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Item 9A. Controls and Procedures

2022-03-01 compared with 2021-03-01 · 1408 added, 1747 removed, 972 unchanged (76% of the section changed)

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Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial

Officer have reviewed and evaluated the effectiveness of our disclosure controls and procedures (as defined in the Securities Exchange

Act of 1934 Rule 13a-15(e)) as of the end of the period covered by this annual report on Form 10-K (the “Evaluation Date”).

Based on their review and evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of the Evaluation

Date, our Company’s disclosure controls and procedures were effective.

Management’s Annual Report on Internal Control over

Financial Reporting

The management of Inter Parfums, Inc.

responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13(a)-15(f)

Our Chief Executive Officer and Chief Financial Officer have reviewed and evaluated the effectiveness of our disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rule 13a-15(e)) as of the end of the period covered by this annual report on Form 10-K (the “Evaluation Date”).

Based on their review and evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of the Evaluation Date, our Company’s disclosure controls and procedures were effective.

Management’s Annual Report on Internal Control over Financial Reporting

The management of Inter Parfums,

is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13(a)-15(f)

under the Securities Exchange Act of 1934.

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financial reporting was effective as of December 31, 2021.

Our independent auditor, Mazars USA LLP,

a registered public accounting firm, has issued its report on its audit of our internal control over financial reporting.

report appears on page F-2.

Our independent auditor, Mazars USA LLP, a registered public accounting firm, has issued its report on its audit of our internal control over financial reporting.

This report appears on page F-2.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal

control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) that occurred during the

fourth quarter of 2020 that has materially affected, or is reasonably likely to materially affect, the Company’s internal

control over financial reporting.

There has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) that occurred during the fourth quarter of 2020 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Other Information.

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Executive Officers and Directors

As of the date of this report, our executive

officers and directors were as follows:

As of the date of this report, our executive officers and directors were as follows:

Chairman of the Board, Chief Executive Officer of Inter Parfums, Inc.

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Director, Executive Vice President and Chief Financial Officer, Interparfums SA

François Heilbronn

Robert Bensoussan

Patrick Choël

Veronique Gabai-Pinsky

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Executive Vice President and Chief Operating Officer of Interparfums SA

Our directors will serve until the next

annual meeting of stockholders and thereafter until their successors shall have been elected and qualified.

and Philippe Benacin have a verbal agreement or understanding to vote their shares and the shares of their respective holding companies

in a like manner.

Our directors will serve until the next annual meeting of stockholders and thereafter until their successors shall have been elected and qualified.

Jean Madar and Philippe Benacin have a verbal agreement or understanding to vote their shares and the shares of their respective holding companies in a like manner.

With the exception of Mr.

Benacin, the officers

are elected annually by the directors and serve at the discretion of the board of directors.

There are no family relationships

between executive officers or directors of our Company.

Benacin, the officers are elected annually by the directors and serve at the discretion of the board of directors.

There are no family relationships between executive officers or directors of our Company.

Board of Directors

Our board of directors has the responsibility

for establishing broad corporate policies and for the overall performance of our Company.

Although certain directors are not involved

in day-to-day operating details, members of the board of directors are kept informed of our business by various reports and documents

made available to them.

Our board of directors held 20 meetings (or executed consents in lieu thereof), including meetings of committees

of the full board of directors during 2020, and all of the directors attended at least 75% of the meetings (or executed consents

in lieu thereof) of the full board of directors and committees of which they were a member.

Our board of directors presently consists

of ten (10) directors.

We have adopted a Code of Business Conduct that applies to our

principal executive officer, principal financial officer, principal accounting officer or controller, as well as other persons

performing similar functions, and we agree to provide to any person without charge, upon request, a copy of our Code of Business

Our board of directors has the responsibility for establishing broad corporate policies and for the overall performance of our Company.

Although certain directors are not involved in day-to-day operating details, members of the board of directors are kept informed of our business by various reports and documents made available to them.

Our board of directors held 21 meetings (or executed consents in lieu thereof), including meetings of committees of the full board of directors during 2021, and all of the directors attended at least 75% of the meetings (or executed consents in lieu thereof) of the full board of directors and committees of which they were a member.

Our board of directors presently consists of ten (10) directors.

We have adopted a Code of Business Conduct that applies to our principal executive officer, principal financial officer, principal accounting officer or controller, as well as other persons performing similar functions, and we agree to provide to any person without charge, upon request, a copy of our Code of Business Conduct.

Any person who requests a copy of our Code of Business Conduct should provide their name and address in writing to:

Parfums, Inc., 551 Fifth Avenue, New York, NY 10176, Att.:

Inter Parfums, Inc., 551 Fifth Avenue, New York, NY 10176, Att.:

Shareholder Relations.

In addition, our Code of Conduct is also maintained

on our website, at www.interparfumsinc.com.

During 2020, our board of directors had

the following standing committees:

In addition, our Code of Conduct is also maintained on our website, at www.interparfumsinc.com.

During 2021, our board of directors had the following standing committees:

Audit Committee – The Audit Committee has the sole authority and is directly responsible for, the appointment, compensation and oversight of the work of the independent accountants employed by our company which prepare or issue audit reports for our company.

During 2021, this committee consisted of Messrs.

Heilbronn and Choël, and Ms.

Gabai-Pinsky.

The charter of the Audit Committee is posted on our company’s website.

The Company does not have an “audit

committee financial expert” within the definition of the applicable Securities and Exchange Commission rules.

Finding qualified

nominees to serve as a director of a public company without substantial financial resources has been challenging.

despite the applicable Securities and Exchange Commission rule which states that being named as the audit committee financial expert

does not impose any greater duty, obligation or liability, our company has been met with resistance from both present and former

directors to being named as such, primarily due to potential additional personal liability.

However, as the result of the background,

education and experience of the members of the Audit Committee, our board of directors believes that such committee members are

fully qualified to fulfill their obligations as members of the Audit Committee.

The Company does not have an “audit committee financial expert” within the definition of the applicable Securities and Exchange Commission rules.

Finding qualified nominees to serve as a director of a public company without substantial financial resources has been challenging.

In addition, despite the applicable Securities and Exchange Commission rule which states that being named as the audit committee financial expert does not impose any greater duty, obligation or liability, our company has been met with resistance from both present and former directors to being named as such, primarily due to potential additional personal liability.

However, as the result of the background, education and experience of the members of the Audit Committee, our board of directors believes that such committee members are fully qualified to fulfill their obligations as members of the Audit Committee.

Executive Compensation and Stock Option Committee – The Executive Compensation and Stock Option Committee oversees the compensation of our company’s executives and administers our company’s stock option plans.

During 2021, this committee consisted of Messrs.

Heilbronn and Choël, and Ms.

Gabai-Pinsky.

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Nominating Committee – During 2021, this committee consisted of Messrs.

Heilbronn and Choël, and Ms.

Gabai-Pinsky.

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The charter of the Nominating Committee is posted on our company’s website.

In January 2018 our board of directors adopted

a board diversity policy, which provides that the selection of candidates for appointment to our board will be based on an overriding

emphasis on merit, but the Nominating Committee will seek to fill board vacancies by considering candidates that bring a diversity

of background and industry or related expertise to our board.

The Nominating Committee is to consider an appropriate level of diversity

having regard for factors such as skills, business and other experience, education, gender, age, ethnicity and geographic location.

We have adopted a board diversity policy, which provides that the selection of candidates for appointment to our board will be based on an overriding emphasis on merit, but the Nominating Committee will seek to fill board vacancies by considering candidates that bring a diversity of background and industry or related expertise to our board.

The Nominating Committee is to consider an appropriate level of diversity having regard for factors such as skills, business and other experience, education, gender, age, ethnicity and geographic location.

A copy of the board diversity policy is posted on our company’s website.

In addition, Nasdaq has adopted a Board Diversity Rule, which will require Nasdaq listed companies to publicly disclose board-level diversity statistics using a standardized template commencing on the later of August 8, 2022 or the date the filing of a listed company’s proxy statement for its 2022 annual meeting.

In addition, in the following year, we will be required to disclose whether or not we have one director that is diverse under the applicable Nasdaq rule, and if not, then why not.

By the 2025 annual meeting, we will be required to disclose whether or not we have two directors that are diverse under the applicable Nasdaq rule, and if not, then why not.

We do not foresee any issue in complying with Nasdaq Board Diversity Rule at this time.

Business Experience

The following sets forth biographical information

as to the business experience of each executive officer and director of our company for at least the past five years.

Jean Madar, age 60, a Director, has been

the Chairman of the Board since our company’s inception, and is a co-founder of our company with Mr.

The following sets forth biographical information as to the business experience of each executive officer and director of our company for at least the past five years.

Jean Madar, age 61, a Director, has been the Chairman of the Board since our company’s inception, and is a co-founder of our company with Mr.

Philippe Benacin.

inception until December 1993 he was the President of our company;

in January 1994, he became Director General of Interparfums

SA, our company’s subsidiary;

From inception until December 1993 he was the President of our company;

in January 1994, he became Director General of Interparfums SA, our company’s subsidiary;

and in January 1997, he became Chief Executive Officer of our company.

Madar was previously

the managing director of Interparfums SA, from September 1983 until June 1985.

At such subsidiary, he had the responsibility of

overseeing the marketing operations of its foreign distribution, including market research analysis and actual marketing campaigns.

Madar was previously the managing director of Interparfums SA, from September 1983 until June 1985.

At such subsidiary, he had the responsibility of overseeing the marketing operations of its foreign distribution, including market research analysis and actual marketing campaigns.

Madar graduated from The French University for Economic and Commercial Sciences (ESSEC) in 1983.

We believe that Mr.

skills in guiding, leading and determining the strategic direction of our company since its inception together with Mr.

in addition to his contacts in the fragrance and cosmetic industry, render him qualified to serve as a member of our board of directors.

Madar’s skills in guiding, leading and determining the strategic direction of our company since its inception together with Mr.

Benacin, in addition to his contacts in the fragrance and cosmetic industry, render him qualified to serve as a member of our board of directors.

Philippe Benacin

Benacin, age 62, a Director, is President

of our Company and the Chief Executive Officer of Interparfums SA, has been the Vice Chairman of the Board since September 1991,

and is a co-founder of our company with Mr.

He was elected the Executive Vice President in September 1991, Senior Vice President

in April 1993, and President of the Company in January 1994.

In addition, he has been the Chief Executive Officer of Interparfums

SA for more than the past five years.

Benacin graduated from The French University for Economic and Commercial Sciences (ESSEC)

Benacin, age 63, a Director, is President of our Company and the Chief Executive Officer of Interparfums SA, has been the Vice Chairman of the Board since September 1991, and is a co-founder of our company with Mr.

He was elected the Executive Vice President in September 1991, Senior Vice President in April 1993, and President of the Company in January 1994.

In addition, he has been the President of our Company and Chief Executive Officer of Interparfums SA for more than the past five years.

Benacin graduated from The French University for Economic and Commercial Sciences (ESSEC) in 1983.

In June 2014 Mr.

Benacin was elected as a member of the Supervisory Board of Vivendi, and Chairman of its Corporate Governance,

Nominations and Remuneration Committee.

Benacin was elected as a member of the Supervisory Board of Vivendi, and Chairman of its Corporate Governance, Nominations and Remuneration Committee.

We believe that Mr.

Benacin’s skills in guiding, leading and determining the strategic

direction of our company since its inception together with Mr.

Madar, in addition to his contacts in the fragrance and cosmetic

industry, render him qualified to serve as a member of our board of directors.

Benacin’s skills in guiding, leading and determining the strategic direction of our company since its inception together with Mr.

Madar, in addition to his contacts in the fragrance and cosmetic industry, render him qualified to serve as a member of our board of directors.

Russell Greenberg

Greenberg, age 64, the Chief Financial

Officer, was Vice-President, Finance when he joined the Company in June 1992;

Greenberg, age 65, the Chief Financial Officer, was Vice-President, Finance when he joined the Company in June 1992;

became Executive Vice President in April 1993;

was appointed to our board of directors in February 1995.

He is a certified public accountant licensed in the State of New York,

and is a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants.

and was appointed to our board of directors in February 1995.

He is a certified public accountant licensed in the State of New York, and is a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants.

After graduating from The Ohio State University in 1980, he was employed in public accounting until he joined our company in June 1992.

We believe that Mr.

Greenberg’s skills in accounting and tax, as well as his knowledge of the fragrance industry and

our Company’s operations, render him qualified to serve as a member of our board of directors.

Greenberg’s skills in accounting and tax, as well as his knowledge of the fragrance industry and our Company’s operations, render him qualified to serve as a member of our board of directors.

Philippe Santi

Philippe Santi, age 59 and a Director since

December 1999, is the Executive Vice President and Chief Financial Officer of Interparfums SA.

Santi, who is a Certified Accountant

and Statutory Auditor in France, has been the Chief Financial Officer of Interparfums SA since February 1995.

Prior to February

Philippe Santi, age 59, and a Director since December 1999, is the Executive Vice President and Chief Financial Officer of Interparfums SA.

Santi, who is a Certified Accountant and Statutory Auditor in France, has been the Chief Financial Officer of Interparfums SA since February 1995.

Prior to February 1995, Mr.

Santi was the Chief Financial Officer for Stryker France and an Audit Manager for Ernst and Young.

We believe that Mr.

Santi’s skills in accounting and tax, as well as his knowledge of the fragrance industry and our Company’s European

operations, render him qualified to serve as a member of our board of directors.

