NOTE CANCELLATION AND EXTINGUISHMENT AGREEMENT
 
This NOTE CANCELLATION AND EXTINGUISHMENT AGREEMENT (“Cancellation Agreement”)
is made as of April 9, 2008, by and between the Skins Inc., a Nevada corporation
(the “Company”), and the undersigned (“Holder”) (collectively, the “Parties”).
 
WHEREAS, on the Note Date as indicated on the signature page hereof, the Parties
entered into a Secured Promissory Note (“Note”), pursuant to which Company
promised to pay to Holder or its registered assignees, the Principal Sum as
indicated on the signature page hereof, together with interest in accordance
with the Note;
 
WHEREAS, the Holder desires to roll the Principal Sum under the Note into the
Company’s private placement that is closing on the date hereof, on the same
terms of the offering, and forego and waive any and all interest and other
amounts due under the Note, thereby extinguishing and canceling the Note in
full; and
 
WHEREAS, the Holder and the Company shall have entered into a subscription
agreement for the private placement pursuant to the Holder’s purchase of
securities from the Company in full and complete satisfaction of the Note, and
any and all security and collateral under the Note is hereby released.
 
NOW THEREFORE, in consideration of the covenants and agreements, including the
subscription agreement, hereafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows:
 
1. Debt Cancellation and Extinguishment. Holder hereby cancels the indebtedness
represented by the Note and acknowledges and agrees that such indebtedness is
hereby extinguished in its entirety pursuant to which the Principal Sum amount
shall be rolled into the Company’s private placement that is closing on the date
hereof in accordance with the subscription agreement, any and all interest is
hereby waived and extinguished, and any and all security and collateral under
the Note is hereby released in full.
 
2. Additional Shares. In consideration of rolling the Principal Sum into the
private placement and foregoing interest, the Company agrees to issue additional
shares to the Holder in connection with the Note, in such amount as indicated in
Schedule A, attached hereto.
 
3. Miscellaneous. This Cancellation Agreement may be executed in any number of
facsimile counterparts, all of which shall be but a single original. This
Cancellation Agreement will be binding upon and inure to the benefit of the
Parties hereto and their respective successors and assigns. The Parties shall
execute and deliver from time to time hereafter, upon written request, all such
further documents and instruments and shall do and perform all such acts as may
be reasonably necessary to give full effect to the intent of this Cancellation
Agreement.
 
4. Governing Law. This Cancellation Agreement and all actions arising out of or
in connection with it shall be governed by and construed in accordance with the
laws of the State of New York, without regard to the conflicts of law provisions
of the State of New York, or of any other state.
 
[SIGNATURE PAGE TO FOLLOW]
 

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IN WITNESS WHEREOF, the Parties have entered into this Cancellation Agreement as
of the date first set forth above.
 
HOLDER
         
Name of Holder (Print):___________________________
         
Note Date: ___________________________
         
Principal Sum: ___________________________
         
Signature : ____________________________
   

 
[SIGNATURE PAGE OF HOLDER]
 
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IN WITNESS WHEREOF, the Parties have entered into this Cancellation Agreement as
of the date first set forth above.
 
COMPANY
         
SKINS INC.
               
By:

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Name: Mark Klein
       
Title: Chief Executive Officer
   

 
[SIGNATURE PAGE OF COMPANY]

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SCHEDULE A
 
SCHEDULE OF ADDITIONAL SHARES TO BE ISSUED
 
Name
 
No. of Additional Shares to be Issued
 
Deborah Gargiulo
   
1,482
 
Michael Rosenthal
   
42,088
 
Joshua Hermelin
   
32,086
 
Geoffrey Dubey
   
120,321
 
Joshua Hermelin
   
120,321
 
TOTAL
   
316,298
 

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