Document:

Exhibit
      10.2

     

    PIGGYBACK
      REGISTRATION RIGHTS AGREEMENT 

     

    THIS
      PIGGYBACK REGISTRATION RIGHTS AGREEMENT
      (this
“
      Agreement”
      ), dated
      as of ___________, 2007, is entered into by and among ChineseWorldNet.com Inc.,
      a company established under the laws of the Cayman Islands (the “Company”)
      and the
      persons purchasing Common Stock (the “Investors”
and
      each, individually, an “Investor”)
      pursuant to those certain Subscription Agreements by and between the Company
      and
      the investor specified therein (the “Subscription
      Agreements”
and
      each such agreement, a “Subscription
      Agreement”),
      with
      reference to the following facts:

    

    WITNESSETH :

     

    WHEREAS,
      pursuant to the Subscription Agreements, the Investors are purchasing shares
      of
      Common Stock of the Company; 

     

    WHEREAS,
      to
      induce the Investors to enter into the Subscription Agreements, the Company
      has
      agreed to grant to those Investors certain rights regarding registration of
      their respective Purchased Common Stock, as set forth in this Agreement.

     

    WHEREAS,
      all
      capitalized terms used but not defined in this Agreement have the meanings
      ascribed to such terms in the Subscription Agreements;

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and the mutual promises and covenants herein
      contained, the Parties agree as follows:

     

    ARTICLE
      1

     DEFINITIONS
      AND OTHER TERMS

    

    Section
      1.01   Definitions.
      As used
      in this Agreement, the following terms shall have the following meanings (such
      meanings to be equally applicable to both the singular and plural forms of
      the
      terms defined):

     

    “Agreement”
shall
      have the meaning set forth in the preamble. 

     

    “Closing”
shall
      have the meaning set forth in Section 2.06(a) of the Subscription Agreements.
      

     

    “Company”
shall
      have the meaning set forth in the preamble. 

     

    “Exchange
      Act”
shall
      mean the Securities Exchange Act of 1934, as amended. 

     

    “Investors”
shall
      mean the Persons identified in the preamble, and any subsequent holder of Shares
      pursuant to Section 6. 

     

    “Person”
shall
      mean an individual, a partnership, a corporation, an association, a joint stock
      company, a trust, a joint venture, an unincorporated organization, or a
      governmental entity (or any department, agency, or political subdivision
      thereof). 

     

    “register”,
      “registered”,
      and
“registration”
refer
      to a registration effected by preparing and filing a Registration Statement
      in
      compliance with the Securities Act (and any post-effective amendments filed
      or
      required to be filed) and the declaration or ordering of effectiveness of such
      Registration Statement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Registration
      Expenses”
shall
      mean all expenses incurred by the Company in connection with a registration
      under Section 2 hereof, including, without limitation, all registration and
      filing fees, printing expenses, fees and disbursements of counsel for the
      Company, blue sky fees and expenses and the expense of any special audits
      incident to or required by any such registration (but excluding the compensation
      of regular employees of the Company, which shall be paid in any event by the
      Company). 

     

    “Registration
      Statement”
shall
      mean a Registration Statement filed by the Company with the SEC for a public
      offering and sale of the Company’s securities (other than a Registration
      Statement on Form S-8, Form S-4/F-4, or successor forms, or any Registration
      Statement covering only securities proposed to be issued in exchange for
      securities or assets of another corporation). 

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

     

    “Selling
      Expenses”
shall
      mean all underwriting discounts and selling commissions applicable to the sale
      of Registrable Securities. 

     

    “Shares”
shall
      mean, with respect to any Investor, the shares of the Purchased Common Stock
      of
      the Company purchased by such Investors pursuant to the Subscription Agreements.
      

     

    “Subscription
      Agreements”
shall
      have the meaning set forth in the preamble. 

     

    Section
      1.02  Certain
      References.
      Unless
      otherwise indicated, references in this Agreement to articles, sections,
      clauses, recitals and exhibits are to the same contained in or attached to
      this
      Agreement.

    

    ARTICLE
      2 

    PIGGYBACK
      REGISTRATIONS

    

    Section
      2.01  Piggyback
      Rights.
       Whenever
      the Company proposes to register any of its common equity securities under
      the
      Securities Act (other than a registration statement on Form S-8 or on Form
      S-4/F-4 or any similar successor forms thereto), whether for its own account
      or
      for the account of one or more stockholders of the Company, and the registration
      form to be used may be used for any registration of the Shares (a “Piggyback
      Registration”),
      the
      Company shall give prompt written notice (in any event within 10 business days
      after its receipt of notice of any exercise of other demand registration rights)
      to all Investors of its intention to effect such a registration and, subject
      to
      Sections 3(b) and 3(c), shall include in such registration all Shares with
      respect to which the Company has received written requests for inclusion therein
      within 15 days after the receipt of the Company’s notice. The Company may
      postpone or withdraw the filing or the effectiveness of a Piggyback Registration
      at any time in its sole discretion. 

    

    Section
      2.02  Priority
      on Primary Registrations.
      If a
      Piggyback Registration is an underwritten primary registration on behalf of
      the
      Company, and the managing underwriters advise the Company in writing that in
      their opinion the number of securities requested to be included in such
      registration exceeds the number which can be sold in such offering and/or that
      the number of Shares proposed to be included in any such registration would
      adversely affect the price per share of the Company’s equity securities to be
      sold in such offering, the Company shall include in such registration (i) first,
      the securities the Company proposes to sell, and (ii) second, the Shares
      requested to be included therein by the Investors and other securities requested
      to be included in such registration pro rata among all the holders of such
      securities on the basis of the number of shares requested to be registered
      by
      such holders or as such holders may otherwise agree.

