In this task, you're given a passage that represents a legal contract or clause between multiple parties, followed by a question that needs to be answered. Based on the paragraph, you must write the index where the answer starts. If multiple answers seem to exist, write the index of the answer that is the most plausible. If multiple indices must be used to answer the question, the output should be a common separated list of indices.

[Q]: CO-BRANDING AGREEMENT                                      (FORM)

     This CO-BRANDING AGREEMENT (the Agreement) is made and entered into as of Nov  5,  1999, (the Effective Date) by and between NETTAXI Online Communities, Inc.,  a  Delaware  corporation with principal offices at 2165 S. Bascom Avenue, Campbell,  California  95008  (NETTAXI),  and  Solutions  Media,  Inc.,  dba SpinRecords.com a Delaware Corporation, with offices at 11440 West Barnardo Ct., Suite  170,  San  Diego,  CA  32127  (SpinRecords.com  or  Client).

                                    RECITALS

     A.     NETTAXI  is  in  the business of providing entertainment, education, and  information  services over the world wide web through its Internet web site at  http://www.NETTAXI.com.

     B.     SpinRecords.com  is  in  the business of providing entertainment and information  services  over  the  World Wide Web through its internet website at http://www.spinrecords.com.

     C.     NETTAXI and SpinRecords.com desire co-brand their services under the terms  and  conditions  set  forth  herein.

                                    AGREEMENT

     NOW,  THEREFORE,  in consideration of the mutual promises contained herein, the  parties  hereby  agree  as follows:

1.     DEFINITIONS

     1.1     Spinrecords.com Brand Features means the SpinRecords.com name and logo  and  other  trademarks,  trade  names  and service names including but not limited  to those set forth on Exhibit A attached hereto and incorporated herein                                --------- by  reference  and  all  Intellectual  Property  Rights  related  thereto. SpinRecords.com  Brand  Features  shall include any derivatives, improvements or modifications  thereto  or  thereof and any Intellectual Property rights related thereto.

     1.2     SpinRecords.com  Pages  means the SpinRecords.com Web-based pages that incorporate certain SpinRecords.com services, as the same may be updated or modified  from  time  to  time  in  SpinRecords.com's sole discretion, currently located  at  http://www.spinrecords.com.

     1.3     Impressions  means  the loading of all or part of a Web page into the  browser  of  a  User.

     1.4     Intellectual  Property  Rights  means  all  current  and  future worldwide trademark, patents and patent rights, utility models, copyrights, mask work  rights,  trade secrets, and all other intellectual property rights and the related  documentation  or  other  tangible  expression  thereof.

     1.5     NETTAXI  Brand  Features  means the NETTAXI name and logo and any other  trademarks,  trade  names and service names of NETTAXI, including but not limited  to those set forth on Exhibit B attached hereto and incorporated herein                                --------- by reference and all Intellectual Property Rights related thereto. NETTAXI Brand Features shall include any derivatives, improvements or modifications thereto or thereof  and  any  Intellectual  Property  rights  related  thereto.

     1.6     NETTAXI  Pages  means  the  NETTAXI's  Web-based  pages  that incorporate  certain  NETTAXI  services,  as the same may be updated or modified from  time  to  time  in  NETTAXI's  sole  discretion,  currently  located  at http://www.NETTAXI.com.

     1.7     Statement  of Work means the Statement of Work attached hereto as Exhibit  C  and  incorporated  herein  by  reference. ----------

     1.8     User  means  a  person using a software browser to view the World Wide  Web.

2.     CO-BRANDING,  MARKETING  AND  PROMOTION

     2.1     The  SpinRecords.com  Pages.  SpinRecords.com  shall  brand  the              ---------------------------

Source: RAE SYSTEMS INC, 10-Q, 11/14/2000





SpinRecords.com Pages with the NETTAXI Brand Features in the manner set forth in the  Statement  of  Work.  NETTAXI will provide electronic copies of the NETTAXI Brand  Features  upon SpinRecords.com's request. All Spinrecords.com Pages shall display  appropriate intellectual property legends, including but not limited to the  copyright  notice  and  trademark  references.

                                        1

     2.2     The  NETTAXI Pages.  NETTAXI shall brand certain NETTAXI Pages with              ------------------ the  SpinRecords.com  Brand Features in the manner set forth in the Statement of Work.  SpinRecords.com  will  provide  electronic  copies of the SpinRecords.com Brand  Features  upon  NETTAXI's  request.  All  NETTAXI  Pages  shall  display appropriate  intellectual  property  legends,  including  but not limited to the copyright  notice  and  trademark  references. NETTAXI shall not be obligated to co-brand  those  pages containing content which NETTAXI has branded with a third party  which:  (i)  NETTAXI  is  prohibited from co-branding pursuant to another agreement;  (ii)  NETTAXI  is  technically  unable  to  co-brand;  or  (iii) are commercially  unreasonable,  in  NETTAXI's  discretion,  to  co-brand.

     2.3     Marketing  by  SpinRecords.com.  Throughout  the  term  of  this              ------------------------------ Agreement, SpinRecords.com shall use reasonable commercial efforts to market the NETTAXI  Brand  Features  in  order  to  maximize  the number of visitors to the NETTAXI Pages in accordance with the Statement of Work. The parties shall review the Statement of Work and NETTAXI's marketing activities on a quarterly basis in order  to  assess  the  performance  and  agree  upon  additional activities, if necessary,  in  order  to  increase  usage  of  the  pages.

     2.4     Marketing  by  NETTAXI.  Throughout  the  term  of  this Agreement,              ----------------------- NETTAXI  shall  use  reasonable commercial efforts to market the SpinRecords.com Brand  Features  in  order  to  maximize  the  number  of  visitors  to  the SpinRecords.com  Pages  in  accordance  with the Statement of Work.  The parties shall review the Statement of Work and Spinrecords.com's marketing activities on a  quarterly  basis in order to assess the performance and agree upon additional activities,  if  necessary,  in  order  to  increase  usage  of  the  pages.

     2.5     Additional  Statements  of  Work.  If  the parties hereto desire to              -------------------------------- engage  each  other  for  additional  services  which  are  not  included in the Statement  of Work and which do not constitute merely a revision or modification of  the  Statement of Work, the parties shall in good faith negotiate additional Statements  of  Work,  each of which upon signing shall be deemed a part of this Agreement.  Additional  Statements  of  Work  shall  be  entered  into by mutual agreement  between NETTAXI and SpinRecords.com and shall be substantially in the form  of  the Statement of Work attached hereto. Each Statement of Work shall be signed  by  authorized  representatives of the parties. This Agreement may cover more  than  one  Statement  of  Work  at  any  given  time.

3.     Licenses  AND  OWNERSHIP.

     3.1     Licenses  by  NETTAXI  to SpinRecords.com. NETTAXI hereby grants to              ----------------------------------------- SpinRecords.com  a non-exclusive, worldwide, nontransferable, revocable, royalty free  license to use the NETTAXI Brand Features as the same may be modified from time  to  time  for  the  purposes  of  this  Agreement

     3.2     Licenses  by  SpinRecords.com  to  NETTAXI.  SpinRecords.com hereby              ------------------------------------------- grants  NETTAXI  a  nonexclusive, worldwide, nontransferable, revocable, royalty free  license  to display and distribute the, and make derivative works from the SpinRecords.com  Brand  Features  and  any  enhancements,  modifications  or improvements  thereto  as  necessary  to  carry out the terms of this Agreement.

     3.3     Ownership  by  NETTAXI.  NETTAXI  shall  own  all right, title, and              ---------------------- interest  in  the NETTAXI Brand Features, the NETTAXI Pages and all Intellectual Property  Rights  therein,  including  any  derivatives,  improvements  thereof, excluding  the  SpinRecords.com  Brand  Features

     3.4     Ownership  by SpinRecords.com. Except as otherwise set forth below,              ----------------------------- SpinRecords.com  shall own all right, title, and interest in the SpinRecords.com Brand  Features  and  the  SpinRecords.com  Pages  and all Intellectual Property Rights  therein,  including any derivatives, improvements thereof, excluding the NETTAXI  Brand  Features.

Source: RAE SYSTEMS INC, 10-Q, 11/14/2000





     3.5     Impressions.  Neither  party  nor  its employees shall take actions               ---------- which  will  artificially  increase the number of Impressions on the party's web pages.  For  example,  a party's employees shall not repeatedly access the other party's  web  pages.

4.     PAYMENT

     4.1     Payment.  In  consideration  of  the  duties and obligations of the              ------- parties hereto, SpinRecords.com shall pay NETTAXI in the manner set forth in the Statement  of  Work.

5.     REPRESENTATIONS  AND  WARRANTIES.

     5.1     Representations  and Warranties of SpinRecords.com. SpinRecords.com              -------------------------------------------------- hereby represents and warrants to NETTAXI that: (i) SpinRecords.com has the full power  and  authority  to  enter  into  this  Agreement  and  to  carry  out its obligations  under  this  Agreement; (ii) SpinRecords.com has the full power and authority to grant the rights and licenses granted to NETTAXI in this Agreement; and  (iii)  SpinRecords.com  owns  the  SpinRecords.com  Brand  Features.