Santi’s skills in accounting and tax, as well as his knowledge of the fragrance industry and our Company’s European operations, render him qualified to serve as a member of our board of directors.

Francois Heilbronn

Heilbronn, age 60 a Director since 1988,

an independent director and a member of the Audit Committee, Nominating Committee and the Executive Compensation and Stock Option

Committee, is a graduate of Harvard Business School with a Master of Business Administration degree and is currently the managing

partner of the consulting firm of M.M.

Heilbronn, age 60, a Director since 1988, an independent director and a member of the Audit Committee, Nominating Committee and the Executive Compensation and Stock Option Committee, is a graduate of Harvard Business School with a Master of Business Administration degree and is currently the managing partner of the consulting firm of M.M.

Friedrich, Heilbronn & Fiszer.

He was formerly employed by The Boston Consulting Group,

He was formerly employed by The Boston Consulting Group, Inc.

from 1988 through 1992 as a manager.

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In addition, during 2009, Mr.

Heilbronn became

an Associate Professor in Business Strategy at Sciences Po, Paris, France.

As the result of his business and financial acumen,

as well as his experience as managing partner of a business consulting firm in the area of mergers and acquisitions of large international

companies in retail, consumer goods and consumer services throughout the world, we believe Mr.

Heilbronn is qualified to serve

as a member of our board of directors.

Heilbronn became an Associate Professor in Business Strategy at Sciences Po, Paris, France.

As the result of his business and financial acumen, as well as his experience as managing partner of a business consulting firm in the area of mergers and acquisitions of large international companies in retail, consumer goods and consumer services throughout the world, we believe Mr.

Heilbronn is qualified to serve as a member of our board of directors.

Robert Bensoussan

Robert Bensoussan, age 63, has been a Director

since March 1997, and is also an independent director.

Bensoussan is the founder of Sirius Equity Consultants, a retail and

branded luxury goods Investment Company.

Bensoussan remains as an investor in feelunique.com, Europe’s largest

online beauty retailer.

C.A.R.O.L, the AI driven fitness equipment, Hapy Sweet Bee Ltd, natural health food products, Eaglemoss

Ltd, UK part-works publisher and Patchwork, a Parisian co-working company.

He was previously Chairman of Camaïeu,

the French retail conglomerate, a board member of Celio International, the French retail conglomerate and Vivarte representing

the GLG hedge fund.

Robert Bensoussan, age 63, has been a Director since March 1997, and is also an independent director.

Bensoussan is the founder of Sirius Equity Consultants, a retail and branded luxury goods Investment Company.

Bensoussan remains as an investor in C.A.R.O.L, the AI driven fitness equipment, Hapy Sweet Bee Ltd, natural health food products, Eaglemoss Ltd, UK part-works publisher and Patchwork, a Parisian co-working company.

He was previously Chairman of Camaïeu, the French retail conglomerate, a board member of Celio International, the French retail conglomerate and Vivarte representing the GLG hedge fund.

In the latter part of 2019, Mr.

Bensoussan resigned after 6 years as the only non-North American board member

of lululemon athletica Inc.

He continues to remain a Director of feelunique.com

since his appointment in December 2012.

He is also a member of the Advisory Board of Pictet Bank Premium Brands Fund and sits on

the board of Pronovias, the worldwide leader of wedding dresses owned by BC Partners.

Bensoussan resigned after 6 years as the only non-North American board member of lululemon athletica Inc.

Following the successful sale in 2021, Mr.

Bensoussan stepped down from the board of Feelunique.com one of Europe’s largest online beauty retailer’s after serving 9 years.

He is also a member of the Advisory Board of Pictet Bank Premium Brands Fund and sits on the board of Pronovias, the worldwide leader of wedding dresses owned by BC Partners, Yonderland, Europe’s largest premium outdoor retailer, SNS, a prominent aspirational streetwear and entertainment hub and Internet Fusion Group, a leading e-commerce site for niche lifestyle products.

Previously Mr.

Bensoussan was as director

of, and had an indirect ownership interest J.

Choo Limited until July 2011, and CEO from 2001 to 2007, and was a member of the

Board of Jimmy Choo Ltd, a privately held luxury shoe wholesaler and retailer, from 2001 to 2011.

Bensoussan was as director of, and had an indirect ownership interest J.

Choo Limited until July 2011, and was CEO from 2001 to 2007, and was a member of the Board of Jimmy Choo Ltd, a privately held luxury shoe wholesaler and retailer, from 2001 to 2011.

We believe Mr.

Bensoussan is qualified to

serve as a member of our board of directors due to his business and financial acumen, as well as his experience in the retail and

branded luxury goods market.

Patrick Choël

Choël, age 77, was appointed to

the board of directors in June 2006 as an independent director, and is a member of the Audit Committee, Nominating Committee and

the Executive Compensation and Stock Option Committee.

Choël is a director of our majority-owned subsidiary, Interparfums

SA, a publicly held company, and Christian Dior and Guerlain, both privately held companies.

He is also the manager of Université

82, a business consultant and advisor.

Bensoussan is qualified to serve as a member of our board of directors due to his business and financial acumen, as well as his experience in the retail and branded luxury goods market.

Patrick Choël

Choël, age 78, was appointed to the board of directors in June 2006 as an independent director, and is a member of the Audit Committee, Nominating Committee and the Executive Compensation and Stock Option Committee.

Choël is a director of our majority-owned subsidiary, Interparfums SA, a publicly held company, and Christian Dior and Guerlain, both privately held companies.

He is also the manager of Université 82, a business consultant and advisor.

For approximately 10 years, through March 2004, Mr.

Choël was the President and CEO

of two divisions of LVMH Moet Hennessy Louis Vuitton S.A., first Parfums Christian Dior, a leading world-wide prestige beauty/fragrances

business, and later, the LVMH Perfumes and Cosmetics Division, which included such well-known brands as Parfums Christian Dior,

Guerlain, and Parfums Givenchy, among others.

Prior to such time, for approximately 30 years, he held various executive positions

at Unilever, including President and CEO of Elida Fabergé

France and President and CEO of Chesebrough Pond’s USA.

Choël was the President and CEO of two divisions of LVMH Moet Hennessy Louis Vuitton S.A., first Parfums Christian Dior, a leading world-wide prestige beauty/fragrances business, and later, the LVMH Perfumes and Cosmetics Division, which included such well-known brands as Parfums Christian Dior, Guerlain, and Parfums Givenchy, among others.

Prior to such time, for approximately 30 years, he held various executive positions at Unilever, including President and CEO of Elida Fabergé France and President and CEO of Chesebrough Pond’s USA.

Because of this experience, especially in the prestige beauty business, we believe that Mr.

Choël is qualified to serve as

a member of our board of directors.

Michel Dyens, age 81 and an independent

director, is the Founder, Chairman and Chief Executive Officer of Michel Dyens & Co., which he founded over 25 years ago.

headquarters in New York and Paris, Michel Dyens & Co.

is a leading independent investment banking firm focused on mergers

and acquisitions.

Choël is qualified to serve as a member of our board of directors.

Michel Dyens, age 81 and an independent director, is the Founder, Chairman and Chief Executive Officer of Michel Dyens & Co., which he founded over 25 years ago.

With headquarters in New York and Paris, Michel Dyens & Co.

is a leading independent investment banking firm focused on mergers and acquisitions.

Michel Dyens & Co.

has vast experience in luxury goods, beauty, spirits and other premium branded consumer

goods in which it has concluded numerous landmark deals.

has vast experience in luxury goods, beauty, spirits and other premium branded consumer goods in which it has concluded numerous landmark deals.

Michel Dyens & Co.

has advised in such deals as the sale of the Grey

Goose ultra-premium vodka brand to Bacardi, the acquisition of the luxury Swiss watchmaker Hublot by LVMH, the sale of the Harry

Winston to Aber Diamond Corporation and Boucheron to Kering.

has advised in such deals as the sale of the Grey Goose ultra-premium vodka brand to Bacardi, the acquisition of the luxury Swiss watchmaker Hublot by LVMH, the sale of the Harry Winston to Aber Diamond Corporation and Boucheron to Kering.

Michel Dyens & Co.

represented the owners of Liaigre, the luxury

furniture brand, in the sale to Symphony International and Navis Capital, and Casa Dragones, the ultra-premium tequila, in the

sale to BDT Partners (Byron Trott).

represented the owners of Liaigre, the luxury furniture brand, in the sale to Symphony International and Navis Capital, and Casa Dragones, the ultra-premium tequila, in the sale to BDT Partners (Byron Trott).

Michel Dyens & Co.

was the exclusive

advisor to Creed in the sale of the ultra-luxury fragrance company Creed BlackRock Long Term Private Capital, and represented Mr.

recently represented the owners of Buly, the luxury French fragrance and beauty brand, in the sale to LVMH and the owners of Blissim, the French leader in beauty subscription e-commerce, and online beauty retail for an investment by Raise Investissement.

In addition, he has just sold We11done, the Korean contemporary fashion and lifestyle brand, to Sequoia Capital.

Michel Dyens & Co.

was the exclusive advisor to Creed in the sale of the ultra-luxury fragrance company Creed BlackRock Long Term Private Capital, and represented Mr.

ChinWook Lee, the founder and CEO of Dr.

Jart+, in the sale of Have & Be Co.

to The Estée Lauder Companies.

also advised the owner of the ultra-luxury fragrance brand By Kilian, in the sale to Estée Lauder.

advised the shareholders of the largest independent hair color and hair care company in Brazil, Niely Cosmeticos

in the sale of the company to L’Oréal, as well as the owner of the super-premium liqueur St-Germain in the sale of

the brand to Bacardi, the Colomer Group (American Crew and CND/Shellac brands) in its sale to Revlon, and Sidney Frank Importing

Company in the sale of the company to Jaegermeister.

Other transactions include the sale of the Essie cosmetics business to L’Oréal,

the sale of TIGI (BedHead and Catwalk brands) to Unilever, the luxury hair care brand Christophe Robin to The Hut Group, the thinning

hair brand NIOXIN Research Laboratories to Procter & Gamble, John Frieda Professional Hair Care and Molton Brown to the Kao

Corporation, the Svedka vodka brand to Constellation Brands and Chambord liqueur to Brown-Forman.

to The Estée Lauder Companies.

Michel Dyens & Co.

also advised the owner of the ultra-luxury fragrance brand By Kilian, in the sale to Estée Lauder.

Michel Dyens & Co.

advised the shareholders of the largest independent hair color and hair care company in Brazil, Niely Cosmeticos in the sale of the company to L’Oréal, as well as the owner of the super-premium liqueur St-Germain in the sale of the brand to Bacardi, the Colomer Group (American Crew and CND/Shellac brands) in its sale to Revlon, and Sidney Frank Importing Company in the sale of the company to Jaegermeister.

Other transactions include the sale of the Essie cosmetics business to L’Oréal, the sale of TIGI (BedHead and Catwalk brands) to Unilever, the luxury hair care brand Christophe Robin to The Hut Group, the thinning hair brand NIOXIN Research Laboratories to Procter & Gamble, John Frieda Professional Hair Care and Molton Brown to the Kao Corporation, the Svedka vodka brand to Constellation Brands and Chambord liqueur to Brown-Forman.

In the mission-driven field, Michel Dyens & Co.

recently represented ClimateCare, a prominent UK carbon-offset business, in the sale to Averna Capital and represented the founders of Caboo Paper Products a Vancouver, Canada-based tree-free household paper products brand, for an investment by sustainability-focused venture capital firm Renewal Funds.

Among other recent transactions, Michel Dyens & Co.

recently represented the Fairtrade and organic coffee brand Ethical Bean Coffee in the sale to Kraft Heinz, and as well as Alter Eco Americas, a leading organic chocolate brand, which we sold to NextWorld Evergreen.

In healthy and premium food, Michel Dyens & Co.

represented the Fairtrade and organic coffee brand Ethical Bean Coffee in the sale to Kraft Heinz, and as well as Alter Eco Americas, a leading organic chocolate brand, which it sold to NextWorld Evergreen.

From April 2004 to September 2014, Mr.

was an independent director of Interparfums SA.

Dyens was an independent director of Interparfums SA.

We believe Mr.

Dyens is qualified to serve as a member of our board of directors

thanks to his knowledge of our company’s luxury business, his business and financial acumen, as well as his experience in

the luxury goods market.

Dyens is qualified to serve as a member of our board of directors thanks to his knowledge of our company’s luxury business, his business and financial acumen, as well as his experience in the luxury goods market.

Veronique Gabai-Pinsky

Gabai-Pinsky, age 55, was elected for

the first time to our board in September 2017.

Gabai-Pinsky, age 56, was elected for the first time to our board in September 2017.

She became a director of Interparfums SA in April 2017.

She is currently operating

a startup specialty fragrance business.

She was President of Vera Wang Group from January 2016 through June 2018, after a year

of consulting with the company and she oversaw all product categories and markets.

Prior to joining Vera Wang, from 2006 to December

Gabai-Pinsky was the Global President for Aramis and Designers Fragrances as well as Beauty Bank and Idea Bank at the

Estée Lauder Companies, reporting to the Chief Executive Officer of such company.

She is currently operating a startup specialty fragrance business, and a director of Lifetime Brands (Nasdaq:

LCUT), which is in the home goods business.

She was President of Vera Wang Group from January 2016 through June 2018, after a year of consulting with the company and she oversaw all product categories and markets.

Prior to joining Vera Wang, from 2006 to December 2014 Ms.