    

    Section
      2.03  Priority
      on Secondary Registrations.
      If a
      Piggyback Registration is an underwritten secondary registration on behalf
      of a
      holder of the Company’s securities, and the managing underwriters advise the
      Company in writing that in their opinion the number of securities requested
      to
      be included in such registration exceeds the number which can be sold in such
      offering and/or that the number of Shares proposed to be included in any such
      registration would adversely affect the price per share of the Company’s equity
      securities to be sold in such offering, the Company shall include in such
      registration (i) first, the securities the Company proposes to sell, and (ii)
      second the Shares requested to be included therein by the Investors and other
      securities requested to be included in such registration pro rata among all
      the
      holders of such securities on the basis of the number of shares requested to
      be
      registered by such holders or as such holders may otherwise agree. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      2.04  Selection
      of Underwriters.
      If any
      Piggyback Registration is an underwritten primary offering, the Company shall
      have the right to select the managing underwriter or underwriters to administer
      any such offering. 

    

    Section
      2.05  Termination
      of Registration Rights.
      The
      rights of the Investors hereunder shall terminate with respect to each Investor
      at such time as (i) such Investor holds Shares constituting less than two
      percent (2%) of the outstanding stock of the Company or (ii) such Shares may
      be
      sold by such Investor under Rule 144 promulgated under the Securities Act during
      any 90 day period. 

    

    ARTICLE
      3

    UNDERWRITING

    

    Section
      3.01  With
      respect to any registration under this Agreement involving an underwriting
      (which shall be at the sole discretion of the Company), the right of the
      Investors to registration hereunder shall be conditioned upon its participation
      in such underwriting, and the inclusion of all of the Shares in the underwriting
      to the extent provided herein. The Investors shall (together with the Company
      and any other security holder distributing securities through such underwriting)
      enter into an underwriting agreement with the representative of the underwriter
      or underwriters selected for underwriting by the Company, containing customary
      (x) terms of offer and sale of the securities, payment provisions, underwriting
      discounts and commissions; and (y) representations, warranties, covenants and
      indemnities. Notwithstanding any other provision hereof, if the representative
      of the underwriter determines that marketing factors require a “lock-up period,”
the Investors agree not to transfer any of their Shares (other than pursuant
      to
      the Registration Statement for such offering) during the ten (10) day period
      prior to the effective date of the Registration Statement and for such
      additional period as may be required by the underwriters, up to ninety (90)
      days
      after the effectiveness of the Registration Statement. If the Investors
      disapprove of the terms of any such underwriting, they will be forced to
      withdraw therefrom by written notice to the Company and the underwriter. Any
      Shares or other securities excluded or withdrawn from such underwriting shall
      be
      withdrawn from such registration. 

    

    ARTICLE
      4

    EXPENSES
      OF REGISTRATION

    

    Section
      4.01  The
      Registration Expenses of the Company shall be borne by the Company, and the
      registration expenses of each Investor, including each Investor’s attorney’s
      fees, shall be borne by each Investor. All Selling Expenses shall be borne
      by
      the Investors. 

    

    ARTICLE
      5

    INDEMNIFICATION

    

    Section
      5.01  To
      the
      extent permitted by law, each Investor (severally and not jointly) will, if
      Shares held by them are included in the securities as to which registration,
      qualification or compliance is being effected, indemnify the Company, each
      of
      its directors, officers, agents and representatives and each underwriter, if
      any, and each person controlling the Company or such underwriter, against all
      claims, losses, damages and liabilities (or actions in respect thereof) arising
      out of or based on any untrue statement (or alleged untrue statement) of a
      material fact contained in any such Registration Statement, prospectus, offering
      circular or other document made by such Investor, or any omission (or alleged
      omission) to state therein a material fact required to be stated therein or
      necessary to make the statements by such Investor (severally and not jointly)
      therein not misleading, and will reimburse the Company and such directors,
      officers, agents, representatives, underwriters or control persons for any
      legal
      or any other expenses reasonably incurred in connection with investigating
      or
      defending any such claim, loss, damage, liability or action, in each case to
      the
      extent, but only to the extent, that such untrue statement (or alleged untrue
      statement) or omission (or alleged omission) is made in such Registration
      Statement, prospectus, offering circular or other document in reliance upon
      and
      in conformity with written information furnished to the Company by such Investor
      and stated to be specifically for use therein; provided, however, that the
      obligations of each Investor hereunder shall be limited to an amount equal
      to
      the proceeds to such Investor of securities sold in the registration.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      indemnification obligations of the Investors under this Section 5 shall survive
      the termination of this Agreement or the completion of any offering of Shares
      in
      a Registration Statement under this Agreement or otherwise. 

     

    ARTICLE
      6 

    ASSIGNMENT

    

    Section
      6.01  Subject
      to applicable state and federal securities laws and regulations, the rights
      under this Agreement may be assigned by the Investors in the event of a lawful
      transfer or sale by the Investor to a new shareholder; provided
      that
      such
      transferring Investor transfers the entire amount of their respective shares
      of
      Purchase Common Stock purchased pursuant to the Subscription Agreements to
      such
      new shareholder; and, provided
      further that
      such new
      shareholder enters into an agreement to be bound by the terms of this Agreement.
      

     

    ARTICLE
      7

    MISCELLANEOUS
      PROVISIONS

    

    Section
      7.01  No
      Third-Party Beneficiaries.
      This
      Agreement shall not confer any rights or remedies upon any Person other than
      the
      Parties and their respective successors and permitted assigns.

    

    Section
      7.02  Headings.
      The
      section headings contained in this agreement are inserted for convenience only
      and shall not affect in any way the meaning or interpretation of this Agreement.
      

    

    Section
      7.03  Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      Province of British Columbia and the laws of Canada, without regard to its
      choice of law principles.

    

    Section
      7.04  Execution
      in Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original and all of which when taken together shall constitute one
      and
      the same agreement.

    

    Section
      7.05  Additional
      Parties.
      Notwithstanding anything to the contrary contained herein, if the Company issues
      additional shares of common equity to a purchaser after the date hereof pursuant
      to the Offering as described in the Subscription Agreements, such purchaser
      may
      become a party to this Agreement, without further action by the Investors
      hereunder or the Company, by executing and delivering a counterpart signature
      page hereto agreeing to be bound by and subject to the terms of this Agreement
      as an Investor hereunder.

