Document:

AURIGA LABORATORIES,
INC. 

2006 STOCK PLAN
NOTICE
OF STOCK OPTION GRANT 

Charles R. Bearchell, 

        You
have been granted an option to purchase Common Stock (“Common Stock”) of
Auriga Laboratories, Inc. (the “Company”) as follows: 

	Board Approval
Date: 	 11/8/2006

	Date of
Grant:  	 11/8/2006

	Vesting Commencement
Date: 	 11/8/2006

	Exercise Price
Per Share:  	                     1.26

	Total Number
of Shares Granted: 	 750,000

	Type of
Option:  	  NON-STATUTORY STOCK OPTION

	Term/Expiration Date:  	
                        11/8/2016

	Vesting Schedule: 	
                            One-third (1/3) of the shares shall vest immediately on the
Vesting                                               Commencement Date; thereafter,
 1/36ths of the  shares  shall vest in
                                              equal monthly installments,  commencing one
(1) month after the Vesting                                               Commencement
 Date,  and ending on the third (3rd)  anniversary  of the
                                              Vesting Commencement Date.

	Termination Period:  	
                          This  Option  may be  exercised  for up to three (3)  months
 following                                               termination of  employment,
 except as set forth in Sections 6 and 7 of
                                              the Stock Option  Agreement  (but in no
event later than the Expiration                                               Date).

        By
your signature and the signature of the Company’s representative below, you and the
Company agree that this option is granted under and governed by the terms and conditions
of the 2006 STOCK PLAN and the Stock Option Agreement, both of which are attached and made
a part of this document. 

		
	GRANTEE	AURIGA LABORATORIES, INC.
	

/s/ Charles R. Bearchell            
            	By: /s/ Philip S. Pesin            
              
	Signature	
		Name: Philip S. Pesin            
              
	
Charles R. Bearchell            
                 	Title: Chief Executive Officer            
  
	Print Name	

AURIGA LABORATORIES,
INC. 

2006 STOCK PLAN
STOCK
OPTION AGREEMENT 

         1.    
          Grant of Option. Auriga Laboratories, Inc., a Delaware
          corporation (the “Company”), hereby grants to GRANTEE
          (“Optionee”) an option (the “Option”) to
          purchase the total number of shares of Common Stock (the “Shares”) set
          forth in the Notice of Stock Option Grant (the “Notice”), at
          the exercise price per share set forth in the Notice of Stock Option Grant (the
          “Exercise Price”) subject to the terms, definitions and
          provisions of the Auriga Laboratories, Inc. 2006 Stock Plan (the
          “Plan”) adopted by the Company, which is incorporated herein by
          reference. Unless otherwise defined herein, the terms defined in the Plan shall
          have the same defined meanings in this Stock Option Agreement (this
          “Agreement”). 

        If
designated an Incentive Stock Option, this Option is intended to qualify as an Incentive
Stock Option as defined in Section 422 of the Code. 

         2.    
          Exercise of Option. This Option shall be exercisable during
          its Term in accordance with the Vesting Schedule set out in the Notice and with
          the provisions of Sections 7 and 8 of the Plan as follows: 

             (a)    
          Right to Exercise. 

                 (i)    
          This Option may be exercised in whole or in part at any time after the Date of
          Grant, as to Shares which have not yet vested under the vesting schedule
          indicated in the Notice; provided, however, that Optionee shall execute as a
          condition to such exercise of this Option, the Early Exercise Notice and
          Restricted Stock Purchase Agreement attached hereto as Exhibit A (the
          “Early Exercise Agreement”). If Optionee chooses to exercise
          this Option solely as to Shares which have vested under the vesting schedule
          indicated in the Notice, Optionee shall complete and execute the form of
          Exercise Notice and Restricted Stock Purchase Agreement attached hereto as
          Exhibit B (the “Exercise Agreement”). Notwithstanding
          the foregoing, the Company may in its discretion prescribe or accept a different
          form of notice of exercise and/or stock purchase agreement if such forms are
          otherwise consistent with this Agreement, the Plan and then-applicable law. 

                 (ii)    
          This Option may not be exercised for a fraction of a share. 

                 (iii)    
          In the event of Optionee’s death, disability or other termination of
          employment or consulting relationship, the exercisability of the Option is
          governed by Sections 5, 6 and 7 below, subject to the limitation contained in
          Section 2(a)(iv) below. 

                 (iv)    
          In no event may this Option be exercised after the Expiration Date of this
          Option as set forth in the Notice. 

             (b)    
          Method of Exercise. This Option shall be exercisable by
          execution and delivery of the Early Exercise Agreement or the Exercise
          Agreement, whichever is applicable, or of any other written notice approved for
          such purpose by the Company which shall state the election to exercise the
          Option, the number of Shares in respect of which the Option is being exercised,
          and such other representations and agreements as to the holder’s investment
          intent with respect to such shares of Common Stock as may be required by the
          Company pursuant to the provisions of the Plan. Such written notice shall be
          signed by Optionee and shall be delivered in person or by certified mail to the
          Secretary of the Company. The written notice shall be accompanied by payment of
          the Exercise Price. This Option shall be deemed to be exercised upon receipt by
          the Company of such written notice accompanied by the Exercise Price. 

2 

        No
Shares will be issued pursuant to the exercise of an Option unless such issuance and such
exercise shall comply with all relevant provisions of applicable law, including the
requirements of any stock exchange upon which the Shares may then be listed. Assuming such
compliance, for income tax purposes the Shares shall be considered transferred to Optionee
on the date on which the Option is exercised with respect to such Shares. 

         3.    
          Method of Payment. Payment of the Exercise Price shall be
          by cash, check or any other form approved by the Company, or any other method
          permitted under the Plan; provided however, that the Administrator may refuse to
          allow Optionee to tender a particular form of payment (other than cash or check)
          if, in the Administrator’s sole discretion, acceptance of such form of
          consideration would not be in the best interests of the Company at such time. 

         4.    
          Restrictions on Exercise. This Option may not be exercised
          until such time as the Plan has been approved by the shareholders of the
          Company, or if the issuance of such Shares upon such exercise or the method of
          payment of consideration for such shares would constitute a violation of any
          applicable federal or state securities or other law or regulation, including any
          rule under Part 207 of Title 12 of the Code of Federal Regulations as
          promulgated by the Federal Reserve Board. As a condition to the exercise of this
          Option, the Company may require Optionee to make certain representations and
          warranties to the Company as may be required by any applicable law, regulation
          or Company policy. 

         5.    
          Termination of Relationship. In the event of termination of
          Optionee’s Continuous Status as an Employee or Consultant, Optionee may, to
          the extent otherwise so entitled at the date of such termination (the
          “Termination Date”), exercise this Option during the
          Termination Period set forth in the Notice. To the extent that Optionee was not
          entitled to exercise this Option at such Termination Date, or if Optionee does
          not exercise this Option within the Termination Period, this Option shall
          terminate. 

         6.    
          Disability of Optionee. 

             (a)    
          Notwithstanding the provisions of Section 5 above, in the event of termination
          of Optionee’s Continuous Status as an Employee or Consultant as a result of
          his or her total and permanent disability (as defined in Section 22(e)(3) of the
          Code), Optionee may, but only within twelve (12) months from the Termination
          Date (but in no event later than the Expiration Date set forth in the Notice and
          in Section 9 below), exercise this Option to the extent he or she was entitled
          to exercise it at such Termination Date. To the extent that Optionee was not
          entitled to exercise the Option on the Termination Date, or if Optionee does not
          exercise such Option to the extent so entitled within the time specified in this
          Section 6(a), this Option shall terminate. 

3 

             (b)    
          Notwithstanding the provisions of Section 5 above, in the event of termination
          of Optionee’s consulting relationship or Continuous Status as an Employee
          as a result of a disability not constituting a total and permanent disability
          (as set forth in Section 22(e)(3) of the Code), Optionee may, but only within
          six (6) months from the Termination Date (but in no event later than the
          Expiration Date set forth in the Notice and in Section 9 below), exercise the
          Option to the extent Optionee was entitled to exercise it as of such Termination
          Date; provided, however, that if this is an Incentive Stock Option and Optionee
          fails to exercise this Incentive Stock Option within three months from the
          Termination Date, this Option will cease to qualify as an Incentive Stock Option
          (as defined in Section 422 of the Code) and Optionee will be treated for federal
          income tax purposes as having received ordinary income at the time of such
          exercise in an amount generally measured by the difference between the Exercise
          Price for the Shares and the Fair Market Value of the Shares on the date of
          exercise. To the extent that Optionee was not entitled to exercise the Option at
          the Termination Date, or if Optionee does not exercise such Option to the extent
          so entitled within the time specified in this Section 6(b), this Option shall
          terminate. 

         7.    
          Death of Optionee. In the event of the death of Optionee:
          (a) during the Term of this Option and while an Employee or Consultant of the
          Company and having been in Continuous Status as an Employee or Consultant since
          the date of grant of the Option; or (b) within thirty (30) days after
          Optionee’s Termination Date, this Option may be exercised at any time
          within six (6) months following the date of death (but in no event later than
          the Expiration Date set forth in the Notice and in Section 9 below), by
          Optionee’s estate or by a person who acquired the right to exercise the
          Option by bequest or inheritance, but only to the extent of the right to
          exercise that had accrued at the Termination Date. 

         8.    
          Non-Transferability of Option. This Option may not be
          transferred in any manner otherwise than by will or by the laws of descent or
          distribution and may be exercised during the lifetime of Optionee only by him or
          her. The terms of this Option shall be binding upon the executors,
          administrators, heirs, successors and assigns of Optionee. 

         9.    
          Term of Option. This Option may be exercised only within
          the Term set forth in the Notice, subject to the limitations set forth in
          Section 6 of the Plan. 

         10.    
          Tax Consequences. Set forth below is a brief summary as of
          the date of this Option of certain of the federal and state tax consequences of
          exercise of this Option and disposition of the Shares under the laws in effect
          as of the Date of Grant. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX
          LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX
          ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 

             (a)    
          Exercise of Incentive Stock Option. If this Option
          qualifies as an Incentive Stock Option, there will be no regular federal or
          state income tax liability upon the exercise of the Option, although the excess,
          if any, of the Fair Market Value of the Shares on the date of exercise over the
          Exercise Price will be treated as an adjustment to the alternative minimum tax
          for federal tax purposes and may subject Optionee to the alternative minimum tax
          in the year of exercise. 

4 

             (b)    
          Exercise of Nonstatutory Stock Option. If this Option does
          not qualify as an Incentive Stock Option, there may be a regular federal income
          tax liability and a state income tax liability upon the exercise of the Option.
          Optionee will be treated as having received compensation income (taxable at
          ordinary income tax rates) equal to the excess, if any, of the fair market value
          of the Shares on the date of exercise over the Exercise Price. If Optionee is a
          current or former employee, the Company may be required to withhold from
          Optionee’s compensation or collect from Optionee and pay to the applicable
          taxing authorities an amount equal to a percentage of this compensation income
          at the time of exercise. 

             (c)    
          Disposition of Shares. In the case of a Nonstatutory Stock
          Option, if Shares are held for more than one (1) year, any gain realized on
          disposition of the Shares will be treated as long-term capital gain for federal
          and state income tax purposes. In the case of an Incentive Stock Option, if
          Shares transferred pursuant to the Option are held for more than one (1) year
          after exercise and are disposed of by at least two (2) years after the Date of
          Grant, any gain realized on disposition of the Shares will also be treated as
          long-term capital gain for federal and state income tax purposes. In either
          case, the long-term capital gain will be taxed for federal income tax and
          alternative minimum tax purposes at a maximum rate of 20% if the Shares are held
          more than one (1) year after exercise. If Shares purchased under an Incentive
          Stock Option are disposed of within one (1) year after exercise or within two
          (2) years after the Date of Grant, any gain realized on such disposition will be
          treated as compensation income (taxable at ordinary income rates) to the extent
          of the difference between the Exercise Price and the lesser of: (i) the Fair
          Market Value of the Shares on the date of exercise; or (ii) the sale price of
          the Shares. 