                                        2

     5.2     Representations  and  Warranties  of  NETTAXI.  NETTAXI  hereby              --------------------------------------------- represents  and  warrants to SpinRecords.com that (i) NETTAXI has the full power and  authority  to  enter  into  this Agreement and to carry out its obligations under this Agreement; (ii) NETTAXI has the full power and authority to grant the rights  and  licenses  granted  to  SpinRecords.com in this Agreement; and (iii) NETTAXI  owns  the  NETTAXI  Brand  Features.

     5.3     THE  NETTAXI  SERVICES  FURNISHED  AS  A  RESULT  OF  OR UNDER THIS AGREEMENT  ARE  PROVIDED  ON  AN  AS  IS  BASIS,  WITHOUT  ANY  WARRANTIES  OR REPRESENTATIONS  EXPRESS,  IMPLIED  OR STATUTORY; INCLUDING, WITHOUT LIMITATION, WARRANTIES  OF QUALITY, PERFORMANCE, NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR  A  PARTICULAR  PURPOSE. NOR ARE THERE ANY WARRANTIES CREATED BY A COURSE OF DEALING,  COURSE  OF  PERFORMANCE OR TRADE USAGE. NETTAXI  DOES NOT WARRANT THAT THE SERVICES, WILL MEET SPINRECORDS.COM'S OR ANY END USERS NEEDS OR BE FREE FROM ERRORS,  OR  THAT  THE  OPERATION  OF  ITS  WEB PAGES WILL BE UNINTERRUPTED. THE FOREGOING  EXCLUSIONS  AND  DISCLAIMERS ARE AN ESSENTIAL PART OF THIS AGREEMENT.

6.     CONFIDENTIALITY.

     6.1     Agreement  as Confidential Information. The parties shall treat the              -------------------------------------- terms  and  conditions  and  the  existence  of  this  Agreement as Confidential Information.  Each  party  shall  obtain  the  other's  consent  prior  to  any publication,  presentation,  public announcement or press release concerning the existence  or  terms  and  conditions  of  this  Agreement.

     6.2     Confidential  Information.  Confidential  Information  means  all              ------------------------- information  identified  in  written  or  oral format by the Disclosing Party as confidential, trade secret or proprietary information, and, if disclosed orally, summarized  in written format within thirty (30) days of disclosure. Disclosing Party  is  the  party disclosing Confidential Information. Receiving Party is the  party  receiving  Confidential  Information.  The Receiving Party shall not disclose  the  Confidential Information to any third party other than persons in the  direct  employ of the Receiving Party who have a need to have access to and knowledge  of  the  Confidential  Information  solely for the purpose authorized above.  Each  party shall take appropriate measures by instruction and agreement prior  to  disclosure  to  such  employees to assure against unauthorized use or disclosure.  The  Receiving  Party  shall  have  no  obligation  with respect to information  which (i) was rightfully in possession of or known to the Receiving Party  without  any obligation of confidentiality prior to receiving it from the Disclosing  Party;  (ii)  is,  or  subsequently  becomes,  legally  and publicly available  without breach of this Agreement; (iii) is rightfully obtained by the Receiving  Party  from  a  source  other  than  the Disclosing Party without any obligation  of confidentiality; (iv) is disclosed by the Receiving Party under a valid order created by a court or government agency, provided that the Receiving Party  provides  prior written notice to the Disclosing Party of such obligation and  the  opportunity  to  oppose  such  disclosure.  Upon written demand of the Disclosing  Party,  the  Receiving  Party  shall  cease  using  the Confidential

Source: RAE SYSTEMS INC, 10-Q, 11/14/2000





Information  and  return  the  Confidential Information and all copies, notes or extracts  thereof  to  the  Disclosing Party within seven (7) days of receipt of notice.

7.     INDEMNITY  AND  LIMITATION  OF  LIABILITY.

     7.1     Indemnification  by  Spinrecords.com. SpinRecords.com shall defend,              ------------------------------------ indemnify and hold NETTAXI harmless from any and all damages, liabilities, costs and expenses (including, but not limited to reasonable attorneys' fees) incurred by NETTAXI  as a result of (i) any breach of this Agreement; (ii) any claim that the  SpinRecords.com  Brand  Features  or  any  part  thereof,  infringes  or misappropriates  any  Intellectual  Property  Right  of a third party; (iii) any claim arising out of NETTAXI's display of the SpinRecords.com Brand Features; or (iv)  the  operation  of  the  SpinRecords.com  Pages.  NETTAXI  shall  provide SpinRecords.com  with  written notice of the claim and permit SpinRecords.com to control  the  defense,  settlement,  adjustment or compromise of any such claim. NETTAXI  may  employ counsel at its own expense to assist it with respect to any such  claim;  provided,  however, that if such counsel is necessary because of a conflict  of  interest  of  either  SpinRecords.com  or  its  counsel or because SpinRecords.com  does  not assume control, SpinRecords.com will bear the expense of  such  counsel.

     7.2     Indemnification  by  NETTAXI.  NETTAXI  shall defend, indemnify and              ---------------------------- hold  SpinRecords.com  harmless from any and all damages, liabilities, costs and expenses  (including, but not limited to reasonable attorneys' fees) incurred by SpinRecords.com  as a result of (1) any breach of this Agreement; (ii) any claim that  the  NETTAXI  Brand  Features  or  any  part  thereof,  infringes  or misappropriates  any  Intellectual Property Right of a third party; or (iii) any claim  arising  out  of  Spinrecords.com's display of the NETTAXI Brand Features SpinRecords.com  shall  provide  NETTAXI  with  written  notice of the claim and permit  NETTAXI  to control the defense, settlement, adjustment or compromise of any such claim.  SpinRecords.com may employ counsel at its own expense to assist it  with  respect  to any such claim; provided, however, that if such counsel is necessary  because of a conflict of interest of either NETTAXI or its counsel or because  NETTAXI  does not assume control, NETTAXI will bear the expense of such counsel.

     7.3     Limitation  of Liability. EXCEPT AS SET FORTH IN SECTION 6 AND 7.1,              ------------------------ UNDER  NO  CIRCUMSTANCES  WILL  EITHER  PARTY  BE  LIABLE TO THE OTHER UNDER ANY CONTRACT,  STRICT  LIABILITY, NEGLIGENCE OR OTHER LEGAL OR EQUITABLE THEORY, FOR ANY  INCIDENTAL  OR CONSEQUENTIAL DAMAGES OR LOST PROFITS IN CONNECTION WITH THE SUBJECT  MATTER  OF  THIS  AGREEMENT.

                                        3

8.     TERM  AND  TERMINATION

     8.1     Term  of  Agreement.  This  Agreement  shall  be effective upon the              ------------------- Effective Date and shall remain in force for a period of one (1) year, and shall be automatically renewed for successive periods of one (1) year unless otherwise terminated  as provided  herein.

     8.2     Convenience.  NETTAXI  may terminate this Agreement at any time for              ----------- its  convenience,  for  no  reason or for any reason, upon sixty (60) days prior written  notice  to  SpinRecords.com.  In  the  event  of  such  termination, Spinrecords.com  shall  be  entitled  to receive and retain all payments made or payable  by  NETTAXI  prior  to  the  date  of  termination. SpinRecords.com may terminate  this  Agreement  for no reason or for any reason upon sixty (60) days prior  written  notice  to  NETTAXI.

     8.3     Termination  for Cause. This Agreement may be terminated by a party              ---------------------- for  cause  immediately  upon  the  occurrence  of  and  in  accordance with the following:

          (a)     Insolvency  Event.  Either  may  terminate  this  Agreement by delivering  written  notice to the other party upon the occurrence of any of the following  events: (i) a receiver is appointed for either party or its property; (ii)  either  makes a general assignment for the benefit of its creditors; (iii) either  party  commences,  or  has  commenced  against it, proceedings under any bankruptcy,  insolvency  or  debtor's  relief  law,  which  proceedings  are not dismissed  within  sixty  (60)  days;  or  (iv)  either  party  is liquidated or

Source: RAE SYSTEMS INC, 10-Q, 11/14/2000





dissolved.

          (b)     Change of Control. In the event more that there is a change in ownership  representing  fifty  percent (50%) or more of the equity ownership of either  party, the other party may, at its option, terminate this Agreement upon written  notice.

          (c)     Default.  Either  party may terminate this Agreement effective upon  written  notice  to  the  other  if the other party violates any covenant, agreement,  representation  or warranty contained herein in any material respect or  defaults  or fails to perform any of its obligations or agreements hereunder in any material respect, which violation, default or failure is not cured within thirty  (30) days after notice thereof from the non-defaulting party stating its intention  to  terminate  this  Agreement  by  reason  thereof.

     8.4     Survival of Rights and Obligations Upon Termination. Sections 6 and              --------------------------------------------------- 7  shall  survive  termination  or expiration of this Agreement. Notwithstanding anything in the foregoing to the contrary, in the case of termination by NETTAXI for  cause pursuant to Section 8.3  [Termination for Cause], NETTAXI shall not be required to pay any fee to  SpinRecords.com  after  termination.

     8.5     Return  of  Materials  Upon Termination. On or before ten (10) days              --------------------------------------- after  the  termination  of  this  Agreement,  SpinRecords.com  shall deliver to NETTAXI  all  NETTAXI  Confidential  Information  and  NETTAXI  Brand  Features, including  but not limited to all work product, diagrams, designs and schematics in Spinrecords.com's possession and NETTAXI.com shall deliver to SpinRecords.com all SpinRecords.com Confidential Information and SpinRecords.com Brand Features, including  but not limited to all work product, diagrams, designs and schematics in  Nettaxi.com's  possession

9.     MISCELLANEOUS

     9.1     Force  Majeure.  Neither  party  shall  be  liable to the other for              -------------- delays  or  failures  in performance resulting from causes beyond the reasonable control  of  that  party,  including,  but  not  limited  to, acts of God, labor disputes  or  disturbances, material shortages or rationing, riots, acts of war, governmental  regulations,  communication  or  utility  failures, or casualties.