    

    Section
      7.06  Amendments
      and Waivers.
      No
      amendment of any provision of this Agreement shall be valid unless the same
      shall be in writing and signed by the Company and Investors owning two-thirds
      of
      the Shares. No waiver by any Party or any default, misrepresentation, or breach
      of warranty or covenant hereunder, whether intentional or not, shall be deemed
      to extend to any prior or subsequent default, misrepresentation, or breach
      of
      warranty or covenant hereunder or affect in any way any rights arising by virtue
      of any prior or subsequent such occurrence. No waiver shall be deemed effective
      unless such waiver is in writing and signed by the party whose rights are being
      waived.

    

    Section
      7.07  Severability.
      Any
      term or provision of this Agreement that is invalid or unenforceable in any
      situation in any jurisdiction shall not affect the validity or enforceability
      of
      the remaining terms and provisions hereof or the validity or enforceability
      of
      the offending term or provision in any other situation or in any other
      jurisdiction. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      7.08  Construction.
      Each
      Investor acknowledges and agrees that this Agreement was prepared solely by
      the
      Company on its own behalf, and that each Investor has availed, or had the
      opportunity to avail, him/her/itself of the advice of legal counsel in respect
      hereof. Notwithstanding the foregoing, in the event an ambiguity or question
      of
      intent or interpretation arises, this Agreement shall be construed as if drafted
      jointly by the Parties and no presumption or burden of proof shall arise
      favoring or disfavoring any Party by virtue of the authorship of any of the
      provisions of this Agreement. Any reference to any federal, state, local, or
      foreign statute or law shall be deemed also to refer to all rules and
      regulations promulgated thereunder, unless the context requires otherwise.
      The
      word “including” shall mean including without limitation. The Parties intend
      that each representation, warranty, and covenant contained herein shall have
      independent significance. If any Party has breached any representation,
      warranty, or covenant contained herein in any respect, the fact that there
      exists another representation, warranty, or covenant relating to the same
      subject matter (regardless of the relative levels of specificity) which the
      Party has not breached shall not detract from or mitigate the fact that the
      Party is in breach of the first representation, warranty, or covenant.

    

    Section
      7.09  Specific
      Performance.
      Each of
      the Parties acknowledges and agrees that the other Parties would be damaged
      irreparably in the event any of the provisions of this Agreement are not
      performed in accordance with their specific terms or otherwise are breached.
      Accordingly, each of the Parties agrees that the other Parties shall be entitled
      to an injunction or injunctions to prevent breaches of the provisions of this
      Agreement and to enforce specifically this Agreement and the terms and
      provisions hereof in any action instituted in any court of Canada, the United
      States, Hong Kong or any state or province thereof having jurisdiction over
      the
      Parties and the matter, in addition to any other remedy to which they may be
      entitled, at law or in equity. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed or have caused this Agreement to be executed by
      their respective authorized officers or representatives on the date first above
      written. 

    

    CHINESEWORLDNET.COM
      INC.

    

    
      	
              By:

              
                

              

            	 
	
              Name: 

              
                

              

            	 
	
              Title: 

              
                

              

              
              

            	 
	 	 
	
              INVESTORS: 

            	 
	 	 
	
              By:

              
                

              

            	 
	
              Name: 

              
                

              

            	 
	
              Title: 

              
                

              

            	 
	 	 
	
              By:

              
                

              

            	 
	
              Name: 

              
                

              

            	 
	
              Title: 

              
                

              

            	 
	 	 
	
              By:

              
                

              

            	 
	
              Name: 

              
                

              

            	 
	
              Title: 

              
                

              

            	 
	 	 
	
              By:

              
                

              

            	 
	
              Name: 

              
                

              

            	 
	
              Title:LICENSING
      AND DISTRIBUTION AGREEMENT

      
        

      

    

    

    Agreement
      made this 6th day
      of
      June, 2007, between Laboratoires Carilène S.A.S a corporation existing under the
      laws of France, and having its principal place of business at 7, rue du Chant
      des Oiseaux, 78360 Montesson-France (hereinafter referred to as “Supplier”),
and
      Auriga Laboratories, Inc.,
      existing
      under the laws of the State of Delaware, U.S.A,
      having
      its principal place of business at 2029 Century Park East, Suite 1130, Los
      Angeles, CA 90067 U.S.A.
      (hereinafter referred to as “Buyer”).

    

    WITNESSETH
      :

    

    WHEREAS,
      The
      Supplier desires to sell and the Buyer desires to buy the Product defined below
      and described in Exhibit C hereto; and

    

    WHEREAS,
      The Supplier
      is willing to furnish all of Buyer’s requirements for the Product and Buyer is
      willing to purchase all of its requirements for the Product from Supplier,
      subject to Supplier’s ability to meet Buyer’s demand for the Product;
      and

    

    WHEREAS,
      The Buyer shall be the exclusive distributor of the Product in the Territory.
      Supplier
      is the exclusive owner of an invention relating to the use in treatment for
      alopecia and the subject of United States Patent No. 6,001,378 and subject
      to a
      PCT filing number PCT/FR97/00141 filed January 24, 1997, as listed in Exhibit
      D
      attached hereto, and all claims therein, that covers the Product (hereinafter
      called the “Invention’); and

    

    WHEREAS,
      The Supplier
      will transfer to the Buyer the Information, as well as scientific and marketing
      data which are essential to the manufacture and commercial exploitation of
      the
      Product.

    

    NOW
      THEREFORE, this
      Agreement witnesses that for and in consideration of the respective covenants
      and agreements herein contained, it is agreed by and between the parties as
      follows:

    

    
      
        

      

    

    ARTICLE
      1

    DEFINITIONS
      

    
      

    

    

    
      
        1.1.
          Definitions. For the purpose of this Agreement or any amendment
          thereto, the following terms shall have the following meanings,
          respectively :

      

    

     

    1.1.1.
      “Product(s)” shall mean combinations, in particular for use as the active
      principle in a cosmetic and particularly dermatological composition, containing
      peroxidised lipids and organosilicon compounds containing them, as well as
      their
      applications, including but not limited to the combination known in Europe
      as
“Silicium 44 Lotion” and “Silicium 44 Shampoo” as covered by the Patent and all
      other Supplier intellectual property rights and as further described in Exhibit
      C and covered by the Patent listed in Exhibit D. Product shall include all
      successor products and all line extensions, upgrades, new formulations and
      the
      like. Product shall also include sample packages as mutually agreed to between
      the parties from time to time.

