Document:

Unassociated Document

    AURIGA
      LABORATORIES, INC.

    2007
      Stock Option Plan

    NOTICE
      OF STOCK OPTION GRANT

     

    
      	
              Grantee:

            	 

    

     

    

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

     

    
      	
              Board
                Approval Date:

               

            	
                               
                /2007

               

            
	
              Date
                of Grant:

               

            	
                               
                /2007

               

            
	
              Vesting
                Commencement Date:

               

            	
                               
                /2007

               

            
	
              Exercise
                Price Per Share:

               

            	
              $                 
                

               

            
	
              Total
                Number of Shares Granted:

               

            	
                               
                

               

            
	
              Type
                of Option:

               

            	
              NON-STATUTORY
                STOCK OPTION

               

            
	
              Term/Expiration
                Date:

               

            	
                               
                /2017

               

            
	
              Vesting
                Schedule:

               

            	 
	
              Termination
                Period: 

               

            	
              This
                Option may be exercised for three months after termination of employment
                or consulting relationship except as set out 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 2007 STOCK OPTION PLAN and the Stock Option Agreement, both
      of
      which are attached and made a part of this document.

     

    
      	 

              GRANTEE

            	 	 

              AURIGA
                LABORATORIES, INC.

            
	 	 	 	 
	
            	 	 By: 	 
	Signature	 	 	 
	 	 	 Name: 	 
	 	 	 	 
	 	 	 Title: 	 
	 	 	 	 

    

     

    
      
         

         

         

      

      
         

        
          

        

      

      
         

      

    

    

      AURIGA
        LABORATORIES, INC.

      2007
        STOCK OPTION 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 a total number of shares of Common Stock (the “Shares”)
        set
        forth in the Notice of Stock Option Grant, 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. 2007 Stock Option 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 Option.

       

      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 of Stock Option Grant 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
        on
        the Notice of Stock Option Grant; 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 on the Notice of Stock Option Grant,
        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 of Stock Option Grant.

       

      (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. Subject to Section 2(c)
        below, 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.

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      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.

       

      (c)  Net
        Issue Exercise.

       

      (i) In
        lieu
        of exercising this Option in the manner provided above in Section 2(b), the
        Optionee may elect to receive shares equal to the value of this Option (or
        the
        portion thereof being canceled) by surrender of this Option at the principal
        office of the Company together with the Early Exercise Agreement or Exercise
        Agreement, as the case may be, duly executed by such Optionee, in which event
        the Company shall issue to holder a number of shares of Common Stock computed
        using the following formula:

      

      X
        =
 Y
        (A -
        B)

      A

      Where  X
        = The
        number of shares of Common Stock to be issued to the Optionee.

      

      Y
        = The
        number of shares of Common Stock purchasable under this Option (at the date
        of
        such calculation).

      

      A
        = The
        Fair Market Value of one share of Common Stock (at the date of such
        calculation).

      

      B
        = The
        Purchase Price (as adjusted to the date of such calculation).

      

      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
        any
        representation and warranty to the Company as may be required by any applicable
        law or regulation.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      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
        of
        Stock Option Grant. 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, the 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 months from the Termination Date (but in no event
        later than the Expiration Date set forth in the Notice of Stock Option Grant
        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), the Option shall terminate.

       

      (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 months from
        the
        Termination Date (but in no event later than the Expiration Date set forth
        in
        the Notice of Stock Option Grant 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), the 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
        30
        days after Optionee’s Termination Date, the Option may be exercised at any time
        within six months following the date of death (but in no event later than
        the
        Expiration Date set forth in the Notice of Stock Option Grant 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.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      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 of Stock
        Option Grant, 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.

       

      (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
        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 year after exercise and are disposed of at least two 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 year after exercise. If Shares purchased under
        an
        Incentive Stock Option are disposed of within one year after exercise or
        within
        two 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 years after
        the Date of Grant, or (ii) the date one 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.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      11.  Withholding
        Tax Obligations.

       

      (a)  General
        Withholding Obligations.
        As a
        condition to the exercise of 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
        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,
        or
        the Shares to be issued in connection with the Stock Purchase Right, if any,
        that number of Shares having a Fair Market Value determined as of the applicable
        Tax Date equal to the amount required to be withheld.

       

      (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

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      (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:	 
	 	 	 
	 	Name:	 Charles
                R. Bearchell 
	 	 	 
	 	Title:	 Chief
                Financial 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 OPTION 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 Option and fully understands all
        provisions of the Option. 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 Option.

       

       

       

      
        	Dated:	
              	 

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      EXHIBIT
        A

      

      AURIGA
        LABORATORIES, INC.

       

      2007
        Stock Option 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 2007 Stock Option
        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 2007 Stock Option 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)  Repurchase
        Option.

        
          
             

          

          
            A
              - 1

            
              

            

          

          
             

          

        

      

      (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), by net exercise pursuant to
        Section
        2(c) of the Option Agreement, 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.

       

      (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.

      
        
           

        

        
          A
            - 8

          
            

          

        

        
           

        

      

      (i)  California
        Corporate Securities Law.
        THE
        SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN
        QUALIFIED WITH THE DEPARTMENT OF CORPORATIONS OF THE STATE OF CALIFORNIA,
        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: 2029
                  Century Park East, Suite 1130

              
	 	
                 Los
                  Angeles, CA 90067

              
	 	 	 
	 	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 2007 Stock Option 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.

       

      

        	Date:	 	 
	
                

              	 	
                

                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.

       

      	Date:	 	 
	
              

            	 	
              

              Signature

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
        B

       

      AURIGA
        LABORATORIES, INC.

