meets the element of the definition of “accredited investor” that Holder has indicated in the attached Schedule I. 
 3. Holder agrees that its Licensor Shares may only be disposed of in compliance with state and federal securities laws and the terms of the following legend, which shall be imprinted on the certificate(s)
representing the Licensor Shares: 
 THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”) OR UNDER ANY APPLICABLE STATE SECURITIES LAW AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE 

 
COMPANY THAT SUCH REGISTRATION STATEMENT IS NOT REQUIRED UNDER THE SECURITIES ACT AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER OR UNDER APPLICABLE STATE SECURITIES LAWS. 

 

			
	Very truly yours,
	
	  

		 	(Signature of Holder)
		 	Please print or type name and address of Holder:
		 	
	  

	  

	  

  

			
	 Acknowledged and Accepted
  

PERFUMANIA HOLDINGS, INC.

	
	  

	Name:	 	
	Title:	 	

  

 SCHEDULE I 
 CONFIRMATION OF STATUS AS ACCREDITED INVESTOR 
 The Holder hereby represents that
he, she or it is: 
  

	 ̈	An organization described in section 501(c)(3) of the Internal Revenue Code, a corporation, a Massachusetts or similar business trust, or a partnership, not formed for
the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000; 

  

	 ̈	A natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase (exclusive of the equity in his or her
primary residence) exceeds $1,000,000; 

  

	 ̈	A natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of
$300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year; 

  

	 ̈	A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a
sophisticated person as described in Rule 506(b)(2)(ii) under the Securities Act; or 

  

	 ̈	An entity in which all of the equity owners are “accredited investors.”

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