(2)

Termination of Burberry License

Burberry exercised its option to buy-out the license rights effective December 31, 2012. In October 2012, the Company and Burberry entered into a transition agreement that provided for certain license rights and obligations to continue through March 31, 2013. The Company continued to operate certain aspects of the business for the brand including product development, testing, and distribution. The transition agreement provided for non-exclusivity for manufacturing, a cap on sales of Burberry products, a reduced advertising requirement and no minimum royalty amounts.

The Company had determined that the transaction was substantially completed as of December 31, 2012. The following table sets forth a summary of the gain on termination of license which is included in income from operations on the accompanying statement of income for the year ended December 31, 2012:

Exit payment (received December 21, 2012)	$	239,075

Expenses of termination:
Inventory reserves		10,037
Wages including $13.8 million in Interparfums SA profit sharing requirements		14,391
Write-off of intangible assets		7,675
Writedown of fixed assets		3,483
Write-off of unused modeling rights		1,226
Legal, professional and other agreed settlements		3,425

		40,237

Gain on termination of license	$	198,838