     9.2     Relationship  of  Parties.  The parties are independent contractors              ------------------------- under  this  Agreement  and  no  other  relationship  is  intended,  including a partnership,  franchise,  joint  venture,  agency, employer/employee, fiduciary, master/servant  relationship, or other special relationship. Neither party shall act  in  a  manner  which expresses or implies a relationship other than that of independent  contractor,  nor  bind  the  other  party.

     9.3     No  Third Party Beneficiaries. Unless otherwise expressly provided,              ----------------------------- no  provisions  of  this  Agreement are intended or shall be construed to confer upon  or give to any person or entity other than NETTAXI and SpinRecords.com any rights,  remedies  or  other  benefits  under  or  by  reason of this Agreement.

     9.4     Equitable  Relief.  Each  party  acknowledges  that a breach by the              ----------------- other  party  of  any  confidentiality  or  proprietary rights provision of this Agreement  may  cause  the non-breaching party irreparable damage, for which the award  of  damages  would  not  be  adequate  compensation.  Consequently,  the non-breaching  party  may institute an action to enjoin the breaching party from any  and  all  acts  in  violation  of  those  provisions, which remedy shall be cumulative  and  not  exclusive, and a party may seek the entry of an injunction enjoining  any  breach  or threatened breach of those provisions, in addition to any  other  relief to which the non-breaching party may be entitled at law or in equity.

                                        4

     9.5     Attorneys'  Fees.  In  addition  to  any  other relief awarded, the              ---------------- prevailing  party  in any action arising out of this Agreement shall be entitled to  its  reasonable  attorneys'  fees  and  costs.

     9.6     Notices.  Any  notice  required  or permitted to be given by either              ------- party under this Agreement shall be in writing and shall be personally delivered

Source: RAE SYSTEMS INC, 10-Q, 11/14/2000





or  sent  by  a  reputable overnight mail service (e.g., Federal Express), or by first  class  mail (certified or registered), or by facsimile confirmed by first class  mail  (registered or  certified),  to  the party at the address indicated above.  Notices  will  be  deemed  effective  (i)  three  (3) working days after deposit,  postage  prepaid,  if  mailed,  (ii) the next day if sent by overnight mail,  or  (iii)  the  same  day if sent by facsimile and confirmed as set forth above.

     9.7     Assignment.  Neither  NETTAXI  or  SpinRecords.com shall assign its              ---------- respective  rights  or delegate its obligations hereunder, either in whole or in part,  whether  by  operation  of  law  or  otherwise, without the prior written consent  of  the other party. Any attempted assignment or delegation without the other  party's  written  consent  will  be  void.

     9.8     Waiver  and  Modification.  Failure  by either party to enforce any              ------------------------- provision of this Agreement will not be deemed a waiver of future enforcement of that  or any other provision. Any waiver, amendment or other modification of any provision  of  this Agreement will be effective only if in writing and signed by the  parties.

     9.9     Severability.  if  for any reason a court of competent jurisdiction              ------------ finds any provision of this Agreement to be unenforceable, that provision of the Agreement will be enforced to the maximum extent permissible so as to effect the intent of the parties, and the remainder of this Agreement will continue in full force  and  effect.

     9.10     Controlling  Law  and  Jurisdiction. This Agreement and any action               ----------------------------------- related  thereto  shall  be governed, controlled, interpreted and defined by and under  the laws of the State of California and the United States, without regard to  the conflicts of laws provisions thereof. Unless waived by NETTAXI (which it may  do  in  its  sole  discretion)  the exclusive jurisdiction and venue of any action  with  respect  to  the  subject  matter  of  this Agreement shall be the Superior  Court of California for the County of Santa Clara or the United States District  Court  for the Northern District of California and each of the parties hereto submits itself to the exclusive jurisdiction and venue of such courts for the  purpose  of  any  such  action.  The  parties  specifically disclaim the UN Convention  on  Contracts  for  the  International  Sale  of  Goods.

     9.11     Headings.  Headings  used  in  this  Agreement  are  for  ease  of               -------- reference  only and shall not be used to interpret any aspect of this Agreement.

     9.12     Entire Agreement. This Agreement, including all exhibits which are               ---------------- incorporated  herein  by reference, constitutes the entire agreement between the parties  with  respect to the subject matter hereof, and supersedes and replaces all  prior  and  contemporaneous  understandings or agreements, written or oral, regarding  such  subject  matter.

     9.13     Counterparts.  This Agreement may be executed in two counterparts,               ------------ each  of  which shall be an original and together which shall constitute one and the  same  instrument.

     IN  WITNESS  WHEREOF,  the  parties  hereto have executed this Agreement by persons  duly  authorized  as  of  the  date  and  year  first  above  written.

NETTAXI:                        NETTAXI  ONLINE  COMMUNITIES,  INC.                                 By:  /s/                                    ---------------------------------------------                                 Its:  Executive Vice President Sales & Marketing                                     --------------------------------------------

Solutions  Media                SOLUTIONS  MEDIA,  INC.                                 -----------------------                                 By:  /s/                                    ---------------------------------------------                                 Its:  President                                    ---------------------------------------------

TABLE  OF  EXHIBITS

Source: RAE SYSTEMS INC, 10-Q, 11/14/2000





EXHIBIT  A  -     SPINRECORDS.COM  BRAND  FEATURES EXHIBIT  B  -     NETTAXI  BRAND  FEATURES EXHIBIT  C  -     STATEMENT  OF  WORK

                                        5

                                    EXHIBIT A

                         SPINRECORDS.COM BRAND FEATURES

     1.     Service  Marks:             SpinRecords.com             SpinRadio             Spin  TV             Local  Spin             Spin  Chat             Gig-a-board             Spin  Cuts             Spin  Charts             Join  the  evolution             The  promise  of  music  on  the  Internet  delivered      2.     SpinRecords.com collateral and dress - SpinRecords.com color scheme,             fonts  and  general  look  and  feel      3.     SpinRecords.com  logos      4.     Anything  but  that  cartoon  series      5.     SpinRecords.com  source  materials      6.     SpinRecords.com  website

                                        6

                                    EXHIBIT B

                             NETTAXI BRAND FEATURES

     1.     Service  Marks:             NETTAXI             NETTAXI.COM             NETTAXI  ONLINE  COMMUNITIES             INTERNET  THE  CITY             DRIVING  YOUR  INTERNET  EXPERIENCE      2.     Trade  dress  - Nettaxi color scheme and checkered motif; look             and  feel      3.     Nettaxi  logos      4.     Nettaxi  source  materials      5.     The  Website

                                        7

                                    EXHIBIT C

                                STATEMENT OF WORK

1.   GENERAL

     This  is a Statement of Work under the Co-Branding Agreement by and between NETTAXI  Online  Communities,  Inc.  (NETTAXI)  and  Solutions  Media,  Inc., (SpinRecords.com)  dated  effective  as  of  Nov.  5,  1999.

2.   PROJECT  MANAGERS.

NETTAXI:  Will  Richards              SPINRECORDS.COM:  Criona  Mclaughlin 2165  S.  Bascom  Avenue              11440  West  Bernardo  Ct Campbell,  California  95008          San  Diego,  California  92127 Phone:  (408)  879-9880               Phone:  (619)451-3223 Fax:  (408)  879-9907                 Fax:  (619)451-2373

3.   BRANDING  METHODS

Spinrecords.com  and  Nettaxi.com  will  enter  into  a  multi-phase launch of a co-branded  community  for Nettaxi, and the implementation of community services for Spinrecords.com members. The following defines the agreement after the final phase.  The  individual  phases are specified following the Marketing Section of the  Statement  of  Work. 1)   SpinRecords.com  will  develop a co-branded  site  showing the  Nettaxi.com      logo. The  co-branding  shall not include  SpinRadioTM,  SpinTVTM,  feature

