Document:

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                                                                  EXHIBIT 10.33

                                  TISM, Inc.
                          30 Frank Lloyd Wright Drive
                           Ann Arbor, MI  48106-0997

                                March 23, 2000

Thomas S. Monaghan
30 Frank Lloyd Wright Drive
P.O. Box 997
Ann Arbor, MI  48106-0997

     RE:  Proposed R.G. Barry Corporation/Vesture Corporation Settlement
          Agreement

Dear Mr. Monaghan:

Reference is hereby made to the Agreement and Plan of Merger dated as of
September 25, 1998 among TM Transitory Merger Corporation, TISM, Inc. and Thomas
S. Monaghan, individually and as Trustee of The Thomas S. Monaghan Living Trust,
as amended by Amendment No.1 thereto dated as of November 24, 1998, Amendment
No. 2 thereto dated as of November 24, 1998, Amendment No. 3 thereto dated as of
December 18, 1998 and Amendment No. 4 thereto dated as of December 10, 1999 (as
amended, the "Merger Agreement") and to the Settlement Agreement (the
"Settlement Agreement") dated the date hereof among R.G. Barry Corporation
("Barry"), Vesture Corporation ("Vesture"), Phase Change Laboratories, Inc.
("PCL") and Domino's Pizza, Inc. (as successor by merger to the Buyer, the
"Surviving Corporation") relative to the litigation brought by Barry and Vesture
against PCL and the Surviving Corporation in the United States District Court of
the Middle District of North Carolina, Civil Action No. 1:98-CV00802 (the
"Action"). Capitalized terms defined in the Merger Agreement are used in this
letter as so defined.

     This letter (the "Settlement Letter") sets forth our agreement as follows:

     (a)  contemporaneously with the payment by the Surviving Corporation of an
          amount equal to $5,000,000 to Barry and/or Vesture pursuant to Section
          3 of the Settlement Agreement, the Principal Stockholder shall pay to
          the Surviving Corporation an amount equal to $4,000,000 by wire
          transfer in immediately available funds; and

     (b)  contemporaneously with the payment by the Surviving Corporation of the
          amount, if any, due as of March 15, 2002 to Barry and/or Vesture
          pursuant to Section 4(b) of the Settlement Agreement (the "Shortfall
          Amount"), the Principal Stockholder shall pay to the Surviving
          Corporation an amount equal to 80% of the Shortfall Amount by wire
          transfer in immediately available funds.

     Each of the Surviving Corporation and the Principal Stockholder agrees that
the agreements set forth in this Settlement Letter are in full satisfaction and
extinguishment of the rights and obligations of each of the Surviving
Corporation and the Principal Stockholder under
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Thomas S. Monaghan                    -2-                        March 23, 2000

Article XII the Merger Agreement with respect to the Action, any Phase Change
Damages, or any other Damages arising out of or relating to the Action.

     Except as specifically amended by this Settlement Letter, the Merger
Agreement shall remain in full force and effect. This Settlement Letter shall be
governed by and construed in accordance with the laws of the State of New York,
without regard to the conflict of law rules of such state. This Settlement
Letter shall become effective when signed and delivered by each party hereto.

     Please indicate your agreement with the foregoing by executing the enclosed
copy of this letter and returning it to:

                        Ropes & Gray
                        One International Place
                        Boston, MA  02110
                        Attention:  R. Newcomb Stillwell
                        Facsimile:  617-951-7050

                                        Very truly yours,

                                        TISM, Inc.

                                        By: /s/Harry J. Silverman
                                            ---------------------
                                        Name:  Harry J. Silverman
                                        Title:  CFO-Vice President

The foregoing is hereby
Agreed to and accepted:

By: /s/Thomas S. Monaghan
    ---------------------
Name:  Thomas S. Monaghan

Cc:  Dennis S. Hersch, Esq.REGISTRATION RIGHTS AGREEMENT

     Registration Rights Agreement dated January 16, 2001 (this "AGREEMENT") by
and between The Auxer Group, Inc., a Delaware corporation, with principal
executive offices located at 12 Andrews Drive, West Paterson, New Jersey 07424
(the "COMPANY"), and                                            (the "INITIAL
INVESTOR").          ------------------   ----------------------

                  WHEREAS, prior to the date hereof, the Company issued and sold
to the Initial Investor              shares (the "BRIDGE LOAN SHARES") of
                        ------------
newly-issued common stock, par value $0.001 per share (the "COMMON STOCK"), of
the Company;