       

      2007
        Stock Option 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 2007 Stock Option
        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 2007 Stock Option 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), by net exercise pursuant to
        Section
        2(c) of the Option Agreement, 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.

       

      (i)  California
        Corporate Securities Law.
        THE
        SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN
        QUALIFIED WITH THE DEPARTMENT OF CORPORATIONS OF THE STATE OF CALIFORNIA,
        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: 2029
                  Century Park East, Suite 1130

              
	 	
                 Los
                  Angeles, CA 90067

              
	 	 	 
	 	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 $__________

       

      _____ ______
        shares of (or cancellation of the right to exercise) 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:AMENDED
      EMPLOYMENT AGREEMENT 

     

            
      THIS
      AMENDED EMPLOYMENT AGREEMENT (“Agreement”)
      is entered into as of September 1, 2007 (the “Commencement Date”) by and between
AURIGA
      LABORATORIES, INC.,
      a
      Delaware corporation (the “Company”), and CHARLES
      R. BEARCHELL,
      an
      individual resident of the State of California (“Executive”). This Agreement
      expressly modifies the November 8, 2006 Agreement currently in force between
      the
      parties. 

     

    W
      I T N E S S E T H 

     

            In
      consideration of the mutual covenants and obligations herein set forth, the
      parties hereto agree as follows: 

     

        1.    
      Engagement;
      Nature of Duties.
      Executive’s current position with the Company is as its Chief Financial Officer.
      By way of this Agreement, the parties agree that Executive, for the period
      hereinafter set forth, will serve as Director of Financial Reporting of the
      Company. In such capacity, Executive shall report to the Chief Financial Officer
      of the Company (“CFO”) and shall perform the duties and render the services for
      and on behalf of the Company customarily performed by a Director of Financial
      Reporting, and as may be set forth from time to time in resolutions of, or
      other
      directives issued by, the Board of Directors of the Company and/or any committee
      or designee thereof (the “Board”) or the CEO (the “Services”). 

     

        2.    
      Term.
      The
      term of employment pursuant to this Agreement shall be from the present until
      December 31, 2007 (the “Term”), unless sooner terminated in accordance with the
      provisions hereof. Thereafter, Executive’s employment with Company will be
      solely at-will 

     

        3.    
      Location.
      Executive shall not be required to relocate his primary place of employment
      outside of the greater Los Angeles County metropolitan area. Executive may,
      however, be required to travel to other locations at such times as may be
      reasonably necessary for the performance of his duties and responsibilities
      under this Agreement. Any such travel undertaken by Executive shall be at the
      Company’s expense and shall be reimbursed in accordance with the Company’s
      prevailing policy for reimbursing personnel, as the same may, from time to
      time,
      be adjusted or revised. 

     

        4.    
      Performance
      of Duties.
      Executive agrees to perform such duties and render the Services to the best
      of
      his ability, devoting thereto his entire professional time, attention and energy
      exclusively to the business and affairs of the Company and its affiliates,
      as
      its business and affairs now exist and as they hereafter may be changed, and
      shall not during the term of his employment hereunder be engaged in any other
      business activity, whether or not such business activity is pursued for gain
      or
      profit; provided, however, that Executive may serve: (a) on civic or charitable
      boards or committees; and (b) with the prior written approval of the Board,
      boards of corporations or business enterprises, in each case so long as such
      activities do not interfere with the performance of Executive’s obligations
      under this Agreement. 

     

        5.    
      Compensation
      and Benefits.
      

     

    (a) Base
      Compensation .
      Beginning on the Commencement Date, the Company shall pay to Executive a base
      annualized compensation (“Base Compensation”) in the amount of One Hundred Fifty
      Thousand Dollars ($150,000.00), payable in periodic installments in accordance
      with the Company’s prevailing policy for compensating personnel, as the same
      may, from time to time, be adjusted or revised. 

     

    (b) Expense
      Reimbursement .
      The
      Company shall reimburse to Executive any and all reasonable expenses actually
      incurred by Executive in the performance of the Services during the Term,
      provided that such expenses are in accordance with any policies or directives
      of
      the Company regarding reimbursement of business expenses now or hereafter
      adopted by the Company, and subject to Executive providing appropriate
      supporting documentation, reasonably acceptable to the Company. Executive shall
      be reimbursed for any and all cellular phone expenses actually incurred by
      Executive in the performance of the Services during the Term, subject to
      Executive providing appropriate supporting documentation, reasonably acceptable
      to the Company. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (d) Equity
      Incentives .
      The
      Board previously granted an option to purchase seven hundred fifty thousand
      (750,000) shares of the Company’s Common Stock as set forth in a separate Notice
      of Stock Option Grant. That Stock Option Grant is hereby terminated and amended
      to grant Executive an option to purchase up to Fifty Thousand (50,000) shares
      of
      the Company’s Common Stock as set forth in a separate Stock Option Grant on the
      terms set forth in that Notice of Stock Option Grant.

     

    (e)
      Health
      and Disability Insurance .
      Executive shall have the right to participate in, and be provided family
      coverage at the Company’s expense for, any health and disability insurance
      programs now or hereafter maintained by the Company for the benefit of its
      senior executive-level employees generally, subject only to any eligibility
      or
      membership restrictions of such programs. 

     

            (f)
      Other
      Benefits .
      Executive shall have the right to participate in any and all benefit, retirement
      or insurance programs now or hereafter maintained by the Company for the benefit
      of its senior executive-level employees generally, including the Company’s
      401(k) plan (with matching benefits equal to three percent (3%) of Executive’s
      contributions thereto), subject only to any eligibility or membership
      restrictions of such programs. 