Source: RAE SYSTEMS INC, 10-Q, 11/14/2000





     modules,  and Spin branded charts.  All other navigation bar features shall      be modified to the co-brand including  localnettaxi,  and nettaxichat.  The      spinwares  and  spinstore  will be  modified  to include  licensed  content      purchased directly from Spinrecords.com and to eliminate products that will      compete with the Nettaxi store. 2)   Spinrecords.com  will  incorporate  from  the  navigation  bar a link  from      nettaxistores to the Nettaxi commerce site. 3)   The  co-branded  nettaximusic  store will  contain  spingear,  spingallery,      spinmusic, and Kingdom Skateboard products and services. Spin agrees to pay      Nettaxi a 5% commission of the gross sales price on all transactions. 4)   Spinrecords.com  will  maintain  the Spin  logo on the site in a corner  of      their choice. 5)   Nettaxi web based e-mail will replace spinmail on the co-branded site. 6)   Nettaxi's  search  engine  shall  be  the  default  search  engine  on  the      co-branded  site and on the  Spinrecords.com  homesite,  with the exception      that,  in the event  Spinrecords.com  provides  its content to or otherwise      develops  any  co-branded  sites  with any ISP,  Internet  Portal  or other      entity,  Spinrecords.com shall not be required to employ the Nettaxi search      engine.  In all cases in which the Nettaxi  search engine is employed,  the      search shall first deliver  results found on the  Spinrecords.com  website.      The search  feature shall have the tag line Driven by Nettaxi  underneath      the search bar. 7)   Nettaxi  shall cause its search  engine to search and deliver  results from      the SpinRecords.com  site and co-branded site as one of the top results for      all searches for related words on the co-branded site, the  SpinRecords.com      homesite and the Nettaxi.com site. Related words shall include,  but not be      limited to: music, mp3, independent artist/music and CD. 8)   Nettaxi  will create a music  template  for the Nettaxi  homepage  builder.      Every  registered  member  of  Spinrecords.com  and  Nettaximusic  will  be      provided a dynamically generated home page.  Spinrecords.com will submit to      Nettaxi the existing list of Spinrecords.com  members from which a homepage      shall be generated. 9)   Nettaximusic   and   Spinrecords.com   will  share   registered   users  by      synchronizing  the databases for  registered  users.  Nettaxi will maintain      unique  ID's for each  community  home  page  built in the  Spinrecords.com      domain and Nettaximusic.com  domain (for the purpose of the auto-generation      of fan page templates).  This  synchronization  shall not include any users      that arrive at SpinRecords.com through any other co-branded site or through      any other means of co-branding/co-marketing  with any other ISP, Website or      other entity. 10)  Nettaxi will develop a link from the Nettaxi Arts & Entertainment  area for      the co-branded site. 11)  Nettaxi will add Nettaximusic to the street sign on the A&E page. 12)  Nettaxi will make the word  music on the splash  page,  under A&E a link,      and have it link to nettaxi.spinrecords.com. the co-branded site. 13)  The  co-branded  site will have the Nettaxi mp3 player as an available  mp3      player on the site. 14)  Spinrecords.com  will place the  Nettaxi  logo on  promotional  CDROM's and      Samplers that  contain the  Nettaxi mp3 player or site banners.  Banners on      CDROM's will link straight to Nettaxi and Nettaximusic. 15)  Nettaxi  will  include  the  Spinrecords.com  logo on  promotional  CDROM's      containing music provided Spinrecords.com. 16)  Spinrecords.com  will  provide  a  link  from  all  artists'  pages  to the      co-branded registration site for fans to produce fan pages. 17)  Nettaxi.com  and  Spinrecords.com  will develop  ability for all registered      users of the co-branded site to achieve  one-click buying on the co-branded      site whether purchasing from Nettaxi's store or the Spinstore.

                                        8

4.   MARKETING  EFFORTS

1)   Spinrecords.com  will sell ad space on the  co-branded  site, in accordance      with the agreement, within 30 days of the Effective Date. 2)   Both  Parties   agree  to  develop  a  Nettaxi   co-branded   CD  featuring      Nettaximusic.com.  Both  parties  will  share the  production  costs of the      Nettaximusic.com  Co-Branded  CD.  The per unit  cost  shall be 50 cents or      less, unless both parties agree otherwise. 3)   Nettaxi  will  develop a  community  based  affinity  model for music  that      features SpinRecords.com artists. 4)   Nettaxi will provide  in-house  advertising to promote the co-branded music      site. 5)   Spinrecords.com  will  engage  with  Nettaxi  as  an  -advertising  sponsor      promoting  the  co-branded  site with  each  party  contributing  a monthly      investment  of not less than  $20,000  per month,  in cash  expenditure  or      in-kind contribution toward the marketing effort(s). 6)   SpinRecords.com will promote Nettaximusic.com as a music affiliate in their

Source: RAE SYSTEMS INC, 10-Q, 11/14/2000





     non-traditional  street  marketing  methods,  to  include  flyer's  created      in-house for Spin Bands,  will have the logo of Nettaxi.com  Music in-order      that consumers see alternate choices to find the bands music. 7)   Both  parties  agree to include  advertisements  for the other party in the      advertising included with their web-based e-mail offered to their users. 8)   Spinrecords.com  will grant Nettaxi the rights to use the artist's likeness      in promotions of the co-branded site. 9)   Nettaxi.com  agrees  to  participate  in  Spinrecords.com   fourth  quarter      promotional plans by procuring  $250,000 worth of co-promotional  placement      in Spinrecords  advertising  targeted towards colleges,  extreme sports and      other mutually agreed upon target audiences. 10)  Spinrecords.com agrees to purchase in the fourth quarter, $250,000 worth of      advertising and sponsorship  space within the Nettaxi site for promotion of      the co-branded and Spinrecords.com community.

PHASED  ROLL  OUT  PLAN

PHASE  I:     NOVEMBER  8TH The  existing site located at Spinrecords.com/Nettaxi shall be launched - target date  one week from agreement date. This site shall contain the web based e-mail from  Nettaxi.  This  site shall also use Spinstore and Spinware as it currently exists  on  the  site.

Nettaxi  will begin development of the music template for the home page builder. Spinrecords  will  submit their existing list of members to Nettaxi to integrate the  homepage  builder  database  and  resolve  duplicate  ID's existing between Nettaxi  and  Spinrecords  member  registration.

Nettaxi  and  Spinrecords will integrate their respective registrations to allow both  companies  to synchronize their registered users from the co-branded site.

Spinrecords  can  announce  the  partnership  in  a  press  release  the day the co-branded  site  launches.  This  press  release  will  detail  the  co-branded relationship.

PHASE  II:     NOVEMBER  22ND Community  home  pages  will be available to all members of Nettaximusic.com and Spinrecords.com.  Spinrecords.com will announce to their existing membership the existence  of their new homepage, provide them with their Unique URL and promote their  ability  to  develop  a  unique  web  site.

Nettaxi  will  announce  the  same  ability  to  all  registered  members  of Nettaximusic.com.

Nettaxi's  search  engine  will  be  launched  on  the  Spinrecords.com  domain.

Nettaxi's  e-commerce  offering  will  be  launched  on  the  co-branded  site. Spinrecords.com  e-comnerce  offerings  will  be  reduced  to  provide  licensed merchandise  and content  and  any  additional  products mutually agreed upon by Nettaxi.com  and  Spinrecords.com.

Both  companies will announce their users ability to shop on the co-branded site using  one-click buying. Each member can move between the stores on the co-brand site  and  order  in  each  individual  store.

                                        9

PHASE  III:     JANUARY  1,  2000

     Nettaxi  launches  citizen  and  small business e-commerce offering for all community  sites. This feature will allow current Nettaxi home page web sites to integrate  e-commerce  offerings  from  their own products and products from the Nettaxi  store.

5.   PAYMENT

PERCENTAGE OF ADVERTISING REVENUE

     5.1     SpinRecords.com's  Advertising  Revenue  means  the gross revenue from  advertising   invoiced  by  SpinRecords.com  in  a  calendar  quarter  for advertising by third parties on the SpinRecords.com  Pages, less any commissions not to exceed 35%.

     5.2     SpinRecords.com's AR Share means the number of Impressions on the SpinRecords.com  Pages by Users arriving through the Co-branded NETTAXI Pages in

Source: RAE SYSTEMS INC, 10-Q, 11/14/2000





a  calendar   quarter  divided  by  the  total  number  of  Impressions  on  the SpinRecords.com Pages by all Users in that calendar quarter.

     5.3     NETTAXI  Advertising  Revenue  means  the  gross  revenue  from advertising  invoiced by NETTAXI in a calendar  quarter for advertising by third parties on the NETTAXI Pages, less any commissions.

     5.4     NETTAXI's AR Share means the number of Impressions on the NETTAXI Pages  by Users  arriving  through  the  Co-branded  SpinRecords.com  Pages in a calendar quarter divided by the total number of Impressions on the NETTAXI Pages by all Users in that calendar quarter.

     5.5     SpinRecords.com  Rate. In full consideration for the rights granted              --------------------- by  NETTAXI,  SpinRecords.com  agrees  to  pay NETTAXI fifty (50%) percent of ad revenue  at  an  average  rate  no lower then $6.50 per one thousand impressions (CPM)  payable  to  NETTAXI  which  results when the SpinRecords.com Advertising Revenue  is  multiplied by SpinRecords.com's AR Share.  SpinRecords.com shall be responsible  for  payment  of  all taxes based on the Advertising Revenue except taxes  based  on  NETTAXI's  income.

     5.6     NETTAXI  Rate.  N/A.              -------------

     5.7     Payment  Schedule.  The  parties  shall  make  such payments within              ----------------- thirty (30) days of the end of each calendar quarter for the Advertising Revenue invoiced  during  such  calendar  quarter.

     5.8     Records.  SpinRecords.com  agrees to keep accurate books of account              ------- and records at its principal place of business covering all Advertising Revenues and  associated  commissions.  Upon reasonable notice of not less than seven (7) business  days,  but in no event more than once per year (unless the immediately preceding  audit  showed a material underpayment), NETTAXI shall have the right, subject  to  suitable  confidentiality  measures,  to  cause  a certified public accountant  to  inspect those portions of the books of account and records which relate  to  the royalties owed NETTAXI, to confirm that the correct amount owing NETTAXI  under this Agreement has been paid. SpinRecords.com shall maintain such books of account and records which support each statement for at least two years after  the termination or expiration of this contract or after the final payment made  by  SpinRecords.com  to  NETTAXI,  whichever  is  later.