             (d)    
          Notice of Disqualifying Disposition of Incentive Stock Option
          Shares. If the Option granted to Optionee herein is an Incentive
          Stock Option, and if Optionee sells or otherwise disposes of any of the Shares
          acquired pursuant to the Incentive Stock Option on or before the later of: (i)
          the date two (2) years after the Date of Grant; or (ii) the date one (1) year
          after the date of exercise, Optionee shall immediately notify the Company in
          writing of such disposition. Optionee acknowledges and agrees that he or she may
          be subject to income tax withholding by the Company on the compensation income
          recognized by Optionee from the early disposition by payment in cash or out of
          the current earnings paid to Optionee. 

         11.    
          Withholding Tax Obligations. 

             (a)    
          General Withholding Obligations. As a condition to the
          exercise of the Option granted hereunder, Optionee shall make such arrangements
          as the Administrator may require for the satisfaction of any federal, state,
          local or foreign withholding tax obligations that may arise in connection with
          the exercise, receipt or vesting of the Option. The Company shall not be
          required to issue any Shares under the Plan until such obligations are
          satisfied. Optionee understands that, upon exercising a Nonstatutory Stock
          Option, he or she will recognize income for tax purposes in an amount equal to
          the excess of the then Fair Market Value of the Shares over the Exercise Price.
          If Optionee is an employee, the Company will be required to withhold from
          Optionee’s compensation, or collect from Optionee and pay to the applicable
          taxing authorities, an amount equal to a percentage of this compensation income.
          Additionally, Optionee may at some point be required to satisfy tax withholding
          obligations with respect to the disqualifying disposition of an Incentive Stock
          Option. Optionee shall satisfy his or her tax withholding obligation arising
          upon the exercise of this Option by one or some combination of the following
          methods: (i) by cash or check payment; (ii) out of Optionee’s current
          compensation; (iii) if permitted by the Administrator, in its discretion, by
          surrendering to the Company Shares which (A) in the case of Shares previously
          acquired from the Company, have been owned by Optionee for more than six (6)
          months on the date of surrender, and (B) have a Fair Market Value determined as
          of the applicable Tax Date (as defined in Section 11(c) below) on the date of
          surrender equal to the amount required to be withheld; or (iv) by electing to
          have the Company withhold from the Shares to be issued upon exercise of the
          Option that number of Shares having a Fair Market Value determined as of the
          applicable Tax Date equal to the amount required to be withheld. 

5 

             (b)    
          Stock Withholding to Satisfy Withholding Tax Obligations.
          In the event the Administrator allows Optionee to satisfy his or her tax
          withholding obligations as provided in Section 11(a)(iii) or (iv) above, such
          satisfaction must comply with the requirements of this Section (11)(b) and all
          applicable laws. All elections by Optionee to have Shares withheld to satisfy
          tax withholding obligations shall be made in writing in a form acceptable to the
          Administrator and shall be subject to the following restrictions: 

                 (i)    
          the election must be made on or prior to the applicable Tax Date (as defined in
          Section 11(c) below); 

                 (ii)    
          once made, the election shall be irrevocable as to the particular Shares of the
          Option as to which the election is made; and 

                 (iii)    
          all elections shall be subject to the consent or disapproval of the
          Administrator. 

        In
the event the election to have Shares withheld is made by Optionee and the Tax Date is
deferred under Section 83 of the Code because no election is filed under Section 83(b) of
the Code, Optionee shall receive the full number of Shares with respect to which the
Option is exercised, but Optionee shall be unconditionally obligated to tender back to the
Company the proper number of Shares on the Tax Date. 

             (c)    
          Definitions. For purposes of this Section 11, the Fair
          Market Value of the Shares to be withheld shall be determined on the date that
          the amount of tax to be withheld is to be determined under the Applicable Laws
          (the “Tax Date”). 

         12.    
          Market Standoff Agreement. In connection with the initial
          public offering of the Company’s securities and upon request of the Company
          or the underwriters managing such underwritten offering of the Company’s
          securities, Optionee agrees not to sell, make any short sale of, loan, grant any
          option for the purchase of, or otherwise dispose of any securities of the
          Company (other than those included in the registration) without the prior
          written consent of the Company or such underwriters, as the case may be, for
          such period of time (not to exceed 180 days) from the effective date of such
          registration as may be requested by the Company or such managing underwriters
          and to execute an agreement reflecting the foregoing as may be requested by the
          underwriters at the time of the Company’s initial public offering. 

[Signature Page Follows] 

6 

        This
Agreement may be executed in two or more counterparts, each of which shall be deemed an
original and all of which together shall constitute one document. 

		
		AURIGA LABORATORIES, INC.
		

By: /s/ Philip S. Pesin
		
Name: Philip S. Pesin
		Title:   Chief Executive Officer

        OPTIONEE
ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE OPTION HEREOF IS EARNED
ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL OF THE COMPANY (NOT THROUGH THE
ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE
FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY’S
STOCK PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT
WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT
INTERFERE IN ANY WAY WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE
OPTIONEE’S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE. 

        Optionee
acknowledges receipt of a copy of the Plan and represents that he or she is familiar with
the terms and provisions thereof, and hereby accepts this Option subject to all of the
terms and provisions thereof. Optionee has reviewed the Plan and this Option in their
entirety, has had an opportunity to obtain the advice of counsel prior to executing this
Agreement and fully understands all provisions of the Agreement. Optionee hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions arising under the Plan or this Agreement. 

		
	Dated: November 8, 2006	/s/ Charles R. Bearchell
		Signature

7 

EXHIBIT A 

AURIGA LABORATORIES,
INC. 

2006 STOCK PLAN
EARLY
EXERCISE NOTICE AND RESTRICTED STOCK PURCHASE AGREEMENT 

        This
Agreement (“Agreement”) is made as of __________________________, by and
between Auriga Laboratories, Inc., a Delaware corporation (the
“Company”), and __________________________________
(“Purchaser”). To the extent any capitalized terms used in this Agreement are
not defined, they shall have the meaning ascribed to them in the 2006 Stock Plan. 

         1.    
          Exercise of Option. Subject to the terms and conditions
          hereof, Purchaser hereby elects to exercise his or her option to purchase
          _________________ shares of the Common Stock (the “Shares”) of
          the Company under and pursuant to the Company’s 2006 Stock Plan (the
          “Plan”) and the Stock Option Agreement dated _________________
          (the “Option Agreement”). Of these Shares, Purchaser has
          elected to purchase _________________ of those Shares which have become vested
          as of the date hereof under the Vesting Schedule set forth in the Notice of
          Stock Option Grant (the “Vested Shares”) and ____________
          Shares which have not yet vested under such Vesting Schedule (the
          “Unvested Shares”). The purchase price for the Shares shall be
          $____________ per Share for a total purchase price of $_______________, which
          amount shall be paid for by a check in the amount of $____________. The term
          “Shares” refers to the purchased Shares and all securities
          received in replacement of the Shares or as stock dividends or splits, all
          securities received in replacement of the Shares in a recapitalization, merger,
          reorganization, exchange or the like, and all new, substituted or additional
          securities or other properties to which Purchaser is entitled by reason of
          Purchaser’s ownership of the Shares. 

         2.    
          Time and Place of Exercise. The purchase and sale of the
          Shares under this Agreement shall occur at the principal office of the Company
          simultaneously with the execution and delivery of this Agreement in accordance
          with the provisions of Section 2(b) of the Option Agreement. On such date, the
          Company will deliver to Purchaser a certificate representing the Shares to be
          purchased by Purchaser (which shall be issued in Purchaser’s name) against
          payment of the purchase price therefor by Purchaser by (a) check made payable to
          the Company, (b) cancellation of indebtedness of the Company to Purchaser, (c)
          delivery of shares of the Common Stock of the Company in accordance with Section
          3 of the Option Agreement, or (d) a combination of the foregoing. 

         3.    
          Limitations on Transfer. In addition to any other
          limitation on transfer created by applicable securities laws, Purchaser shall
          not assign, encumber or dispose of any interest in the Shares while the Shares
          are subject to the Company’s Repurchase Option (as defined below). After
          any Shares have been released from such Repurchase Option, Purchaser shall not
          assign, encumber or dispose of any interest in such Shares except in compliance
          with the provisions below and applicable securities laws. 

A-1 

        (a)    Repurchase
Option. 

                 (i)    
          In the event of the voluntary or involuntary termination of Purchaser’s
          employment or consulting relationship with the Company for any reason (including
          death or disability), with or without cause, the Company shall upon the date of
          such termination (the “Termination Date”) have an irrevocable,
          exclusive option (the “Repurchase Option”) for a period of 90
          days from such date to repurchase all or any portion of the Shares held by
          Purchaser as of the Termination Date which have not yet been released from the
          Company’s Repurchase Option at the original purchase price per Share
          specified in Section 1 (adjusted for any stock splits, stock dividends and the
          like). 

                 (ii)    
          Unless the Company notifies Purchaser within 90 days from the date of
          termination of Purchaser’s employment or consulting relationship that it
          does not intend to exercise its Repurchase Option with respect to some or all of
          the Shares, the Repurchase Option shall be deemed automatically exercised by the
          Company as of the 90th day following such termination, provided that the Company
          may notify Purchaser that it is exercising its Repurchase Option as of a date
          prior to such 90th day. Unless Purchaser is otherwise notified by the Company
          pursuant to the preceding sentence that the Company does not intend to exercise
          its Repurchase Option as to some or all of the Shares to which it applies at the
          time of termination, execution of this Agreement by Purchaser constitutes
          written notice to Purchaser of the Company’s intention to exercise its
          Repurchase Option with respect to all Shares to which such Repurchase Option
          applies. The Company, at its choice, may satisfy its payment obligation to
          Purchaser with respect to exercise of the Repurchase Option by either (A)
          delivering a check to Purchaser in the amount of the purchase price for the
          Shares being repurchased, or (B) in the event Purchaser is indebted to the
          Company, canceling an amount of such indebtedness equal to the purchase price
          for the Shares being repurchased, or (C) by a combination of (A) and (B) so that
          the combined payment and cancellation of indebtedness equals such purchase
          price. In the event of any deemed automatic exercise of the Repurchase Option
          pursuant to this Section 3(a)(ii) in which Purchaser is indebted to the Company,
          such indebtedness equal to the purchase price of the Shares being repurchased
          shall be deemed automatically canceled as of the 90th day following termination
          of Purchaser’s employment or consulting relationship unless the Company
          otherwise satisfies its payment obligations. As a result of any repurchase of
          Shares pursuant to this Section 3(a), the Company shall become the legal and
          beneficial owner of the Shares being repurchased and shall have all rights and
          interest therein or related thereto, and the Company shall have the right to
          transfer to its own name the number of Shares being repurchased by the Company,
          without further action by Purchaser. 

                 (iii)    
          One hundred percent (100%) of the Shares shall initially be subject to the
          Repurchase Option. The Unvested Shares shall be released from the Repurchase
          Option in accordance with the Vesting Schedule set forth in the Notice of Stock
          Option Grant until all Shares are released from the Repurchase Option.
          Fractional shares shall be rounded to the nearest whole share. 

             (b)    
          Right of First Refusal. Before any Shares held by Purchaser
          or any transferee of Purchaser (either being sometimes referred to herein as the
          “Holder”) may be sold or otherwise transferred (including
          transfer by gift or operation of law), the Company or its assignee(s) shall have
          a right of first refusal to purchase the Shares on the terms and conditions set
          forth in this Section 3(b) (the “Right of First Refusal”). 