                  WHEREAS, upon the terms and subject to the conditions of the
Securities Purchase Agreement of even date herewith (the "SECURITIES PURCHASE
AGREEMENT") by and between the Initial Investor and the Company, the Company has
agreed to issue and sell to the Initial Investor an 8% Convertible Debenture
(the "DEBENTURE") of the Company in the aggregate principal amount of
$                   which, upon the terms of and subject to the conditions
-------------------
contained therein, is convertible into shares of Common Stock and

                  WHEREAS, to induce the Initial Investor to execute and deliver
the Securities Purchase Agreement, the Company has agreed to provide with
respect to the Bridge Loan Shares and the shares (the "DEBENTURE SHARES") of
Common Stock issuable in lieu of cash dividend payments on the Debenture and
upon conversion of the Debenture certain registration rights under the
Securities Act (as such term is hereinafter defined);

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained herein, the parties hereto, intending to be legally
bound, hereby agree as follows:

     1. DEFINITIONS

(a) As used in this Agreement, the following terms shall have the meanings:

          (i) "AFFILIATE" of any specified Person means any other Person who
          directly, or indirectly through one or more intermediaries, is in
          control of, is controlled by, or is under common control with, such
          specified Person. For purposes of this definition, control of a Person
          means the power, directly or indirectly, to direct or cause the
          direction of the management and policies of such Person whether by
          contract, securities, ownership or otherwise; and the terms
          "CONTROLLING" and "CONTROLLED" have the respective meanings
          correlative to the foregoing.

          (ii) "CLOSING DATE" means January 16, 2001.

          (iii) "COMMISSION" means the Securities and Exchange Commission.

          (iv) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as

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          amended, and the rules and regulations of the Commission thereunder,
          or any similar successor statute.

          (v) "INVESTOR" means each of the Initial Investor and any transferee
          or assignee of Registrable Securities which agrees to become bound by
          all of the terms and provisions of this Agreement in accordance with
          Section 8 hereof.

          (vi) "PERSON" means any individual, partnership, corporation, limited
          liability company, joint stock company, association, trust,
          unincorporated organization, or a government or agency or political
          subdivision thereof.

          (vii) "PROSPECTUS" means the prospectus (including, without
          limitation, any preliminary prospectus and any final prospectus filed
          pursuant to Rule 424(b) under the Securities Act, including any
          prospectus that discloses information previously omitted from a
          prospectus filed as part of an effective registration statement in
          reliance on Rule 430A under the Securities Act) included in the
          Registration Statement, as amended or supplemented by any prospectus
          supplement with respect to the terms of the offering of any portion of
          the Registrable Securities covered by the Registration Statement and
          by all other amendments and supplements to such prospectus, including
          all material incorporated by reference in such prospectus and all
          documents filed after the date of such prospectus by the Company under
          the Exchange Act and incorporated by reference therein.

          (viii) "PUBLIC OFFERING" means an offer registered with the Commission
          and the appropriate state securities commissions by the Company of its
          Common Stock and made pursuant to the Securities Act.

          (ix) "REGISTRABLE SECURITIES" means the Bridge Loan Shares and the
          Debenture Shares; PROVIDED, HOWEVER, a share of Common Stock shall
          cease to be a Registrable Security for purposes of this Agreement when
          it no longer is a Restricted Security.

          (x) "REGISTRATION STATEMENT" means a registration statement of the
          Company filed on an appropriate form under the Securities Act
          providing for the registration of, and the sale on a continuous or
          delayed basis by the holders of, all of the Registrable Securities
          pursuant to Rule 415 under the Securities Act, including the
          Prospectus contained therein and forming a part thereof, any
          amendments to such registration statement and supplements to such
          Prospectus, and all exhibits to and other material incorporated by
          reference in such registration statement and Prospectus.

          (xi) "RESTRICTED SECURITY" means any Bridge Loan Shares or Debenture
          Shares, except any such share that (i) has been registered pursuant to
          an effective registration statement under the Securities Act and sold
          in a manner contemplated by the prospectus included in such
          registration statement, (ii) has been transferred in compliance with
          the resale

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         provisions of Rule 144 under the Securities Act (or any successor
         provision thereto) or is transferable pursuant to paragraph (k) of Rule
         144 under the Securities Act (or any successor provision thereto) or
         (iii) otherwise has been transferred and a new share of Common Stock
         not subject to transfer restrictions under the Securities Act has been
         delivered by or on behalf of the Company.