2:   PER  CUSTOMER  FEE

     1.     SpinRecords.com  Payment. For each User that accesses the co-branded             ------------------------ site  and  becomes  a  paying  customer  on the co-branded site, SpinRecords.com agrees  to  pay  a  fee  of  five  (5%)  percent  of  the  gross  sale.

     2.     NETTAXI  Payment.  N/A.             ----------------

     3.     Payment  Terms. All fees will be paid on or before fifteen (15) days             -------------- after  the  end of the  month  in  which  the  party  has  received  payment

     4.     Audit  Rights.  SpinRecords.com  shall maintain for a period of two             ------------- (2) years after the end of the year to which they pertain,  complete  records of it's customers in order to calculate and confirm  SpinRecords.com's  obligations hereunder.   Upon  reasonable  prior  notice,   NETTAXI  will  have  the  right, exercisable  not more  than  once  every  twelve  (12)  months,  to  appoint  an independent   accounting   firm  or  other  agent   reasonably   acceptable   to SpinRecords.com,  at  NETTAXI'S  expense,  to examine  such  books,  records and accounts  during  SpinRecords.com's  normal business hours to verify the amounts due by  SpinRecords.com  to  NETTAXI  herein,  subject  execution  of  NETTAXI's standard  confidentiality  agreement by the accounting firm or agent;  provided, however,  that  execution of such  agreement  will not  preclude  such firm from reporting  its  results  to  NETTAXI.  In the  event  such  audit  discloses  an underpayment or overpayment of royalties due hereunder,  the  appropriate  party will  promptly  remit the  amounts  due to the other  party.  If any such  audit discloses a shortfall  in payment to  NETTAXI of more than five percent (5%) for any quarter, SpinRecords.com agrees to pay or reimburse NETTAXI for the expenses of such audit.

                                       10

Source: RAE SYSTEMS INC, 10-Q, 11/14/2000





Source: RAE SYSTEMS INC, 10-Q, 11/14/2000 
Question: Highlight the parts (if any) of this contract related to Cap On Liability that should be reviewed by a lawyer. Details: Does the contract include a cap on liability upon the breach of a party’s obligation? This includes time limitation for the counterparty to bring claims or maximum amount for recovery.
[A]: 15913


[Q]: EXHIBIT 10.13

                             ENDORSEMENT AGREEMENT

               This Agreement is made as of the 20th day of March 2002, by and between Holiday RV Superstores, Inc., d/b/a Recreation USA (the Company), a Delaware corporation having its principal office at 200 East Broward Boulevard, Suite 920, Ft. Lauderdale, Florida 33301, and Affinity Group, Inc. (AGI), a Delaware corporation having its principal office located at 2575 Vista Del Mar Drive, Ventura, California 93001 (each a Party and collectively the Parties).

               WHEREAS, the Company is a multi-state chain of dealerships engaged in the retail sales of service of recreational vehicles (the Business); and

               WHEREAS, AGI, either directly or through subsidiaries, operates the Good Sam club for recreational vehicle enthusiasts; and

               WHEREAS, the Company has determined that it would be beneficial sell vehicles with the Good Sam endorsement; and

               WHEREAS, the Company has raised capital that it represents will be sufficient to fund its operations as projected for at least the next year and AGI is willing to make the Good Sam name available as an endorsement for certain vehicles sold by the Company on the terms and for the consideration set forth herein.

               NOW THEREFORE, in consideration of the foregoing and the promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

        1. License of Good Sam Name and Logo.

               A. AGI hereby grants a non-exclusive license (the License) to the Company and its operating subsidiaries now or hereafter existing to use the Good Sam name and logo, including trademarks, trade names, or service marks as designated by AGI (the Trademarks), in connection with the sale of such new and used vehicles by the Company that have satisfied such criteria and standards as are established from time to time by AGI (the Approved Use). AGI warrants that it has the right and ability to grant the License to the Company to use the Trademarks for the Approved Use in accordance with the terms of this Agreement and, provided that the Company uses the Trademarks for the Approved Use in accordance with the terms of this Agreement, such grant will not infringe upon the rights of any other party. If the Company promptly notifies AGI in writing of a third party claim against the Company alleging that the Company's use of the Trademarks infringes a United States registered trademark, and if such claim of infringement is not caused in whole or in part by the Company having used the Trademarks other than for the Approved Use or other than strictly in the manner approved by AGI in accordance with the terms of this

                                      -1-

Agreement, AGI will defend such claim at its expense and will indemnify the Company, its agents and representatives, for all losses, claims, charges, costs and expenses incurred by the Company as a result of such claim. The Company hereby agrees to reimburse and indemnify and hold AGI harmless from and against all losses, claims, charges, costs and expenses (including reasonable attorneys' fees) incurred by AGI as a result of any claim involving or arising in connection with any use other than an Approved Use or a use otherwise approved by AGI in accordance with the terms of this Agreement.

               B. In order to protect the good will of AGI and the Good Sam club, AGI retains the right to review and approve in advance and in its sole discretion, all uses of the Trademarks and the Good Sam name and logo. Therefore, the Company shall give AGI at least ten business days prior written notice and description of intended use by the Company of the Trademark and the Good Sam name and logo, and the Company's use of the Trademarks and the Good Sam name and logo is subject to approval of AGI.

               C. The Company agrees that its use of the Trademarks and the Good Sam name and logo is restricted to the Approved Use, and the Company shall not use the Trademarks or the Good Sam name or logo for any other purpose. In connection with the Approved Use, the Company shall not use the Trademarks or the Good Sam name or logo in any manner that is detrimental to AGI, the Good Sam Club or any of their affiliates or any of their respective goodwill or business. Upon the termination of this Agreement, whether by expiration of its term pursuant to Paragraph 6A or otherwise, the Company shall cease all uses of the Trademarks and the Good Sam logo and name in any fashion.

        2. Endorsement. Subject to the Terms of Section 7 hereof, AGI hereby grants the Company the right to hold the Business out as having the License (the Endorsement).

        3. Term and Termination.

               A. Unless otherwise provided for in this Agreement, the term of this Agreement shall be three years, commencing on the date of this Agreement and expiring on the third anniversary date of this Agreement (the Termination





Date). In the event that the Company desires to terminate the Agreement prior to the Termination Date, it shall provide AGI with at least 60 days prior written notice of its intention to terminate this Agreement and this Agreement shall so terminate following the expiration of this 60-day period, without any further responsibility by either Party except as provided in Section 5.

               B. Either Party may terminate this Agreement at any time in the event of a material breach by the other Party which remains uncured after thirty days written notice thereof.

                                      -2-

               C. Either Party may terminate this Agreement immediately following written notice to the other Party if the other Party:

                                (i) ceases to do business in the normal course;                suffers the entry of an order for relief declaring such Party                insolvent or bankrupt;

                                (ii) is the subject of any proceeding related to                its liquidation or insolvency (whether voluntary or involuntary)                which is not dismissed within ninety calendar days;

                                (iii) makes an assignment for the benefit of                creditors.

               D. Notwithstanding any termination of this Agreement for any reason, AGI has earned and shall be entitled to retain all royalties paid prior to termination and, in addition AGI shall be entitled to payment from the Company of all compensation and unreimbursed expenses, if any, outstanding as of the date of termination.

        4. Royalties. As consideration of Endorsement, concurrently with the execution of this Agreement, the Company shall pay to AGI a fee in the amount of $1,500,000. This fee shall be fully earned by AGI upon the receipt thereof and shall not be refundable for any reason. As consideration for the License, the Company shall pay to AGI such fees as may be established from time to time by mutual agreement of the Company and AGI.

        5. Marketing of Products. AGI and the Company agree to develop and implement a program for marketing certain products and services offered by AGI through the Good Sam program, including, without limitation, the emergency road service program and the extended warranty program offered through Good Sam. Such marketing program will be on terms acceptable to AGI and the Company and shall be subject to standards and procedures designated by AGI. The terms of the marketing program will be set forth in a marketing agreement between AGI and the Company. The marketing agreement will provide, among other things, the terms pursuant to which the Company shall make Fulfillment Deposits for warranty products sold as a part of the marketing program.

        6. Relationship. This Agreement shall not create a partnership or a joint venture between AGI and the Company, and neither party hereto shall have any authority to act for or represent the other party hereto or bind it to any agreements or obligations.

        7. Public Disclosure Requirement. The Company may cause the release of a public announcement of the Endorsement which sets forth, in pertinent part, a

                                      -3-

description of this Agreement, including without limitation, the name of AGI and the nature of the License. At least three business days prior to the dissemination of any such public announcement or filing containing the above-required description, the Company shall submit to AGI for its review and comment the proposed public announcement or description. AGI shall thereafter have three business days within which to submit its editions or amendments to the public announcement and/or description for inclusion therein, and the Company shall in its reasonable judgment and subject to the advice of its counsel attempt to incorporate such editions and amendments in the final version disseminated by the Company.

               In the event of a breach of this Agreement by the Company, the Endorsement may be withdrawn by AGI in its sole discretion and this Agreement terminated pursuant to the terms of Section 3B. In the event of such withdrawal, the Company agrees forthwith to take such action as AGI may request to publicly evidence that the Endorsement has been withdrawn and the Company agrees not to hold the Business out as having the Endorsement.

        8. Notices. Any notices hereunder shall be sent to the Company and AGI at their respective address above set forth. Any notice shall be given by registered or certified mail, postage prepaid, and shall be deemed to have been given when deposited in the United States mail. Either party may designate any other address to which notice shall be given, by giving written notice to the other of such address in the manner herein provided.