A-2 

                 (i)    
          Notice of Proposed Transfer. The Holder of the Shares shall
          deliver to the Company a written notice (the “Notice”) stating:
          (i) the Holder’s bona fide intention to sell or otherwise transfer such
          Shares; (ii) the name of each proposed purchaser or other transferee
          (“Proposed Transferee”); (iii) the number of Shares to be
          transferred to each Proposed Transferee; and (iv) the terms and conditions of
          each proposed sale or transfer. The Holder shall offer the Shares at the same
          price (the “Offered Price”) and upon the same terms (or terms
          as similar as reasonably possible) to the Company or its assignee(s). 

                 (ii)    
          Exercise of Right of First Refusal. At any time within 30
          days after receipt of the Notice, the Company and/or its assignee(s) may, by
          giving written notice to the Holder, elect to purchase all, but not less than
          all, of the Shares proposed to be transferred to any one or more of the Proposed
          Transferees, at the purchase price determined in accordance with subsection
          (iii) below. 

                 (iii)    
          Purchase Price. The purchase price (“Purchase
          Price”) for the Shares purchased by the Company or its assignee(s)
          under this Section 3(b) shall be the Offered Price. If the Offered Price
          includes consideration other than cash, the cash equivalent value of the
          non-cash consideration shall be determined by the Board of Directors of the
          Company in good faith. 

                 (iv)    
          Payment. Payment of the Purchase Price shall be made, at
          the option of the Company or its assignee(s), in cash (by check), by
          cancellation of all or a portion of any outstanding indebtedness of the Holder
          to the Company (or, in the case of repurchase by an assignee, to the assignee),
          or by any combination thereof within 30 days after receipt of the Notice or in
          the manner and at the times set forth in the Notice. 

                 (v)    
          Holder’s Right to Transfer. If all of the Shares
          proposed in the Notice to be transferred to a given Proposed Transferee are not
          purchased by the Company and/or its assignee(s) as provided in this Section
          3(b), then the Holder may sell or otherwise transfer such Shares to that
          Proposed Transferee at the Offered Price or at a higher price, provided that
          such sale or other transfer is consummated within 60 days after the date of the
          Notice and provided further that any such sale or other transfer is effected in
          accordance with any applicable securities laws and the Proposed Transferee
          agrees in writing that the provisions of this Section 3 shall continue to apply
          to the Shares in the hands of such Proposed Transferee. If the Shares described
          in the Notice are not transferred to the Proposed Transferee within such period,
          or if the Holder proposes to change the price or other terms to make them more
          favorable to the Proposed Transferee, a new Notice shall be given to the
          Company, and the Company and/or its assignees shall again be offered the Right
          of First Refusal before any Shares held by the Holder may be sold or otherwise
          transferred. 

                 (vi)    
          Exception for Certain Family Transfers. Anything to the
          contrary contained in this Section 3(b) notwithstanding, the transfer of any or
          all of the Shares during Purchaser’s lifetime or on Purchaser’s death
          by will or intestacy to Purchaser’s Immediate Family (as defined below) or
          a trust for the benefit of Purchaser’s Immediate Family shall be exempt
          from the provisions of this
Section 3(b). “Immediate Family” as
          used herein shall mean spouse, lineal descendant or antecedent, father, mother,
          brother or sister. In such case, the transferee or other recipient shall receive
          and hold the Shares so transferred subject to the provisions of this Section,
          and there shall be no further transfer of such Shares except in accordance with
          the terms of this Section 3. 

A-3 

             (c)    
          Involuntary Transfer. 

                 (i)    
          Company’s Right to Purchase upon Involuntary Transfer.
          In the event, at any time after the date of this Agreement, of any transfer by
          operation of law or other involuntary transfer (including divorce or death, but
          excluding, in the event of death, a transfer to Immediate Family as set forth in
          Section 3(b)(vi) above) of all or a portion of the Shares by the record holder
          thereof, the Company shall have the right to purchase all of the Shares
          transferred at the greater of the purchase price paid by Purchaser pursuant to
          this Agreement or the Fair Market Value of the Shares on the date of transfer.
          Upon such a transfer, the person acquiring the Shares shall promptly notify the
          Secretary of the Company of such transfer. The right to purchase such Shares
          shall be provided to the Company for a period of 30 days following receipt by
          the Company of written notice by the person acquiring the Shares. 

                 (ii)    
          Price for Involuntary Transfer. With respect to any stock
          to be transferred pursuant to Section 3(c)(i), the price per Share shall be a
          price set by the Board of Directors of the Company that will reflect the current
          value of the stock in terms of present earnings and future prospects of the
          Company. The Company shall notify Purchaser or his or her executor of the price
          so determined within 30 days after receipt by it of written notice of the
          transfer or proposed transfer of Shares. However, if the Purchaser does not
          agree with the valuation as determined by the Board of Directors of the Company,
          the Purchaser shall be entitled to have the valuation determined by an
          independent appraiser to be mutually agreed upon by the Company and the
          Purchaser and whose fees shall be borne equally by the Company and the
          Purchaser. 

             (d)    
          Assignment. The right of the Company to purchase any part
          of the Shares may be assigned in whole or in part to any shareholder or
          shareholders of the Company or other persons or organizations. 

             (e)    
          Restrictions Binding on Transferees. All transferees of
          Shares or any interest therein will receive and hold such Shares or interest
          subject to the provisions of this Agreement, including, insofar as applicable,
          the Repurchase Option. In the event of any purchase by the Company hereunder
          where the Shares or interest are held by a transferee, the transferee shall be
          obligated, if requested by the Company, to transfer the Shares or interest to
          the Purchaser for consideration equal to the amount to be paid by the Company
          hereunder. In the event the Repurchase Option is deemed exercised by the Company
          pursuant to Section 3(a)(ii) hereof, the Company may deem any transferee to have
          transferred the Shares or interest to Purchaser prior to their purchase by the
          Company, and payment of the purchase price by the Company to such transferee
          shall be deemed to satisfy Purchaser’s obligation to pay such transferee
          for such Shares or interest, and also to satisfy the Company’s obligation
          to pay Purchaser for such Shares or interest. Any sale or transfer of the Shares
          shall be void unless the provisions of this Agreement are satisfied. 

A-4 

             (f)    
          Termination of Rights. The Right of First Refusal and the
          Company’s right to repurchase the Shares in the event of an involuntary
          transfer pursuant to Section 3(c) above shall terminate upon the listing of
          Common Stock of the Company on a national exchange. 

             (g)    
          Market Standoff Agreement. In connection with the initial
          public offering of the Company’s securities and upon request of the Company
          or the underwriters managing such underwritten offering of the Company’s
          securities, Purchaser agrees not to sell, make any short sale of, loan, grant
          any option for the purchase of, or otherwise dispose of any securities of the
          Company (other than those included in the registration) without the prior
          written consent of the Company or such underwriters, as the case may be, for
          such period of time (not to exceed 180 days) from the effective date of such
          registration as may be requested by the Company or such managing underwriters
          and to execute an agreement reflecting the foregoing as may be requested by the
          underwriters at the time of the Company’s initial public offering. 

         4.    
          Escrow of Unvested Shares. For purposes of facilitating the
          enforcement of the provisions of Section 3 above, Purchaser agrees, immediately
          upon receipt of the certificate(s) for the Shares subject to the Repurchase
          Option, to deliver such certificate(s), together with an Assignment Separate
          from Certificate in the form attached to this Agreement as Attachment A
          executed by Purchaser and by Purchaser’s spouse (if required for transfer),
          in blank, to the Secretary of the Company, or the Secretary’s designee, to
          hold such certificate(s) and Assignment Separate from Certificate in escrow and
          to take all such actions and to effectuate all such transfers and/or releases as
          are in accordance with the terms of this Agreement. Purchaser hereby
          acknowledges that the Secretary of the Company, or the Secretary’s
          designee, is so appointed as the escrow holder with the foregoing authorities as
          a material inducement to make this Agreement and that said appointment is
          coupled with an interest and is accordingly irrevocable. Purchaser agrees that
          said escrow holder shall not be liable to any party hereof (or to any other
          party). The escrow holder may rely upon any letter, notice or other document
          executed by any signature purported to be genuine and may resign at any time.
          Purchaser agrees that if the Secretary of the Company, or the Secretary’s
          designee, resigns as escrow holder for any or no reason, the Board of Directors
          of the Company shall have the power to appoint a successor to serve as escrow
          holder pursuant to the terms of this Agreement. 

         5.    
          Investment and Taxation Representations. In connection with
          the purchase of the Shares, Purchaser represents to the Company the following: 

             (a)    
          Purchaser is aware of the Company’s business affairs and financial
          condition and has acquired sufficient information about the Company to reach an
          informed and knowledgeable decision to acquire the Shares. Purchaser is
          purchasing the Shares for investment for his or her own account only and not
          with a view to, or for resale in connection with, any “distribution”
          thereof within the meaning of the Securities Act. Purchaser does not have any
          present intention to transfer the Shares to any other person or entity. 

             (b)    
          Purchaser understands that the Shares have not been registered under the
          Securities Act by reason of a specific exemption therefrom, which exemption
          depends upon, among other things, the bona fide nature of Purchaser’s
          investment intent as expressed herein. 

A-5 

             (c)    
          Purchaser understands that the Shares are “restricted securities”
          under applicable U.S. federal and state securities laws and that, pursuant to
          these laws, Purchaser must hold the Shares indefinitely unless they are
          registered with the Securities and Exchange Commission and qualified by state
          authorities, or an exemption from such registration and qualification
          requirements is available. Purchaser acknowledges that the Company has no
          obligation to register or qualify the Shares for resale. Purchaser further
          acknowledges that if an exemption from registration or qualification is
          available, it may be conditioned on various requirements including, but not
          limited to, the time and manner of sale, the holding period for the Shares, and
          requirements relating to the Company which are outside of the Purchaser’s
          control, and which the Company is under no obligation and may not be able to
          satisfy. 

             (d)    
          Purchaser understands that Purchaser may suffer adverse tax consequences as a
          result of Purchaser’s purchase or disposition of the Shares. Purchaser
          represents that Purchaser has consulted any tax consultants Purchaser deems
          advisable in connection with the purchase or disposition of the Shares and that
          Purchaser is not relying on the Company for any tax advice. 

         6.    
          Restrictive Legends and Stop-Transfer Orders. 

             (a)    
          Legends. The certificate or certificates representing the
          Shares shall bear the following legends (as well as any legends required by
          applicable state and federal corporate and securities laws): 

                 (i)    
          THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
          SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
          VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE
          OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
          RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY
          THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. 

                 (ii)    
          THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE
          WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER, A COPY
          OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY. 

             (b)    
          Stop-Transfer Notices. Purchaser agrees that, in order to
          ensure compliance with the restrictions referred to herein, the Company may
          issue appropriate “stop transfer” instructions to its transfer agent,
          if any, and that, if the Company transfers its own securities, it may make
          appropriate notations to the same effect in its own records. 

             (c)    
          Refusal to Transfer. The Company shall not be required (i)
          to transfer on its books any Shares that have been sold or otherwise transferred
          in violation of any of the provisions of this Agreement or (ii) to treat as
          owner of such Shares or to accord the right to vote or pay dividends to any
          purchaser or other transferee to whom such Shares shall have been so
          transferred. 

A-6 

             (d)    
          Removal of Legend. When all of the following events have
          occurred, the Shares then held by Purchaser will no longer be subject to the
          legend referred to in Section 6(a)(ii): (i) the termination of the Right of
          First Refusal; (ii) the expiration or termination of the market standoff
          provisions of Section 3(g) (and of any agreement entered pursuant to Section
          3(g)); and (iii) the expiration or exercise in full of the Repurchase Option.
          After such time, and upon Purchaser’s request, a new certificate or
          certificates representing the Shares not repurchased shall be issued without the
          legend referred to in Section 6(a)(ii), and delivered to Purchaser. 