          (xii) "SECURITIES ACT" means the Securities Act of 1933, as amended,
          and the rules and regulations of the Commission thereunder, or any
          similar successor statute.

          (b) All capitalized terms used and not defined herein have the
          respective meaning assigned to them in the Securities Purchase
          Agreement.

     2. REGISTRATION

     (a) FILING AND EFFECTIVENESS OF REGISTRATION STATEMENT. The Company shall
     prepare and file with the Commission not later than thirty (30) days after
     the Closing Date, a Registration Statement (using a conversion price with
     respect to the Debenture Shares of One Cent ($0.01) per share) relating to
     the offer and sale of the Registrable Securities and shall use its best
     efforts to cause the Commission to declare such Registration Statement
     effective under the Securities Act as promptly as practicable but in no
     event later than one hundred and twenty (120) days after the Closing Date.
     The Company shall promptly (and, in any event, no more than twenty-four
     (24) hours after it receives comments from the Commission), notify the
     Initial Investor when and if it receives any comments from the Commission
     on the Registration Statement and promptly forward a copy of such comments,
     if they are in writing, to the Initial Investor. At such time after the
     filing of the Registration Statement pursuant to this Section 2(a) as the
     Commission indicates, either orally or in writing, that it has no further
     comments with respect to such Registration Statement or that it is willing
     to entertain appropriate requests for acceleration of effectiveness of such
     Registration Statement, the Company shall promptly, and in no event later
     than two (2) business days after receipt of such indication from the
     Commission, request that the effectiveness of such Registration Statement
     be accelerated within forty-eight (48) hours of the Commission's receipt of
     such request. The Company shall not include any other securities in the
     Registration Statement relating to the offer and sale of the Registrable
     Securities other than those securities issued or issuable by the Company to
     PHD or investors introduced to the Company by PHD and which securities are
     covered by registration rights agreements containing terms and conditions
     substantially similar to those contained herein (collectively, the "OTHER
     REGISTRATION RIGHTS AGREEMENTS"). The Company shall notify the Initial
     Investor by written notice that such Registration Statement has been
     declared effective by the Commission within twenty-four (24) hours of such
     declaration by the Commission.

     (b) ELIGIBILITY FOR USE OF FORM S-3. The Company agrees that at such time
     as it meets all the requirements for the use of Securities Act Registration
     Statement on Form S-3 it shall file all reports and information required to
     be filed by it with the Commission in a timely manner and take all such
     other action so as to maintain such eligibility for the use of such form.

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     (c) (i) If the Company proposes to register any of its warrants, Common
     Stock or any other shares of common stock of the Company under the
     Securities Act (other than a registration (A) on Form S-8 or S-4 or any
     successor or similar forms, (B) relating to Common Stock or any other
     shares of common stock of the Company issuable upon exercise of employee
     share options or in connection with any employee benefit or similar plan of
     the Company or (C) in connection with a direct or indirect acquisition by
     the Company of another Person or any transaction with respect to which Rule
     145 (or any successor provision) under the Securities Act applies), whether
     or not for sale for its own account, it will each such time, give prompt
     written notice at least twenty (20) days prior to the anticipated filing
     date of the registration statement relating to such registration to each
     Investor, which notice shall set forth such Investor's rights under this
     Section 2(c) and shall offer such Investor the opportunity to include in
     such registration statement such number of Registrable Securities as such
     Investor may request. Upon the written request of any Investor made within
     ten (10) days after the receipt of notice from the Company (which request
     shall specify the number of Registrable Securities intended to be disposed
     of by such Investor), the Company will use its best efforts to effect the
     registration under the Securities Act of all Registrable Securities that
     the Company has been so requested to register by each Investor, to the
     extent requisite to permit the disposition of the Registrable Securities so
     to be registered; PROVIDED, HOWEVER, that (A) if such registration involves
     a Public Offering, each Investor must sell its Registrable Securities to
     any underwriters selected by the Company with the consent of such Investor
     on the same terms and conditions as apply to the Company and (B) if, at any
     time after giving written notice of its intention to register any
     Registrable Securities pursuant to this Section 2 and prior to the
     effective date of the registration statement filed in connection with such
     registration, the Company shall determine for any reason not to register
     such Registrable Securities, the Company shall give written notice to each
     Investor and, thereupon, shall be relieved of its obligation to register
     any Registrable Securities in connection with such registration. The
     Company's obligations under this Section 2(c) shall terminate on the date
     that the Registration Statement to be filed in accordance with Section 2(a)
     is declared effective by the Commission.