    

    1.1.2.
      “Territory” shall mean the United States of America and its possessions and
      territories

    

    1.1.3.
      “Information” shall mean all trade secrets, data, information and know-how
      related to the Invention, Product and the Patent.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.1.4.
      “Patent” means the U.S.A. Patent No. 6,001,378, as described above and further
      described in Exhibit D, including all divisionals, reissuances, reexaminations,
      foreign counterparts and the like.

    

    1.1.5
      Transfer price shall mean the price in EURO, paid by the Buyer to Supplier
      for
      the Product as described below in Article 5.4

    

    1.1.6
      “FCA” shall have the meaning ascribed thereto in INCOTERMS 2000 of the
      International Chamber of Commerce, meaning, among other things, that Supplier
      shall deliver the goods cleared for export, at Supplier’s expense, and Buyer
      shall clear, at its expense, the goods for import into the
      Territory.

    

    1.1.7
      “Quality Assurance Agreement”: The Quality Assurance Agreement shall ensure all
      applicable governing laws, rules and regulations including but not limited
      to
      those relating to Good Manufacturing Practices (GMPs) and under the European
      guide line of registration of Cosmetic file (see appendix). 

    

    1.1.8
      “Manufacturing Package” means all Information and instructions necessary to
      enable a third party to manufacture the Product if permitted pursuant to this
      Agreement.

    

    1.1.9
      “Net Sales” means all amounts actually received by the Buyer as a results of its
      sales of Products less all the deductions for discounts, products

     

    Rebates,
      forces or mandated wholesales/distributors fees, rebates to other government
      agencies or purchasing associations, returns, charges back and imported fess.
      These rebates cannot exceed 15% of gross sales.

     

    
      
        

      

    

    ARTICLE
      2

    REQUIREMENTS
      AND EXCLUSIVITY

      

    

    2.1.
      License. Except
      as
      otherwise explicitly provided for in this Article 2, Supplier hereby grants
      to
      Buyer the exclusive (even as to Supplier) right, under all applicable worldwide
      intellectual property rights, to sell, market, distribute, sublicense and
      exploit the Product in the Territory under The trade name of Silicium 44 (Lotion
      and Shampoo). Except as otherwise explicitly provided for in this Article 2,
      Buyer is also hereby granted an exclusive right and license, under all
      applicable worldwide proprietary rights, to make, have made, use, sell, have
      sold, market, distribute, sublicense and manufacture the Product, but only
      if
      and when expressly authorized under the terms and conditions of this Agreement.
      

    

    2.2 Sale
      of Requirements.
      During
      the term of this Agreement, Supplier agrees to sell to Buyer all of Buyer’s
      requirements of the Product in accordance with the terms of this Agreement.
      If
      Supplier is unable to supply all of Buyer’s requirements, Supplier shall, as
      Buyer’s sole remedy, use commercially reasonable efforts to provide Buyer, at
      prices at or lower than those set forth in this Agreement, with the Product
      from
      other sources to avoid out-of-stock situations. Notwithstanding the foregoing,
      if Supplier is unable to supply Buyer’s requirements two (2) or more times
      during a ninety (90) day period, then Buyer shall have the right to require
      qualification of a second manufacturer, of Buyer’s choice, to manufacture the
      Product for Buyer by using the Manufacturing Package. Such additional
      manufacturer shall be subject to the confidentiality restrictions set forth
      herein.

    

    2.2.1
      Purchase of Requirements.
      During
      the term of this Agreement, Buyer agrees to buy from Supplier all of Buyer’s
      requirements for the Product in accordance with the terms of this
      Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.3.
      Exclusivity.
      During
      the term of this Agreement, except with respect to, Supplier agrees not to
      distribute or sell the Product directly or indirectly to any other party for
      the
      purpose of use or sale in the Territory in accordance with Article 2.1. If
      during the Term of the Agreement, Buyer at any time notifies Supplier that
      a
      party is distributing or selling Product in the Territory Supplier agrees that
      it will take all action necessary to immediately halt all sales (direct and
      indirect) of Product to such party that is distributing or selling in the
      Territory providing that the source of the product is identified to be the
      Supplier. In the event any damages are recovered as a result of Supplier’s
      actions, after reimbursing Supplier its reasonable costs to take such action,
      all remaining proceeds shall belong to Buyer, subject to the royalty set forth
      in Article 5.3 If the source of the Product is other than Supplier, then Buyer
      shall have the right, by virtue of the exclusive license granted in Article
      2.1,
      to take action against such third party, and all proceeds of any such action
      shall belong solely to Buyer, subject to the royalty set forth in Article
      5.3.

     

    2.4.
      No Sales Outside the Territory.
      Buyer
      shall not, without the prior written approval of Supplier (to be granted or
      withheld in Supplier’s sole and absolute discretion), directly or indirectly
      sell Product outside the Territory, advertise, promote or solicit customers
      for
      Product outside the Territory, establish any office outside the Territory
      through which orders are solicited or establish any depot at which inventories
      of Product are stored outside the Territory.

    

    2.5 Right
      of First Refusal.
      In the
      event Supplier decides to grant an exclusive right to distribute and sell any
      further Supplier products in the Territory, and such products are not included
      under the definition of Products set forth in this Agreement, Supplier shall
      provide Buyer the first opportunity to obtain such exclusive right for such
      products upon mutually agreed upon terms and conditions. Upon receiving
      information regarding new Products, Buyers shall have 90 days to exercise right
      of first refusal.

     

    
      

    

    ARTICLE
      3

    REPRESENTATIONS

      

    

    3.1.
      Representations of Supplier.
      The
      Supplier represents that:

    

    3.1.1.
      Supplier
      is the exclusive owner of all rights, title and interest in and to the
      Invention, Patent, and Information, and has the right to grant to Buyer the
      rights and licenses set forth in this Agreement. The Invention and Products
      are
      completely safe for human use and does not have any direct or indirect adverse
      health effects.