     

            (g)
      Vacation
      .
      During
      each year of the Term, Executive shall be entitled to vacation leave of four
      (4)
      weeks, without deduction of salary. Such vacation leave shall be taken at such
      time or times during the applicable year as may be mutually determined by
      Executive and the Company acting reasonably, having regard to the performance
      of
      Executive’s essential duties to the Company pursuant to the terms of this
      Agreement, and subject to the policies or directives of the Company regarding
      vacation leave now or hereafter adopted by the Company. Executive may accumulate
      unused vacation time from year to year. 

     

            (i)
      Deduction
      and Withholding .
      All
      compensation and other benefits to or on behalf of Executive pursuant to this
      Agreement shall be subject to such deductions and withholding as may be agreed
      to by the Executive or required by applicable law. 

     

        6.    
      Termination.
      

     

            (a)
      This Agreement may be terminated by the Company with Cause (as defined below),
      which termination shall be effective upon written notice to Executive.For
      purposes of this Agreement, “Cause” shall mean: a) Executive’s conviction or
      plea of guilty or nolo contendere to a felony or any crime involving dishonesty
      or moral turpitude, b) his willful failure to perform any of his material duties
      under this Agreement which results in demonstrable material injury to the
      Company, or c) commission by Executive of an act or omission that could
      adversely and materially affect the Company’s business or reputation. If the
      Company contends the Executive is in violation of either subparts (b) and (c)
      of
      this paragraph, then it shall provide written notice to the Executive of its
      contention and the factual basis therefore and shall provide Executive a period
      of thirty (30) days to remedy or cure said breach.

     

            (b)
      If, during the term of this Agreement, the Company terminates Executive’s
      employment for any reason other than Cause, then the Company shall pay Executive
      his Base Salary for the remainder of the Term of this Agreement. Such Base
      Salary shall be paid at the rate in effect at the time of his termination of
      employment and in accordance with the Company’s standard payroll procedures.

     

            (d)
      If, during the term of this Agreement, the Company terminates Executive’s
      employment for any reason other than Cause, and if Executive elects to continue
      health insurance coverage under the Consolidated Omnibus Budget Reconciliation
      Act (“COBRA”) for himself and, if applicable, his dependents, following the
      termination of his employment, then the Company shall pay the monthly premium
      under COBRA for Executive and, if applicable, such dependents, until the
      earliest of: (i) the first (1st
      )
      anniversary of the termination of employment; (ii) the expiration of
      Executive’s continuation coverage under COBRA; or (iii) the date at which
      Executive receives substantially equivalent health insurance coverage in
      connection with new employment or self-employment. 

     

            (e)
      This Agreement shall automatically terminate upon Executive’s permanent
      disability as a result of a physical or mental injury or disability, or death.
      As used herein, “permanent disability” shall mean Executive’s substantial
      inability to perform the Services with or without reasonable accommodations,
      as
      reasonably determined by a physician appointed by the Company, which inability
      continues for more than ninety (90) consecutive days, or for more than one
      hundred twenty (120) days in any 12-month period. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

            (f)
      In the event of the Company’s termination of Executive’s employment for Cause,
      or Executive’s voluntary termination of his employment for any reason, the
      Company may place Executive on paid administrative leave and/or bar or restrict
      his access to the Company’s facilities, contemporaneously with or at any time
      after the delivery of the termination notice. 

     

        7.    
      Change
      of Control.
      

     

            (a)    
      Subject to Section 7(b), in the event of a Change of Control (as defined below),
      if the Company terminates the employment of Executive for any reason other
      than
      for Cause, at any time within the twelve (12)-month period immediately following
      a Change of Control, any portion of any severance benefits (if any) payable
      to
      Executive pursuant to this Agreement or any other payments to him in connection
      with a Change of Control (collectively, the “Total Payments”) constitute an
      Excess Parachute Payment (as defined below), then the Total Payments to be
      made
      to Executive shall be reduced such that the value of the Total Payments that
      Executive is entitled to receive shall be One Dollar ($1.00) less than the
      maximum amount that he may receive without becoming subject to the tax imposed
      by Section 4999 of the United States Internal Revenue Code of 1986, as amended
      (the “Code”), or which the Company may pay without loss of deduction under Code
      Section 280G(a). 

     

            (b)    
      For purposes of this Agreement, a “Change of Control” of the Company means, and
      shall be deemed to have taken place, if: (i) a total change in executive
      management of the Company has occurred; (ii) any person or entity or group
      of
      affiliated persons or entities, including a group which is deemed a “person” by
      Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), after the date hereof first acquires in one or more
      transactions, at least one of which is after the date of this Agreement,
      ownership of fifty percent (50%) or more of the outstanding shares of any class
      of stock then entitled to vote in the election of directors of the Company;
      and
      (iii) as a result of, or in connection with, any such acquisition or any related
      proxy contest, cash tender or exchange offer, merger or other business
      combination, sale of all or substantially all of the assets of the Company
      or
      any combination of the foregoing transactions, hereinafter referred to as a
      “Transaction,” the persons who were directors of the Company immediately before
      the acquisition shall cease to constitute three-fourths of the membership of
      the
      Board or any successor to the Company during the period commencing with the
      consummation of the Transaction and ending on the first to occur of the first
      anniversary of such date or the conclusion of the next meeting of shareholders
      to elect directors, except to the extent that any new directors during such
      period were elected or nominated by at least three-fourths of such persons
      (or
      new directors who were so nominated or elected). “Ownership” means beneficial or
      record ownership, directly or indirectly, other than: (i) by a person owning
      such shares merely of record (such as a member of a securities exchange, a
      nominee, or a securities depositary system); (ii) by a person as a bona fide
      pledgee of shares prior to a default and determination to exercise powers as
      an
      owner of the shares; (iii) by a person who is not required to file statements
      on
      Schedule 13D by virtue of Rule 13d-1(b) of the Securities and Exchange
      Commission under the Exchange Act; or (iv) by a person who owns or holds shares
      as an underwriter acquired in connection with an underwritten offering pending
      and for purposes of their public resale or planned private placement in
      increments of less than such 50% amount. Without limitation, the right to
      acquire ownership shall not of itself constitute ownership of shares.