         7.    
          No Employment Rights. Nothing in this Agreement shall
          affect in any manner whatsoever the right or power of the Company, or a Parent
          or Subsidiary of the Company, to terminate Purchaser’s employment or
          consulting relationship, for any reason, with or without cause. 

         8.    
          Section 83(b) Election. Purchaser understands that Section
          83(a) of the Internal Revenue Code of 1986, as amended (the
          “Code”), taxes as ordinary income for a Nonstatutory Stock
          Option and as alternative minimum taxable income for an Incentive Stock Option
          the difference between the amount paid for the Shares and the Fair Market Value
          of the Shares as of the date any restrictions on the Shares lapse. In this
          context, “restriction” means the right of the Company to buy
          back the Shares pursuant to the Repurchase Option set forth in Section 3(a) of
          this Agreement. Purchaser understands that Purchaser may elect to be taxed at
          the time the Shares are purchased, rather than when and as the Repurchase Option
          expires, by filing an election under Section 83(b) (an “83(b)
          Election”) of the Code with the Internal Revenue Service within 30 days
          from the date of purchase. Even if the Fair Market Value of the Shares at the
          time of the execution of this Agreement equals the amount paid for the Shares,
          the election must be made to avoid income and alternative minimum tax treatment
          under Section 83(a) in the future. Purchaser understands that failure to file
          such an election in a timely manner may result in adverse tax consequences for
          Purchaser. Purchaser further understands that an additional copy of such
          election form should be filed with his or her federal income tax return for the
          calendar year in which the date of this Agreement falls. Purchaser acknowledges
          that the foregoing is only a summary of the effect of United States federal
          income taxation with respect to purchase of the Shares hereunder, and does not
          purport to be complete. Purchaser further acknowledges that the Company has
          directed Purchaser to seek independent advice regarding the applicable
          provisions of the Code, the income tax laws of any municipality, state or
          foreign country in which Purchaser may reside, and the tax consequences of
          Purchaser’s death. 

        Purchaser
agrees that he or she will execute and deliver to the Company with this executed Agreement
a copy of the Acknowledgment and Statement of Decision Regarding Section 83(b) Election
(the “Acknowledgment”) attached hereto as Attachment B. Purchaser
further agrees that he or she will execute and submit with the Acknowledgment a copy of
the 83(b) Election attached hereto as Attachment C (for tax purposes in connection
with the early exercise of an option) if Purchaser has indicated in the Acknowledgment his
or her decision to make such an election. 

A-7 

    9.    Miscellaneous. 

             (a)    
          Governing Law. This Agreement and all acts and transactions
          pursuant hereto and the rights and obligations of the parties hereto shall be
          governed, construed and interpreted in accordance with the laws of the State of
          Georgia, without giving effect to principles of conflicts of law. 

             (b)    
          Entire Agreement; Enforcement of Rights. This Agreement
          sets forth the entire agreement and understanding of the parties relating to the
          subject matter herein and merges all prior discussions between them. No
          modification of or amendment to this Agreement, nor any waiver of any rights
          under this Agreement, shall be effective unless in writing signed by the parties
          to this Agreement. The failure by either party to enforce any rights under this
          Agreement shall not be construed as a waiver of any rights of such party. 

             (c)    
          Severability. If one or more provisions of this Agreement
          are held to be unenforceable under applicable law, the parties agree to
          renegotiate such provision in good faith. In the event that the parties cannot
          reach a mutually agreeable and enforceable replacement for such provision, then
          (i) such provision shall be excluded from this Agreement, (ii) the balance of
          the Agreement shall be interpreted as if such provision were so excluded and
          (iii) the balance of the Agreement shall be enforceable in accordance with its
          terms. 

             (d)    
          Construction. This Agreement is the result of negotiations
          between and has been reviewed by each of the parties hereto and their respective
          counsel, if any; accordingly, this Agreement shall be deemed to be the product
          of all of the parties hereto, and no ambiguity shall be construed in favor of or
          against any one of the parties hereto. 

             (e)    
          Notices. Any notice required or permitted by this Agreement
          shall be in writing and shall be deemed sufficient when delivered personally or
          sent by telegram or fax or 48 hours after being deposited in the U.S. mail, as
          certified or registered mail, with postage prepaid, and addressed to the party
          to be notified at such party’s address as set forth below or as
          subsequently modified by written notice. 

             (f)    
          Counterparts. This Agreement may be executed in two or more
          counterparts, each of which shall be deemed an original and all of which
          together shall constitute one instrument. 

             (g)    
          Successors and Assigns. The rights and benefits of this
          Agreement shall inure to the benefit of, and be enforceable by the
          Company’s successors and assigns. The rights and obligations of Purchaser
          under this Agreement may only be assigned with the prior written consent of the
          Company. 

A-8 

             (h)    
          Georgia Corporate Securities Law. THE SALE OF THE
          SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH
          THE COMMISSIONER OF CORPORATIONS OF THE STATE OF GEORGIA, OR ANY OTHER STATE,
          AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
          CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE
          OF SECURITIES IS EXEMPT FROM QUALIFICATION. THE RIGHTS OF ALL PARTIES TO THIS
          AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED,
          UNLESS THE SALE IS SO EXEMPT. 

[Signature Page Follows] 

A-9 

        The
parties have executed this Agreement as of the date first set forth above. 

		
		COMPANY:
		
AURIGA LABORATORIES, INC.
		

By:_________________________________
		
Name:_______________________________
		
Title:________________________________
		
    Address: 5555 Triangle Parkway, Suite 300
		                      Norcross, GA 30092
		

PURCHASER:
		

____________________________________
		Signature
		
____________________________________
		Print Name
		
____________________________________
		Address
		
____________________________________
		Address

A-10 

ATTACHMENT A 

ASSIGNMENT SEPARATE
FROM CERTIFICATE 

        FOR
VALUE RECEIVED and pursuant to that certain Early Exercise Notice and Restricted Stock
Purchase Agreement between the undersigned (“Purchaser”) and Auriga
Laboratories, Inc. (the “Company”) dated _______________, ____ (the
“Agreement”), Purchaser hereby sells, assigns and transfers unto the
Company _________________________ (________) shares of the Common Stock of the Company,
standing in Purchaser’s name on the books of the Company and represented by
Certificate No. ____, and does hereby irrevocably constitute and appoint
____________________________________________ to transfer said stock on the books of the
Company with full power of substitution in the premises. THIS ASSIGNMENT MAY ONLY BE USED
AS AUTHORIZED BY THE AGREEMENT AND THE ATTACHMENTS THERETO. 

Dated:
______________________ 

		
		Signature:
		

______________________________________
		Signature
		
______________________________________
		Print Name

Instruction: Please do not
fill in any blanks other than the signature line. The purpose of this assignment is to
enable the Company to exercise its Repurchase Option set forth in the Agreement without
requiring additional signatures on the part of Purchaser. 

A-A-1 

ATTACHMENT B 

ACKNOWLEDGMENT AND
STATEMENT OF DECISION
REGARDING SECTION 83(b) ELECTION 

        The
undersigned (which term includes the undersigned’s spouse), a purchaser of
___________ shares of Common Stock of Auriga Laboratories, Inc., a Delaware corporation
(the “Company”) by exercise of an option (the “Option”)
granted pursuant to the Company’s 2006 Stock Plan (the “Plan”),
hereby states as follows: 

         1.    
          The undersigned acknowledges receipt of a copy of the Plan relating to the
          offering of such shares. The undersigned has carefully reviewed the Plan and the
          option agreement pursuant to which the Option was granted. 

         2.    
          The undersigned either [check and complete as applicable]: 

	 	(a) ____  	
has consulted, and has been fully advised by, the undersigned’s           own tax
advisor, ______________________, whose business address           is
______________________________, regarding the federal, state and local tax
          consequences of purchasing shares under the Plan, and particularly regarding
the           advisability of making elections pursuant to Section 83(b) of the Internal
          Revenue Code of 1986, as amended (the “Code”) and pursuant to
          the corresponding provisions, if any, of applicable state law; or  

	 	(b) ____ 	has
knowingly chosen not to consult such a tax advisor.  

         3.    
          The undersigned hereby states that the undersigned has decided [check as
          applicable]: 

	 	(a) ____  	to
make an election pursuant to Section 83(b) of the Code, and is           submitting to
the Company, together with the undersigned’s executed Early           Exercise
Notice and Restricted Stock Purchase Agreement, an executed form           entitled “Election
Under Section 83(b) of the Internal Revenue Code of           1986;” or  

	 	(b) ____  	not
to make an election pursuant to Section 83(b) of the Code.  

         4.    
          Neither the Company nor any subsidiary or representative of the Company has made
          any warranty or representation to the undersigned with respect to the tax
          consequences of the undersigned’s purchase of shares under the Plan or of
          the making or failure to make an election pursuant to Section 83(b) of the Code
          or the corresponding provisions, if any, of applicable state law. 

		
	Date:____________________	___________________________________
		Signature

A-B-1 

ATTACHMENT C 

ELECTION UNDER SECTION
83(b)
OF THE INTERNAL REVENUE CODE OF 1986 

        The
undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue
Code, to include in taxpayer’s gross income or alternative minimum taxable income, as
applicable, for the current taxable year, the amount of any income that may be taxable to
taxpayer in connection with taxpayer’s receipt of the property described below: 

         1.    
          The name, address, taxpayer identification number and taxable year of the
          undersigned are as follows: 

	 	
NAME
OF TAXPAYER:  _______________________________ 

	 	
ADDRESS:    
_______________________________________ 

	 	
_______________________________________  

	 	
IDENTIFICATION
NO. OF TAXPAYER:  ___________________ 

	 	
TAXABLE
YEAR:  __________ 

         2.    
          The property with respect to which the election is made is described as follows: 

	 	
_________________
shares of the Common Stock of Auriga Laboratories, Inc., a Delaware corporation (the
“Company”). 

         3.    
          The date on which the property was transferred is: _______________ 

         4.    
          The property is subject to the following restrictions: 

	 	
Repurchase
option at cost in favor of the Company upon termination of taxpayer’s employment or
consulting relationship.  

         5.    
          The fair market value at the time of transfer, determined without regard to any
          restriction other than a restriction which by its terms will never lapse, of
          such property is: $____________________ 

The amount (if any) paid for such
property: $____________________ 

The undersigned has submitted a copy
of this statement to the person for whom the services were performed in connection with
the undersigned’s receipt of the above-described property. The transferee of such
property is the person performing the services in connection with the transfer of said
property. 

The undersigned understands that the
foregoing election may not be revoked except with the consent of the Commissioner. 

		
	Dated: ____________________	__________________________________
		Signature

A-C-1 

RECEIPT AND CONSENT 

        The
undersigned hereby acknowledges receipt of a photocopy of Certificate No. ______ for
__________________ shares of Common Stock of Auriga Laboratories, Inc. (the “Company”). 

        The
undersigned further acknowledges that the Secretary of the Company, or his or her
designee, is acting as escrow holder pursuant to the Early Exercise Notice and Restricted
Stock Purchase Agreement Purchaser has previously entered into with the Company. As escrow
holder, the Secretary of the Company, or his or her designee, holds the original of the
aforementioned certificate issued in the undersigned’s name. 

		
	Dated: ____________________	__________________________________
		Name:

EXHIBIT B 

AURIGA LABORATORIES,
INC. 

2006 STOCK PLAN
EXERCISE NOTICE AND
RESTRICTED STOCK PURCHASE AGREEMENT 

        This
Agreement (“Agreement”) is made as of ______________, by and between
Auriga Laboratories, Inc., a Delaware corporation (the “Company”), and
____________ (“Purchaser”). To the extent any capitalized terms used in
this Agreement are not defined, they shall have the meaning ascribed to them in the 2006
Stock Plan. 