        9. Entire Agreement. This Agreement contains the entire agreement and understanding between the Parties with respect to its subject matter and supersedes all prior discussion, agreements and understandings between them with respect thereto. This Agreement may not be modified except in a writing signed by the Parties.





        10. Governing Law. This Agreement has been made in the State of California and shall be governed by and construed in accordance with the laws thereof without regard to principles of conflicts of laws.

        11. No Assignment. Neither this Agreement nor the rights of either Party hereunder shall be assigned by either Party without the prior written consent of the other Party.

        12. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

        13. Non-Compliance. If any provision of this Agreement conflicts with any law, rule or regulation of any federal, state or self-regulatory organization, or any other governmental authority having jurisdiction over the activities or services described

                                      -4-

herein, then in that event, the Company and AGI shall amend this Agreement to bring any affected provision into compliance with such regulations.

        14. No Third-Party Beneficiaries. Both Parties intent that this Agreement shall not benefit or create any right or cause of action in or on behalf of any person or entity other than the Parties hereto.

        15. No Party Deemed Drafter. Both Parties agree that they have each materially and fully participated in the negotiation and drafting of this Agreement and, if this Agreement ever should be the subject of interpretation by a court or arbitrator, it shall not be construed or interpreted against either Party for the reason that it was drafted by only one Party.

        16. Headings. The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. Whenever the context so requires or permits, all references to the masculine herein shall include the feminine and neuter, all references to the neuter herein shall include the masculine and feminine, all references to the plural shall include the singular and all references to the singular shall include the plural.

        17. Attorneys' Fees. If legal action shall be necessary to enforce any of the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and costs incurred thereby.

        18. Further Assurances. At any time and from time to time, both Parties agree, without further consideration, to take such actions and to execute and deliver such documents as may be reasonably necessary to effectuate the purposes of this Agreement.

        19. No Implied Waivers. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by the Parties or, in the case of a waiver, by the Party waiving compliance. No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder, preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

              [The balance of this page intentionally left blank.]

                                      -5-

               IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

Affinity Group, Inc.

By:  /s/ Paul E. Schedler     ------------------------------- Name: Paul E. Schedler Title: Vice President

Holiday RV Superstores, Inc.

By: /s/ Marcus A. Lemonis     ------------------------------- Name:   Marcus A. Lemonis Title:  Chief Executive Officer

                                      -6- 
Question: Highlight the parts (if any) of this contract related to Post-Termination Services that should be reviewed by a lawyer. Details: Is a party subject to obligations after the termination or expiration of a contract, including any post-termination transition, payment, transfer of IP, wind-down, last-buy, or similar commitments?
[A]: 9302


[Q]: Exhibit 10.1

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS EXHIBIT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

SERVICES OUTSOURCING AGREEMENT

Between

CCA INDUSTRIES, INC. (Company)

And

EMERSON HEALTHCARE, LLC (Contractor)

DATED AS OF January 20, 2014





CONFIDENTIAL TREATMENT REQUESTED

This Services Outsourcing Agreement (this Agreement) is made as of January 20, 2014 (Date), between CCA Industries, Inc. (Company), and Emerson HealthCare, LLC, a Pennsylvania limited liability company (Contractor).

RECITALS

WHEREAS, the Company will own, develop, manufacture or have manufactured, market and sell the products set forth on Exhibit A attached hereto, as the same may be amended from time to time in accordance with the terms hereof (the Products), and desires to outsource certain logistical and administrative services with respect to the Products; and

WHEREAS, the Company desires to engage Contractor to provide certain logistical and administrative services with respect to the Products and Contractor is willing to provide such services in connection therewith, on the terms and conditions set forth in this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Contractor agree as follows:

ARTICLE I

GENERAL TERMS

1.01 Certain Defined Terms. For the purposes of this Agreement, the following capitalized terms shall have the meanings set forth below.

(a) Accounts Receivable shall mean all accounts receivable, notes receivable and other indebtedness due and owed by any Customer and arising or held in connection with the sale of any of the Products.

(b) Agreement shall mean this Agreement, including all Exhibits attached hereto, as the same may be amended, modified or supplemented from time to time in accordance with the terms hereof.

(c) Claim shall have the meaning set forth in Section 7.01.

(d) Company shall have the meaning set forth in the Preamble to this Agreement.

(e) Confidential Information shall have the meaning set forth in Section 5.04.

(f) Contractor shall have the meaning set forth in the Preamble to this Agreement.

(g) Customer means any current or prospective customer of the Company with respect to the Products.

(h) Disclosing Party shall have the meaning set forth in Section 5.04.

1





CONFIDENTIAL TREATMENT REQUESTED

(i) Effective Date shall have the meaning set forth in Section 2.01.

(j) Files and Work Papers shall have the meaning set forth in Section 5.05.

(k) Force Majeure Event shall have the meaning set forth in Section 8.03.

(l) Governmental Authority' means any supranational, national, federal, provincial, state or local judicial, legislative, executive or regulatory authority, body or instrumentality.

(m) Gross Invoiced Sales means the gross selling price (before the application of any non-cash discounts, rebates, credits, allowances or similar deductions or adjustments) less any cash discounts, of all Products that are invoiced to and paid by Customers.

(n) Intellectual Property means all intellectual property rights, including all rights in patents, patent applications, formulae, trademarks, trademark applications, trade names, confidential information, trade secrets, inventions, copyright, industrial designs and know-how.

(o) Notice Period shall mean the period between the termination date of this Agreement and the date that is six (6) months after the date on which the Company provides Contractor with written notice of its election to terminate this Agreement.

(p) OHL means Ozbum-Hessey Logistics, LLC and its Affiliates.

(q) Person means an individual, a limited liability company, a joint venture, a corporation, a partnership, an association, a trust, a division or an operating group of any of the foregoing or any other entity or organization.

(r) Products shall have the meaning set forth in the Recitals to this Agreement.

(s) Receiving Party shall have the meaning set forth in Section 5.04.

(t) Sales Representation Agreement means the sales representation agreement, dated as of the date hereof, between Company and Contractor.

(u) Service Fees shall have the meaning set forth in Section 4.01.

(v) Services means any of the services to be provided by or on behalf of Contractor to the Company under this Agreement and set forth on Exhibit B.

(w) Term shall have the meaning set forth in Section 2.01.

(x) Termination Fee shall mean an amount equal to the average Service Fees per day over the 180 day period immediately preceding the date written notice of termination is provided pursuant to Section 8.01(d) and (e) multiplied by number of days by which the Notice Period will be less than 180.

(y) Territory means the United States, excluding its territories and possessions.

2





CONFIDENTIAL TREATMENT REQUESTED

1.02 Interpretation. The words hereof, herein, hereto and hereunder and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The terms defined in the singular shall have a comparable meaning when used in the plural and vice versa. The term including shall mean including, without limitation. When a reference is made in this Agreement to an Article, a Section or an Exhibit, such reference shall be to an Article or a Section of, or an Exhibit to, this Agreement unless otherwise indicated.

ARTICLE I1

TERM: EFFECTIVE DATE

2.01 Term. This agreement shall commence on January 20, 2014 (the Effective Date) and shall continue in effect for six (6) months (the Initial Term). This agreement shall automatically renew for successive six (6) month periods unless written notice is provided of either party's intent not to renew at least six (6) months before the end of the then-current term.

2.02 Effective Date. This Agreement shall have no force or effect unless and until the Effective Date. If the Effective Date does not occur, then this Agreement shall be void ab initio and shall have no force or effect.

ARTICLE III

OBLIGATIONS OF CONTRACTOR

3.01 Contractor Services. Contractor shall perform during the Term of this Agreement the Services set forth on Exhibit B in respect of the Products in the Territory.

3.02 Meetings. Contractor shall meet with the Company on at least a monthly basis, or more often to the extent reasonably requested by the Company, to review historical sales results by Product SKU, forward-looking sales forecasts by Product SKU, current inventories of the Products on hand, production scheduled and to be scheduled of the Products, and any other matters as the parties shall determine. Such meetings shall take place at the offices of the Company (or, at the election of the Company, by video or telephone conference) no later than the fifteenth (15th) day of each calendar month during the Term of this Agreement or at such other time as the parties shall mutually agree.

3.03 Access. From time to time during the Term of this Agreement, upon reasonable advance notice, Contractor shall permit the Company and its agents, representatives, auditors and designees to visit, inspect and have full access, during normal business hours, to properties, assets, books, records, agreements, documents, data, files and personnel of Contractor.

3.04 Ownership of Accounts Receivable & Inventory. Contractor acknowledges and agrees that it is acting solely as a collection agent on behalf of the Company with respect to all Accounts

3





CONFIDENTIAL TREATMENT REQUESTED

Receivable collected from Customers, and such Accounts Receivable and the proceeds therefrom are and shall remain at all times property of the Company. Contractor further acknowledges and agrees that it has no ownership interest whatsoever in any of the Company's Inventory.

ARTICLE IV

PAYMENT

4.01 Service Fees. In consideration of providing the Services set forth in Exhibit B, the Company agrees to pay to Contractor [ ** ] percent ([ *∗ ]%]) of Company's Gross Invoiced Sales (the Service Fees). Company agrees to have Fesnak & Associates, LLP pay the Service Fees directly to Contractor. Service Fees shall be paid to Contractor within five (5) days after the end of each month.

