TERMINATION AGREEMENT

EXHIBIT 10.32

TERMINATION AGREEMENT

between

and

WHEREAS, the parties have agreed that Mr. STEFFENS's employment with ARDEN shall terminate on December 31 ^st , 2008;

WHEREAS , the parties desire to enter into this Termination Agreement ("Agreement") to define their respective rights and obligations, including for the period from execution of this Agreement by both parties until December 31 ^st , 2008 (the "Transition Period");

NOW THEREFORE, in consideration of the promises and terms set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

Article 1

The parties agree that Mr. STEFFENS's employment with ARDEN shall terminate on December 31 ^st , 2008.

Article 2

The recitals set forth above are incorporated into and made a part of this Agreement. Mr. STEFFENS agrees that he will work in a full-time capacity for the International Business Unit of ARDEN through the Transition Period; provided that Mr. STEFFENS will be permitted to spend a reasonable amount of work time to interview and research new job opportunities, and ARDEN agrees:

(a) to continue to pay Mr. STEFFENS his current base salary in accordance with ARDEN's normal pay practices, including his 13 ^th month salary through the Transition Period;

(b) to pay to Mr. STEFFENS any balance for untaken vacation days accrued for calendar year 2008 by December 31 ^st , 2008;

(c) that Mr. STEFFENS will receive his normal employee benefits through the Transition Period;

(d) that Mr. STEFFENS will be permitted to exercise any outstanding stock options that are vested as of December 31, 2008; provided that such exercise occurs no later than March 31 ^st , 2009. Mr. STEFFENS is entitled to vest in any restricted stock that vests on or before December 31 ^st , 2008;

(e) that Mr STEFFENS will retain his full eligibility to receive a cash bonus in accordance with the Management Bonus Plan for executive officers of Elizabeth Arden, Inc. ("EA"), which provides that he is eligible to receive a quarterly bonus corresponding to 5% of 50% of his annual base salary if EAI achieves the specified earnings per share target set forth by the Compensation Committee of the Board of Directors of EAI on August 12, 2008 (the "Target") for EAI's fiscal quarter ending September 30, 2008 in accordance with the terms of such plan.

Article 3

During the Transition Period, Mr. STEFFENS will assist in the hand-over of the International Business Unit and the orientation of the new Vice President Commercial and Operation Finance. To the extent Mr. STEFFENS satisfactorily fulfils the above-referenced responsibilities for ARDEN through the Transition Period, and in addition to the consideration set forth in Article 2, ARDEN agrees

(i) to give Mr. STEFFENS on the last day of the Transition Period a lump-sum amount corresponding to twelve (12) months of Mr. STEFFENS' current base annual salary, twelve (12) months of health insurance allowance and twelve (12) months of car allowance (less any applicable withholdings) to assist in his transition to a new job opportunity;

(ii) to permit Mr. STEFFENS to retain his full eligibility to receive a cash bonus in accordance with the Management Bonus Plan of EAI corresponding to 5% of 50% of his annual base salary if EAI achieves the Target for EAI's fiscal quarter ending December 31, 2008;

(iii) to provide the payments set forth in Article 9; and

(iv) to provide the payments set forth in Article 10.

Article 4

Should Mr. STEFFENS decide to leave employment with ARDEN prior to the end of the Transition Period, ARDEN will nevertheless pay his normal salary, health insurance premiums and car allowances until December 31 ^st , 2008, his thirteenth salary for the calendar year 2008 and the balance of any untaken vacation days remaini