Gabai-Pinsky was the Global President for Aramis and Designers Fragrances as well as Beauty Bank and Idea Bank at The Estée Lauder Companies, reporting to the Chief Executive Officer of such company.

During her tenure, Ms.

Gabai-Pinsky developed

and ensured the growth of several beauty and skin care brands, including Lab Series for Men.

She was highly instrumental in the

evolution of the fragrance category for such company, as she improved its overall business model, globally grew brands such as

Donna Karan and Michael Kors, evolved and harmonized the portfolio, divested dilutive brands and brought in Tory Burch, Zegna and

Marni under licenses.

She ultimately actively participated in the acquisitions of Le Labo, Frederic Malle, and By Kilian and assisted

in the transformation of the long-term strategic direction of such company.

Gabai-Pinsky developed and ensured the growth of several beauty and skin care brands, including Lab Series for Men.

She was highly instrumental in the evolution of the fragrance category for such company, as she improved its overall business model, globally grew brands such as Donna Karan and Michael Kors, evolved and harmonized the portfolio, divested dilutive brands and brought in Tory Burch, Zegna and Marni under licenses.

She ultimately actively participated in the acquisitions of Le Labo, Frederic Malle, and By Kilian and assisted in the transformation of the long-term strategic direction of such company.

In the earlier years of her career, Ms.

Gabai-Pinsky served as Vice President of Marketing and Communication for Guerlain, a division of LVMH Moet Hennessy Louis Vuitton

S.A., where she led the successful re-launch of Shalimar, the introduction of Aqua Allegoria, and contributed to the re-focus of

the beauty category around its pillars, Terracotta, Meteorites and Issima, while redesigning all communication strategies and content.

She started her career at L’Oréal, and was also Vice President of Marketing for Giorgio Armani, where she was instrumental

in the overall development of its fragrance business by developing the successful Acqua di Gio for men and introducing the Emporio

Armani franchise.

A graduate from ESSEC Business School in Paris, France, she has received several awards, including Marketer of

the Year by Women’s Wear Daily in December 2013.

Gabai-Pinksy is an independent director,

and is a member of the Audit Committee, Executive Compensation and Stock Option Committee and the Nominating Committee of our company.

Gabai-Pinsky served as Vice President of Marketing and Communication for Guerlain, a division of LVMH Moet Hennessy Louis Vuitton S.A., where she led the successful re-launch of Shalimar, the introduction of Aqua Allegoria, and contributed to the re-focus of the beauty category around its pillars, Terracotta, Meteorites and Issima, while redesigning all communication strategies and content.

She started her career at L’Oréal, and was also Vice President of Marketing for Giorgio Armani, where she was instrumental in the overall development of its fragrance business by developing the successful Acqua di Gio for men and introducing the Emporio Armani franchise.

A graduate from ESSEC Business School in Paris, France, she has received several awards, including Marketer of the Year by Women’s Wear Daily in December 2013.

Gabai-Pinksy is an independent director, and is a member of the Audit Committee, Executive Compensation and Stock Option Committee and the Nominating Committee of our company.

We believe Ms.

Gabi-Pinsky is qualified to serve as a member of our board of directors due to her more than 25 years of experience

in the luxury, fashion, beauty and fragrance fields, success as a brand builder, creative thinker, business acumen, and a broad

understanding of consumers, brands and business models.

Gabi-Pinsky is qualified to serve as a member of our board of directors due to her more than 25 years of experience in the luxury, fashion, beauty and fragrance fields, success as a brand builder, creative thinker, business acumen, and a broad understanding of consumers, brands and business models.

Gilbert Harrison

Harrison, age 80, an independent director,

was appointed to our board in April 2018.

Harrison has more than 50 years of experience in corporate finance and strategic

transactions, specializing in the consumer products space.

He began his career in 1965 practicing corporate and securities law

in New York and Philadelphia.

In 1971 he founded Financo, which he grew to become one of the leading independent middle market

transaction firms in the country.

In 1985, Financo was acquired by Lehman Brothers, where the firm’s primary efforts were

focused on increasing its expertise in retail, apparel and other merchandising transactions of all types.

Harrison, age 81, an independent director, was appointed to our board in April 2018.

Harrison has more than 50 years of experience in corporate finance and strategic transactions, specializing in the consumer products space.

He began his career in 1965 practicing corporate and securities law in New York and Philadelphia.

In 1971 he founded Financo, which he grew to become one of the leading independent middle market transaction firms in the country.

In 1985, Financo was acquired by Lehman Brothers, where the firm’s primary efforts were focused on increasing its expertise in retail, apparel and other merchandising transactions of all types.

At Lehman, Mr.

was Chairman of the Merchandising Group and on the firm’s Investment Banking Operating Committee while continuing as Chairman

of Financo, which was renamed the Middle Market Group of Lehman.

In 1989, he re-acquired Financo from Lehman, re-establishing Financo

as one of the leading investment banking firms handling transactions and providing strategic advice in connection with merchandising

Harrison retired as Chairman of Financo in December of 2017, after which he formed the Harrison Group, a firm that

provides consulting and financial advisory services to merchandising and products companies.

Harrison’s other activities include

his membership on the Advisory Council of the World Retail Congress, Shoptalk and the Financial Times Business of Luxury Summit.

Additionally, he has created a course on mergers and acquisitions at The Wharton School and has published various articles and

academic studies on the state of retailing and mergers and acquisitions, including a chapter in the book entitled, “The Mergers

and Acquisitions Handbook.” Mr.

Harrison lectures throughout the country, including chairing seminars for Retail Week as

well as for the International Council of Shopping Centers, the National Retail Federation, Young President’s Center, The

Wharton Aresty Institute of Executive Education and The President’s Association of the American Management Association.

also appears frequently on Bloomberg TV and CNBC as an expert on retail and apparel.

Harrison received a Bachelor of Science

in Economics from The Wharton School of The University of Pennsylvania in 1962 and his Juris Doctor from The University of Pennsylvania

Law School in 1965.

He is also Chairman of the Fashion Division of UJA, Treasurer and a Board member of the Southampton Hospital,

Director of the Peggy Guggenheim Collection, and former Board member of the Wharton School of the University of Pennsylvania.

Harrison is qualified to serve as a member of our board of directors due to his tremendous depth and breadth of knowledge

about the merchandising and consumer industry, and he has a long track record of facilitating value creating transactions for companies

in this sector.

Harrison was Chairman of the Merchandising Group and on the firm’s Investment Banking Operating Committee while continuing as Chairman of Financo, which was renamed the Middle Market Group of Lehman.

In 1989, he re-acquired Financo from Lehman, re-establishing Financo as one of the leading investment banking firms handling transactions and providing strategic advice in connection with merchandising companies.

Harrison retired as Chairman of Financo in December of 2017, after which he formed the Harrison Group, a firm that provides consulting and financial advisory services to merchandising and products companies.

Harrison’s other activities include his membership on the Advisory Council of the World Retail Congress, Shoptalk and the Financial Times Business of Luxury Summit.

Additionally, he has created a course on mergers and acquisitions at The Wharton School and has published various articles and academic studies on the state of retailing and mergers and acquisitions, including a chapter in the book entitled, “The Mergers and Acquisitions Handbook.” Mr.

Harrison lectures throughout the country, including chairing seminars for Retail Week as well as for the International Council of Shopping Centers, the National Retail Federation, Young President’s Center, The Wharton Aresty Institute of Executive Education and The President’s Association of the American Management Association.

He also appears frequently on Bloomberg TV and CNBC as an expert on retail and apparel.

Harrison received a Bachelor of Science in Economics from The Wharton School of The University of Pennsylvania in 1962 and his Juris Doctor from The University of Pennsylvania Law School in 1965.

He is also Chairman of the Fashion Division of UJA, Treasurer and a Board member of the Southampton Hospital, Director of the Peggy Guggenheim Collection, and former Board member of the Wharton School of the University of Pennsylvania.

We believe Mr.

Harrison is qualified to serve as a member of our board of directors due to his tremendous depth and breadth of knowledge about the merchandising and consumer industry, and he has a long track record of facilitating value-creating transactions for companies in this sector.

Harrison just finished his autobiography, Deal Junky , which was published in January 2022.

Frederic Garcia-Pelayo

Frederic Garcia-Pelayo, age 60, has been

with Interparfums SA for more than the past 20 years.

He is currently the Executive Vice President and Chief Operating Officer

of Interparfums SA, and was previously the Director of its Luxury and Fashion division beginning in March 2005.

He was also previously

the Director of Marketing and Distribution for Perfume and Cosmetics and was first named Executive Vice President in 2004.

Frederic Garcia-Pelayo, age 60, has been with Interparfums SA for more than the past 20 years.

He is currently the Executive Vice President and Chief Operating Officer of Interparfums SA, and was previously the Director of its Luxury and Fashion division beginning in March 2005.

He was also previously the Director of Marketing and Distribution for Perfume and Cosmetics and was first named Executive Vice President in 2004.

Section 16(a) Beneficial Ownership Reporting Compliance

Based solely upon a review of Forms 3, 4

and 5 and any amendments to such forms furnished to us, and written representations from various reporting persons furnished to

us, we are not aware of any reporting person who has failed to file the reports required to be filed under Section 16(a) of the

Securities Exchange Act of 1934 on a timely basis.

Based solely upon a review of Forms 3, 4 and 5 and any amendments to such forms furnished to us, and written representations from various reporting persons furnished to us, we are not aware of any reporting person who has failed to file the reports required to be filed under Section 16(a) of the Securities Exchange Act of 1934 on a timely basis.

Executive Compensation

Compensation Discussion and Analysis

The executive compensation and stock option

committee of our board of directors is comprised entirely of independent directors and oversees all elements of compensation (base

salary, annual bonus, long-term incentives and perquisites) of our company’s executive officers and administers our company’s

stock option plans, other than the non-employee directors stock option plan, which is self-executing.

The objectives of our compensation program

are designed to strike a balance between offering sufficient compensation to either retain existing or attract new executives on

the one hand, and maintaining compensation at reasonable levels on the other hand.

We do not have the resources comparable to the

cosmetic giants in our industry, and, accordingly, cannot afford to pay excessive executive compensation.

In furtherance of these

objectives, our executive compensation packages generally include a base salary, as well as annual incentives tied to individual

performance and long-term incentives tied to our operating performance.

Madar, the Chairman and Chief Executive

Officer, takes the initiative after discussions with Mr.

Russell Greenberg, Executive Vice President, Chief Financial Officer and

a Director, and recommends executive compensation levels for executives for United States operations.

Benacin, the Chief Executive

Officer of Interparfums SA, takes the initiative after discussions with Philippe Santi, the Chief Financial Officer of Interparfums

SA, and recommends executive compensation levels for executives for European operations.

The recommendations are presented to the

compensation committee for its consideration, and the compensation committee makes a final determination regarding salary adjustments

and annual award amounts to executives, including Jean Madar and Philippe Benacin.

Madar and Benacin are not present during

deliberations or determination of their executive compensation by the compensation committee.

The executive compensation and stock option committee of our board of directors is comprised entirely of independent directors and oversees all elements of compensation (base salary, annual bonus, long-term incentives and perquisites) of our company’s executive officers and administers our company’s stock option plans, other than the non-employee directors stock option plan, which is self-executing.

The objectives of our compensation program are designed to strike a balance between offering sufficient compensation to either retain existing or attract new executives on the one hand, and maintaining compensation at reasonable levels on the other hand.

We do not have the resources comparable to the cosmetic giants in our industry, and, accordingly, cannot afford to pay excessive executive compensation.

In furtherance of these objectives, our executive compensation packages generally include a base salary, as well as annual incentives tied to individual performance and long-term incentives tied to our operating performance.

Madar, the Chairman and Chief Executive Officer, takes the initiative after discussions with Mr.

Russell Greenberg, Executive Vice President, Chief Financial Officer and a Director, and recommends executive compensation levels for executives for United States operations.

Benacin, the Chief Executive Officer of Interparfums SA, takes the initiative after discussions with Philippe Santi, the Chief Financial Officer of Interparfums SA, and recommends executive compensation levels for executives for European operations.

The recommendations are presented to the compensation committee for its consideration, and the compensation committee makes a final determination regarding salary adjustments and annual award amounts to executives, including Jean Madar and Philippe Benacin.

Madar and Benacin are not present during deliberations or determination of their executive compensation by the compensation committee.

Further, Messrs.

Madar and Benacin,

in addition to being executive officers and directors, are our largest beneficial shareholders, and therefore, their interests

are aligned with our shareholder base in keeping executive compensation at a reasonable level.

The compensation committee was pleased that

the most recent shareholder advisory vote on executive compensation held at our last annual meeting of shareholders in October

2020 overwhelmingly approved the compensation policies and decisions of the compensation committee.

The compensation committee

has determined to continue its present compensation policies in order to determine similar future decisions.

Our compensation committee believes that

individual executive compensation is at a level comparable with executives in other companies of similar size and stage of development

that operate in the fragrance industry, and takes into account our company’s performance as well as our own strategic goals.

Further, the compensation committee believes that its present policies to date, with its emphasis on rewarding performance, has

served to focus the efforts of our executives, which in turn has permitted our company to weather economic and political turmoil

in certain parts of the world and keep our company on track for continued profitability, which management believes will result

in enhanced shareholder value.

During 2020, the members of such committee

consisted of Messrs.

Heilbronn and Choël, and Ms.

Madar and Benacin, in addition to being executive officers and directors, are our largest beneficial shareholders, and therefore, their interests are aligned with our shareholder base in keeping executive compensation at a reasonable level.