    

    3.1.2.
      As
      of the
      date of this Agreement, other than the Patent, Supplier has not filed, or caused
      to be filed in the U.S., patent applications, or obtained in its name or caused
      to obtain in the name of others, any other patent based on or relating to the
      Invention, Information or devices or methods similar to the
      Invention.

    

    3.1.3.
      Supplier
      has, and will continue to, comply with all applicable laws, rules and
      regulations with respect to the development, manufacture, sale, use and
      distribution of the Product (“Laws”).

    

    3.2.
      Information.
      Supplier shall furnish to Buyer, or its nominees, any Information reasonably
      required (as determined by Supplier and Buyer) by Buyer to commercialise and
      exploit the use of the Invention and the Products permitted under this
      Agreement, including without limitation the clinical data and related materials
      that were conducted on the Invention and/or Products.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.3.
      Buyer
      represents that Buyer (i) will adhere to all applicable laws, rules and
      regulations, relating to the sale of Product in the Territory; and (ii) will
      store the Product in appropriate conditions and facilities (as instructed by
      Supplier).

    

    
      
 ARTICLE
      4

    GENERAL
      OBLIGATIONS

      

    

    4.1.
      Buyer’s Obligations.
      Marketing
      and distribution.
      In
      addition to any and all other obligations and liabilities of Buyer as provided
      in this Agreement, Buyer or Buyers successors shall use commercially reasonable
      efforts to promote and market the Product for sale according to the business
      plan covering the first 3 years communicated to Supplier. 

    

    4.2 Supplier’s
      Obligations.

    

    4.2.1.
      Lead time:
      Lead
      time for Products ordered hereunder shall be 16 weeks for the first order after
      reception of the final art work data signed by both supplier and buyer, and
      then
      16 weeks after receipt of all other orders. Shipment time by ocean shall be
      4/5
      weeks; by air-freight shall be 1 week. Shipment time shall be added to lead
      time
      for purposes of scheduling delivery. 50% of total billing for the first order
      only, will be paid by money bank transfer at order time. 

    

    4.2.2.
      Supplier
      shall provide Buyer with a Certificate of Analysis for batches of Product by
      facsimile three (3) working days prior to shipment. Original copies of the
      Certificates of Analysis shall be sent regular mail. 

    

    4.2.3.
      Supplier
      shall provide Buyer with a copy of the bill of lading by facsimile upon
      shipment.

    

    4.3 Manufacturing
      Rights.
      In the
      event Supplier admits in writing its inability to pay its debts generally as
      they become due, files an assignment or a petition in bankruptcy, as the case
      may be, or a petition to take advantage of any insolvency statute, makes a
      general assignment for the benefit of its creditors, consents to the appointment
      of a receiver of itself or of the whole or any substantial part of its property,
      undertakes its liquidation, winding-up or dissolution, or enters into an
      arrangement or composition with or for the benefit or creditors generally
      occurring in circumstances in which it is unable to meet its obligations as
      they
      fall due, then Buyer shall have a non-exclusive right and license to use the
      Manufacturing Package and to select a third party to manufacture the Product
      for
      continued distribution in the Territory. In the event Buyer exercises its rights
      under this Section 4.3, all royalties payable hereunder shall remain unchanged.
      Supplier shall place the Manufacturing Package in escrow pursuant to a mutually
      agreed upon escrow agreement that enables release of the Manufacturing Package
      upon written notice of the occurrence of any of the foregoing release
      conditions. When Supplier recovers it’s total ability to run it’s business
      normally, the Buyer’s manufacturing rights under this Section 4.3 shall
      terminate and the provisions, terms and conditions of this Agreement shall
      be in
      full force and effect.

    

    
      
 ARTICLE
      5

    PRICE
      AND TERMS

      

    

    5.1.
      Payments
      : In
      consideration of the exclusive license granted in Article 2.1, upon receipt
      of
      Product pursuant to orders by Buyer, Buyer shall pay to Supplier a non
      refundable premium of USD $1.5 million in accordance with the following payment
      schedule:

     

    (i)
      US$
      250 000 upon the commercial launch of the product in the
      US

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ii)
      US$
      500 000 on or before the 90th
      day
      after commercial launch of the product in the US

     

    (iii)
      US$
      750 000 upon the earlier twelve month after the commercial launch of the
      Product or at the time that Buyer achieves £ 5 000 000 of net Sales in
      the first year.

    

    5.2
      The
      transfer price of the two presentations, SILICIUM (Lotion & Shampoo) are
      defined as below and calculated in a USA$ with a fix exchange rate as specified
      in the article 5.4

    

    (i). EURO
      3.80
      per bottle of Silicium 44 Lotion,

    (ii). EURO
      2.80
      per bottle of Silicium 44 Shampoo.

    

    Buyer
      shall pay these amounts to Supplier in US Dollars at the then existing Transfer
      Price as calculated in Section 5.4.

    

    5.2.
      Minimum Batch size : The
      minimum batch size for stock
      bottles of either the Silicium 44 Lotion or Silicum 44 Shampoo shall be 50,000
      units per product.

    

    5.3
      Royalties: Buyer will pay royalties equal to five percent (5 %) on Net Sales.
      Royalties will be calculated for the first six months after initial distribution
      by Buyer and every six months thereafter. Royalty is to be paid 60 days
      following the determination period to Supplier

    

    5.4. Transfer
      Price: The
      official exchange rate applied on May 15th,
      2007
      will be applied all through the year 2007/2008 : 1€ = $ 1.36.  For
      the
      first twelve months of the term of this Agreement the Transfer Price shall
      be as
      set forth in Exhibit B. After the initial 24 months of exploitation of the
      product, the Transfer Price may be negotiated on an amicable basis following
      cost increase of raw materials, energy and labour; provided, however, that
      if
      agreement regarding the Transfer Price is not reached after good faith
      negotiations, then the Transfer Price from the most recent year shall be used
      for the current year.