         1.    
          Exercise of Option. Subject to the terms and conditions
          hereof, Purchaser hereby elects to exercise his or her option to purchase
          __________ shares of the Common Stock (the “Shares”) of the
          Company under and pursuant to the Company’s 2006 Stock Plan (the
          “Plan”) and the Stock Option Agreement dated ______________,
          (the “Option Agreement”). The purchase price for the Shares
          shall be $__________per Share for a total purchase price of $_______________.
          The term “Shares” refers to the purchased Shares and all
          securities received in replacement of the Shares or as stock dividends or
          splits, all securities received in replacement of the Shares in a
          recapitalization, merger, reorganization, exchange or the like, and all new,
          substituted or additional securities or other properties to which Purchaser is
          entitled by reason of Purchaser’s ownership of the Shares. 

         2.    
          Time and Place of Exercise. The purchase and sale of the
          Shares under this Agreement shall occur at the principal office of the Company
          simultaneously with the execution and delivery of this Agreement in accordance
          with the provisions of Section 2(b) of the Option Agreement. On such date, the
          Company will deliver to Purchaser a certificate representing the Shares to be
          purchased by Purchaser (which shall be issued in Purchaser’s name) against
          payment of the purchase price therefor by Purchaser by (a) check made payable to
          the Company, (b) cancellation of indebtedness of the Company to Purchaser, (c)
          delivery of shares of the Common Stock of the Company in accordance with Section
          3 of the Option Agreement, or (d) a combination of the foregoing. 

         3.    
          Limitations on Transfer. In addition to any other
          limitation on transfer created by applicable securities laws, Purchaser shall
          not assign, encumber or dispose of any interest in the Shares except in
          compliance with the provisions below and applicable securities laws. 

             (a)    
          Right of First Refusal. Before any Shares held by Purchaser
          or any transferee of Purchaser (either being sometimes referred to herein as the
          “Holder”) may be sold or otherwise transferred (including
          transfer by gift or operation of law), the Company or its assignee(s) shall have
          a right of first refusal to purchase the Shares on the terms and conditions set
          forth in this Section 3(a) (the “Right of First Refusal”). 

                 (i)    
          Notice of Proposed Transfer. The Holder of the Shares shall
          deliver to the Company a written notice (the “Notice”) stating:
          (i) the Holder’s bona fide intention to sell or otherwise transfer such
          Shares; (ii) the name of each proposed purchaser or other transferee
          (“Proposed Transferee”); (iii) the number of Shares to be
          transferred to each Proposed Transferee; and (iv) the terms and conditions of
          each proposed sale or transfer. The Holder shall offer the Shares at the same
          price (the “Offered Price”) and upon the same terms (or terms
          as similar as reasonably possible) to the Company or its assignee(s). 

B-1 

                 (ii)    
          Exercise of Right of First Refusal. At any time within 30
          days after receipt of the Notice, the Company and/or its
assignee(s) may, by
          giving written notice to the Holder, elect to purchase all, but not less than
          all, of the Shares proposed to be transferred to any one or more of the Proposed
          Transferees, at the purchase price determined in accordance with subsection
          (iii) below. 

                 (iii)    
          Purchase Price. The purchase price (“Purchase
          Price”) for the Shares purchased by the Company or its assignee(s)
          under this Section 3(a) shall be the Offered Price. If the Offered Price
          includes consideration other than cash, the cash equivalent value of the
          non-cash consideration shall be determined by the Board of Directors of the
          Company in good faith. 

                 (iv)    
          Payment. Payment of the Purchase Price shall be made, at
          the option of the Company or its assignee(s), in cash (by check), by
          cancellation of all or a portion of any outstanding indebtedness of the Holder
          to the Company (or, in the case of repurchase by an assignee, to the assignee),
          or by any combination thereof within 30 days after receipt of the Notice or in
          the manner and at the times set forth in the Notice. 

                 (v)    
          Holder’s Right to Transfer. If all of the Shares
          proposed in the Notice to be transferred to a given Proposed Transferee are not
          purchased by the Company and/or its assignee(s) as provided in this Section
          3(a), then the Holder may sell or otherwise transfer such Shares to that
          Proposed Transferee at the Offered Price or at a higher price, provided that
          such sale or other transfer is consummated within 60 days after the date of the
          Notice and provided further that any such sale or other transfer is effected in
          accordance with any applicable securities laws and the Proposed Transferee
          agrees in writing that the provisions of this Section 3 shall continue to apply
          to the Shares in the hands of such Proposed Transferee. If the Shares described
          in the Notice are not transferred to the Proposed Transferee within such period,
          or if the Holder proposes to change the price or other terms to make them more
          favorable to the Proposed Transferee, a new Notice shall be given to the
          Company, and the Company and/or its assignees shall again be offered the Right
          of First Refusal before any Shares held by the Holder may be sold or otherwise
          transferred. 

                 (vi)    
          Exception for Certain Family Transfers. Anything to the
          contrary contained in this Section 3(a) notwithstanding, the transfer of any or
          all of the Shares during Purchaser’s lifetime or on Purchaser’s death
          by will or intestacy to Purchaser’s Immediate Family (as defined below) or
          a trust for the benefit of Purchaser’s Immediate Family shall be exempt
          from the provisions of this
Section 3(a). “Immediate Family” as
          used herein shall mean spouse, lineal descendant or antecedent, father, mother,
          brother or sister. In such case, the transferee or other recipient shall receive
          and hold the Shares so transferred subject to the provisions of this Section,
          and there shall be no further transfer of such Shares except in accordance with
          the terms of this Section 3. 

B-2 

        (b)    Involuntary
Transfer. 

                 (i)    
          Company’s Right to Purchase upon Involuntary Transfer.
          In the event, at any time after the date of this Agreement, of any transfer by
          operation of law or other involuntary transfer (including divorce or death, but
          excluding, in the event of death, a transfer to Immediate Family as set forth in
          Section 3(a)(vi) above) of all or a portion of the Shares by the record holder
          thereof, the Company shall have the right to purchase all of the Shares
          transferred at the greater of the purchase price paid by Purchaser pursuant to
          this Agreement or the Fair Market Value of the Shares on the date of transfer.
          Upon such a transfer, the person acquiring the Shares shall promptly notify the
          Secretary of the Company of such transfer. The right to purchase such Shares
          shall be provided to the Company for a period of 30 days following receipt by
          the Company of written notice by the person acquiring the Shares. 

                 (ii)    
          Price for Involuntary Transfer. With respect to any stock
          to be transferred pursuant to Section 3(b)(i), the price per Share shall be a
          price set by the Board of Directors of the Company that will reflect the current
          value of the stock in terms of present earnings and future prospects of the
          Company. The Company shall notify Purchaser or his or her executor of the price
          so determined within 30 days after receipt by it of written notice of the
          transfer or proposed transfer of Shares. However, if the Purchaser does not
          agree with the valuation as determined by the Board of Directors of the Company,
          the Purchaser shall be entitled to have the valuation determined by an
          independent appraiser to be mutually agreed upon by the Company and the
          Purchaser and whose fees shall be borne equally by the Company and the
          Purchaser. 

             (c)    
          Assignment. The right of the Company to purchase any part
          of the Shares may be assigned in whole or in part to any shareholder or
          shareholders of the Company or other persons or organizations. 

             (d)    
          Restrictions Binding on Transferees. All transferees of
          Shares or any interest therein will receive and hold such Shares or interest
          subject to the provisions of this Agreement. Any sale or transfer of the Shares
          shall be void unless the provisions of this Agreement are satisfied. 

             (e)    
          Termination of Rights. The Right of First Refusal and the
          Company’s right to repurchase the Shares in the event of an involuntary
          transfer pursuant to Section 3(b) above shall terminate upon the listing of
          Common Stock of the Company on a national exchange. 

             (f)    
          Market Standoff Agreement. In connection with the initial
          public offering of the Company’s securities and upon request of the Company
          or the underwriters managing such underwritten offering of the Company’s
          securities, Purchaser agrees not to sell, make any short sale of, loan, grant
          any option for the purchase of, or otherwise dispose of any securities of the
          Company (other than those included in the registration) without the prior
          written consent of the Company or such underwriters, as the case may be, for
          such period of time (not to exceed 180 days) from the effective date of such
          registration as may be requested by the Company or such managing underwriters
          and to execute an agreement reflecting the foregoing as may be requested by the
          underwriters at the time of the Company’s initial public offering. 

B-3 

         4.    
          Investment and Taxation Representations. In connection with
          the purchase of the Shares, Purchaser represents to the Company the following: 

             (a)    
          Purchaser is aware of the Company’s business affairs and financial
          condition and has acquired sufficient information about the Company to reach an
          informed and knowledgeable decision to acquire the Shares. Purchaser is
          purchasing the Shares for investment for his or her own account only and not
          with a view to, or for resale in connection with, any “distribution”
          thereof within the meaning of the Securities Act. 

             (b)    
          Purchaser understands that the Shares have not been registered under the
          Securities Act by reason of a specific exemption therefrom, which exemption
          depends upon, among other things, the bona fide nature of Purchaser’s
          investment intent as expressed herein. 

             (c)    
          Purchaser understands that the Shares are “restricted securities”
          under applicable U.S. federal and state securities laws and that, pursuant to
          these laws, Purchaser must hold the Shares indefinitely unless they are
          registered with the Securities and Exchange Commission and qualified by state
          authorities, or an exemption from such registration and qualification
          requirements is available. Purchaser acknowledges that the Company has no
          obligation to register or qualify the Shares for resale. Purchaser further
          acknowledges that if an exemption from registration or qualification is
          available, it may be conditioned on various requirements including, but not
          limited to, the time and manner of sale, the holding period for the Shares, and
          requirements relating to the Company which are outside of the Purchaser’s
          control, and which the Company is under no obligation and may not be able to
          satisfy. 

             (d)    
          Purchaser understands that Purchaser may suffer adverse tax consequences as a
          result of Purchaser’s purchase or disposition of the Shares. Purchaser
          represents that Purchaser has consulted any tax consultants Purchaser deems
          advisable in connection with the purchase or disposition of the Shares and that
          Purchaser is not relying on the Company for any tax advice. 

         5.    
          Restrictive Legends and Stop-Transfer Orders. 

             (a)    
          Legends. The certificate or certificates representing the
          Shares shall bear the following legends (as well as any legends required by
          applicable state and federal corporate and securities laws): 

                 (i)    
          THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
          SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
          VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE
          OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
          RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY
          THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. 

                 (ii)    
          THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE
          WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER, A COPY
          OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY. 

B-4 

             (b)    
          Stop-Transfer Notices. Purchaser agrees that, in order to
          ensure compliance with the restrictions referred to herein, the Company may
          issue appropriate “stop transfer” instructions to its transfer agent,
          if any, and that, if the Company transfers its own securities, it may make
          appropriate notations to the same effect in its own records. 

             (c)    
          Refusal to Transfer. The Company shall not be required (i)
          to transfer on its books any Shares that have been sold or otherwise transferred
          in violation of any of the provisions of this Agreement or (ii) to treat as
          owner of such Shares or to accord the right to vote or pay dividends to any
          purchaser or other transferee to whom such Shares shall have been so
          transferred. 

             (d)    
          Removal of Legend. When all of the following events have
          occurred, the Shares then held by Purchaser will no longer be subject to the
          legend referred to in Section 5(a)(ii): (i) the termination of the Right of
          First Refusal; and (ii) the expiration or termination of the market standoff
          provisions of Section 3(f) (and of any agreement entered pursuant to Section
          3(f)). After such time, and upon Purchaser’s request, a new certificate or
          certificates representing the Shares not repurchased shall be issued without the
          legend referred to in Section 5(a)(ii), and delivered to Purchaser. 