The compensation committee was pleased that the most recent shareholder advisory vote on executive compensation held at our last annual meeting of shareholders in October 2021 overwhelmingly approved the compensation policies and decisions of the compensation committee.

The compensation committee has determined to continue its present compensation policies in order to determine similar future decisions.

Our compensation committee believes that individual executive compensation is at a level comparable with executives in other companies of similar size and stage of development that operate in the fragrance industry, and takes into account our company’s performance as well as our own strategic goals.

Further, the compensation committee believes that its present policies to date, with its emphasis on rewarding performance, has served to focus the efforts of our executives, which in turn has permitted our company to weather the pandemic and economic and political turmoil in certain parts of the world, which resulted in the Company’s record results for 2021.

During 2021, the members of such committee consisted of Messrs.

Heilbronn and Choël, and Ms.

Gabai-Pinsky.

Elements of Compensation

The compensation of our executive officers

is generally comprised of base salaries, including a fee paid to the holding companies of each of Messrs.

Madar and Benacin, annual

cash bonuses and long-term equity incentive awards.

In determining specific components of compensation, the compensation committee

considers individual performance, level of responsibility, skills and experience, other compensation awards or arrangements and

overall company performance.

The compensation committee reviews and approves all elements of compensation for all of our executive

officers taking into consideration recommendations from the Chief Executive Officer of our company and the Chief Executive Officer

of Interparfums SA, as well as information regarding compensation levels at competitors in our industry.

Our named executive officers have all been

with the company for more than the past ten (10) years, with Messrs.

Madar and Benacin being founders of the company in 1985.

Madar and Greenberg for United States operations, and Benacin and Santi for European operations, are most familiar with

the individual performance, level of responsibility, skills and experience of each executive officer in their respective operating

segments, the compensation committee relies upon the information provided by such executive officers in determining individual

performance, level of responsibility, skills and experience of each executive officer.

The compensation committee views the competitive

marketplace very broadly, which would include executive officers from both public and privately held companies in general, including

fashion and beauty companies, but not limited to the peer companies contained in the corporate performance graph contained in our

annual report.

Generally, rather than tie the compensation committee’s determination of compensation proposals to any specific

peer companies, the members of our committee have used their business experience, judgment and knowledge to review the executive

compensation proposals recommended to them by Mr.

The compensation of our executive officers is generally comprised of base salaries, including a fee paid to the holding companies of each of Messrs.

Madar and Benacin, annual cash bonuses and long-term equity incentive awards.

In determining specific components of compensation, the compensation committee considers individual performance, level of responsibility, skills and experience, other compensation awards or arrangements and overall company performance.

The compensation committee reviews and approves all elements of compensation for all of our executive officers taking into consideration recommendations from the Chief Executive Officer of our company and the Chief Executive Officer of Interparfums SA, as well as information regarding compensation levels at competitors in our industry.

Our named executive officers have all been with the company for more than the past ten (10) years, with Messrs.

Madar and Benacin being founders of the company.

Madar and Greenberg for United States operations, and Benacin and Santi for European operations, are most familiar with the individual performance, level of responsibility, skills and experience of each executive officer in their respective operating segments, the compensation committee relies upon the information provided by such executive officers in determining individual performance, level of responsibility, skills and experience of each executive officer.

The compensation committee views the competitive marketplace very broadly, which would include executive officers from both public and privately held companies in general, including fashion and beauty companies, but not limited to the peer companies contained in the corporate performance graph contained in our annual report.

Generally, rather than tie the compensation committee’s determination of compensation proposals to any specific peer companies, the members of our committee have used their business experience, judgment and knowledge to review the executive compensation proposals recommended to them by Mr.

Madar for United States operations and Mr.

Benacin for European operations.

such, as a general rule the compensation committee did not determine the need to “benchmark” of any material item of

compensation or overall compensation.

As such, as a general rule the compensation committee did not determine the need to “benchmark” of any material item of compensation or overall compensation.

However, in connection with the salary increase to Mr.

Madar that occurred in February 2020

surveys of both peer companies and companies with comparable market capitalizations were used by the compensation committee as

one of the factors in reaching such determination.

The members of the compensation committee

have extensive experience and business acumen and are well qualified in determining the appropriateness of executive compensation

Heilbronn is a managing partner of a business consulting firm in the area of mergers and acquisitions of large international

companies in retail, consumer goods and consumer services throughout the world.

Choël is presently a business consultant

and advisor, who previously worked as President and Chief Executive Officer of two divisions of LVMH Moet Hennessy Louis Vuitton

S.A., which included such well-known brands as Parfums Christian Dior, Guerlain, and Parfums Givenchy.

Choël has also

been President and CEO of both Elida Fabergé

France and Chesebrough Pond’s USA.

Gabai-Pinsky, the final committee

member, has executive experience as the former President of Vera Wang Group, as well as the Global President for Aramis and Designers

Fragrances in addition to Beauty Bank and Idea Bank at the Estée Lauder Companies.

Base salaries for executive officers are

initially determined by evaluating the responsibilities of the position held and the experience of the individual, and by reference

to the competitive marketplace for executive talent.

Base salaries for executive officers are reviewed on an annual basis, and

adjustments are determined by evaluating our operating performance, the performance of each executive officer, as well as whether

the nature of the responsibilities of the executive has changed.

Madar that occurred in February 2020, surveys of both peer companies and companies with comparable market capitalizations were used by the compensation committee as one of the factors in reaching such determination.

The members of the compensation committee have extensive experience and business acumen and are well qualified in determining the appropriateness of executive compensation levels.

Heilbronn is a managing partner of a business consulting firm in the area of mergers and acquisitions of large international companies in retail, consumer goods and consumer services throughout the world.

Choël is presently a business consultant and advisor, who previously worked as President and Chief Executive Officer of two divisions of LVMH Moet Hennessy Louis Vuitton S.A., which included such well-known brands as Parfums Christian Dior, Guerlain, and Parfums Givenchy.

Choël has also been President and CEO of both Elida Fabergé France and Chesebrough Ponds USA.

Gabai-Pinsky, the final committee member, has executive experience as the former President of Vera Wang Group, as well as the Global President for Aramis and Designers Fragrances in addition to Beauty Bank and Idea Bank at The Estée Lauder Companies.

Base salaries for executive officers are initially determined by evaluating the responsibilities of the position held and the experience of the individual, and by reference to the competitive marketplace for executive talent.

Base salaries for executive officers are reviewed on an annual basis, and adjustments are determined by evaluating our operating performance, the performance of each executive officer, as well as whether the nature of the responsibilities of the executive has changed.

As stated above, as Messrs.

Madar and Greenberg

for United States operations, and Benacin and Santi for European operations, are most familiar with the individual performance,

level of responsibility, skills and experience of each executive officer in their respective segments, the committee relies upon

the information provided by such executive officers in determining individual performance, level of responsibility, skills and

experience of each executive officer.

For executive officers of United States

operations, the bulk of their annual compensation is in base salary including a fee paid to the holding company for Mr.

services rendered outside the United States.

However, for executive officers of European operations base salary comprises a smaller

percentage of overall compensation.

We have paid a lower percentage of overall compensation in the form of base salary to executive

officers of European operations for several years, principally because European operations historically have had higher profitability

than United States operations, and European operations are run differently from United States operations by the Chief Executive

Officer of European operations, Mr.

As the result of this historically higher profitability, European operations have

had the ability to pay higher bonus compensation in addition to base salary.

As bonus compensation is and has historically been

discretionary, no targets were set in order to maintain flexibility.

Further, if results of operations for European operations

were not satisfactory (again, no target amounts were set to maintain flexibility), then bonus compensation, as well as overall

compensation could be lowered without otherwise affecting base salary.

Finally, by keeping annual bonus compensation at a higher

percentage of overall compensation and base salary at a lower percentage, our company benefits because the base amount for annual

salary adjustments would be smaller.

Madar and Greenberg for United States operations, and Benacin and Santi for European operations, are most familiar with the individual performance, level of responsibility, skills and experience of each executive officer in their respective segments, the committee relies upon the information provided by such executive officers in determining individual performance, level of responsibility, skills and experience of each executive officer.

For executive officers of United States operations, the bulk of their annual compensation is in base salary including a fee paid to the holding company for Mr.

Madar for services rendered outside the United States.

However, for executive officers of European operations base salary comprises a smaller percentage of overall compensation.

We have paid a lower percentage of overall compensation in the form of base salary to executive officers of European operations for several years, principally because European operations historically have had higher profitability than United States operations, and European operations are run differently from United States operations by the Chief Executive Officer of European operations, Mr.

As the result of this historically higher profitability, European operations have had the ability to pay higher bonus compensation in addition to base salary.

As bonus compensation is and has historically been discretionary, no targets were set in order to maintain flexibility.

Further, if results of operations for European operations were not satisfactory (again, no target amounts were set to maintain flexibility), then bonus compensation, as well as overall compensation could be lowered without otherwise affecting base salary.

Finally, by keeping annual bonus compensation at a higher percentage of overall compensation and base salary at a lower percentage, our company benefits because the base amount for annual salary adjustments would be smaller.

COVID-19 Impact

It is important

to note that 2020 salary increases and 2019 bonus compensation awards were determined prior to the full impact the global

Covid-19 pandemic, the imposition of worldwide governmental lockdowns, and the resultant negative impact on the

Company’s operations.

During the balance of the pandemic and related impacts through December 31, 2020, no employees

were terminated or furloughed from United States operations.

Interparfums SA did avail itself of a small French government

plan for unemployment insurance for its employees.

For 2020, there were no reductions or deferrals in salaries of any

executive officers or employees.

It is important to note that 2020 salary increases and 2019 bonus compensation awards were determined prior to the full impact the global COVID-19 pandemic, the imposition of worldwide governmental lockdowns, and the resultant negative impact on the Company’s operations.

During the balance of the pandemic and related impacts through December 31, 2020, no employees were terminated or furloughed from United States operations.

Interparfums SA did avail itself of a small French government plan for unemployment insurance for its employees.

For 2020, there were no reductions or deferrals in salaries of any executive officers or employees.

For 2021, as the result of the continuing impacts of the COVID-19 pandemic, after the recommendations of Messrs.

Madar and Benacin, the compensation committee determined that no executive officer would receive any increase in base salary.

In addition, there were no increases in the fees paid to the respective holding companies of Messrs.

Madar and Benacin.

For 2021, although Mr.

Benacin received the same base salary as he did in 2020, his salary was affected by foreign currency conversion rates and was $804,000 for 2021.

For 2020, Mr.

Benacin received a modest

increase in base salary of $14,000 to $789,000, which is comparable to the modest increase in base salary of $13,000 in 2019, but

less than an increase in base salary of $28,000 in 2018.

Benacin’s base salary includes $250,000 paid by the Company’s

United States operations to Mr.

Benacin’s holding company for each of the past three years, in accordance with the consulting

agreement with Mr.

Benacin’s holding company, which provides for review on an annual basis of the amount of compensation

payable to such company.

The compensation committee considered the

following salient factors in authorizing payment to Mr.

Benacin’s holding company— services rendered to United States

operations for several years by Mr.

Benacin in connection with licensing and distribution of international brands, as well as future

services to be performed by Mr.

Benacin internationally relating to licensing and distribution of international brands for United

States operations.

Benacin values the services of two

named executive officers of Interparfums SA, Mr.

Philippe Santi, Executive Vice President and the Chief Financial Officer, and

Frederic Garcia-Pelayo, Executive Vice President and Chief Operating Officer, equally, their base salaries, as well as their

bonus compensation discussed below, have been in lockstep.

Benacin received a modest increase in base salary of $14,000 to $789,000, which is comparable to the modest increase in base salary of $13,000 in 2019.

Benacin’s base salary includes $250,000 paid by the Company’s United States operations to Mr.

Benacin’s holding company for each of the past three years, in accordance with the consulting agreement with Mr.

Benacin’s holding company, which provides for review on an annual basis of the amount of compensation payable to such company.

The compensation committee considered the following salient factors in authorizing payment to Mr.

Benacin’s holding company— services rendered to United States operations for several years by Mr.

Benacin in connection with licensing and distribution of international brands, as well as future services to be performed by Mr.

Benacin internationally relating to licensing and distribution of international brands for United States operations.

Benacin values the services of two named executive officers of Interparfums SA, Mr.

Philippe Santi, Executive Vice President and the Chief Financial Officer, and Mr.

Frederic Garcia-Pelayo, Executive Vice President and Chief Operating Officer, equally, their base salaries, as well as their bonus compensation discussed below, have been in lockstep.

For 2021, the base salary of each of Messrs.

Santi and Garcia-Pelayo was €408,000, as no executive officer received any increase in base salary due the continuing impact of the COVID-19 pandemic.

However, the base salaries of Messrs.

Santi and Garcia-Pelayo in 2021 were affected by foreign currency conversion rates and were both $483,000 for 2021.

For 2020, each of Messrs.

Santi and Garcia-Pelayo received an increase

in base salary of $14,000 to $470,000.

Santi and Garcia-Pelayo received an increase in base salary of $14,000 to $470,000.

Each of Messrs.

Santi and Garcia-Pelayo had received an increase of $13,000 in 2019.

2019 and 2018, respectively.

These increases were awarded primarily to reward these two executive officers for their contributions

in European Operations achieving increases in both the sales and earnings.

The compensation committee considered the recommendations

Increases in prior years were awarded primarily to reward these two executive officers for their contributions in European Operations achieving increases in both the sales and earnings.