4.02 Remittance. Contractor shall deposit into bank accounts designated by the Company an amount equal to the following: all amounts received from any Customer that are related to Accounts Receivable, less each of the following that is applicable to any such Accounts Receivable (and has not already been applied to reduce any Accounts Receivable): (i) Service Fees, (ii) commissions pursuant to the Sales Representation Agreement, (iii) returns, (iv) quantity and cash discounts, (v) trade allowances or markdowns granted on account of unsalable or discontinued Products, (vi) all sales or use taxes, tariffs, duties or similar charges of any Governmental Authority paid by or for the benefit of the Company, (vii) freight, warehousing (storage and labor) and other charges associated with the distribution of the Products using Contractor's warehouse, logistics terminal and shipping facility (see Exhibit C), (viii) the Company's pro rata portion of product liability insurance (approximately $800 per million dollars of sales) purchased by the Contractor in connection with performance of the Services, and (ix) any other deductions, rebates, credits, allowances or adjustments, in each case, which has been specifically identified by such Customer as being applicable to any such Accounts Receivable. Contractor shall use its best efforts to deposit the foregoing amounts within five (5) business days, following the receipt thereof.

4.03 Retention of Monies. During the Term of this agreement, and for a period of twenty four (24)months after Termination (the Withholding Period), Contractor may retain monies (collections in Accounts Receivable) against any reasonable anticipated deductions for product recalls, unsalables, rebates, allowances or any audits or other adjustments it deems necessary. The retention of monies shall only be to the extent that the reasonable anticipated deductions exceed the anticipated accounts receivables. At the end of the Withholding Period, Contractor shall remit to the Company the retained monies less any deductions charged by Customers against Company's Products. After the Withholding Period, Company will remain liable to Contractor for any additional audits, deductions, rebates, credits, allowances or other adjustments taken by the Customers against the Company's Products.

4





CONFIDENTIAL TREATMENT REQUESTED

4.04 Expenses. Other than as specifically provided herein, each party shall be responsible for its own expenses incurred in connection with the performance of its obligations under this Agreement; provided, that the Company shall reimburse Contractor for reasonable documented out-of-pocket travel expenses associated with any meeting specifically requested by the Company and not otherwise contemplated by this Agreement.

ARTICLE V

ADDITIONAL AGREEMENTS

5.01 New Products. The Company may amend Exhibit A to add new products to the scope of this Agreement, including line extensions of the then-existing Products and new brands acquired by the Company that are sold into the same classes of trade as the then-existing Products.

5.02 Intellectual Property. All rights to either party's Intellectual Property, including all rights in patents, patent applications, formulae, trademarks, trademark applications, trade names, confidential information, trade secrets, inventions, copyright, industrial designs and know-how, (Intellectual Property) shall remain that party's absolute property during and after the Term of this Agreement. The Products and any Intellectual Property owned by the Company in connection therewith shall be the absolute property of the Company during and after the Term of this Agreement. Neither party shall apply for registration of any trademarks, trade names, or brand names of the other party and each party hereby renounces all rights that it may acquire to such trademarks, trade names or brand names according to law or customs because of this Agreement or because of its use of such trademarks, trade names, or brand names under this Agreement.

5.03 Grant of Sublicense. Solely to the extent necessary to enable Contractor to provide the Services in accordance with the terms herein, the Company hereby grants Contractor a royalty-free, non-exclusive sublicense, without the right to grant further sublicenses, under any and all applicable trademarks and other Intellectual Property owned or controlled by or licensed to the Company or any of its Affiliates to provide, during the Term of this Agreement, the Services in respect of the Products in the Territory. Nothing contained herein shall give Contractor any right to use any of the Company's Intellectual Property used in connection with the Products or trademarks or trade names that may appear on the labeling for the Products, except for providing the Services in accordance with the terms herein. Except as provided in this Section 5.03, Contractor shall not obtain any right, title or interest in any of the Company's Intellectual Property or trademark or any other trademark designation or trade name by virtue of this Agreement or Contractor's performance of its obligations hereunder.

5.04 Confidentiality. In performing its obligations under this Agreement, each party may receive information (the Receiving Party) of a confidential and proprietary nature regarding the other party, including information about such party's intellectual property and its operations, research,

5





CONFIDENTIAL TREATMENT REQUESTED

marketing plans, strategies and customer lists (collectively, Confidential Information). The Receiving Party shall hold the other party's Confidential Information in strict confidence, shall not use such Confidential Information, except as permitted hereunder, and shall not disclose such Confidential Information to any third party without the prior written consent of the disclosing party (the Disclosing Party). Each party shall use the same degree of care to protect the Disclosing Party's Confidential Information as it uses to protect its own Confidential Information of like nature, but in no circumstances less than a commercially reasonable level of care. The Receiving Party shall ensure that its employees and agents are bound to the same obligations of confidentiality as the Receiving Party. Confidential Information shall not be deemed to include: (a) information which is known to the Receiving Party prior to the date of receipt and not obtained or derived in any manner related to this Agreement, (b) information which is or becomes part of the public domain through no fault of the Receiving Party, or (c) information which is obtained from a third party that lawfully possesses such Confidential Information and is under no obligation to keep such Confidential Information confidential. The Receiving Party may disclose Confidential Information of the Disclosing Party in response to a valid court order, law, rule, regulation or other governmental action, provided that the Disclosing Party is notified in writing prior to disclosure of such Confidential Information to permit the Disclosing Party to oppose such disclosure by appropriate legal action. Upon the termination or expiration of this Agreement or upon the earlier request of the Disclosing Party, the Receiving Party shall (i) promptly return to the Disclosing Party all Confidential Information, or (ii) upon written request by the Disclosing Party, destroy all Confidential Information and provide the Disclosing Party with written certification of such destruction. Upon the termination or expiration of this Agreement, the Receiving Party shall cease all further use of any Confidential Information, whether in tangible or intangible form.

5.05 Records Management. All paper or electronic records, files, documents, work papers and other information in any form, whether marked confidential or not, provided by the Company, its employees, agents or Affiliates or generated pursuant to this Agreement shall remain the exclusive property of the Company (collectively, Files and Work Papers). During the Term of this Agreement and for a reasonable transitional period thereafter, Contractor shall maintain adequate levels of information technology system redundancy, security and emergency back-up as the Company may reasonably require to protect the Files and Work Papers of the Company.

5.06 Vendors. Contractor shall retain Fesnak & Associates, LLP to provide accounting services in connection with Contractor's performance of the Services and shall not engage a different accountant to provide such services without the Company's prior written consent (not to be unreasonably withheld). Contractor and the Company are arranging for OHL to provide certain warehousing, shipping and other logistical services related to the Products, as mutually agreed by the parties, and Contractor shall not engage a different vendor with respect to such services without the Company's prior written consent (not to be unreasonably withheld).

6





CONFIDENTIAL TREATMENT REQUESTED

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

6.01 Representations and Warranties of Contractor. As of the date hereof, Contractor hereby represents and Warrants to the Company that the execution and delivery of this Agreement, and the performance of Contractor's obligations hereunder, do not and will not conflict with, violate or breach, or constitute a default or require any consent under, any contractual obligation or court or administrative order by which Contractor is bound.

6.02 Representations and Warranties Company. As of the date hereof, the Company hereby represents and warrants to Contractor that the execution and delivery of this Agreement, and the performance of the Company's obligations hereunder, do not and will not conflict with, violate or breach, or constitute a default or require any consent under, any contractual obligation or court or administrative order by which the Company is bound.

ARTICLE VII

INDEMNIFICATION AND INSURANCE

7.01 Indemnification by the Company. The Company hereby agrees to indemnify and hold Contractor, including its Affiliates and its and their respective officers, directors, partners, members, employees and agents, harmless from and against any and all claims, actions, suits, losses, demands, damages, costs and expenses (including reasonable attorneys' fees) of every kind, nature, or description (each, a Claim) brought in connection with, arising out of or related to the Products or the Company's breach of its representations, warranties or covenants hereunder, except those Claims arising out of Contractor's or its Affiliates' fraud, willful misconduct, negligence or material breach of this Agreement or any other agreement with the Company.

7.02 Indemnification by Contractor. Contractor hereby agrees to indemnify and hold the Company, including its Affiliates and its and their respective officers, directors, partners, members, employees and agents, harmless from and against any and all Claims brought in connection with or arising out of or related to Contractor's or its Affiliates' fraud, willful misconduct, negligence or material breach of this Agreement.

7.03 Insurance. Company shall maintain Products Liability Insurance and in an amount satisfactory to Contractor, under which Contractor is named as an additional insured. All insurance coverages are to be placed with insurers which have a Best's rating of no less than A. Such insurance requirements shall be maintained during the Term and shall continue for a minimum of three years following termination of this Agreement. Failure to comply with the insurance requirements shall place Company in material breach of this Agreement.