    

    5.5.
      Price Decreases:
      Supplier
      shall use all commercially reasonable efforts to reduce the prices charged
      to
      Buyer hereunder for the Products. If such prices can be reduced as a result
      of
      market forces or cost reduction strategies identified by Supplier, then 50%
      of
      the amount of such price reduction shall be applied to the prices paid by Buyer
      hereunder. If prices can be reduced as a result of cost reduction strategies
      identified by Buyer, then 100% of the amount of such reduction shall be applied
      to the prices paid by Buyer hereunder. 

    

    5.6
      Transport and Product Insurance : All
      risk
      of damage to or loss or delay of the Product shall pass to Buyer upon Supplier’s
      delivery at the FCA pick-up point to a common carrier. Buyer shall insure each
      shipment of the Product with a reputable insurer for the full invoice value
      of
      such shipment. Such insurance shall provide for full coverage from the time
      the
      Product are delivered from the FCA pick-up point until Buyer shall have paid
      Supplier in full for such Product.

    

    5.7.
      Payment Terms :
      The
      Buyer shall be invoiced for purchases of Product with a payment term of 30
      days
      from evidence of shipment. All invoices shall be paid by Buyer within thirty
      (30) days of receipt by bank transfer only.

    

    5.8.
      Forecasts
      : Buyer
      agrees to provide Supplier with a twelve (12) month non-binding forecast
      indicating Buyer’s estimated intended purchases of Product during each calendar
      quarter of such period. Such forecast shall be updated by Buyer on a rolling
      basis for a new twelve (12) month period, which updated forecast must be
      received by Supplier no later than thirty (30) days prior to the first day
      of
      each succeeding calendar quarter. Such rolling forecasts by Buyer are required
      to meet the lead times required by certain of Supplier’s suppliers as
      communicated to Buyer by Supplier.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.9.
      Minimum Purchase Requirements for USA.
      In
      order to maintain its exclusive distribution license in accordance with Article
      2.1, Buyer shall purchase the following minimum amounts of the Product from
      Supplier during the term of this Agreement. 

    

    5.9.1.
      During
      the first twelve (12) month period, Buyer will purchase at least Fifty Thousand
      (50,000) units of each Product to maintain exclusivity.

    

    5.9.2.
      During
      the second twelve (12) month period, Buyer will purchase at least Eighty
      Thousand (80,000) units of each Product to maintain exclusivity.

    

    5.9.3.
      During
      the third twelve (12) month period, Buyer will purchase at least One Hundred
      Twenty Thousand (120,000) units of each Product to maintain
      exclusivity.

    

    5.9.4.
      During
      the fourth twelve (12) month period, and for each twelve (12) month period
      thereafter, Buyer will purchase at least One Hundred Fifty Thousand (150,000)
      units of each Product to maintain exclusivity.

    

    5.9.5.
      Failure
      to achieve the above targets for two consecutive years, could result in the
      loss
      of exclusive rights to the Product in the Territory (whereupon Supplier shall
      give Buyer 90 days prior written notice of such loss of exclusive rights).
      Notwithstanding the foregoing, Buyer shall have the right to “buy out” the
      Minimum Purchase Requirement for any given year by paying to Supplier the amount
      of royalty that would have been paid to Supplier had Buyer met the applicable
      Minimum Purchase Requirement, based on Buyer’s sales price in effect at the
      time.

    

    
      
 ARTICLE
      6

    TRADEMARKS

      

    

    6.1.
      Use of Trademarks.
      Buyer
      can market Product in the Territory preferably under SILICIUM 44 Trade mark.
      If
      the Buyer uses its own trademarks and trade names; provided, however, Buyer
      shall include notices on each Product stating the issued US Patent number and
      Supplier’s ownership rights, as well as being identified as the manufacturer of
      the finished product or use Supplier’s trade name free of charge. Buyer is
      granted a non-exclusive right and license to use Supplier’s trademarks and trade
      names for the purpose of marketing and distributing the Products in the
      Territory. Supplier shall label the Product in accordance with Buyer’s
      instructions, as may be updated from time to time.

    

    In
      case
      Buyer chooses it’s own trademark, Buyer, at its own expense, shall be
      responsible for the selection, registration and maintenance of the brand name
      to
be used with respect to the Product and shall own and control such trademark.
      All goodwill arising as a result of such trademark shall inure solely to the
      benefit of Buyer.

    

    6.2 Right
      of First Refusal.
      If (a)
      Buyer undergoes a change of owner, dissolution, or acquisition of the Buyer,
      and
      (b) the new owner or controlling entity indicates its intent not to continue
      to
      market the Trademark or Trade name for the Products, the Supplier has the right
      of first proposal, first refusal to acquire, at preferred rate, the Trademark
      and Trade names.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

    

      ARTICLE
      7

    TERM
      AND TERMINATION

      

    7.1.
      Term.
      This
      Agreement shall take effect as of the date first above written, and unless
      earlier terminated as otherwise provided in this Agreement, shall continue
      in
      force until the expiration of the Patent so long as Buyer has purchased the
      minimum requirements set forth in Section 5.9.

    

    7.2.
      Termination.
      This
      Agreement may be terminated in accordance with the following
      provisions:

    

    7.2.1.
      Either
      party may terminate this Agreement by giving notice in writing to the other
      party should an event of Force Majeure continue to affect the other party hereto
      uninterrupted for more than six (6) months as provided in Section 8.5
      below;

    

    7.2.2.
      Either
      party may terminate this Agreement by giving notice in writing to the other
      party in the event the other party is in material breach of a material provision
      this Agreement and such breaching party shall have failed to correct such breach
      within thirty (30) days of receipt from the other party of written notice
      describing with specificity such breach (and if such breach is not reasonably
      corrected within such 30 days, such breaching party must have at least
      undertaken within such 30 day period reasonable steps to correct such breach
      after such 30 day period in order to prevent such termination).

    

    7.3.
      No compensation.
      In the
      event either party terminates this Agreement in accordance with the terms
      hereof, the parties hereby agree that neither party shall be entitled to any
      compensation or like payment from the other party or any affiliate of the other
      party as a result of such termination.