     

            (c)    
      For purposes of this Agreement, “Excess Parachute Payment” shall have the same
      meaning as such term has under Code Section 280G and any temporary, proposed
      or
      final regulations thereunder, and any Total Payments shall be valued as provided
      therein. 

     

        8.    
      Beneficiary
      Designation.
      Executive may designate a beneficiary to receive any remaining compensation
      under Sections 6 and 7 in the event of Executive’s death after he becomes
      entitled to receive any compensation thereunder (the “Beneficiary”). Such
      designation shall be made by filing a written designation with the Board in
      such
      form as the Board may provide and may be changed by Executive from time to
      time
      by similar action. If no such designation is made by Executive or if Executive
      is not survived by his designated Beneficiary, any remaining compensation under
      Sections 6 and 7 at the time of Executive’s death shall be paid to Executive’s
      estate. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

        9.    
      Obligations
      of Executive - Property Rights.
      

     

            (a)    
      As used in this Agreement, “Confidential Information” means any and all
      information disclosed to Executive or material proprietary to the Company or
      designated as Confidential Information by the Company and not generally known
      by
      non-Company personnel, which Executive develops or which Executive gains
      knowledge of or access through as a consequence of or through Executive’s
      employment by the Company (including information conceived, originated,
      discovered or developed in whole or in part by Executive, alone or jointly
      with
      others). “Confidential Information” includes, but is not limited to, the
      following types of information and other information of a similar nature
      (whether or not reduced to writing or placed in any tangible medium of
      expression): the Company’s products, processes, discoveries, ideas, concepts,
      techniques and services, including information relating to research,
      development, inventions, manufacture, purchasing, accounting, engineering,
      marketing, merchandising, selling, trade secrets, customer lists, price lists,
      pricing policies, financial information, employee files or any other information
      that the Company maintains as confidential. “Confidential Information” also
      includes any information described aforesaid which the Company obtains from
      another party and which the Company treats as proprietary or designates as
      Confidential Information, whether or not owned or developed by the Company.
      

     

            (b)    
      Except as required in Executive’s duties to the Company and then only with the
      Company’s prior written consent, Executive shall not, directly or indirectly,
      use for Executive’s own benefit or the benefit of others, lecture upon, publish
      articles concerning, disseminate, disclose, reveal or transfer to any person
      or
      entity, any Confidential Information or any part thereof, or assist or solicit
      any person or entity other than the Company to secure any benefit from the
      Confidential Information or any part thereof, either during or at any time
      after
      the term of this Agreement. 

     

            (c)    
      All documents, papers, notes, notebooks, memoranda, computer files and other
      written or electronic records of any kind made by Executive during and in
      connection with Executive’s employment by the Company, shall remain the property
      of the Company at all times. 

     

        10.    
      Non-Competition
      During Term.
      Executive shall not, either directly or indirectly, during the Term of this
      Agreement or at any time during his employment with the Company (the
“Noncompetition Period”): 

     

            (a)    
      Own an interest in, operate, join, manage, control, participate in or be
      connected in any manner as an officer, director, employee, agent, consultant,
      independent contractor, partner, shareholder, or principal of, or provide any
      advice or services to, any Conflicting Organization (as defined below).
      Ownership of less than five percent (5%) of the common stock or equity interest
      of a public corporation shall not be deemed in violation of this provision.
      

     

            (b)    
      Undertake planning for or organization of any Conflicting Organization or any
      business activity materially competitive with the Company’s business or combine
      with other employees or representatives of the Company for the purpose of
      organizing any such Conflicting Organization or materially competitive business
      activity. 

     

            (c)    
      “Conflicting Organization” means any person, business, company or organization
      engaged in or about to become engaged in a business or activity which is
      substantially similar to, or would reasonably be deemed to compete with, the
      business of the Company. 

     

        11.    
      Non-Solicitation.
      Executive shall not, during the Term of this Agreement or at any time during
      his
      employment with Company, and for a period of three (3) years immediately
      thereafter, directly or indirectly: 

     

            (a)    
      Solicit, interfere, entice, induce or influence or seek to solicit, interfere,
      entice, induce or influence, any person who is engaged as an employee,
      consultant, agent, independent contractor or otherwise by the Company to
      terminate his or her employment or engagement. In addition, Executive shall
      not
      authorize, approve or assist any third party to take any action that Executive
      is prohibited from taking pursuant hereto. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

            (b)    
      Call on, solicit or take away, or attempt to call on, solicit or take away
      any
      of the customers or suppliers (for the purpose of obtaining goods or services
      for a business directly or indirectly in competition with the Company) of the
      Company, either for the benefit of Executive or any other person, organization
      or entity. In addition, Executive shall not authorize, approve or assist any
      third party to take any action that Executive is prohibited from taking pursuant
      hereto. 