The compensation committee considered the recommendations of Mr.

Benacin, results of operations for the year, as well as the services performed for European operations by Messrs.

and Garcia-Pelayo in authorizing these salary levels.

A different approach is taken for United

States operations as that segment is smaller and less profitable.

A more significant base salary is paid in order to attract and

retain employees with the skills and talents needed to run the operation with a lesser emphasis placed on bonuses.

Neither of the

executive officers for United States operations have employment agreements (although Mr.

Madar’s personal holding company

has a consulting agreement that provides for review on an annual basis of the amount of compensation payable to such company),

as we believe that having flexibility in structuring annual base salary is a benefit, which permits us to act quickly to meet a

changing economic environment.

For each of 2019 and 2018, Mr.

base salary, including cash compensation paid to his personal holding company, remained steady and aggregated $630,000.

Cash compensation

Madar’s personal holding company in each year was in exchange for services rendered outside of the United States

Madar in his capacity as Chief Executive Officer.

For 2018, as the result of Mr.

Madar spending more time outside of the

United States, we changed the allocation of cash compensation paid to Mr.

Madar personally and to his personal holding company,

but not the aggregate amount.

The amount of salary paid to Mr.

Madar for his services in the United States in 2018 was reduced

$380,000 to $160,000, while payments to his holding company were increased by the like amount from $250,000 to $470,000.

through 2019 total cash compensation for Mr.

Madar to be paid to him and his personal holding company remained unchanged at $630,000.

As previously reported, from 2013 until

2019 the annual aggregate base salary paid to Mr.

Madar individually and fees paid to his holding company remained unchanged at

$630,000, which was substantially below the amounts indicated by two surveys of chief executive officer salaries for 2019 (collectively

the “CEO Salary Surveys”).

The CEO Salary Surveys indicated that the annual and median average CEO salaries for peer

companies (excluding the Madar salary) were $2,854,656 and $1,540,000, respectively, and $2,604,346 and $1,750,000 for comparable

market capitalization companies, respectively.

Santi and Garcia-Pelayo in authorizing these salary levels.

A different approach is taken for United States operations as that segment is smaller and less profitable.

A more significant base salary is paid in order to attract and retain employees with the skills and talents needed to run the operation with a lesser emphasis placed on bonuses.

Neither of the executive officers for United States operations have employment agreements (although Mr.

Madar’s personal holding company has a consulting agreement that provides for review on an annual basis of the amount of compensation payable to such company), as we believe that having flexibility in structuring annual base salary is a benefit, which permits us to act quickly to meet a changing economic environment.

As previously reported, from 2013 until 2019 the annual aggregate base salary paid to Mr.

Madar individually and fees paid to his holding company remained unchanged at $630,000, which was substantially below the amounts indicated by two surveys of chief executive officer salaries for 2019 (collectively the “CEO Salary Surveys”).

The CEO Salary Surveys indicated that the annual and median average CEO salaries for peer companies (excluding the Madar salary) were $2,854,656 and $1,540,000, respectively, and $2,604,346 and $1,750,000 for comparable market capitalization companies, respectively.

In recognition of the efforts of Mr.

Madar and his holding company as one of the

prime causes for our substantial increase in net sales and net income, as well as market capitalization from 2014 through 2019,

thus substantially increasing shareholder value, on February 4, 2020 the Committees jointly authorized the aggregate annual increase

Madar and his holding company as one of the prime causes for our substantial increase in net sales and net income, as well as market capitalization from 2014 through 2019, thus substantially increasing shareholder value, on February 4, 2020 the Committees jointly authorized the aggregate annual increase in Mr.

Madar’s base salary by $600,000 to $1.23 million effective as of January 1, 2020.

The allocation was made as requested

so that the annual base salary for Jean Madar individually was $285,000, and the fees to Jean Madar Holding SAS were $945,000,

effective as of January 1, 2020.

Russell Greenberg, the Executive Vice President

and Chief Financial Officer, has received the same $30,000 increase in base salary for 2020, 2019 and 2018, and for 2020 his base

salary was $720,000.

In connection with these increases in salary, the Compensation Committee considered the following material

factors in granting Mr.

For 2021, Mr.

Madar did not receive any increase in base salary.

Russell Greenberg, the Executive Vice President and Chief Financial Officer, also did not have any salary increase for 2021, and his base salary remained at $720,000.

Previously, he had received the same $30,000 increase in base salary for 2020 and 2019.

In connection with the previous increases in salary, the Compensation Committee considered the following material factors in granting Mr.

Greenberg his salary increases:

his individual performance, level of responsibility, skill and experience,

as well as the recommendation of the Chief Executive Officer.

his individual performance, level of responsibility, skill and experience, as well as the recommendation of the Chief Executive Officer.

Bonus Compensation/Annual Incentives

As discussed above, we have paid a higher

percentage of overall compensation in the form of bonus compensation to executive officers of European operations for several years,

principally because European operations historically have had higher profitability than United States operations.

As the result

of this historically higher profitability, European operations have had the ability to pay higher bonus compensation in addition

to base salary.

As discussed above, we have paid a higher percentage of overall compensation in the form of bonus compensation to executive officers of European operations for several years, principally because European operations historically have had higher profitability than United States operations.

As the result of this historically higher profitability, European operations have had the ability to pay higher bonus compensation in addition to base salary.

As bonus compensation is discretionary, no targets were set in order to maintain flexibility.

Further, if results

of operations for European operations were not satisfactory (again, no target amounts were set to maintain flexibility), then bonus

compensation, as well as overall compensation could be lowered without otherwise affecting base salary.

Individual performance,

level of responsibility, skill and experience, were the salient factors considered by the Compensation Committee in awarding bonus

compensation described below.

Benacin, the chief decision

maker for European operations, proposed and the compensation committee concurred in the payment of discretionary bonus compensation

For his performance in 2019 and 2018, Mr.

Benacin was paid discretionary bonus compensation of $110,000 and $112,000,

respectively.

Individual performance, level of responsibility, skill and experience, were the salient factors considered by the Compensation Committee in awarding bonus compensation described below.

In recognition of the Company’s turnaround from the effects of the COVID-19 pandemic and record results in 2021, and after the recommendations of Messrs.

Madar and Benacin, the compensation committee determined that Mr.

Benacin receive a bonus of $166,000.

Benacin, the chief decision maker for European operations, proposed and the compensation committee concurred in the payment of discretionary bonus compensation of $131,000.

For his performance in 2019 Mr.

Benacin was paid discretionary bonus compensation of $110,000.

The discretionary bonus compensation for Mr.

Benacin has been approximately 17%, of his base salary in 2020 and approximately

14% in both 2019 and 2018.

Benacin has been approximately 30% of his base salary in 2021, 17%, of his base salary in 2020 and approximately 14% in 2019.

In addition, bonus compensation for Messrs.

Santi and Garcia-Pelayo have remained in lockstep, and each

was awarded a discretionary bonus of $296,000, $324,000 and $331,000 in 2020, 2019 and 2018, or approximately 63%, 73% and 73%,

of their base salaries for services performed in 2020, 2019 and 2018, respectively.

A different approach is taken for United

States operations as that segment is smaller and less profitable.

As discussed above, a more significant base salary is paid in

order to attract and retain employees with the skills and talents needed to run United States operations with a lesser emphasis

placed on bonuses.

Based upon the recommendation of the Chief Executive Officer, Mr.

Greenberg was paid a discretionary bonus of

$35,000 in 2020 and $50,000 in 2019 and 2018.

The Compensation Committee considered the following material factors in granting

Santi and Garcia-Pelayo have remained in lockstep, and each was awarded a discretionary bonus of $378,000 in 2021 or 78% of their base salary.

This compares to $296,000 and $324,000 in 2020 and 2019, respectively, or approximately 63% and 73% of their base salaries for services performed in 2020 and 2019, respectively.

A different approach is taken for United States operations as that segment is smaller and less profitable.

As discussed above, a more significant base salary is paid in order to attract and retain employees with the skills and talents needed to run United States operations with a lesser emphasis placed on bonuses.

In 2021, although Mr.

Greenberg did not receive any increase in base salary due to the continuing impact of the COVID-19 pandemic, he did receive a discretionary bonus of $70,000 based upon the recommendation of the Chief Executive Officer.

Greenberg was paid a discretionary bonus of $35,000 in 2020 and $50,000 in 2019.

The Compensation Committee considered the following material factors in granting Mr.

Greenberg his bonuses:

his individual performance, level of responsibility, skill and experience, as well as the recommendation

of the Chief Executive Officer.

Madar, the Chief Executive Officer has

not received any cash bonus in the past three years.

As required by French law, Interparfums

SA maintains its own profit sharing plan for all French employees who have completed three months of service, including executive

officers of our European operations other than Mr.

his individual performance, level of responsibility, skill and experience, as well as the recommendation of the Chief Executive Officer.

Madar, the Chief Executive Officer has not received any cash bonus in the past three years.

As required by French law, Interparfums SA maintains its own profit sharing plan for all French employees who have completed three months of service, including executive officers of our European operations other than Mr.

Benacin, the Chief Executive Officer of Interparfums SA.

Benefits are calculated

based upon a percentage of taxable income of Interparfums SA and allocated to employees based upon salary.

The maximum amount payable

per year per employee is approximately $38,000.

Calculation of the total annual benefits

contribution is made according to the following formula:

67% of (Interparfums SA net income,

less 2.5% of shareholders equity without net income for the year) times a fraction, the numerator of which is wages, and the denominator

of which is net income before tax + wages + taxes (other than income tax) + valuation allowances + amortization expenses + interest

Contribution to individual employees is

then made pro rata based upon their individual salaries for the year.

Benefits are calculated based upon a percentage of taxable income of Interparfums SA and allocated to employees based upon salary.

The maximum amount payable per year per employee is approximately $34,940.

Calculation of the total annual benefits contribution is made according to the following formula:

67% of (Interparfums SA net income, less 2.5% of shareholders’ equity without net income for the year) times a fraction, the numerator of which is wages, and the denominator of which is net income before tax + wages + taxes (other than income tax) + valuation allowances + amortization expenses + interest expenses.

Contribution to individual employees is then made pro rata based upon their individual salaries for the year.

Long-Term Incentives

Stock Options .

We link long-term

incentives with corporate performance through the grant of stock options.

All options are granted with an exercise price equal

to the fair market value of the underlying shares of our common stock on the date of grant, and terminate on or shortly after severance

of the executive’s relationship with us.

Unless the market price of our common stock increases, corporate executives will

have no tangible benefit.

Thus, they are provided with the additional incentive to increase individual performance with the ultimate

goal of increasing our overall performance.

We believe that enhanced executive incentives which result in increased corporate performance

tend to build company loyalty.

As a general rule, the number of options granted is determined by several factors including individual

performance, company operating results and past option grants to such executives.

For executive officers of United States

operations and European operations, we typically grant nonqualified stock options in December each year with a term of 6 years

that vest ratably over a 5-year period on a cumulative basis, so that the option will become fully exercisable at the beginning

of the sixth year from the date of grant.

However, due to the global pandemic and its impact on operations, no options were granted

in 2020 to either employees of United States operations or European operations.

Interparfums SA Stock Compensation Plans

2019 Plan – In December 2018,

Interparfums SA approved a plan to grant an aggregate of 26,600 shares of its stock to employees with no performance condition

requirement, and an aggregate of 133,000 shares to officers and managers, subject to certain corporate performance conditions.

In prior years, we have linked long-term incentives with corporate performance through the grant of stock options.

However, no options were granted in 2021 or 2020 to either employees of United States operations or European operations, but the compensation committee may choose to do so in the future as part of a review of the executive compensation strategy.

Interparfums SA Stock Compensation Plan

2019 Plan – In December 2018, Interparfums SA approved a plan to grant an aggregate of 26,600 shares of its stock to employees with no performance condition requirement, and an aggregate of 133,000 shares to officers and managers, subject to certain corporate performance conditions.

The shares, subject to adjustment for stock splits, will be distributed in June 2022.

Under this plan in June 2022, Mr.

Madar, Garcia Pelayo and Santi are estimated to receive 4,000 shares each, with Mr.

Greenberg estimated to receive the equivalent

of 1,000 of such shares, all subject to adjustment for stock splits.

In March 2020, due to the potential impact

on future net sales and operating results resulting from the COVID-19 pandemic, the estimated number of shares to be distributed,

after forfeited shares, was reduced from 142,571 to 82,162.

As the Company had already purchased shares in contemplation of the

higher anticipated distribution, shares purchased in excess of the reduced anticipated distribution were transferred to treasury

shares at the Interparfums SA level.

The fair value of the grant had been determined

based on the quoted stock price of Interparfums SA shares as reported by the NYSE Euronext on the date of grant.

The original cost

of the grant was approximately $4.4 million, and the March 2020 revaluation resulted in a reduction of the cost, to approximately

$2.5 million.

As a result, a $0.3 million reduction of cost, net, was recorded for the three months ended March 31, 2020.

In June 2020, the performance conditions

were modified effecting 96 employees.

As of December 31, 2020, the number of shares to be distributed, after forfeited shares,

increased to 132,032.

The increase in shares anticipated to be distributed were transferred from treasury shares at the Interparfums

Under this plan in June 2022, Messrs.

Benacin, Madar, Garcia Pelayo and Santi are estimated to receive 4,000 shares each, all subject to adjustment for stock splits.

In June 2020, the performance conditions were modified effecting 96 employees.