    

    7.4.
      Upon
      termination or expiration of this Agreement in accordance with its terms, Buyer
      shall within 160 days thereafter immediately cease to sell and/or distribute
      the
      Product. Further, upon termination or expiration of this Agreement, subject
      to
      the foregoing sentence, each party shall return or destroy the other party’s
      Confidential Information (as defined below).

    

    
      
 ARTICLE
      8

    FORCE
      MAJEURE

      

    

    8.1.
      Definition.
“Force
      Majeure” shall mean any event or condition not reasonably within the control of
      either party which prevents in whole or in material part the performance by
      one
      of the parties of its obligations hereunder or which renders the performance
      of
      such obligations so difficult or costly as to make such performance commercially
      unreasonable. Without limiting the foregoing, the following shall constitute
      events or conditions of Force Majeure; acts of State or governmental action,
      riots, war, strikes, prolonged extreme slowdowns, prolonged extreme shortage
      of
      energy supplies, epidemics, fire, flood, hurricane, typhoon, earthquakes,
      lightning and explosion; provided, however, a Force Majeure event shall not
      limit Buyer’s obligation to make payments to Supplier for Product. It is in
      particular expressly agreed that any refusal or failure of any governmental
      authority to grant any authorization, approval or license legally required
      for
      the fulfillment by Supplier of its obligations hereunder shall constitute an
      event of Force Majeure.

    

    8.2.
      Notice.
      Upon
      giving notice to the other party, a party affected by an event of Force Majeure
      shall be released without any liability on its part from the performance of
      its
      obligations under this Agreement, except for the obligation to pay any amounts
      due and owing hereunder, but only to the extent and only for the period that
      its
      performance of such obligation is prevented by the event of Force Majeure.
      Such
      notice shall include a description of the nature of the event of Force Majeure,
      and its cause and possible consequences. The party claiming Force Majeure shall
      promptly notify the other party of its termination of such
      event.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.3.
      Confirmation.
      The
      party invoking Force Majeure shall provide to the other party confirmation
      of
      the existence of the circumstances constituting Force Majeure. Such evidence
      may
      consist of statement or certificate of an appropriate governmental department
      or
      agency where available, or a statement describing in detail the facts claimed
      to
      constitute Force Majeure.

    

    8.4.
      Suspension of Performance.
      During
      the period that the performance by one of the parties of its obligations under
      this Agreement has been suspended by reason of an event of Force Majeure, the
      other party may likewise suspend the performance or all or part of its
      obligations hereunder to the extent that such suspension is commercially
      reasonable.

    

    8.5.
      Termination.
      Should
      the period of Force Majeure continue for more than sixty (60) consecutive days,
      the party not suffering the Force Majeure may terminate this Agreement without
      liability to the other party, except for payments due to such date, upon giving
      written notice to the other party.

    

    
      
 ARTICLE
      9

    PRODUCT
      LIABILITY

      

    

    9.1.
      Supplier
      Product Liability Insurance. Supplier
      is the supplier of the finished consumer Product, and bears all products
      liability risk associated therewith. Supplier
      shall maintain and shall require all of its subcontractors and manufacturers
      to
      maintain Commercial General Liability insurance with a limit of not less than
      $1
      million per each occurrence and $2 million aggregate. Such insurance shall
      be
      maintained from the inception of this Agreement until 9 months following
      termination of this Agreement. 

    

    Supplier
      shall provide certified copies of each policy providing the such insurance
      upon
      Buyer’s request at any time (and such certificates shall (1) clearly evidence
      all such coverage and specific evidence of a separate commercial general
      liability endorsement adding such additional insured, and (2) provide that
      such
      insurance shall not be modified, terminated or cancelled except on 30 days'
      prior written notice to Buyer. If Supplier for any reason, fails to maintain
      insurance coverage which is required pursuant to this Agreement, the same shall
      be deemed a material breach of contract and Buyer may, at its sole option,
      terminate this Agreement and obtain damages from Supplier resulting from said
      breach. (By requiring insurance herein, Buyer does not represent that coverage
      and limits will necessarily be adequate to protect Buyer and such coverage
      and
      limits shall not be deemed as a limitation on liability under the indemnities
      hereunder.) 

    

    9.2.
      Indemnity.
      Supplier shall indemnify, reimburse, and hold harmless Buyer, its affiliates,
      and their respective officers, directors, employees, agents, successors and
      assigns from and against any and all costs, losses, liabilities, damages,
      pending, threatened or concluded lawsuits, deficiencies, claims and expenses
      (including reasonable fees and disbursements of attorneys) (collectively, the
      “Damages”)
      to the
      extent such Damages are incurred in connection with or arise out of (i) any
      breach of any covenant or agreement of Supplier herein; (ii) the breach of
      any
      representation or warranty made by Supplier in this Agreement (without regard
      to
      materiality qualifiers contained in such representations or warranties);
      (iii) the negligence or willful misconduct of Supplier, its employees,
      agents or contractors; and (iv) the use or distribution of the Products,
      including without limitation any actual or alleged infringement of any third
      party intellectual property rights by the Products or Information, or the use,
      sale or distribution thereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.3 Buyer
      Product Liability Insurance. Buyer
      shall maintain Commercial General Liability insurance with a limit of not less
      than $1 million per each occurrence and $2 million aggregate. Such insurance
      shall name Supplier and each of its members, managers, directors, officers
      and
      employees as an “additional insured.” Such insurance shall be maintained from
      the inception of this Agreement until 9 months following termination of this
      Agreement. 

    

    Buyer
      shall provide certified copies of each policy providing the such insurance
      upon
      Supplier’s request at any time (and such certificates shall (1) clearly evidence
      all such coverage and specific evidence of a separate commercial general
      liability endorsement adding such additional insured, and (2) provide that
      such
      insurance shall not be modified, terminated or canceled except on 30 days'
      prior
      written notice to Supplier. If Buyer for any reason, fails to maintain insurance
      coverage which is required pursuant to this Agreement, the same shall be deemed
      a material breach of contract and Supplier may, at its sole option, terminate
      this Agreement and obtain damages from Buyer resulting from said breach. (By
      requiring insurance herein, Supplier does not represent that coverage and limits
      will necessarily be adequate to protect Supplier and such coverage and limits
      shall not be deemed as a limitation on liability under the indemnities
      hereunder.) 