     

        12.    
      Responsibilities
      Upon Termination.
      Upon
      the termination of his employment by the Company for whatever reason and
      irrespective of whether or not such termination is voluntary on his part:

     

            (a)    
      Executive shall: (i) promptly deliver to the Company all Confidential
      Information and all other data, designs, drawings, plans, manuals, notes,
      memoranda, work sheets, specifications, customer lists, supplier lists, computer
      programs and all other materials which are or have become the property of the
      Company and all copies or reproductions of any such materials (whether or not
      such copies or reproductions are the property of the Company); and (ii) sign
      and
      deliver to the Company a certificate attesting that he has returned to the
      Company all materials described in the preceding clause that were in Executive’s
      possession or control and that Executive is not retaining any duplicate set(s)
      of such materials; 

     

            (b)    
      Executive shall advise the Company of the identity of his new employer within
      ten (10) days after accepting new employment and shall keep the Company so
      advised of any change in employment during the Noncompetition Period; and

     

            (c)    
      Executive in his sole discretion may notify any new employer of Executive that
      he has been exposed to Confidential Information, that he has an obligation
      to
      the Company not to disclose any Confidential Information and that he is not
      to
      compete with the Company during the Noncompetition Period. 

     

        13.    
      Indemnification;
      Insurance.
      

     

            (a)    
      That certain Indemnification Agreement, dated November 8, 2006, entered into
      between Executive and the Company hereto is hereby terminated on the Effective
      Date.

     

        14.    
      Assignment.
      

     

            (a)    
      Assignment
      By Company .
      This
      Agreement may and shall be assigned or transferred to, and shall be binding
      upon
      and shall inure to the benefit of, any successor of the Company, and any such
      successor shall be deemed substituted for all purposes of the “Company” under
      the terms of this Agreement. As used in this Agreement, the term “successor”
shall mean any person, firm, corporation or business entity which at any time,
      whether by merger, purchase or otherwise, acquires all or substantially all
      of
      the assets or securities of the Company. 

     

            (b)    
      Assignment
      By Executive .
      This
      Agreement shall inure to the benefit of and be enforceable by Executive’s
      personal or legal representatives, executors and administrators, successors,
      heirs, distributees, devisees and legatees. 

     

        15.    
      Separate
      Agreements.
      The
      covenants of Executive contained in Sections 9, 10, 11, 12 and 13 of this
      Agreement shall be construed as separate agreements independent of any other
      agreement, claim or cause of action of Executive against the Company, whether
      predicated on this Agreement or otherwise, and no other agreement, claim or
      cause of action asserted by Executive shall constitute a defense to the
      enforcement by the Company of these covenants. The covenants contained in this
      Agreement are necessary to protect the legitimate business interests of the
      Company. Damages for the violation of any such covenants will not give full
      and
      sufficient relief to the Company. In the event of any violation of any such
      covenants, the Company shall be entitled to: (a) injunctive relief against
      the
      continued violation thereof; and (b) its actual damages. In any dispute
      concerning whether or not Executive has violated any of such covenants, the
      prevailing party shall be entitled to payment from the other party for any
      and
      all expenses, including attorneys’ fees and expenses, incurred by the prevailing
      party in connection with such dispute. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

        16.    
      General
      Obligations of Executive.
      Executive agrees and acknowledges that he owes a duty of loyalty, fidelity
      and
      allegiance to act at all times in the best interests of the Company, to not
      knowingly become involved in a conflict of interest and to not knowingly do
      any
      act or knowingly make any statement, oral or written, which would injure the
      Company’s business, its interest or its reputation unless required to do so in
      any legal proceeding by a competent court with proper jurisdiction. Executive
      agrees to comply at all times with all applicable policies, rules and
      regulations of the Company, including, without limitation, the Company’s policy
      regarding trading in its Common Stock, as is in effect from time to time.

     

        17.    
      Life
      Insurance.
      To the
      extent that the Company desires to obtain insurance on Executive’s life for the
      benefit of the Company, Executive shall cooperate and do all acts reasonably
      necessary to enable the Company to obtain said insurance. 

     

        18.    
      Release.
      If
      Executive’s employment hereunder shall terminate under Sections 6(b), 6(c) or 7,
      Executive agrees, as a condition to his entitlement to receive the amounts
      specified in such Sections to be due to him, to execute and deliver to the
      Company a standard release in a mutually agreeable form. Such release shall
      be
      delivered by Executive at the time of termination, but shall become effective
      only after Executive has received all payments specified in this Agreement
      to be
      due to him from the Company in respect of his termination. 

     

        19.    
      Representations.
      Executive hereby represents that he is not subject to any restriction of any
      nature whatsoever on his ability to enter into this Agreement or to perform
      his
      duties and responsibilities hereunder, including, but not limited to, any
      covenant not to compete with any former employer, any covenant not to disclose
      or use any non-public information acquired during the course of any former
      employment or any covenant not to solicit any customer or prospective customer
      of any former employer. 

     

        20.    
      Notices.
      Any and
      all notices which are required or permitted to be given by any party to any
      other party hereunder shall be given in writing, sent by registered or certified
      mail, or by electronic communications (including telegram or facsimile) followed
      by a confirmation letter sent by registered or certified mail, postage prepaid,
      return receipt requested, or delivered by hand or messenger service, with the
      charges therefore prepaid, addressed to such party as follows: 

     

    
      	
               
                

            	
              (a)
                

            	
              Notices
                to the Company: 

               

              Auriga
                Laboratories, Inc. 

              10635
                Santa Monica Blvd, #120

              Los
                Angeles, CA 90025 

              Attn:
                Chief Executive Officer 

            

    

    

    
      	
               
                

            	
              (b)
                

            	
              Notices
                to Executive: 

               

              Mr.
                Charles R. Bearchell 

              18030
                Gauguin Lane 

              Granada
                Hills, California 91344 

            

    

     

    or
      to
      such other address as the parties shall from time to time give notice of in
      accordance with this Section. Notices sent in accordance with this Section
      shall
      be deemed effective on the date of dispatch, and an affidavit of mailing or
      dispatch, executed under penalty of perjury, shall be deemed presumptive
      evidence of the date of dispatch. 