         6.    
          No Employment Rights. Nothing in this Agreement shall
          affect in any manner whatsoever the right or power of the Company, or a Parent
          or Subsidiary of the Company, to terminate Purchaser’s employment or
          consulting relationship, for any reason, with or without cause. 

         7.    
          Miscellaneous. 

             (a)    
          Governing Law. This Agreement and all acts and transactions
          pursuant hereto and the rights and obligations of the parties hereto shall be
          governed, construed and interpreted in accordance with the laws of the State of
          Georgia, without giving effect to principles of conflicts of law. 

             (b)    
          Entire Agreement; Enforcement of Rights. This Agreement
          sets forth the entire agreement and understanding of the parties relating to the
          subject matter herein and merges all prior discussions between them. No
          modification of or amendment to this Agreement, nor any waiver of any rights
          under this Agreement, shall be effective unless in writing signed by the parties
          to this Agreement. The failure by either party to enforce any rights under this
          Agreement shall not be construed as a waiver of any rights of such party. 

             (c)    
          Severability. If one or more provisions of this Agreement
          are held to be unenforceable under applicable law, the parties agree to
          renegotiate such provision in good faith. In the event that the parties cannot
          reach a mutually agreeable and enforceable replacement for such provision, then
          (i) such provision shall be excluded from this Agreement, (ii) the balance of
          the Agreement shall be interpreted as if such provision were so excluded and
          (iii) the balance of the Agreement shall be enforceable in accordance with its
          terms. 

B-5 

             (d)    
          Construction. This Agreement is the result of negotiations
          between and has been reviewed by each of the parties hereto and their respective
          counsel, if any; accordingly, this Agreement shall be deemed to be the product
          of all of the parties hereto, and no ambiguity shall be construed in favor of or
          against any one of the parties hereto. 

             (e)    
          Notices. Any notice required or permitted by this Agreement
          shall be in writing and shall be deemed sufficient when delivered personally or
          sent by telegram or fax or 48 hours after being deposited in the U.S. mail, as
          certified or registered mail, with postage prepaid, and addressed to the party
          to be notified at such party’s address as set forth below or as
          subsequently modified by written notice. 

             (f)    
          Counterparts. This Agreement may be executed in two or more
          counterparts, each of which shall be deemed an original and all of which
          together shall constitute one instrument. 

             (g)    
          Successors and Assigns. The rights and benefits of this
          Agreement shall inure to the benefit of, and be enforceable by the
          Company’s successors and assigns. The rights and obligations of Purchaser
          under this Agreement may only be assigned with the prior written consent of the
          Company. 

             (h)    
          Georgia Corporate Securities Law. THE SALE OF THE
          SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH
          THE COMMISSIONER OF CORPORATIONS OF THE STATE OF GEORGIA, OR ANY OTHER STATE,
          AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
          CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE
          OF SECURITIES IS EXEMPT FROM QUALIFICATION. THE RIGHTS OF ALL PARTIES TO THIS
          AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED,
          UNLESS THE SALE IS SO EXEMPT. 

[Signature Page Follows] 

B-6 

        The
parties have executed this Agreement as of the date first set forth above. 

		
		COMPANY:
		
AURIGA LABORATORIES, INC.
		

By:_________________________________
		
Name:_______________________________
		
Title:________________________________
		
    Address: 5555 Triangle Parkway, Suite 300
		                      Norcross, GA 30092
		

PURCHASER:
		

____________________________________
		Signature
		
____________________________________
		Print Name
		
____________________________________
		Address
		
____________________________________
		Address

B-7 

RECEIPT 

        Auriga
Laboratories, Inc. (the “Company”) hereby acknowledges receipt of (check
as applicable): 

	 	_____ 	A
check in the amount of $__________ 

	 	                   _____ 	The
cancellation of indebtedness in the amount of $__________

	 	                   _____ 	Certificate
No. ____ representing ______ shares of the Company's Common Stock with
                               a fair market value of $__________

given by ____________ as
consideration for Certificate No. ______ for ___________ shares of Common Stock of the
Company.  

Dated:________________________ 

		
		AURIGA LABORATORIES, INC.
		

By:_________________________________
		Name:_______________________________
		Title:________________________________INDEMNIFICATION
AGREEMENT 

        THIS
INDEMNIFICATION AGREEMENT (the “Agreement”) is made and entered into
as of November 8, 2006, by and between AURIGA LABORATORIES, INC., a Delaware
corporation (the “Company”), and CHARLES R. BEARCHELL, an
individual resident of the State of California (“Indemnitee”). 

RECITALS 

        WHEREAS,
the Company and Indemnitee have agreed to enter into that certain Executive Employment
Agreement, dated of even date herewith, which provides for the appointment of Indemnitee
as the Company’s Chief Financial Officer; 

        WHEREAS,
the Board of Directors of the Company (the “Board”) has adopted Bylaws of
the Company (the “Bylaws”) providing for the indemnification of the
officers and directors of the Company to the maximum extent authorized by law
(“Law”); 

        WHEREAS,
the Bylaws and the Law, by their nonexclusive nature, permit contracts between the Company
and the officers or directors of the Company with respect to indemnification of such
officers or directors; and 

        WHEREAS,
in accordance with the authorization as provided by Law, the Company may purchase and
maintain a policy or policies of directors’ and officers’ liability insurance
(“D&O Insurance”), covering certain liabilities which may be incurred
by its officers or directors in the performance of their obligations to the Company. 

AGREEMENT 

        NOW,
THEREFORE, in consideration of Indemnitee’s service as an officer or director after
the date hereof, the parties hereto agree as follows: 

         1.    
          Indemnity of Indemnitee. The Company hereby agrees to hold harmless and
          indemnify Indemnitee to the full extent authorized or permitted by the
          provisions of the Law, as such may be amended from time to time, and the Bylaws,
          as such may be amended from time to time. In furtherance of the foregoing
          indemnification, and without limiting the generality thereof: 

             (a)    
          Proceedings Other Than Proceedings by or in the Right of the Company.
          Indemnitee shall be entitled to the rights of indemnification provided in this
          Section 1(a) if, by reason of his Corporate Status (as hereinafter
          defined), he is, or is threatened to be made, a party to or participant in any
          Proceeding (as hereinafter defined) other than a Proceeding by or in the right
          of the Company. Pursuant to this Section 1(a), Indemnitee shall be indemnified
          against all Expenses (as hereinafter defined), judgments, penalties, fines and
          amounts paid in settlement actually and reasonably incurred by him, or on his
          behalf, in connection with such Proceeding or any claim, issue or matter
          therein, if he acted in good faith and in a manner he reasonably believed to be
          in or not opposed to the best interests of the Company, and with respect to any
          criminal Proceeding, had no reasonable cause to believe his conduct was
          unlawful. 

             (b)    
          Proceedings by or in the Right of the Company. Indemnitee shall be
          entitled to the rights of indemnification provided in this Section 1(b) if, by
          reason of his Corporate Status, he is, or is threatened to be made, a party to
          or participant in any Proceeding brought by or in the right of the Company.
          Pursuant to this Section 1(b), Indemnitee shall be indemnified against all
          Expenses actually and reasonably incurred by him, or on his behalf, in
          connection with such Proceeding if he acted in good faith and in a manner he
          reasonably believed to be in or not opposed to the best interests of the
          Company; provided, however, if applicable law so provides, no indemnification
          against such Expenses shall be made in respect of any claim, issue or matter in
          such Proceeding as to which Indemnitee shall have been adjudged to be liable to
          the Company unless and to the extent that the Court of Chancery of the State of
          Delaware shall determine that such indemnification may be made. 

             (c)    
          Indemnification for Expenses of a Party Who is Wholly or Partly
          Successful. Notwithstanding any other provision of this Agreement, to the
          extent that Indemnitee is, by reason of his Corporate Status, a party to and is
          successful, on the merits or otherwise, in any Proceeding, he shall be
          indemnified to the maximum extent permitted by law against all Expenses actually
          and reasonably incurred by him or on his behalf in connection therewith. If
          Indemnitee is not wholly successful in such Proceeding but is successful, on the
          merits or otherwise, as to one or more but less than all claims, issues or
          matters in such Proceeding, the Company shall indemnify Indemnitee against all
          Expenses actually and reasonably incurred by him or on his behalf in connection
          with each successfully resolved claim, issue or matter. For purposes of this
          Section and without limitation, the termination of any claim, issue or matter in
          such a Proceeding by dismissal, with or without prejudice, shall be deemed to be
          a successful result as to such claim, issue or matter. 

         2.    
          Additional Indemnity. In addition to and without regard to any
          limitations on the indemnification provided for in Section 1 of this Agreement,
          the Company shall and hereby does indemnify and hold harmless Indemnitee against
          all Expenses, judgments, penalties, fines and amounts paid in settlement
          actually and reasonably incurred by him or on his behalf if, by reason of his
          Corporate Status, he is, or is threatened to be made, a party to or participant
          in any Proceeding (including a Proceeding by or in the right of the Company),
          including, without limitation, all liability arising out of the negligence or
          active or passive wrongdoing of Indemnitee. The only limitation that shall exist
          upon the Company’s obligations pursuant to this Agreement shall be that the
          Company shall not be obligated to make any payment to Indemnitee that is finally
          determined (under the procedures, and subject to the presumptions, set forth in
          Sections 6 and 7 hereof) to be unlawful under Delaware law. 

         3.    
          Contribution in the Event of Joint Liability. 

             (a)    
          Whether or not the indemnification provided in Sections 1 and 2 hereof is
          available, in respect of any threatened, pending or completed action, suit or
          proceeding in which the Company is jointly liable with Indemnitee (or would be
          if joined in such action, suit or proceeding), the Company shall pay, in the
          first instance, the entire amount of any judgment or settlement of such action,
          suit or proceeding without requiring Indemnitee to contribute to such payment
          and the Company hereby waives and relinquishes any right of contribution it may
          have against Indemnitee. The Company shall not enter into any settlement of any
          action, suit or proceeding in which the Company is jointly liable with
          Indemnitee (or would be if joined in such action, suit or proceeding) unless
          such settlement provides for a full and final release of all claims asserted
          against Indemnitee. 

2 

             (b)    
          Without diminishing or impairing the obligations of the Company set forth in the
          preceding subparagraph, if, for any reason, Indemnitee shall elect or be
          required to pay all or any portion of any judgment or settlement in any
          threatened, pending or completed action, suit or proceeding in which the Company
          is jointly liable with Indemnitee (or would be if joined in such action, suit or
          proceeding), the Company shall contribute to the amount of expenses (including
          attorneys’ fees), judgments, fines and amounts paid in settlement actually
          and reasonably incurred and paid or payable by Indemnitee in proportion to the
          relative benefits received by the Company and all officers, directors or
          employees of the Company, other than Indemnitee, who are jointly liable with
          Indemnitee (or would be if joined in such action, suit or proceeding), on the
          one hand, and Indemnitee, on the other hand, from the transaction from which
          such action, suit or proceeding arose; provided, however, that the proportion
          determined on the basis of relative benefit may, to the extent necessary to
          conform to law, be further adjusted by reference to the relative fault of the
          Company and all officers, directors or employees of the Company other than
          Indemnitee who are jointly liable with Indemnitee (or would be if joined in such
          action, suit or proceeding), on the one hand, and Indemnitee, on the other hand,
          in connection with the events that resulted in such expenses, judgments, fines
          or settlement amounts, as well as any other equitable considerations which the
          Law may require to be considered. The relative fault of the Company and all
          officers, directors or employees of the Company, other than Indemnitee, who are
          jointly liable with Indemnitee (or would be if joined in such action, suit or
          proceeding), on the one hand, and Indemnitee, on the other hand, shall be
          determined by reference to, among other things, the degree to which their
          actions were motivated by intent to gain personal profit or advantage, the
          degree to which their liability is primary or secondary and the degree to which
          their conduct is active or passive. 