ARTICLE VIII

7





CONFIDENTIAL TREATMENT REQUESTED

TERMINATION

8.01 Termination. This Agreement shall be terminable as follows:

(a) In the event that a party hereto commits a material breach of any of the terms or conditions of this Agreement the other party may terminate this Agreement (i) if such breach may be cured, upon written notice if the breaching party fails to cure such breach within thirty (30) days after its receipt of written notice thereof, or (ii) if such breach is incapable of cure, upon written notice to the other party thereof (it being understood that any breach of Section 5.04 would be incapable of cure);

(b) Notwithstanding the provisions of Section 8.01, in the event that a party hereto fails to pay any amounts payable hereunder when due, the other party may terminate this Agreement (i) if such breach may be cured, upon written notice if the breaching party fails to cure such breach within three (3) business days after its receipt of written notice thereof; or, (ii) if such breach is incapable of cure, upon written notice to the other party thereof;

(c) In accordance with the provisions of Section 8.03; or,

(d) Either party hereto may terminate this Agreement after the Initial Period upon at least six (6) months' prior written notice to the other party thereof. The Company may terminate this Agreement in accordance with the immediately preceding sentence but with less than six (6) months' prior written notice to Contractor; provided, that in such event, the Company shall pay Contractor an amount equal to the Termination Fee.

8.02 Effect of Termination. Subject to Section 4.03, upon termination or expiration of this Agreement, other than with respect to any amounts then the subject of a good faith dispute, the Company shall pay to Contractor and Contractor shall pay to the Company all monies due in respect of the Services provided.

8.03 Force Majeure. If either party is prevented from or delayed in performing any of its obligations hereunder due to any cause which is beyond the nonperforming party's reasonable control, including, without limitation, fire, explosion, flood, or other acts of God; acts, regulations, or laws of any Governmental Authority; war or civil commotion; acts of terrorism, strike, lock-out or labor disturbances; or failure of public utilities or common carriers (a Force Majeure Event), such non-performing party shall not be liable for breach of this Agreement with respect to such non-performance or delay to the extent any such non-performance or delay is due to a Force Majeure Event; provided, that the non-performing party gives immediate written notice to the other party of the Force Majeure Event. If a Force Majeure Event asserted as the basis of a party's non-performance continues to prevent performance for more than one (1) month, the other party may terminate this Agreement by giving written notice to the nonperforming party before the non-performing party resumes performance. Notwithstanding anything contained in this Section 8.03,

8





CONFIDENTIAL TREATMENT REQUESTED

such non-performing party shall exercise commercially reasonable efforts to eliminate the Force Majeure Event and to resume timely performance of its affected obligations as soon as practicable.

ARTICLE IX

MISCELLANEOUS

9.01 Relationship of the Parties. The relationship of the Company and Contractor established by this Agreement is that of independent contractors, and nothing contained herein shall be construed to (a) give either party any right or authority to create or assume any obligation or incur any expense of any kind on behalf of the other without the other party's prior written approval, or (b) constitute the parties as partners, joint venturers, co-owners, employer and employee or otherwise as participants in a joint or common undertaking.

9.02 Notices. All notices and other communications shall be in writing and shall be deemed to have been duly given when: (a) delivered personally, or (b) transmitted by facsimile (with receipt confirmed), or (c) if mailed, five (5) days after being deposited in the United States mail, postage prepaid, or by certified or registered mail, return receipt requested, postage prepaid, or (d) if sent by overnight courier for delivery on the next day, the day following deposit of the notice with Federal Express or another nationally recognized overnight courier service (billed to sender), to the parties at the following addresses:

If to Contractor: Emerson HealthCare, LLC Attention: Scott Emerson 407 East Lancaster Avenue Wayne, Pennsylvania 19087 Telephone: (610) 971-9600 Facsimile: (610) 971-9616 With a copy to: Steven L. Gershman, Esq. The Navy Yard Corporate Center One Crescent Drive Suite 400 Philadelphia, PA 19112 Telephone (215) 271-6102 Facsimile: (215) 218-2039 If to the Company: CCA Industries, Inc. Attention: Chief Executive Officer 200 Murray Hill Parkway East Rutherford, NJ 07073

9





CONFIDENTIAL TREATMENT REQUESTED

Telephone (201) 935-3232 Facsimile: (201) 842-6049

With a copy to: CCA Industries, Inc. Attention: Chief Financial Officer 200 Murray Hill Parkway East Rutherford, NJ 07073 Telephone (201) 935-3232 Facsimile: (201) 842-6049   9.03 Failure to Exercise. The failure of either party to enforce at any time for any period any provision hereof shall not be construed to be a waiver of such provision or of the right of such party thereafter to enforce each such provision, nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy. Remedies provided herein are cumulative and not exclusive of any remedies provided at law.

9.04 Assignment. This Agreement may not be assigned by either party without the prior written consent of the other party, except that, without such consent, (i) Company may make an assignment of this Agreement as collateral security in favor of its lenders, and (ii) the Company may assign this Agreement to a purchaser of all or substantially all of the assets of the Company's business related to the Products. Subject to the foregoing sentence, this Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.

9.05 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer upon any Person other than the Company and Contractor, or their successors or permitted assigns, any rights or remedies under or by reason of this Agreement.

10





CONFIDENTIAL TREATMENT REQUESTED

9.06 Severability. Any term or provision of this Agreement that is deemed invalid or unenforceable in any jurisdiction shall, to the extent the economic benefits conferred by such Agreement to both parties remain substantially unimpaired, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction.

9.07 Governing Law. This Agreement shall be deemed to have been entered into in the State of New Jersey, and shall be construed and interpreted in accordance with the laws of that State applicable to agreements made and to be performed in the State of New Jersey. Any and all disputes, controversies and claims arising out of or relating to this Agreement, or with respect to the interpretation of this Agreement, or the rights or obligations of the parties and their successors and permitted assigns, whether by operation of law or otherwise, shall be settled and determined by arbitration in New Jersey pursuant to the then existing rules of the American Arbitration Association for commercial arbitration. The arbitrators shall have the power to award specific performance, rescission or injunctive relief in addition to damages or other monetary awards, but shall not have the power to modify, alter, enlarge upon or otherwise change any of the provisions or terms and conditions of this Agreement. The arbitration shall be final and binding upon the parties and judgment there on may be entered in the courts of the State of New Jersey and the United States federal courts in said State, and the parties hereby consent to the jurisdiction of such courts for such purposes. Service of any notice, process, motion or other document in connection with any arbitration proceeding, any arbitration award or any other action or proceeding, maybe by personal service or by certified or registered mail return receipt requested, addressed to the party intended at its address for the receipt of notices as herein set forth.

9.08 Headings. The headings used herein have been inserted for convenience only and shall not affect the interpretation of this Agreement.

9.09 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and together shall constitute one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party, it being understood that both parties need not sign the same counterpart.

9.10 Entire Agreement. NO VARIATIONS OR MODIFICATIONS OF THIS AGREEMENT SHALL BE DEEMED VALID UNLESS REDUCED TO WRITING AND SIGNED BY THE PARTIES HERETO. THIS AGREEMENT CONTAINS THE ENTIRE AGREEMENT AMONG THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDES ALL PRIOR AGREEMENTS AND UNDERSTANDINGS, ORAL OR WRITTEN, WITH RESPECT TO SUCH MATTERS, EXCEPT FOR ANY WRITTEN AGREEMENT OF THE PARTIES THAT EXPRESSLY PROVIDES THAT IT IS NOT SUPERSEDED BY THIS AGREEMENT. ANY PROVISION OF THIS AGREEMENT MAY BE AMENDED OR WAIVED

11





CONFIDENTIAL TREATMENT REQUESTED

IF, AND ONLY IF, SUCH AMENDMENT OR WAIVER IS IN WRITING AND SIGNED (I) IN THE CASE OF AN AMENDMENT, BY THE COMPANY AND CONTRACTOR AND (II) IN THE CASE OF A WAIVER, BY THE PARTY AGAINST WHOM THE WAIVER IS TO BE EFFECTIVE.

9.11 Survival. Sections 5.02, 5.04, 5.05 and 8.02, and Articles Article IV, Article VII and Article IX shall survive the expiration or termination of this Agreement in accordance with the respective terms thereof.

IN WITNESS WHEREOF, the parties have executed or caused this Agreement to be executed as of the date first written above.

EMERSON HEALTHCATE, LLC Contractor

By: /s/s Scott Emerson Scott Emerson

and

CCA INDUSTRIES, INC. Company

By: /s/ Richard Kornhauser Richard Kornhauser, President & CEO

12





CONFIDENTIAL TREATMENT REQUESTED

EXHIBIT A TO SERVICES OUTSOURCING AGREEMENT

List of Products:

List to be furnished by CCA

13





CONFIDENTIAL TREATMENT REQUESTED

EXHIBIT B TO SERVICES OUTSOURCING AGREEMENT

SEE-ATTACHED FLOW CHARTS



14





CONFIDENTIAL TREATMENT REQUESTED

EXHIBIT C - LOGISTIC EXPENSES

• Outbound freight costs - average out to be approximately [ ** ] cents per lb.

• Warehouse labor [ ** ] cents per case.

• There is no charge for unloading and putting away inbound product as long as product arrives on standardized configured pallets. The labor charge only occurs when the product is shipped outbound to customers/retailers.

• Storage cost of [ ** ] cents per month per case - First [ ** ] days for each case no charge - If case sits longer than [ *∗ ] days the monthly charge applies going forward.

• For International Sales the above warehouse labor and storage costs apply. There will be no Service Fee paid for international sales, but Company understands that Contractor will not be performing any services. It is assumed buyer will be paying for freight for International Sales.

15 
Question: Highlight the parts (if any) of this contract related to Insurance that should be reviewed by a lawyer. Details: Is there a requirement for insurance that must be maintained by one party for the benefit of the counterparty?
[A]:
19829