     

        21.    
      Entire
      Agreement and Modifications.
      This
      Agreement, including the exhibits hereto and the agreements expressly referred
      to herein, constitutes the entire understanding between the parties pertaining
      to the subject matter hereof and supersedes all prior agreements,
      understandings, negotiations and discussions, whether oral or written. There
      are
      no warranties, representations or other agreements between the parties, in
      connection with the subject matter hereof, except as specifically set forth
      herein. No supplement, modification, waiver or termination of this Agreement
      shall be binding unless made in writing and executed by the party thereto to
      be
      bound. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

        22.    
      Waivers.
      No
      term, condition or provision of this Agreement may be waived except by an
      express written instrument to such effect signed by the party to whom the
      benefit of such term, condition or provision runs. No such waiver of any term,
      condition or provision of this Agreement shall be deemed a waiver of any other
      term, condition or provision, irrespective of similarity, or shall constitute
      a
      continuing waiver of the same term, condition or provision, unless otherwise
      expressly provided. No failure or delay on the part of any party in exercising
      any right, power or privilege under any term, condition or provision of this
      Agreement shall operate as a waiver thereof, nor shall a single or partial
      exercise thereof preclude any other or further exercise of any other right,
      power or privilege. 

     

        23.    
      Survival
      of Agreement Provisions.
      All
      terms, conditions, provisions, covenants, agreements, representations and
      warranties made herein shall survive the performance by the parties hereto
      of
      their obligations hereunder, and the termination or expiration of this
      Agreement. 

     

        24.    
      Severability.
      In the
      event any one or more of the terms, conditions or provisions contained in this
      Agreement should be found in a final award or judgment rendered by any court
      of
      competent jurisdiction to be invalid, illegal or unenforceable in any respect,
      the validity, legality and enforceability of the remaining terms, conditions
      and
      provisions contained herein shall not in any way be affected or impaired
      thereby, and this Agreement shall be interpreted and construed as if such term,
      condition or provision, to the extent the same shall have been held invalid,
      illegal, or unenforceable, had never been contained herein, provided that such
      interpretation and construction is consistent with the intent of the parties
      as
      expressed in this Agreement. If any term, condition or provision contained
      in
      this Agreement shall be determined under applicable law, to be overly broad
      in
      duration, geographical coverage or substantive scope, such term, condition
      or
      provision shall be deemed narrowed to the broadest terms permitted by applicable
      law. 

     

        25.    
      Headings.
      The
      headings of the Sections contained in this Agreement are included herein for
      reference purposes only, solely for the convenience of the parties hereto,
      and
      shall not in any way be deemed to affect the meaning, interpretation or
      applicability of this Agreement or any term, condition or provision hereof.
      

     

        26.    
      Applicable
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California, notwithstanding the fact that one or more counterparts
      hereof may be executed outside of the state, or one or more of the obligations
      of the parties hereunder are to be performed outside of the state. 

     

        27.    
      Resolution
      of Disputes.
      As part
      of this Agreement, Executive and Company agree to execute the Arbitration
      Agreement attached hereto as Exhibit “A”. The parties agree to submit all claims
      arising out of this Agreement and/or Executive’s employment with Company, except
      as limited with the Arbitration Agreement, to arbitration. 

     

        28.    
      Attorneys’
      Fees.
      In the
      event that any party to this Agreement shall commence any suit, action or other
      proceeding to interpret this Agreement, or determine or enforce any right or
      obligation created hereby, including but not limited to any action for
      rescission of this Agreement or for a determination that this Agreement is
      void
      or ineffective ab
      initio ,
      the
      prevailing party in such action shall recover such party’s costs and expenses
      incurred in connection therewith, including attorney’s fees and costs of appeal,
      if any. Any court shall, in entering any judgment or making any award in any
      such suit, action or other proceeding, in addition to any and all other relief
      awarded to such prevailing party, include in such judgment or award such party’s
      costs and expenses as provided in this Section 28. 

     

        29.    
      Covenant
      of Further Assurances.
      All
      parties to this Agreement shall, upon request, perform any and all acts and
      execute and deliver any and all certificates, instruments and other documents
      that may be necessary or appropriate to carry out any of the terms, conditions
      and provisions hereof or to carry out the intent of this Agreement.

     

        30.    
      Remedies
      Cumulative.
      Each
      and all of the several rights and remedies provided for in this Agreement shall
      be construed as being cumulative and no one of them shall be deemed to be
      exclusive of the others or of any right or remedy allowed by law or equity,
      and
      pursuit of any one remedy shall not be deemed to be an election of such remedy,
      or a waiver of any other remedy. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

        31.    
      Compliance
      with Laws.
      Nothing
      contained in this Agreement shall be construed to require the commission of
      any
      act contrary to law, and whenever there is a conflict between any term,
      condition or provision of this Agreement and any present or future statute,
      law,
      ordinance or regulation contrary to which the parties have no legal right to
      contract, the latter shall prevail, but in such event the term, condition or
      provision of this Agreement affected shall be curtailed and limited only to
      the
      extent necessary to bring it within the requirement of the law, provided that
      such construction is consistent with the intent of the parties as expressed
      in
      this Agreement. 

     

        32.    
      Gender.
      As used
      in this Agreement, the masculine, feminine or neuter gender, and the singular
      or
      plural number, shall be deemed to include the others whenever the context so
      indicates. 

