May 19, 2003 Board of Directors Parlux Fragrances, Inc. 3725 S.W. 30th Avenue Ft. Lauderdale, FL 33312 Dear Ladies and Gentlemen:Acquisition Proposal • May 20th, 2003 • Parlux Fragrances Inc • Perfumes, cosmetics & other toilet preparations
This letter sets forth a proposal (the “Proposal”) whereby Newco, a company to be formed by Ilia Lekach, or an entity controlled by him, and Quality King Distributors, Inc., a New York corporation (“Quality King”), or an entity designated by Quality King that is under common control with Quality King, would offer to acquire all of the outstanding shares of capital stock of Parlux Fragrances, Inc. (the “Company”) for $4.00 per share net to the sellers in cash. This Proposal represents an approximate 60% premium over the closing price of the Company’s common stock on May 19, 2003. As discussed below, this Proposal is contingent upon the receipt of the Parlux Board Approval, as defined below, and approval of Quality King’s lenders.