As of December 31, 2021, the number of shares to be distributed, after forfeited shares and adjusted for stock splits, increased to 172,343.

The increase in shares anticipated to be distributed were transferred from treasury shares at the Interparfums SA level.

The modification resulted in a revised cost of the grant to approximately $4.6 million.

Benacin, Madar, Garcia

Pelayo and Santi are estimated to receive 4,000 shares each,

An incentive plan was established by Interparfums

SA for certain employees of Interparfums Luxury Brands, Inc.

(“IPLB”), Interparfums Singapore (“IP Singapore”)

and Inter Parfums, Inc.

The proposed incentive plan would not provide shares but rather, would give a cash payment or bonus (“incentive”

or “award”) that mirrors the shares that Interparfums SA employees will receive.

An aggregate of 42,140 “phantom”

shares have been awarded with Mr.

Greenberg being awarded 1,000 of such “phantom” shares, all subject to adjustment

for stock splits.

In connection with the 2019 Plan referred to above, an incentive plan was established by Interparfums SA for certain employees of Interparfums Luxury Brands, Inc.

(“IPLB”), Interparfums Singapore (“IP Singapore”) and Inter Parfums, Inc.

The proposed incentive plan would not provide shares but rather, would give a cash payment or bonus (“incentive” or “award”) that mirrors the shares that Interparfums SA employees will receive.

An aggregate of 42,140 “phantom” shares have been awarded with Mr.

Greenberg being awarded 1,000 of such “phantom” shares, all subject to adjustment for stock splits.

Stock Appreciation Rights

Our stock option plans authorize us to grant

stock appreciation rights, or SARs.

A SAR represents a right to receive the appreciation in value, if any, of our common stock

over the base value of the SAR.

Our stock option plans authorize us to grant stock appreciation rights, or SARs.

A SAR represents a right to receive the appreciation in value, if any, of our common stock over the base value of the SAR.

To date, we have not granted any SARs under our plans.

While the compensation committee currently

does not plan to grant any SARs under our plans, it may choose to do so in the future as part of a review of the executive compensation

While the compensation committee currently does not plan to grant any SARs under our plans, it may choose to do so in the future as part of a review of the executive compensation strategy.

Restricted Stock

We have not in the past, and we do not have

any future plans to grant restricted stock to our executive officers.

However, while the compensation committee currently does

not plan to authorize any restricted stock plans, the compensation committee may choose to do so in the future as part of a review

of the executive compensation strategy.

Our French operating subsidiary, Interparfums, SA, however, has instituted its 2019 Stock

Compensation Plans as discussed above.

We have not in the past, and we do not have any future plans to grant restricted stock to our executive officers.

However, while the compensation committee currently does not plan to authorize any restricted stock plans, the compensation committee may choose to do so in the future as part of a review of the executive compensation strategy.

Our French operating subsidiary, Interparfums, SA, however, has instituted its 2019 Stock Compensation Plans as discussed above.

Other Compensation

For 2020, Mr.

Benacin received an automobile

allowance of $12,500, which is the same amount paid in since 2010.

Garcia-Pelayo, Executive Vice President and Chief

Operating Officer of Interparfums SA, received an automobile allowance of $9,000.

For 2021, each of Messrs.

Benacin and Garcia-Pelayo received an automobile allowance of $12,774.

No Stock Ownership Guidelines

We do not require any minimum level of stock

ownership by any of our executive officers.

We do not require any minimum level of stock ownership by any of our executive officers.

As stated above, Messrs.

Madar and Benacin, are our largest beneficial shareholders,

which aligns their interests with our shareholder base in keeping executive compensation at a reasonable level.

Madar and Benacin, are our largest beneficial shareholders, which aligns their interests with our shareholder base in keeping executive compensation at a reasonable level.

Retirement and Pension Plans

We maintain a 401(k) plan for United States

However, we do not match any contributions to such plan, as we have determined that base compensation together with

annual bonuses and stock option awards, are sufficient incentives to retain talented employees.

Our European operations maintain

a pension plan for its employees as required by French law.

We maintain a 401(k) plan for United States operations.

Commencing in 2021 we started matching the first $6,000 of contribution for each employee, as we have determined that base compensation together with annual bonuses, are sufficient incentives to retain talented employees.

Our European operations maintain a pension plan for its employees as required by French law.

For each of 2021.

2020 and 2019, each of Messrs.

Benacin, Santi and

Garcia-Pelayo received an increase of $17,500, $16,789 and $20,646, respectively, in their value of deferred compensation earnings.

Benacin, Santi and Garcia-Pelayo received an increase of $17,773, $17,500, and $16,789, respectively, in their value of deferred compensation earnings.

Compensation Committee Report

We have reviewed and discussed with management

the Compensation Discussion and Analysis provisions to be included in this Annual Report on Form 10-K for fiscal year ended December

31, 2020 and the proxy statement for the upcoming annual meeting of shareholders.

Based on this review and discussion, we recommend

to the board of directors that the Compensation Discussion and Analysis referred to above be included in this Annual Report on

Form 10-K as well as the proxy statement for the upcoming annual meeting of shareholders.

We have reviewed and discussed with management the Compensation Discussion and Analysis provisions to be included in this Annual Report on Form 10-K for fiscal year ended December 31, 2021 and the proxy statement for the upcoming annual meeting of shareholders.

Based on this review and discussion, we recommend to the board of directors that the Compensation Discussion and Analysis referred to above be included in this Annual Report on Form 10-K as well as the proxy statement for the upcoming annual meeting of shareholders.

Francois Heilbronn

Patrick Choël and

Veronique Gabai-Pinsky

The following table sets forth a summary

of all compensation awarded to, earned by or paid to our “named executive officers,” who are our principal executive

officer, our principal financial officer, and each of the three most highly compensated executive officers of our company.

table covers all such compensation during fiscal years ended December 31, 2020, December 31, 2019 and December 31, 2018.

compensation related matters disclosed in the summary compensation table, and elsewhere where applicable, all amounts paid in euro

have been converted to U.S.

following table sets forth a summary of all compensation awarded to, earned by or paid to our “named executive officers,”

who are our principal executive officer, our principal financial officer, and each of the three most highly compensated executive

officers of our company.

This table covers all such compensation during fiscal years ended December 31, 2021, December 31, 2020

and December 31, 2019.

For all compensation related matters disclosed in the summary compensation table, and elsewhere where applicable,

all amounts paid in euro have been converted to U.S.

dollars at the average rate of exchange in each year.

2 unchanged sentences

Incentive Plan Compensation

in Pension Value and Nonqualified Deferred Compensation Earnings

Other Compensation

Pension Value

Chief Executive Officer

Russell Greenberg,

Chief Financial Officer

Executive Vice President

Philippe Benacin, President

Parfums, Inc., Chief

Officer of Interparfums

Philippe Santi, Executive

President and Chief

Officer, Interparfums

Frédéric

Garcia-Pelayo,

Chief Financial Officer and

Executive Vice President

Chief Operating Officer

Interparfums SA

reflected under Option Awards represent the grant date fair values in 2020, 2019 and 2018 based on the fair value of stock option

awards using a Black-Scholes option pricing model.

Philippe Benacin, President Inter

Parfums, Inc., Chief Executive

Officer of Interparfums SA

Philippe Santi, Executive Vice

President and Chief Financial

Officer, Interparfums SA

Frédéric Garcia-Pelayo,

Executive Vice President and

Chief Operating Officer Interparfums SA

Amounts reflected

under Option Awards represent the grant date fair values in 2021, 2020 and 2019 based on the fair value of stock option awards

using a Black-Scholes option pricing model.

The assumptions used in this model are detailed in Footnote 13 to the audited

consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020 and filed with the SEC.

required by French law, Interparfums SA maintains its own profit sharing plan for all French employees who have completed three

months of service, including executive officers of our European operations other than Mr.

Benacin, the Chief Executive Officer

of Interparfums SA Benefits are calculated based upon a percentage of taxable income of Interparfums SA and are allocated to employees

based upon salary.

consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021 and filed with the

As required by French

law, Interparfums SA maintains its own profit sharing plan for all French employees who have completed three months of service,

including executive officers of our European operations other than Mr.

Benacin, the Chief Executive Officer of Interparfums

Benefits are calculated based upon a percentage of taxable income of Interparfums SA and are allocated to employees based

The maximum amount payable per year is approximately $34,940.

of total annual benefits contribution is made according to the following formula:

of (Interparfums SA net income, less 2.5% of shareholders equity without net income for the year) times a fraction, the numerator

of which is wages, and the denominator of which is net income before tax + wages + taxes (other than income tax) + valuation allowances

+ amortization expenses + interest expenses.

of (Interparfums SA net income, less 2.5% of shareholders’ equity without net income for the year) times a fraction, the

numerator of which is wages, and the denominator of which is net income before tax + wages + taxes (other than income tax) + valuation

allowances + amortization expenses + interest expenses.

to individual employees is then made pro rata based upon their individual salaries for the year.

following table identifies (i) perquisites and other personal benefits provided to our named executive officers in fiscal

and quantifies those required by SEC rules to be quantified and (ii) all other compensation that is required by SEC rules to be

separately identified and quantified.

Name and Principal Position

Perquisites and other Personal Benefits

Personal Automobile Expense

Lodging Expense

2021, and quantifies those required by SEC rules to be quantified and (ii) all other compensation that is required by

SEC rules to be separately identified and quantified.

and Principal Position

Jean Madar, Chairman

9 unchanged sentences

Financial Officer, Interparfums SA

Frédéric Garcia-Pelayo,

Executive Vice President and

15 unchanged sentences

listed in the Summary Compensation Table as of December 31, 2021.

Option Awards

Number of Securities Underlying Unexercised Options (#) Exercisable (1)

Number of Securities Underlying Unexercised Options (#) Unexercisable

Equity Incentive Plan Awards:

Number of Securities Underlying Unexercised Unearned Options (#)

Option Exercise Price ($)

Option Expiration Date

Exercisable (1)

Unexercisable

Russell Greenberg

1 unchanged sentence

Philippe Santi

Frédéric Garcia-Pelayo

[ Footnotes from table above ]

Frédéric Garcia-Pelayo

from table above ]

All options expire

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Incentive Plan Awards:

Number of Securities Underlying Unexercised Unearned Options (#)

Exercise Price ($)

Expiration Date

Number of Securities Underlying Unexercised Unearned

of Shares or Units of Stock that Have Not Vested (#)(1)

7 unchanged sentences

Philippe Santi

Frédéric

Garcia-Pelayo

Frédéric Garcia-Pelayo

Estimated number of shares are to be issued only to the extent that the performance conditions have been met.

As of December 31, 2021, the closing price of Interparfums SA as reported by Euronext was 73.50 euros, and the exchange rate was

dollars to 1 euro.

Exercises and Stock Vested

2 unchanged sentences

year, for the executive officers of our company listed in the Summary Compensation Table.

OPTION EXERCISES AND STOCK VESTED

Option Awards

Number of Shares Acquired on Exercise (#)

Value Realized on Exercise ($) 1

Number of Shares Acquired on Vesting (#)

Value Realized On Vesting ($)

EXERCISES AND STOCK VESTED

Russell Greenberg

1 unchanged sentence

Philippe Santi

Frédéric Garcia-Pelayo

[Footnotes from table above]

Frédéric Garcia-Pelayo

from table above]

Total value realized

6 unchanged sentences

past fiscal year, for the executive officers of our company listed in the Summary Compensation Table.

Number of Years Credited Service

Accumulated Benefit*

Payments During Last Fiscal Year

Russell Greenberg

Philippe Benacin

Inter Parfums SA Pension Plan

Inter Parfums SA

Philippe Santi

Inter Parfums SA Pension Plan

Frédéric Garcia-Pelayo

Inter Parfums SA Pension Plan

Inter Parfums SA

Frédéric Garcia-Pelayo

Inter Parfums SA

Does not include

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calculating benefits, the following assumptions were applied:

retirement at age 65;

rate of 45% for employer payroll contributions for all employees;

4% average annual salary increase;

annual rate of turnover for all employees under 55 years of age and nil above;

TH 00-02 mortality table for men and the TF 00-02 mortality table for women;

discount rate of 2.0%.

voluntary retirement

a rate of 45% for

employer payroll contributions for all employees;

a 4% average annual

salary increase;

an annual rate of

turnover for all employees under 55 years of age and nil above;

the TH 00-02 mortality

table for men and the TF 00-02 mortality table for women;

a discount rate

normal retirement age is 65 years, but employees, including Messrs.

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Benacin received an annual

salary of approximately $539,000, and automobile expenses of approximately $12,500 which are subject to increase in the discretion

salary of approximately $804,000, and automobile expenses of approximately $12,774 which are subject to increase at the discretion

of the board of directors.

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2018 and December 2019, we granted options to purchase 25,000 shares for the benefit of Mr.

Benacin, and were granted to his personal

holding company instead of Mr.

Benacin, which were granted to his

personal holding company instead of Mr.

Benacin directly.

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to be the Chief Executive Officer of our company.

From 2013 through 2017, Mr.

Madar’s personal holding company received

$250,000 each year for services rendered outside of the United States by Mr.

Madar in his capacity as Chief Executive Officer.

For 2018, as the result of Mr.

Madar spending more time outside of the United States, we changed the allocation of cash compensation

Madar personally and to his holding company, but not the aggregate amount.

The amount of salary paid to Mr.

in 2018 was reduced from $380,000 to $160,000, while payments to his holding company were increased by the like amount from $250,000

Therefore, for 2018 total cash compensation for Mr.