     (ii) If a registration pursuant to this Section 2(c) involves a Public
     Offering and the managing underwriter thereof advises the Company that, in
     its view, the number of shares of Common Stock that the Company and the
     Investors intend to include in such registration exceeds the largest number
     of shares of Common Stock that can be sold without having an adverse effect
     on such Public Offering (the "MAXIMUM OFFERING SIZE"), the Company will
     include in such registration only such number of shares of Common Stock as
     does not exceed the Maximum Offering Size, and the number of shares in the
     Maximum Offering Size shall be allocated among the Company, the Investors
     and any other sellers of Common Stock in such Public Offering ("THIRD-PARTY
     SELLERS"), FIRST, pro rata among the Investors and the Third-Party Sellers
     covered by one of the Other Registration Rights Agreements until all the
     shares of Common Stock originally proposed to be offered for sale by the
     Investors and such Third-Party Sellers have been allocated, and SECOND, pro
     rata among the Company and any other Third-Party Sellers, in each case on
     the basis of the relative number of shares of Common Stock originally
     proposed to be offered for sale under such registration by each of the
     Investors, the Company and the Third-Party Sellers, as the

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     case may be. If as a result of the proration provisions of this Section
     2(c)(ii), any Investor is not entitled to include all such Registrable
     Securities in such registration, such Investor may elect to withdraw its
     request to include any Registrable Securities in such registration. With
     respect to registrations pursuant to this Section 2(c), the number of
     securities required to satisfy any underwriters' over-allotment option
     shall be allocated among the Company, the Investors and any Third-Party
     Seller pro rata on the basis of the relative number of securities offered
     for sale under such registration by each of the Investors, the Company and
     any such Third-Party Sellers before the exercise of such over-allotment
     option.

     3. OBLIGATIONS OF THE COMPANY

     In connection with the registration of the Registrable Securities, the
     Company shall:

          (a) Promptly (i) prepare and file with the Commission such amendments
          (including post-effective amendments) to the Registration Statement
          and supplements to the Prospectus as may be necessary to keep the
          Registration Statement continuously effective and in compliance with
          the provisions of the Securities Act applicable thereto so as to
          permit the Prospectus forming part thereof to be current and useable
          by Investors for resales of the Registrable Securities for a period of
          five (5) years from the date on which the Registration Statement is
          first declared effective by the Commission (the "EFFECTIVE TIME") or
          such shorter period that will terminate when all the Registrable
          Securities covered by the Registration Statement have been sold
          pursuant thereto in accordance with the plan of distribution provided
          in the Prospectus, transferred pursuant to Rule 144 under the
          Securities Act or otherwise transferred in a manner that results in
          the delivery of new securities not subject to transfer restrictions
          under the Securities Act (the "REGISTRATION PERIOD") and (ii) take all
          lawful action such that each of (A) the Registration Statement and any
          amendment thereto does not, when it becomes effective, contain an
          untrue statement of a material fact or omit to state a material fact
          required to be stated therein or necessary to make the statements
          therein, not misleading and (B) the Prospectus forming part of the
          Registration Statement, and any amendment or supplement thereto, does
          not at any time during the Registration Period include an untrue
          statement of a material fact or omit to state a material fact required
          to be stated therein or necessary to make the statements therein, in
          light of the circumstances under which they were made, not misleading;

          (b) During the Registration Period, comply with the provisions of the
          Securities Act with respect to the Registrable Securities of the
          Company covered by the Registration Statement until such time as all
          of such Registrable Securities have been disposed of in accordance
          with the intended methods of disposition by the Investors as set forth
          in the Prospectus forming part of the Registration Statement;

          (c) (i) Prior to the filing with the Commission of any Registration
          Statement (including any amendments thereto) and the distribution or
          delivery of any Prospectus (including any supplements thereto),
          provide (A) draft copies thereof to the Investors and reflect in such
          documents all such comments as the Investors (and their counsel)
          reasonably may propose and (B) to the