     

        33.    
      No
      Third Party Benefit.
      Nothing
      contained in this Agreement shall be deemed to confer any right or benefit
      on
      any person who is not a party to this Agreement. 

     

        34.    
      Construction;
      Representation by Counsel.
      The
      parties hereby represent that they have each been advised by independent counsel
      with respect to their rights and obligations hereunder. This Agreement shall
      be
      construed and interpreted in accordance with the plain meaning of its language,
      and not for or against either party, and as a whole, giving effect to all of
      the
      terms, conditions and provisions hereof. 

     

        35.    
      Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be deemed an original, and such counterparts
      together shall constitute only one instrument. Any or all of such counterparts
      may be executed within or outside the State of California. Any one of such
      counterparts shall be sufficient for the purpose of proving the existence and
      terms of this Agreement, and no party shall be required to produce an original
      or all of such counterparts in making such proof. 

     

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

     

    
      	 	
              “Company”

            
	 	 	 
	 	
              AURIGA
                LABORATORIES, INC. ,

            
	 	
              a
                Delaware corporation

            
	 
 	 
 	 
 
	
            	By:  	/s/ Philip
              S.
              Pesin.
	 	
              

              Name:  Philip
                S. Pesin 

            
	 	
              Title:    Chief
                Executive Officer 

            

    

    
       

      
        	 	
                
                  “Executive”

                

              
	 	 
	 	 	 
	
              	 	/s/ Charles
                R. Bearchell.
	 	
                

                
                  CHARLES
                    R. BEARCHELL 

                

              

      

       

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    ARBITRATION
      AGREEMENT

    

    The
      parties to this Arbitration Agreement (the “Agreement”) are Auriga Laboratories,
      Inc. (the “Company”) and Charles Bearchell (“Executive”).

     

    In
      order
      to obtain an expeditious determination of the parties’ rights and obligations
      and to avoid the high cost and lengthy delays typically associated with court
      actions, both Executive and the Company agree to submit any and all claims
      or
      controversies arising out of or relating to the Executive’s employment to
      arbitration. This Agreement applies to all claims or controversies regarding
      contracts, torts (personal injury), or arising under statute, including, without
      limitation, the claims and causes of action specified below.

     

    1. SUBMISSION
      TO ARBITRATION. 

     

    a. Executive
      or the Company will begin the arbitration process by delivering a written
      request for arbitration to the other party within the same time limits which
      would apply to the filing of a civil court action. Failure to deliver a timely
      written request for arbitration will preclude the aggrieved party from
      instituting any legal, arbitration or other proceeding and will constitute
      a
      complete waiver of all such claims, as they would in court. Statutory claims
      shall be raised within the limitations period provided by the applicable
      statute.

     

    b. Claims
      covered by this provision (“Covered Claims”) include, without limitation, the
      following: (i) alleged violations of federal, state and/or local constitutions,
      statutes, regulations or ordinances, including, but not limited to, laws
      dealing with unlawful discrimination and harassment;
      (ii)
      claims based on any purported breach of contractual obligation, including but
      not limited to breach of the covenant of good faith and fair dealing, wrongful
      termination or constructive discharge; (iii) violations of public policy; (iv)
      claims relating to a transfer, reassignment, denial of promotion, demotion,
      reduction in pay, or any other term or condition of employment; (v) claims
      based
      on contract or tort; (vi) claims relating to trade secrets or unfair
      competition, and (vii) any and all other claims arising out of Executive’s
      employment with or the termination thereof by the Company. THIS INCLUDES, BUT
      IS
      NOT LIMITED TO, CLAIMS BROUGHT UNDER TITLE VII OF THE CIVIL RIGHTS ACT OF 1964;
      CALIFORNIA GOVERNMENT CODE SECTION 12960, et
      seq.;
      AND
      ANY OTHER FEDERAL, STATE OR LOCAL ANTI-DISCRIMINATION LAWS RELATING TO
      DISCRIMINATION INCLUDING BUT NOT LIMITED TO THOSE BASED ON THE FOLLOWING
      PROTECTED CATEGORIES: GENETIC INFORMATION OR CHARACTERISTICS; SEX AND GENDER;
      RACE; RELIGION; NATIONAL ORIGIN; MENTAL OR PHYSICAL DISABILITY (INCLUDING CLAIMS
      UNDER THE AMERICAN WITH DISABILITIES ACT); MEDICAL CONDITION (CANCER); VETERAN
      OR MILITARY STATUS; MARITAL STATUS; SEXUAL ORIENTATION OR PREFERENCE; AGE;
      PREGNANCY; AND RETALIATION OR WRONGFUL TERMINATION IN VIOLATION OF PUBLIC POLICY
      FOR ALLEGING OR FILING OR PARTICIPATING IN ANY GRIEVANCE OR OTHERWISE
      COMPLAINING OF ANY WRONG RELATING TO THE AFOREMENTIONED CATEGORIES OR ANY PUBLIC
      POLICY.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    c. The
      following claims are expressly excluded
      and not
      covered by this Agreement for final and binding arbitration: (i) claims related
      to workers’ compensation and unemployment insurance; (ii) administrative filings
      with government agencies such as the California Department of Fair Employment
      & Housing, the Equal Employment Opportunity Commission, the U.S. Department
      of Labor or the National Labor Relations Board; and (iii) claims that are
      expressly excluded by statute or are expressly required to be arbitrated under
      a
      different procedure pursuant to the terms of an employee benefit plan. In
      addition, nothing in this Agreement shall preclude either party from seeking
      appropriate interim injunctive relief pursuant to the California Code of Civil
      Procedure or applicable federal law before arbitration or while arbitration
      proceedings are pending.