             (c)    
          The Company hereby agrees to fully indemnify and hold Indemnitee harmless from
          any claims of contribution which may be brought by officers, directors or
          employees of the Company, other than Indemnitee, who may be jointly liable with
          Indemnitee. 

         4.    
          Indemnification for Expenses of a Witness. Notwithstanding any other
          provision of this Agreement, to the extent that Indemnitee is, by reason of his
          Corporate Status, a witness in any Proceeding to which Indemnitee is not a
          party, he shall be indemnified against all Expenses actually and reasonably
          incurred by him or on his behalf in connection therewith. 

         5.    
          Advancement of Expenses. Notwithstanding any other provision of this
          Agreement, the Company shall advance all Expenses incurred by or on behalf of
          Indemnitee in connection with any Proceeding by reason of Indemnitee’s
          Corporate Status within ten (10) days after the receipt by the Company of a
          statement or statements from Indemnitee requesting such advance or advances from
          time to time, whether prior to or after final disposition of such Proceeding.
          Such statement or statements shall reasonably evidence the Expenses incurred by
          Indemnitee and shall include or be preceded or accompanied by an undertaking by
          or on behalf of Indemnitee to repay any Expenses advanced if it shall ultimately
          be determined that Indemnitee is not entitled to be indemnified against such
          Expenses. Any advances and undertakings to repay pursuant to this Section 5
          shall be unsecured and interest free. Notwithstanding the foregoing, the
          obligation of the Company to advance Expenses pursuant to this Section 5 shall
          be subject to the condition that, if, when and to the extent that the Company
          determines that Indemnitee would not be permitted to be indemnified under
          applicable law, the Company shall be entitled to be reimbursed, within thirty
          (30) days of such determination, by Indemnitee (who hereby agrees to reimburse
          the Company) for all such amounts theretofore paid; provided, however, that if
          Indemnitee has commenced or thereafter commences legal proceedings in a court of
          competent jurisdiction to secure a determination that Indemnitee should be
          indemnified under applicable law, any determination made by the Company that
          Indemnitee would not be permitted to be indemnified under applicable law shall
          not be binding and Indemnitee shall not be required to reimburse the Company for
          any advance of Expenses until a final judicial determination is made with
          respect thereto (and as to which all rights of appeal therefrom have been
          exhausted or lapsed). 

3 

         6.    
          Procedures and Presumptions for Determination of Entitlement to
          Indemnification. It is the intent of this Agreement to secure for Indemnitee
          rights of indemnity that are as favorable as may be permitted under the Law and
          public policy of the State of Delaware. Accordingly, the parties agree that the
          following procedures and presumptions shall apply in the event of any question
          as to whether Indemnitee is entitled to indemnification under this Agreement: 

             (a)    
          To obtain indemnification (including, but not limited to, the advancement of
          Expenses and contribution by the Company) under this Agreement, Indemnitee shall
          submit to the Company a written request, including therein or therewith such
          documentation and information as is reasonably available to Indemnitee and is
          reasonably necessary to determine whether and to what extent Indemnitee is
          entitled to indemnification. The Secretary of the Company shall, promptly upon
          receipt of such a request for indemnification, advise the Board in writing that
          Indemnitee has requested indemnification. 

             (b)    
          Upon written request by Indemnitee for indemnification pursuant to the first
          sentence of Section 6(a) hereof, a determination, if required by applicable law,
          with respect to Indemnitee’s entitlement thereto shall be made in the
          specific case by one of the following three methods, which shall be at the
          election of Indemnitee: (i) by a majority vote of the Disinterested Directors of
          the Board, even though less than a quorum; (ii) by Independent Counsel in a
          written opinion; or (iii) by the stockholders of the Company. 

             (c)    
          If the determination of entitlement to indemnification is to be made by
          Independent Counsel pursuant to Section 6(b) hereof, the Independent Counsel
          shall be selected as provided in this Section 6(c). The Independent Counsel
          shall be selected by Indemnitee (unless Indemnitee requests that such selection
          be made by the Board). Indemnitee or the Company, as the case may be, may,
          within ten (10) days after such written notice of selection shall have been
          given, deliver to the Company or to Indemnitee, as the case may be, a written
          objection to such selection; provided, however, that such objection may be
          asserted only on the ground that Independent Counsel so selected does not meet
          the requirements of “Independent Counsel” as defined in Section 13 of
          this Agreement, and the objection shall set forth with particularity the factual
          basis of such assertion. Absent a proper and timely objection, the person so
          selected shall act as Independent Counsel. If a written objection is made and
          substantiated, the Independent Counsel selected may not serve as Independent
          Counsel unless and until such objection is withdrawn or a court has determined
          that such objection is without merit. If, within twenty (20) days after
          submission by Indemnitee of a written request for indemnification pursuant to
          Section 6(a) hereof, no Independent Counsel shall have been selected and not
          objected to, either the Company or Indemnitee may petition the Court of Chancery
          of the State of Delaware or other court of competent jurisdiction for resolution
          of any objection which shall have been made by the Company or Indemnitee to the
          other’s selection of Independent Counsel and/or for the appointment as
          Independent Counsel of a person selected by the court or by such other person as
          the court shall designate, and the person with respect to whom all objections
          are so resolved or the person so appointed shall act as Independent Counsel
          under Section 6(b) hereof. The Company shall pay any and all reasonable fees and
          expenses of Independent Counsel incurred by such Independent Counsel in
          connection with acting pursuant to Section 6(b) hereof, and the Company shall
          pay all reasonable fees and expenses incident to the procedures of this Section
          6(c), regardless of the manner in which such Independent Counsel was selected or
          appointed. 

4 

             (d)    
          In making a determination with respect to entitlement to indemnification
          hereunder, the person, persons or entity making such determination shall presume
          that Indemnitee is entitled to indemnification under this Agreement. Anyone
          seeking to overcome this presumption shall have the burden of proof and the
          burden of persuasion by clear and convincing evidence. 

             (e)    
          Indemnitee shall be deemed to have acted in good faith if Indemnitee’s
          action is based on the records or books of account of the Enterprise, including
          financial statements, or on information supplied to Indemnitee by the officers
          of the Enterprise (as hereinafter defined) in the course of their duties, or on
          the advice of legal counsel for the Enterprise or on information or records
          given or reports made to the Enterprise by an independent certified public
          accountant or by an appraiser or other expert selected with reasonable care by
          the Enterprise. In addition, the knowledge and/or actions, or failure to act, of
          any director, officer, agent or employee of the Enterprise shall not be imputed
          to Indemnitee for purposes of determining the right to indemnification under
          this Agreement. Whether or not the foregoing provisions of this
          Section 6(e) are satisfied, it shall in any event be presumed that
          Indemnitee has at all times acted in good faith and in a manner he reasonably
          believed to be in or not opposed to the best interests of the Company. Anyone
          seeking to overcome this presumption shall have the burden of proof and the
          burden of persuasion by clear and convincing evidence. 

             (f)    
          If the person, persons or entity empowered or selected under this Section 6 to
          determine whether Indemnitee is entitled to indemnification shall not have made
          a determination within thirty (30) days after receipt by the Company of the
          request therefor, the requisite determination of entitlement to indemnification
          shall be deemed to have been made and Indemnitee shall be entitled to such
          indemnification absent: (i) a misstatement by Indemnitee of a material fact, or
          an omission of a material fact necessary to make Indemnitee’s statement not
          materially misleading, in connection with the request for indemnification; or
          (ii) a prohibition of such indemnification under applicable law; provided,
          however, that such 30-day period may be extended for a reasonable time, not to
          exceed an additional fifteen (15) days, if the person, persons or entity making
          such determination with respect to entitlement to indemnification in good faith
          requires such additional time to obtain or evaluate documentation and/or
          information relating thereto; and provided, further, that the foregoing
          provisions of this Section 6(f) shall not apply if the determination of
          entitlement to indemnification is to be made by the stockholders pursuant to
          Section 6(b) of this Agreement and if (A) within fifteen (15) days after receipt
          by the Company of the request for such determination, the Board or the
          Disinterested Directors, if appropriate, resolve to submit such determination to
          the stockholders for their consideration at an annual meeting thereof to be held
          within seventy-five (75) days after such receipt and such determination is made
          thereat, or (B) a special meeting of stockholders is called within fifteen (15)
          days after such receipt for the purpose of making such determination, such
          meeting is held for such purpose within sixty (60) days after having been so
          called and such determination is made thereat. 

5 

             (g)    
          Indemnitee shall cooperate with the person, persons or entity making such
          determination with respect to Indemnitee’s entitlement to indemnification,
          including providing to such person, persons or entity upon reasonable advance
          request any documentation or information which is not privileged or otherwise
          protected from disclosure and which is reasonably available to Indemnitee and
          reasonably necessary to such determination. Any Independent Counsel, member of
          the Board or stockholder of the Company shall act reasonably and in good faith
          in making a determination regarding the Indemnitee’s entitlement to
          indemnification under this Agreement. Any costs or expenses (including
          attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating
          with the person, persons or entity making such determination shall be borne by
          the Company (irrespective of the determination as to Indemnitee’s
          entitlement to indemnification) and the Company hereby indemnifies and agrees to
          hold Indemnitee harmless therefrom. 

             (h)    
          The Company acknowledges that a settlement or other disposition short of final
          judgment may be successful if it permits a party to avoid expense, delay,
          distraction, disruption and uncertainty. In the event that any action, claim or
          proceeding to which Indemnitee is a party is resolved in any manner other than
          by adverse judgment against Indemnitee (including, without limitation,
          settlement of such action, claim or proceeding with or without payment of money
          or other consideration) it shall be presumed that Indemnitee has been successful
          on the merits or otherwise in such action, suit or proceeding. Anyone seeking to
          overcome this presumption shall have the burden of proof and the burden of
          persuasion by clear and convincing evidence. 

         7.    
          Remedies of Indemnitee. 

             (a)    
          In the event that: (i) a determination is made pursuant to Section 6 of this
          Agreement that Indemnitee is not entitled to indemnification under this
          Agreement; (ii) advancement of Expenses is not timely made pursuant to
          Section 5 of this Agreement; (iii) no determination of entitlement to
          indemnification is made pursuant to Section 6(b) of this Agreement within ninety
          (90) days after receipt by the Company of the request for indemnification; (iv)
          payment of indemnification is not made pursuant to this Agreement within ten
          (10) days after receipt by the Company of a written request therefor; or
          (v) payment of indemnification is not made within ten (10) days after a
          determination has been made that Indemnitee is entitled to indemnification or
          such determination is deemed to have been made pursuant to Section 6 of this
          Agreement, Indemnitee shall be entitled to an adjudication in an appropriate
          court of the State of Delaware, or in any other court of competent jurisdiction,
          of his entitlement to such indemnification. Indemnitee shall commence such
          proceeding seeking an adjudication within one hundred eighty (180) days
          following the date on which Indemnitee first has the right to commence such
          proceeding pursuant to this Section 7(a). The Company shall not oppose
          Indemnitee’s right to seek any such adjudication. 

6 

             (b)    
          In the event that a determination shall have been made pursuant to Section 6(b)
          of this Agreement that Indemnitee is not entitled to indemnification, any
          judicial proceeding commenced pursuant to this Section 7 shall be conducted in
          all respects as a de novo trial on the merits, and Indemnitee shall not
          be prejudiced by reason of the adverse determination under Section 6(b). 

             (c)    
          If a determination shall have been made pursuant to Section 6(b) of this
          Agreement that Indemnitee is entitled to indemnification, the Company shall be
          bound by such determination in any judicial proceeding commenced pursuant to
          this Section 7, absent a prohibition of such indemnification under applicable
          law. 