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          Investors a copy of the accountant's consent letter to be included in
          the filing and (ii) furnish to each Investor whose Registrable
          Securities are included in the Registration Statement and its legal
          counsel identified to the Company, (A) promptly after the same is
          prepared and publicly distributed, filed with the Commission, or
          received by the Company, one copy of the Registration Statement, each
          Prospectus, and each amendment or supplement thereto and (B) such
          number of copies of the Prospectus and all amendments and supplements
          thereto and such other documents, as such Investor may reasonably
          request in order to facilitate the disposition of the Registrable
          Securities owned by such Investor;

          (d) (i) Register or qualify the Registrable Securities covered by the
          Registration Statement under such securities or "blue sky" laws of
          such jurisdictions as the Investors who hold a majority-in-interest of
          the Registrable Securities being offered reasonably request, (ii)
          prepare and file in such jurisdictions such amendments (including
          post-effective amendments) and supplements to such registrations and
          qualifications as may be necessary to maintain the effectiveness
          thereof at all times during the Registration Period, (iii) take all
          such other lawful actions as may be necessary to maintain such
          registrations and qualifications in effect at all times during the
          Registration Period and (iv) take all such other lawful actions
          reasonably necessary or advisable to qualify the Registrable
          Securities for sale in such jurisdictions; PROVIDED, HOWEVER, that the
          Company shall not be required in connection therewith or as a
          condition thereto to (A) qualify to do business in any jurisdiction
          where it would not otherwise be required to qualify but for this
          Section 3(d), (B) subject itself to general taxation in any such
          jurisdiction or (C) file a general consent to service of process in
          any such jurisdiction;

          (e) As promptly as practicable after becoming aware of such event,
          notify each Investor of the occurrence of any event, as a result of
          which the Prospectus included in the Registration Statement, as then
          in effect, includes an untrue statement of a material fact or omits to
          state a material fact required to be stated therein or necessary to
          make the statements therein, in light of the circumstances under which
          they were made, not misleading, and promptly prepare an amendment to
          the Registration Statement and supplement to the Prospectus to correct
          such untrue statement or omission, and deliver a number of copies of
          such supplement and amendment to each Investor as such Investor may
          reasonably request;

          (f) As promptly as practicable after becoming aware of such event,
          notify each Investor who holds Registrable Securities being sold (or,
          in the event of an underwritten offering, the managing underwriters)
          of the issuance by the Commission of any stop order or other
          suspension of the effectiveness of the Registration Statement at the
          earliest possible time and take all lawful action to effect the
          withdrawal, recession or removal of such stop order or other
          suspension;

          (g) Cause all the Registrable Securities covered by the Registration
          Statement to be listed on the principal national securities exchange,
          and included in an inter-dealer quotation system of a registered
          national securities association, on or in which securities of the same
          class or series issued by the Company are then listed or included;

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          (h) Maintain a transfer agent and registrar, which may be a single
          entity, for the Registrable Securities not later than the effective
          date of the Registration Statement;

          (i) Cooperate with the Investors who hold Registrable Securities being
          offered to facilitate the timely preparation and delivery of
          certificates for the Registrable Securities to be offered pursuant to
          the registration statement and enable such certificates for the
          Registrable Securities to be in such denominations or amounts, as the
          case may be, as the Investors reasonably may request and registered in
          such names as the Investor may request; and, within three (3) business
          days after a registration statement which includes Registrable
          Securities is declared effective by the Commission, deliver and cause
          legal counsel selected by the Company to deliver to the transfer agent
          for the Registrable Securities (with copies to the Investors whose
          Registrable Securities are included in such registration statement) an
          appropriate instruction and, to the extent necessary, an opinion of
          such counsel;

          (j) Take all such other lawful actions reasonably necessary to
          expedite and facilitate the disposition by the Investors of their
          Registrable Securities in accordance with the intended methods
          therefor provided in the Prospectus which are customary under the
          circumstances;

          (k) Make generally available to its security holders as soon as
          practicable, but in any event not later than three (3) months after
          (i) the effective date (as defined in Rule 158(c) under the Securities
          Act) of the Registration Statement and (ii) the effective date of each
          post-effective amendment to the Registration Statement, as the case
          may be, an earnings statement of the Company and its subsidiaries
          complying with Section 11 (a) of the Securities Act and the rules and
          regulations of the Commission thereunder (including, at the option of
          the Company, Rule 158);

          (l) In the event of an underwritten offering, promptly include or
          incorporate in a Prospectus supplement or post-effective amendment to
          the Registration Statement such information as the managers reasonably
          agree should be included therein and to which the Company does not
          reasonably object and make all required filings of such Prospectus
          supplement or post- effective amendment as soon as practicable after
          it is notified of the matters to be included or incorporated in such
          Prospectus supplement or post-effective amendment;