     

    d. IN
      CONSIDERATION FOR AND AS A MATERIAL CONDITION OF EMPLOYMENT AND CONTINUATION
      OF
      EMPLOYMENT WITH THE COMPANY, EXECUTIVE AGREES THAT ARBITRATION IS THE EXCLUSIVE
      MEANS FOR RESOLVING COVERED CLAIMS. ONLY AN ARBITRATOR, NOT A JUDGE OR JURY,
      WILL DECIDE ANY COVERED CLAIM.

     

    e. Any
      claim
      arising between Executive and the Company covered by the arbitration provisions
      of this Agreement will be submitted to arbitration before a mutually-agreeable
      neutral arbitrator in the State of California pursuant to the Employment
      Arbitration Rules and Mediation Procedures (formerly the National Rules for
      the
      Resolution of Employment Disputes) of the American Arbitration Association
      in
      effect upon the date the claim is submitted in writing to the Company. The
      Rules
      are incorporated fully herein by reference.

     

    The
      arbitrator must allow discovery adequate to arbitrate all claims, including
      access to essential documents and witnesses. In making his or her award, the
      Arbitrator shall have the authority to make any finding congruent with
      applicable law. In reaching his or her decision, the Arbitrator shall adhere
      to
      relevant law and applicable legal precedent, and shall have no power to vary
      therefrom. The Arbitrator must issue a written award. The Arbitrator shall,
      in
      the award or separately, make specific findings of fact, and set forth facts
      in
      support of his or her decision, as well as the reasons and basis for his or
      her
      opinion. Should the Arbitrator exceed the jurisdiction or authority here
      conferred, any party aggrieved thereby may file a petition to vacate, amend
      or
      correct the Arbitrator’s award in a court of competent jurisdiction, pursuant to
      applicable law.

     

    The
      Company will pay the arbitrator’s fees and other administrative costs of
      arbitration, and other reasonable costs as specified by the arbitrator under
      applicable law so that Executive does not have to bear any cost beyond any
      amount which would have to be paid as a filing fee in a municipal or superior
      court. Each party shall be responsible for payment of its attorneys’ fees,
      unless, upon application by a party, the arbitrator makes an award of attorneys’
fees under applicable statutory or other law.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    2. GOVERNING
      LAW.
      This
      Agreement shall be construed in accordance with and governed by the laws of
      the
      State of California.

     

    3. INTERPRETATION.
      This
      Agreement shall be interpreted in accordance with the plain meaning of its
      terms
      and not strictly for or against either party.

     

    4. ENTIRE
      AGREEMENT.
      This
      Agreement embodies the complete agreement and understanding of the parties
      related to the resolution of any dispute regarding Executive’s employment with
      or termination from the Company, or as otherwise specified above, superseding
      any and all other prior or contemporaneous oral or written agreements between
      the parties with respect to the same, and contains all of the covenants and
      agreements of any kind whatsoever between the parties with respect to the same.
      Each party acknowledges that no representations, inducements, promises or
      agreements regarding the resolution of any dispute regarding Executive’s
      employment with or termination by the Company, whether oral or written, express
      or implied, have been made by either party or anyone acting on behalf of a
      party, that are not incorporated herein. No other agreement or promise regarding
      the resolution of any dispute between Executive and the Company not contained
      herein shall be valid or binding.

     

    5. MODIFICATION.
      This
      Agreement may be amended only by an agreement in writing signed by the parties
      hereto.

     

    6. INVALIDITY.
      Should
      any provision(s) in this Agreement be held by a court of competent jurisdiction
      to be invalid, void or unenforceable, the remaining provisions shall be
      unaffected and shall continue in full force and effect, and the invalid, void
      or
      unenforceable provision shall be deemed not to be part of this
      Agreement.

     

    7. VOLUNTARY
      AGREEMENT. Executive
      and the Company represent and agree that each has reviewed all aspects of this
      Agreement, has carefully read and fully understands all provisions of this
      Agreement, and is voluntarily entering into this Agreement. The parties
      represent and agree that each has had the opportunity to review any and all
      aspects of this Agreement with the legal or other advisor of the party’s choice
      before executing this Agreement.

     

    8. SUCCESSORS
      AND ASSIGNS.
      This
      Agreement shall be binding upon and inure to the benefit of and shall be
      enforceable as applicable by and against Executive’ and the Company’s
      successors, heirs, beneficiaries and legal representatives. It is agreed that
      the rights and obligations of Executive and the Company may not be delegated
      or
      assigned except as specifically set forth in this Agreement.

     

    9. SURVIVAL
      OF TERMS.
      The
      provisions of this Arbitration Agreement will survive the termination of
      Executive’s employment and remain in full force and effect thereafter. Nothing
      in this Agreement will be construed to create any express or implied contract
      of
      employment or alter in any way the at-will nature of Executive’s
      employment.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    10. COUNTERPARTS.
      This
      Agreement may be executed in counterparts and each counterpart, when executed,
      shall have the validity of an original. Photographic or facsimile copies of
      any
      signed counterparts may be used in lieu of the original for any
      purpose.

    

    We
      have
      read and understand this Arbitration Agreement and voluntarily agree to all of
      its terms.

     

    
      	 	 	 	 
	DATED: August 27, 2007	 	 	/s/ Charles
              Bearchell
	
            	 	 	
              
Charles
              Bearchell
	
            	 	 	
            
	 	 	 	 
	DATED: August 27, 2007	 	 	/s/ Philip S. Pesin
	 	 	 	
              
                

              

              Auriga Laboratories, Inc.

            

    

     

    
      
        
        

      

      
        12

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