    

    
      
 ARTICLE
      10

    GOVERNING
      LAW, ETC.

      

    

    10.1.
      Applicable Law.
      This
      Agreement shall be governed by, and shall be construed and enforced in
      accordance with, the internal laws of New York, USA, without regard to conflicts
      of laws provisions thereof and without regard to the United Nations Convention
      on Contracts for the International Sale of Goods. Any legal action or proceeding
      arising under this Agreement will be brought exclusively in the federal or
      state
      courts located in New York City, New York, and the parties hereby consent to
      the
      personal jurisdiction and venue therein.

    

    
      
 ARTICLE
      11

    MISCELLANEOUS

      

    

    11.1
      Assignment: Neither
      party shall have the right to assign or otherwise transfer its rights and
      obligations under this Agreement except with the prior written consent of the
      other party and consent shall not be unreasonably withheld; provided, however,
      that either party shall be entitled to assign any or all of its rights and
      obligations hereunder to any of its affiliates, or in the event of a merger
      or
      acquisition of substantially all of a party’s stock, assets or
      business.

    

    11.2 Limitation
      of Liability.
      Except
      in the event of a breach of any of the provisions of Article 2, Article 3,
      Article 11.3 of this Agreement, or liability under Article 9, neither party
      shall be liable to the other party or any third party for special, indirect,
      incidental, consequential or punitive damages of any kind or nature whatsoever,
      whether arising under contract, warranty, or tort (including negligence or
      strict liability) or any other theory of liability even if the possibility
      of
      such damages were disclosed to the other party or could have been reasonably
      foreseen. The limitations of liability reflect the allocation of risk between
      the parties. The limitations specified in this Section 11.2 will survive and
      apply even if any limited remedy specified in this Agreement is found to have
      failed of its essential purpose.

    

    11.3. Confidentiality.
      Both
      parties acknowledge that either may receive (the “receiving party”) Confidential
      Information (as defined hereinafter) from the other (the “disclosing party”)
      during the term of this Agreement, including information designated as
      confidential at the time of disclosure, or summarized in writing as Confidential
      Information within a reasonable time after disclosure. The receiving party
      shall
      only use the other party’s Confidential Information to perform its obligations
      under this Agreement and disclose the other party’s Confidential Information
      only to persons within the receiving party having a need to know the information
      for the purpose of this Agreement. The receiving party shall treat the
      Confidential Information as it does its own valuable and sensitive information
      of a similar nature, and, in any event, with not less than a reasonable degree
      of care. “Confidential Information” means any business or technical information
      of a party, including but not limited to any information relating to product
      plans, designs, costs, product prices and names, finances, marketing plans,
      business opportunities, personnel, research, development or know-how that is
      designated by the disclosing party as "confidential" or "proprietary" and,
      if
      orally disclosed, reduced to writing by the disclosing party within thirty
      (30)
      days of such disclosure.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.4. Ownership.
      Supplier is and shall remain the owner of all Patents and Information, including
      any enhancements, modifications or enhancements to such Patents and/or
      Information which are made during the term of this Agreement by either
      party.

    

    11.5. Entire
      Agreement/Modifications.
      Except
      with respect to the Quality Assurance Agreement, this Agreement constitutes
      the
      complete and exclusive statement of the agreement between the parties, and
      supersedes all proposals, and all other prior or contemporaneous communications
      between the parties relating to the subject matter hereof, whether written
      or
      oral. No purchase order shall add additional terms to or vary the terms of
      this
      Agreement. Modifications to this Agreement shall be in writing, expressly refer
      to this Agreement, and be signed by authorized representatives of Buyer and
      Supplier.

    

    11.6.
      Severability.
      If any
      provision of this Agreement is held by a court of competent jurisdiction to
      be
      contrary to law, the remaining provisions of the Agreement shall remain in
      full
      force and effect.

    

    11.7.
      Independent
      Contractors.
      The
      parties are independent contractors to each other. No agency, employment, or
      partnership is hereby created by and between the parties. Neither party shall
      have authority to act for the other in any manner to create obligations or
      debts
      that would be binding upon the other. Neither party shall be responsible for
      any
      obligations or expenses of the other except as expressly authorized to be
      incurred in the performance of this Agreement.

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
      on
      the date first above written.

    

    
      	
              Laboratoires
                Carilène, SA

            	 	
              Auriga
                Laboratories, Inc..

            
	 	 	 
	
              Signature
                ___________________________

            	 	
              Signature
                ___________________________

            
	 	 	 
	
              Name
                ______________________________

            	 	
              Name:
                Philip S. Pesin

            
	 	 	 
	
              Position
                ____________________________

            	 	
              Position:
                Chief Executive Officer

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    APPENDIX
      1

    

    PACKAGING
      AND BATCH LABELING INSTRUCTIONS

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
      B

    

    Transfer
      Pricing

    

    
      	
              Product

            	 	
              Product Cost Per Unit (US Dollars)

            	 
	 	 	 	 
	
              “Silicium
                44” Lotion

            	 	
              $

            	
              5.17

            	 
	
              “Silicium
                44” Shampoo

            	 	
              $

            	
              3.81

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      C

    

    Product
      Description

    

    The
      Product is a lotion and shampoo based upon combinations, in particular for
      use
      as the active principle in a cosmetic or pharmaceutical and particularly
      dermatological composition, containing peroxidised lipids and organosilicon
      compounds containing them, as well as their applications. The Product includes
      but is not limited to the combination commonly known and sold in Europe as
      “Silicium 44 Lotion” and “Silicium 44 Shampoo.” The Product is sold in Europe
      under the name M44 for France, Silicium 44 in the CEE and Middle East
      countries.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      D

    

    Patent
      & PCT Filing

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