Madar paid to him and his personal holding company remained unchanged

This consulting agreement was renewed at $470,000 for 2019.

As discussed above, in view of receiving substantially

less than the annual and median average CEO salaries for peer companies and companies with comparable market capitalization, in

early February 2020 the Mr.

Madar’s base salary was increased by $600,000 to $1.23 million effective as of January 1, 2020,

and allocated so that the annual base salary for Jean Madar individually was $285,000, and the fees to Jean Madar Holding SAS

were $945,000, effective as of January 1, 2020.

In addition, in December 2018 and December 2019, we granted options to purchase

25,000 shares for the benefit of Mr.

Madar, which were granted to his personal holding company instead of Mr.

As discussed above, in view of receiving substantially less than the annual

and median average CEO salaries for peer companies and companies with comparable market capitalization, in early February 2020

Madar’s base salary was increased by $600,000 to $1.23 million effective as of January 1, 2020, and allocated so

that the annual base salary for Jean Madar individually was $285,000, and the fees to Jean Madar Holding SAS were $945,000, effective

as of January 1, 2020.

For 2021, the compensation to Mr.

Madar and the fees paid to Jean Madar Holding SAS were unchanged from

In addition, in December 2018 and December 2019, we granted options to purchase 25,000 shares for the benefit of Mr.

which were granted to his personal holding company instead of Mr.

Madar directly.

1 unchanged sentence

officer of our Company named in the Summary Compensation Table for the past fiscal year.

DIRECTOR COMPENSATION

Earned or Paid in Cash

Non-Equity Incentive Plan Compensation

Change in Pension Value and Nonqualified Deferred Compensation Earnings

All Other Compensation

Incentive Plan Compensation

Pension Value

and Nonqualified Deferred Compensation Earnings

Other Compensation

Francois Heilbronn 2

Robert Bensoussan 3

Patrick Choël 4

Michel Dyens 5

1 unchanged sentence

Gilbert Harrison 7

[Footnotes from table above]

Represents gain

from exercise of stock options.

from table above]

Represents gain from exercise of stock options, except for Mr.

Harrison, which consists of a $120,000

payment made in 2021 to the company controlled by Mr.

Harrison in connection with the acquisition of the Donna Karan license.

“Fee for Director’s Company” in Item 13, Certain Relationships and Related Transactions, and Director Independence,

in this annual report on Form 10-K.

As of the end of

6 unchanged sentences

the last fiscal year, Mr.

Choël held options to purchase an aggregate of 3,750 shares of our common stock.

Choël held options to purchase an aggregate of 4,500 shares of our common stock.

As of the end of

11 unchanged sentences

each member of the audit committee was raised to $8,000.

The compensation for the nonemployee directors remained the same for

2021, except for Mr.

During 2021, a company owned by Mr.

Harrison received a fee equal to $300,000, in connection with

the Donna Karan license agreement, which is effective on July 1, 2022.

A payment of $120,000 was made in 2021 to Mr.

company, and the balance will be paid, $120,000 one year later in 2022, and $60,000 two years later in 2023.

maintain stock option plans for our nonemployee directors.

8 unchanged sentences

then such nonemployee director would not be eligible to receive that February 1 grant.

of such options were granted at the fair market value and vest ratably over a 4 year period.

At our annual meeting in September

2019 our shareholders approved a proposal to amend our 2016 Stock Option Plan to increase the number of shares issuable upon exercise

of options to be granted starting February 1, 2020 from 1,000 shares to 1,500 shares solely to nonemployee directors annually

on each February 1.

On February 1, 2021, options to purchase 1,500 shares were granted to all of our nonemployee directors at

the exercise price of $62.18 per share under our 2016 Stock Option Plan.

On February 1, 2021, options to purchase

1,500 shares were granted to all of our nonemployee directors at the exercise price of $62.18 per share under our 2016 Stock Option

However, our board of directors cancelled the automatic grant of options to the nonemployee directors effective with the

grant that had been scheduled for February 1, 2022.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

2 unchanged sentences

of our directors and officers as a group.

Each of Messrs.

Madar and Benacin own 99.99% of their respective personal holding companies.

As of February 26, 2021 we had 31,635,098 shares of common stock outstanding.

Name and Address of Beneficial Owner

Amount of Beneficial Ownership 1

Approximate Percent of Class

As of January 26, 2022, we had 31,836,545 shares of common stock outstanding.

and Address of Beneficial Owner

c/o Interparfums SA

20 unchanged sentences

W1K 5DS London

Patrick Choël

140 Rue de Grenelle

4 unchanged sentences

Veronique Gabai-Pinsky

200 East End Avenue

New York NY 10128

18 unchanged sentences

(As a Group 10 Persons)

14,151,650 16

All shares of common

2 unchanged sentences

within 60 days are included in beneficial ownership calculations.

Jean Madar, the Chairman of the Board and Chief Executive

Officer of the Company and Philippe Benacin, the Vice Chairman of the Board and President of the Company, have a verbal agreement

or understanding to vote the shares each beneficially owns in a like manner.

Consists of 13,000

17 unchanged sentences

of common stock underlying options.

of shares of common stock underlying options.

Consists of shares

of common stock underlying options.

Consists of shares

of common stock underlying options.

Information based

upon Schedule 13G Amendment 6 of Blackrock, Inc.

dated January29, 2021 as filed with the Securities and Exchange Commission.

dated February 1, 2022 as filed with the Securities and Exchange Commission.

Information based

2 unchanged sentences

Information based

upon Schedule 13G of Ameriprise Financial, Inc.

(“AFI”) dated February 12, 2021 as filed with the Securities and

Exchange Commission.

upon Schedule 13G Amendment 1 of Ameriprise Financial, Inc.

(“AFI”) dated February 14, 2022 as filed with the

Securities and Exchange Commission.

AFI disclaims beneficial ownership of any shares reported on this Schedule 13G.

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Compensation Plan Information

Plan category

securities to

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future issuance

Equity compensation plans approved by security holders

Equity compensation plans not approved by security holders

Equity compensation plans

approved by security holders

Equity compensation plans not approved by security

Certain Relationships and Related Transactions, and Director Independence

with European Subsidiaries

have guaranteed the obligations of our majority-owned, French subsidiary, Interparfums SA under our Paul Smith license agreement.

We also provide (or had provided on our behalf) certain financial, accounting and legal services for Interparfums SA, and during

2020, 2019 and 2018 fees for such services were $450,750, $483,675 and $214,513, respectively.

In 2017, Inter Parfums USA, LLC,

a United States subsidiary, renewed a license agreement for five years that was initially signed in 2012 on the same terms with

Interparfums Suisse (SARL), a Swiss subsidiary of Interparfums SA, for the right to sell amenities under the Lanvin brand name

to luxury hotels, cruise lines and airlines in return for royalty payments as are customary in our industry.

2018, Interparfums SA, an indirect majority-owned subsidiary of the Company, loaned the Company $10 million.

This loan was repayable

in ten (10) equal monthly payments of $1,000,000 of principal plus accrued interest at 2% per annum, with the first payment due

on May 31, 2019.

The last payment was made on February 28, 2020.

have guaranteed the obligations of our majority-owned, French subsidiary, Interparfums SA under our expired Paul Smith license

We also provide (or had provided on our behalf) certain financial, accounting and legal services for Interparfums SA,

and during 2021, 2020 and 2019 fees for such services were $443,625, $450,750 and $483,675, respectively.

2018, Interparfums SA, loaned the Company $10 million.

This loan was repayable in ten (10) equal monthly payments of $1 million

of principal plus accrued interest at 2% per annum, with the first payment made on May 31, 2019, and the last payment made on

February 28, 2020.

March 2020, Interparfums Luxury Brands, Inc., an indirect majority-owned subsidiary of the Company, loaned the Company $10 million,

which was repaid in full, with interest at 2% per annum, in December 2020.

September 2021, Interparfums Luxury Brands, Inc., an indirect majority-owned subsidiary of the Company, loaned the Company $24

million, which is repayable in 12 equal monthly payments with interest at 2% per annum commencing on January 31, 2022.

December 2021, Inter Parfums USA, LLC, a United States subsidiary, renewed a license agreement for five years that was initially

signed in 2012 on the same terms with Interparfums Suisse (SARL), a Swiss subsidiary of Interparfums SA, for the right to sell

amenities under the Lanvin brand name to luxury hotels, cruise lines and airlines in return for royalty payments as are customary

in our industry.

for Director’s Company

connection with the acquisition of the Donna Karan license, which takes effect on July 1, 2022 as discussed above, we agreed to

pay to the company controlled by Mr.

Gilbert Harrison, a director, the sum of $300,000, payable over time, with $120,000 being

paid in 2021, and deferred payments of $120,000 one year later and $60,000 two years later.

2014, we entered into a consulting agreement with Mr.

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2018 and December 2019, we granted options to purchase 25,000 shares for the benefit of Mr.

Benacin, and were granted to his personal

holding company instead of Mr.

Benacin, which were granted to his

personal holding company instead of Mr.

Benacin directly.

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to be the Chief Executive Officer of our company.

From 2013 through 2017, Mr.

Madar’s personal holding company received

$250,000 each year for services rendered outside of the United States by Mr.

Madar in his capacity as Chief Executive Officer.

For 2018, as the result of Mr.

Madar spending more time outside of the United States, we changed the allocation of cash compensation

Madar personally and to his holding company, but not the aggregate amount.

The amount of salary paid to Mr.

in 2018 was reduced from $380,000 to $160,000, while payments to his holding company were increased by the like amount from $250,000

Therefore, for 2018 total cash compensation for Mr.

Madar paid to him and his personal holding company remained unchanged

This consulting agreement was renewed at $470,000 for 2019, again with no change in aggregate compensation.

above, in view of receiving substantially less than the annual and median average CEO salaries for peer companies and companies

with comparable market capitalization, in early February 2020 the Mr.

Madar’s base salary was increased by $600,000 to $1.23

million effective January 1, 2020, and allocated so that the annual base salary for Jean Madar individually was $285,000, and

the fees to Jean Madar Holding SAS were $945,000.

In addition, in December 2018 and again in December 2019, we granted options

to purchase 25,000 shares for the benefit of Mr.

Madar, which were granted to his personal holding company rather than to Mr.

As discussed above, in view of receiving substantially less than the annual

and median average CEO salaries for peer companies and companies with comparable market capitalization, in early February 2020

Madar’s base salary was increased by $600,000 to $1.23 million effective January 1, 2020, and allocated so that

the annual base salary for Jean Madar individually was $285,000, and the fees to Jean Madar Holding SAS were $945,000.

the compensation to Mr.

Madar and the fees paid to Jean Madar Holding SAS were unchanged from 2020.

In addition, in December 2018

and again in December 2019, we granted options to purchase 25,000 shares for the benefit of Mr.

Madar, which were granted to his

personal holding company rather than to Mr.

Madar directly.

in Private Company

previously disclosed, during 2019 each of our company and Interparfums SA made a $100,000 investment in a privately held start-up

fragrance company controlled by director, Veronique Gabai-Pinsky.

for Approval of Related Person Transactions

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for the members of our Audit Committee, and the members of our Audit Committee, Messrs.

Heilbronn and Choël, as well as Ms.

Gabai-Pinsky, are independent within the meaning of those rules.

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for audit services and review of the financial statements contained in

our Quarterly Reports on Form 10-Q were $1.1 and $1.2 million for 2020 and 2019, respectively.

our Quarterly Reports on Form 10-Q were $1.2 and $1.1 and million for 2021 and 2020, respectively.

Audit-Related

USA LLP did not bill us for any audit-related services during 2021 and 2020.

USA LLP billed us $34,500 and $41,500 for tax services during 2020 and 2019, respectively.

billed us $3,500 and $9,000 for other services during 2020 and 2019, respectively.

Mazars USA LLP billed

us $49,300 and $34,500 for tax services during 2021 and 2020, respectively.

us $3,000 and $3,500 for other services during 2021 and 2020, respectively.

Committee Pre-Approval Policies and Procedures

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require further tax services from Mazars USA LLP, then the approval of the audit committee must be obtained.

authorized the engagement of Mazars USA LLP if deemed necessary to provide attestation or other services as may be required on

a project by project basis that would not be considered in the ordinary course of business, up to a $10,000 fee limit per project

(or €10,000 in the case of Interparfums SA), subject to an aggregate fee limit of $50,000 for fiscal year ended December

We authorized the

engagement of Mazars USA LLP if deemed necessary to provide attestation or other services as may be required on a project

by project basis that would not be considered in the ordinary course of business, up to a $10,000 fee limit per project (or

€10,000 in the case of Interparfums SA), subject to an aggregate fee limit of $50,000 for fiscal year ended December

If we require further tax services from Mazars USA LLP, then the approval of the audit committee must be obtained.

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Exhibits, Financial Statement Schedules

( a)(1) Financial

Statements annexed hereto

Financial Statements annexed hereto

Report of Independent Registered Public Accounting Firm

Audited Financial

Financial Statements:

Consolidated Balance Sheets as of December 31, 2021 and 2020

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Notes to Consolidated Financial Statements

(a)(2) Financial

Statement Schedule:

Financial Statement Schedule:

Schedule II – Valuation and Qualifying Accounts

(a)(3) Exhibits

– The list of exhibits is contained in the Exhibit Index, which follows the signature page of this report.

Exhibits – The list of exhibits is contained in the Exhibit Index, which follows the signature page of this report.

Form 10-K Summary

PARFUMS, INC.