             (d)    
          In the event that Indemnitee, pursuant to this Section 7, seeks a judicial
          adjudication of his rights under, or to recover damages for breach of, this
          Agreement, or to recover under any D&O Insurance policies maintained by the
          Company, the Company shall pay on his behalf, in advance, any and all Expenses
          actually and reasonably incurred by him in such judicial adjudication,
          regardless of whether Indemnitee ultimately is determined to be entitled to such
          indemnification, advancement of expenses or insurance recovery. 

             (e)    
          The Company shall be precluded from asserting in any judicial proceeding
          commenced pursuant to this Section 7 that the procedures and presumptions of
          this Agreement are not valid, binding and enforceable and shall stipulate in any
          such court that the Company is bound by all the provisions of this Agreement. 

         8.    
          Non-Exclusivity; Survival of Rights; Insurance; Subrogation. 

             (a)    
          The rights of indemnification as provided by this Agreement shall not be deemed
          exclusive of any other rights to which Indemnitee may at any time be entitled
          under applicable law, the Certificate of Incorporation of the Company, the
          Bylaws, any agreement, a vote of stockholders, a resolution of directors or
          otherwise. No amendment, alteration or repeal of this Agreement or of any
          provision hereof shall limit or restrict any right of Indemnitee under this
          Agreement in respect of any action taken or omitted by such Indemnitee in his
          Corporate Status prior to such amendment, alteration or repeal. To the extent
          that a change in the Law, whether by statute or judicial decision, permits
          greater indemnification than would be afforded currently under the Bylaws and
          this Agreement, it is the intent of the parties hereto that Indemnitee shall
          enjoy by this Agreement the greater benefits so afforded by such change. No
          right or remedy herein conferred is intended to be exclusive of any other right
          or remedy, and every other right and remedy shall be cumulative and in addition
          to every other right and remedy given hereunder or now or hereafter existing at
          law or in equity or otherwise. The assertion or employment of any right or
          remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
          employment of any other right or remedy. 

7 

             (b)    
          To the extent that the Company maintains a D&O Insurance policy or policies
          providing liability insurance for directors, officers, employees or agents or
          fiduciaries of the Company or of any other Enterprise that such person serves at
          the request of the Company, Indemnitee shall be covered by such policy or
          policies in accordance with its or their terms to the maximum extent of the
          coverage available for any director, officer, employee, agent or fiduciary under
          such policy or policies. 

             (c)    
          In the event of any payment under this Agreement, the Company shall be
          subrogated to the extent of such payment to all of the rights of recovery of
          Indemnitee, who shall execute all papers required and take all action necessary
          to secure such rights, including execution of such documents as are necessary to
          enable the Company to bring suit to enforce such rights. 

             (d)    
          The Company shall not be liable under this Agreement to make any payment of
          amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee
          has otherwise actually received such payment under any insurance policy,
          contract, agreement or otherwise. 

         9.    
          Exception to Right of Indemnification. Notwithstanding any other
          provision of this Agreement, Indemnitee shall not be entitled to indemnification
          under this Agreement with respect to any Proceeding brought by Indemnitee, or
          any claim therein, unless: (a) the bringing of such Proceeding or making of such
          claim shall have been approved by the Board; or (b) such Proceeding is being
          brought by Indemnitee to assert, interpret or enforce his rights under this
          Agreement. 

         10.    
          Duration of Agreement. All agreements and obligations of the Company
          contained herein shall continue during the period Indemnitee is an officer or
          director of the Company (or is or was serving at the request of the Company as a
          director, officer, employee or agent of another corporation, partnership, joint
          venture, trust or other enterprise) and shall continue thereafter so long as
          Indemnitee shall be subject to any Proceeding (or any proceeding commenced under
          Section 7 hereof) by reason of his Corporate Status, whether or not he is acting
          or serving in any such capacity at the time any liability or expense is incurred
          for which indemnification can be provided under this Agreement. 

         11.    
          Security. To the extent requested by Indemnitee and approved by the Board
          in its discretion, the Company may at any time and from time to time provide
          security to Indemnitee for the Company’s obligations hereunder through an
          irrevocable bank line of credit, funded trust or other collateral. Any such
          security, once provided to Indemnitee, may not be revoked or released without
          the prior written consent of the Indemnitee. 

         12.    
          Enforcement. 

             (a)    
          The Company expressly confirms and agrees that it has entered into this
          Agreement and assumes the obligations imposed on it hereby in order to induce
          Indemnitee to serve as an officer or director of the Company, and the Company
          acknowledges that Indemnitee is relying upon this Agreement in serving as an
          officer or director of the Company. 

8 

             (b)    
          This Agreement constitutes the entire agreement between the parties hereto with
          respect to the subject matter hereof and supersedes all prior agreements and
          understandings, oral, written and implied, between the parties hereto with
          respect to the subject matter hereof. 

         13.    
          Definitions. For purposes of this Agreement: 

             (a)    
          “Corporate Status” describes the status of a person who is or
          was a director, officer, employee, agent or fiduciary of the Company or of any
          other corporation, partnership, joint venture, trust, employee benefit plan or
          other enterprise that such person is or was serving at the express written
          request of the Company. 

             (b)    
          “Disinterested Director” means a director of the Company who is
          not and was not a party to the Proceeding in respect of which indemnification is
          sought by Indemnitee. 

             (c)    
          “Enterprise” shall mean the Company and any other corporation,
          partnership, joint venture, trust, employee benefit plan or other enterprise
          that Indemnitee is or was serving at the express written request of the Company
          as a director, officer, employee, agent or fiduciary. 

             (d)    
          “Expenses” shall include all reasonable attorneys’ fees,
          retainers, court costs, transcript costs, fees of experts, witness fees, travel
          expenses, duplicating costs, printing and binding costs, telephone charges,
          postage, delivery service fees and all other disbursements or expenses of the
          types customarily incurred in connection with prosecuting, defending, preparing
          to prosecute or defend, investigating, participating or being or preparing to be
          a witness in a Proceeding. 

             (e)    
          “Independent Counsel” means a law firm, or a member of a law
          firm, that is experienced in matters of corporation law and neither presently
          is, nor in the past five (5) years has been, retained to represent: (i) the
          Company or Indemnitee in any matter material to either such party (other than
          with respect to matters concerning Indemnitee under this Agreement, or of other
          indemnitees under similar indemnification agreements); or (ii) any other party
          to the Proceeding giving rise to a claim for indemnification hereunder.
          Notwithstanding the foregoing, the term “Independent Counsel”
          shall not include any person who, under the applicable standards of professional
          conduct then prevailing, would have a conflict of interest in representing
          either the Company or Indemnitee in an action to determine Indemnitee’s
          rights under this Agreement. The Company agrees to pay the reasonable fees of
          the Independent Counsel referred to above and to fully indemnify such counsel
          against any and all Expenses, claims, liabilities and damages arising out of or
          relating to this Agreement or its engagement pursuant hereto. 

             (f)    
          “Proceeding” includes any threatened, pending or completed
          action, suit, arbitration, alternate dispute resolution mechanism,
          investigation, inquiry, administrative hearing or any other actual, threatened
          or completed proceeding, whether brought by or in the right of the Company or
          otherwise and whether civil, criminal, administrative or investigative, in which
          Indemnitee was, is or will be involved as a party or otherwise, by reason of the
          fact that Indemnitee is or was an officer or director of the Company, by reason
          of any action taken by him or of any inaction on his part while acting as an
          officer or director of the Company, or by reason of the fact that he is or was
          serving at the request of the Company as a director, officer, employee, agent or
          fiduciary of another corporation, partnership, joint venture, trust or other
          Enterprise; in each case whether or not he is acting or serving in any such
          capacity at the time any liability or expense is incurred for which
          indemnification can be provided under this Agreement; including one pending on
          or before the date of this Agreement, but excluding one initiated by an
          Indemnitee pursuant to Section 7 of this Agreement to enforce his rights under
          this Agreement. 

9 

         14.    
          Severability. If any provision or provisions of this Agreement shall be
          held by a court of competent jurisdiction to be invalid, void, illegal or
          otherwise unenforceable for any reason whatsoever: (a) the validity, legality
          and enforceability of the remaining provisions of this Agreement (including
          without limitation, each portion of any section of this Agreement containing any
          such provision held to be invalid, illegal or unenforceable that is not itself
          invalid, illegal or unenforceable) shall not in any way be affected or impaired
          thereby and shall remain enforceable to the fullest extent permitted by law; and
          (b) to the fullest extent possible, the provisions of this Agreement (including,
          without limitation, each portion of any section of this Agreement containing any
          such provision held to be invalid, illegal or unenforceable that is not itself
          invalid, illegal or unenforceable) shall be construed so as to give effect to
          the intent manifested thereby. Without limiting the generality of the foregoing,
          this Agreement is intended to confer upon Indemnitee indemnification rights to
          the fullest extent permitted by applicable laws. In the event any provision
          hereof conflicts with any applicable law, such provision shall be deemed
          modified, consistent with the aforementioned intent, to the extent necessary to
          resolve such conflict. 

         15.    
          Modification and Waiver. No supplement, modification, termination or
          amendment of this Agreement shall be binding unless executed in writing by both
          of the parties hereto. No waiver of any of the provisions of this Agreement
          shall be deemed or shall constitute a waiver of any other provisions hereof
          (whether or not similar), nor shall such waiver constitute a continuing waiver. 

         16.    
          Notice By Indemnitee. Indemnitee agrees promptly to notify the Company in
          writing upon being served with or otherwise receiving any summons, citation,
          subpoena, complaint, indictment, information or other document relating to any
          Proceeding or matter which may be subject to indemnification covered hereunder.
          The failure to so notify the Company shall not relieve the Company of any
          obligation which it may have to Indemnitee under this Agreement or otherwise
          unless and only to the extent that such failure or delay prejudices the Company. 

         17.    
          Notices. All notices, requests, demands and other communications
          hereunder shall be in writing and shall be deemed to have been duly given if:
          (a) delivered by hand and received by the party to whom said notice or
          other communication shall have been directed; or (b) mailed by certified or
          registered mail with postage prepaid, on the third (3rd) business day
          after the date on which it is so mailed: 

10 

                 (i)    
          If to Indemnitee, to the address set forth below Indemnitee’s signature
          hereto. 

                 (ii)    
          If to the Company, to: 

	 	
Auriga
Laboratories, Inc.
5555 Triangle Parkway, Suite 300
Norcross, Georgia 30092
Attn: Chief
Executive Officer 

or to such other address as may have
been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case
may be. 

         18.    
          Identical Counterparts. This Agreement may be executed in one or more
          counterparts, each of which shall for all purposes be deemed to be an original
          but all of which together shall constitute one and the same Agreement. Only one
          such counterpart signed by the party against whom enforceability is sought needs
          to be produced to evidence the existence of this Agreement. 

         19.    
          Headings. The headings of the paragraphs of this Agreement are inserted
          for convenience only and shall not be deemed to constitute part of this
          Agreement or to affect the construction thereof. 

         20.    
          Governing Law. The parties agree that this Agreement shall be governed
          by, and construed and enforced in accordance with, the laws of the State of
          Delaware without application of the conflict of laws principles thereof. 

         21.    
          Gender. Use of the masculine pronoun shall be deemed to include usage of
          the feminine pronoun where appropriate. 

[Remainder of this
page intentionally left blank.] 

11 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and
year first above written. 

		
		AURIGA LABORATORIES, INC.,
		a Delaware corporation
		

By: /s/ Philip S. Pesin
		Name: Philip S. Pesin
		Title:   Chief Executive Officer
		

INDEMNITEE
		
/s/ Charles R. Bearchell
		Charles R. Bearchell
		
Address:
		
Mr. Charles R. Bearchell
		18030 Gauguin Lane
		Granada Hills, California 91344

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