INTER PARFUMS,

AND SUBSIDIARIES

Financial Statements and Schedule

Consolidated Financial Statements and Schedule

Report of Independent Registered Public Accounting Firm

( Mazars USA LLP, New York, New York, PCAOB ID 339 )

Audited Financial Statements:

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Schedule II – Valuation and Qualifying Accounts

REPORT OF INDEPENDENT REGISTERED PUBLIC

ACCOUNTING FIRM

REPORT OF INDEPENDENT

REGISTERED PUBLIC ACCOUNTING FIRM

To Shareholders and the Board of Directors

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The Company’s management is responsible

for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its

assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual

Report on Internal Control over Financial Reporting.

Our responsibility is to express an opinion on the Company’s consolidated

financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.

a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and

are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable

rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance

with the standards of the PCAOB.

Those standards require that we plan and perform the audits to obtain reasonable assurance about

whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal

control over financial reporting was maintained in all material respects.

for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment

of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report

on Internal Control over Financial Reporting.

Our responsibility is to express an opinion on the Company’s consolidated financial

statements and an opinion on the Company’s internal control over financial reporting based on our audits.

We are a public

accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required

to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and

regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with

the standards of the PCAOB.

Those standards require that we plan and perform the audits to obtain reasonable assurance about whether

the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control

over financial reporting was maintained in all material respects.

Our audits of the consolidated financial

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test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

Our audits also included

evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation

of the consolidated financial statements.

Our audits also included evaluating

the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of

the consolidated financial statements.

Our audit of internal control over financial reporting included obtaining an understanding

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(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements

in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made

only in accordance with authorizations of management and directors of the company;

and (3) provide reasonable assurance regarding

prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have

a material effect on the consolidated financial statements.

in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only

in accordance with authorizations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention

or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect

on the consolidated financial statements.

Because of its inherent limitations, internal

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Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

The critical audit matter communicated

below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required

to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the consolidated

financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical

audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not,

by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts

or disclosures to which it relates.

As described in Notes 1 and 8 to the consolidated

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at December 31, 2021.

Indefinite lived intangible assets principally consist of trademarks and finite-lived intangible assets

represent fees to acquire, or enter into a license.

Those intangible assets are tested for

impairment as follows:

- Indefinite – life intangible

assets are tested for impairment at least annually at the reporting unit level or more

frequently when events occur or circumstances change.

The evaluation requires a comparison

of the estimated fair value of the asset to the carrying value of the asset.

value is estimated based upon discounted future cash flow projections.

If the carrying

value of an indefinite-lived intangible asset exceeds its fair value, an impairment charge

- Finite – life intangible

assets are tested for impairment whenever events or changes in circumstances

indicate that the carrying amount of the asset may not be recoverable.

If impairment

indicators exist, the undiscounted future cash flows associated with the expected service

potential of the asset are compared to the carrying value of the asset.

If the projection

of undiscounted cash flows is less than the carrying value of a finite-lived intangible

asset, an impairment charge would be recorded.

Indefinite lived intangible assets principally consist of trademarks and finite-lived intangible assets represent

fees to acquire, or enter into a license.

Those intangible assets are

tested for impairment as follows:

- Indefinite – life intangible assets are tested for impairment at least annually at the reporting

unit level or more frequently when events occur or circumstances change.

The evaluation requires a comparison of the estimated

fair value of the asset to the carrying value of the asset.

The fair value is estimated based upon discounted future cash flow

If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment charge is recorded.

- Finite – life intangible assets are tested for impairment testing whenever events or changes in

circumstances indicate that the carrying amount of the asset may not be recoverable.

If impairment indicators exist, the undiscounted

future cash flows associated with the expected service potential of the asset are compared to the carrying value of the asset.

If the projection of undiscounted cash flows is less than the carrying value of a finite-lived intangible asset, an impairment

charge would be recorded.

The determination of the future cash flows

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As disclosed by management, changes in these assumptions could have a significant impact

on either the future cash flows and therefore, on the amount of any impairment charge.

The determination of an impairment indicator

on the finite – life intangible assets requires management judgments and involves assumptions.

on the future cash flows and therefore, on the amount of any impairment charge.

The determination of an impairment indicator on

the finite – life intangible assets requires management judgments and involves assumptions.

We identified the impairment assessment

of intangible assets as a critical audit matter.

Auditing management’s judgments regarding the evaluation of impairment

of intangible assets as a critical audit matter and auditing management’s judgments regarding the evaluation of impairment

indicators, forecasts of future revenue and operating margin, and the discount rate to be applied involve a high degree of subjectivity.

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address this critical audit matter included:

► Reviewing the analysis of the

identification of impairment evidence for each indefinite and finite-life asset based on three indicators (sales analysis, new

products launches, payment of minimum guarantees), and then corroborate that analysis with external information and evidence obtained

in other areas of the audit.

► Testing the effectiveness of controls

relating to management’s impairment tests, including controls over the impairment indicators and determination of the future

► In testing management’s

process for determining the future cash flows we evaluated the reasonableness of management’s forecasts of future revenue

and operating margin by performing a retrospective review in comparing these forecasts to historical operating results and evaluating

whether the assumptions used were reasonable considering current information as well as future expectations as well as using additional

evidence obtained in other areas of the audit.

► Utilizing a valuation specialist

to assist in auditing the discount rate.

It includes evaluating whether the assumptions used were reasonable by comparing with

third party market data.

► Reviewing the analysis of the identification of impairment evidence for each indefinite and finite-life

asset based on three indicators (sales analysis, new products launches, payment of minimum guarantees), and then corroborating

that analysis with external information and evidence obtained in other areas of the audit.

► Testing the effectiveness of controls relating to management’s impairment tests, including controls

over the impairment indicators and determination of the future cash flows.

► In testing management’s process for determining the future cash flows we evaluated the reasonableness

of management’s forecasts of future revenue and operating margin by performing a retrospective review in comparing these

forecasts to historical operating results, evaluating whether the assumptions used were reasonable considering current information

as well as future expectations, and using additional evidence obtained in other areas of the audit.

► Utilizing a valuation specialist to assist in auditing the discount rate.

It includes evaluating whether

the assumptions used were reasonable by comparing to third party market data.

Mazars USA LLP

/s/ Mazars USA LLP

We have served as the Company's auditor

We have served as the Company's auditor since 2004.

New York , New York

March 1, 2022

INTER PARFUMS,

INTER PARFUMS, INC.

AND SUBSIDIARIES

Consolidated Balance

2020 and 2019

(In thousands except

share and per share data)

Consolidated Balance Sheets

December 31, 2021 and 2020

(In thousands except share and per share data)

Current assets:

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Other current assets

taxes receivable

Income taxes receivable

Total current assets

Equipment and leasehold improvements,

Property, equipment and leasehold improvements, net

Right-of-use assets, net

Trademarks, licenses and other

intangible assets, net

Trademarks, licenses and other intangible assets, net

Deferred tax assets

Liabilities and Equity

Current liabilities:

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Income taxes payable

Total current

debt, less current portion

Lease liabilities,

less current portion

Total current liabilities

Long–term debt, less current portion

Lease liabilities, less current portion

Inter Parfums, Inc.

shareholders’

shareholders’ equity:

Preferred stock, $ 0.001 par value.

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Retained earnings

Accumulated other comprehensive

Accumulated other comprehensive loss

Treasury stock, at cost, 9,864,805 common shares at December 31, 2021 and 2020

Total Inter Parfums, Inc.

shareholders’

Noncontrolling

Total liabilities

shareholders’ equity

Noncontrolling interest

Total liabilities and equity

See accompanying notes to consolidated financial statements.

INTER PARFUMS,

INTER PARFUMS, INC.

AND SUBSIDIARIES

Consolidated Statements

Years ended December 31,

2020, 2019, and 2018

(In thousands except

share and per share data)

general, and administrative expenses

Statements of Income

ended December 31, 2021, 2020, and 2019

(In thousands except share and per share data)

Cost of sales

Selling, general, and administrative expenses

Impairment loss

Income from operations

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Interest expense

Loss on foreign currency

Interest income

(Gain) loss on foreign currency

Interest and investment income

Other expenses (income)

Income before income taxes

income attributable to the noncontrolling interest

attributable to Inter Parfums, Inc.

Net income attributable to Inter

Parfums, Inc.

Net income attributable

to the noncontrolling interest

Net income attributable to Inter Parfums, Inc.

common shareholders:

Weighted average number of shares

Weighted average number of shares outstanding:

Dividends declared per share

See accompanying notes to consolidated financial statements.

INTER PARFUMS,

INTER PARFUMS, INC.

AND SUBSIDIARIES

2 unchanged sentences

Years ended December 31, 2021, 2020,

2020, 2019, and 2018

(In thousands except

share and per share data)

Other comprehensive

Net derivative instrument income (loss),

(In thousands except share and per share

Other comprehensive income:

Net derivative instrument income (loss), net of tax

Transfer of OCI into earnings

Translation adjustments,

Comprehensive

Translation adjustments, net of tax

Other Comprehensive Income (Loss), before Tax

Comprehensive income

attributable to noncontrolling interests:

Net derivative instrument income (loss),

Translation adjustments,

Comprehensive

income attributable to Inter Parfums Inc.

Comprehensive income attributable to noncontrolling interests:

Net derivative instrument loss, net of tax

Translation adjustments, net of tax

Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest

Comprehensive income attributable to Inter Parfums Inc.

See accompanying notes to consolidated financial statements.

INTER PARFUMS,

PARFUMS, INC.

AND SUBSIDIARIES

Consolidated Statements

of Changes in Shareholders’ Equity

Years ended December 31,

2020, 2019, and 2018

(In thousands except

share and per share data)

stock, beginning of year

issued upon exercise of stock options

stock, end of year

paid-in capital, beginning of year

Shares issued upon exercise of

stock options

Statements of Changes in Shareholders’ Equity

ended December 31, 2021, 2020, and 2019

(In thousands except share and per share data)

Common stock, beginning of year

Shares issued upon exercise of stock

Common stock, end of year

Additional paid-in capital, beginning of year

Shares issued upon exercise of stock options

Share-based compensation

Purchase of subsidiary shares from

noncontrolling interests

of subsidiary shares purchased

paid-in capital, end of year

Retained earnings,

beginning of year

earnings, end of year

Accumulated other

comprehensive loss, beginning of year

Foreign currency translation adjustment,

Transfer from other comprehensive

income into earnings

Net derivative

instrument gain, net of tax

other comprehensive loss, end of year

stock, beginning and end of year

Noncontrolling

interest, beginning of year

Foreign currency translation adjustment,

Net derivative instrument gain

(loss), net of tax

Purchase of subsidiary shares from

noncontrolling interests

Stock-based compensation

of subsidiary shares purchased

Noncontrolling

interest, end of year

Purchase of subsidiary shares from noncontrolling interests

Shares issued for license acquisition

Transfer of subsidiary shares purchased

Additional paid-in capital, end of year

Retained earnings, beginning of year

Share-based compensation

Retained earnings, end of year

Accumulated other comprehensive loss, beginning of year

Foreign currency translation adjustment, net of tax

Transfer from other comprehensive income into earnings

Net derivative instrument gain (loss), net of tax

Accumulated other comprehensive loss, end of year

Treasury stock, beginning and end of year

Noncontrolling interest, beginning of year

Foreign currency translation adjustment, net of tax

Net derivative instrument loss, net of tax

Purchase of subsidiary shares from noncontrolling interests

Share-based compensation

Transfer of subsidiary shares purchased

Noncontrolling interest, end of year

See accompanying notes to consolidated financial statements.

INTER PARFUMS,

INTER PARFUMS, INC.

AND SUBSIDIARIES

Consolidated Statements of Cash Flows

ended December 31, 2020, 2019, and 2018

Years ended December 31, 2021, 2020, and 2019

(In thousands)

Cash flows from operating activities:

Adjustments to reconcile net income to net

cash provided by operating activities:

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation and amortization including impairment loss

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Accounts receivable

Operating lease liabilities

Accounts payable and accrued expenses

Income taxes, net

Net cash provided by operating

Net cash provided by operating activities

Cash flows from investing activities:

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Proceeds from sale of short-term investments

Purchase of equipment and leasehold improvements

Purchase of property, equipment and leasehold improvements

Payment for intangible assets acquired

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Repayment of long-term debt

Proceeds issuance of long-term debt

Proceeds from issuance of long-term debt

Proceeds from exercise of options

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Dividends paid to noncontrolling interests

Purchase of subsidiary shares

from noncontrolling interests

Net cash used in financing activities

Effect of exchange rate changes

Net increase (decrease) in cash

and cash equivalents

Cash and cash equivalents –

beginning of year

Cash and cash equivalents –

Purchase of subsidiary shares from noncontrolling interests

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents – beginning of year

Cash and cash equivalents – end of year

Supplemental disclosures of cash flow information:

Cash paid for:

See accompanying notes

to consolidated financial statements.

See accompanying notes to consolidated financial statements.

INTER PARFUMS, INC.

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December 31, 2021, 2020 and 2019

(In thousands except share and per share

(In thousands except share and per share data)

(1) The Company and its Significant Accounting Policies

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Inter Parfums, Inc.

subsidiaries (the “Company”) are in the fragrance business and manufacture and distribute a wide array of fragrances

and fragrance related products.

and its subsidiaries

(the “Company”) are in the fragrance business and manufacture and distribute a wide array of fragrances and fragrance

What changed 10-K

Item 9A. Controls and Procedures