          (m) (i) Make reasonably available for inspection by Investors, any
          underwriter participating in any disposition pursuant to the
          Registration Statement, and any attorney, accountant or other agent
          retained by such Investors or any such underwriter all relevant
          financial and other records, pertinent corporate documents and
          properties of the Company and its subsidiaries, and (ii) cause the
          Company's officers, directors and employees to supply all information
          reasonably requested by such Investors or any such underwriter,
          attorney, accountant or agent in connection with the Registration
          Statement, in each case, as is customary for similar due diligence
          examinations; PROVIDED, HOWEVER, that all records, information and
          documents that are designated in writing by the Company, in good
          faith, as confidential, proprietary or containing any material
          nonpublic information shall be kept confidential by such Investors and
          any such underwriter, attorney, accountant or agent (pursuant to an
          appropriate confidentiality agreement in the case of any such

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          holder or agent), unless such disclosure is made pursuant to judicial
          process in a court proceeding (after first giving the Company an
          opportunity promptly to seek a protective order or otherwise limit the
          scope of the information sought to be disclosed) or is required by
          law, or such records, information or documents become available to the
          public generally or through a third party not in violation of an
          accompanying obligation of confidentiality; and PROVIDED, FURTHER,
          that, if the foregoing inspection and information gathering would
          otherwise disrupt the Company's conduct of its business, such
          inspection and information gathering shall, to the maximum extent
          possible, be coordinated on behalf of the Investors and the other
          parties entitled thereto by one firm of counsel designed by and on
          behalf of the majority in interest of Investors and other parties;

          (n) In connection with any underwritten offering, make such
          representations and warranties to the Investors participating in such
          underwritten offering and to the managers, in form, substance and
          scope as are customarily made by the Company to underwriters in
          secondary underwritten offerings;

          (o) In connection with any underwritten offering, obtain opinions of
          counsel to the Company (which counsel and opinions (in form, scope and
          substance) shall be reasonably satisfactory to the managers) addressed
          to the underwriters, covering such matters as are customarily covered
          in opinions requested in secondary underwritten offerings (it being
          agreed that the matters to be covered by such opinions shall include,
          without limitation, as of the date of the opinion and as of the
          Effective Time of the Registration Statement or most recent
          post-effective amendment thereto, as the case may be, the absence from
          the Registration Statement and the Prospectus, including any documents
          incorporated by reference therein, of an untrue statement of a
          material fact or the omission of a material fact required to be stated
          therein or necessary to make the statements therein (in the case of
          the Prospectus, in light of the circumstances under which they were
          made) not misleading, subject to customary limitations);

          (p) In connection with any underwritten offering, obtain "cold
          comfort" letters and updates thereof from the independent public
          accountants of the Company (and, if necessary, from the independent
          public accountants of any subsidiary of the Company or of any business
          acquired by the Company, in each case for which financial statements
          and financial data are, or are required to be, included in the
          Registration Statement), addressed to each underwriter participating
          in such underwritten offering (if such underwriter has provided such
          letter, representations or documentation, if any, required for such
          cold comfort letter to be so addressed), in customary form and
          covering matters of the type customarily covered in "cold comfort"
          letters in connection with secondary underwritten offerings;

          (q) In connection with any underwritten offering, deliver such
          documents and certificates as may be reasonably required by the
          managers, if any, and

          (r) In the event that any broker-dealer registered under the Exchange
          Act shall be an "AFFILIATE" (as defined in Rule 2729(b)(1) of the
          rules and regulations of the National Association of Securities
          Dealers, Inc. (the "NASD RULES") (or any successor provision thereto))

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          of the Company or has a "CONFLICT OF INTEREST" (as defined in Rule
          2720(b)(7) of the NASD Rules (or any successor provision thereto)) and
          such broker-dealer shall underwrite, participate as a member of an
          underwriting syndicate or selling group or assist in the distribution
          of any Registrable Securities covered by the Registration Statement,
          whether as a holder of such Registrable Securities or as an
          underwriter, a placement or sales agent or a broker or dealer in
          respect thereof, or otherwise, the Company shall assist such
          broker-dealer in complying with the requirements of the NASD Rules,
          including, without limitation, by (A) engaging a "QUALIFIED
          INDEPENDENT UNDERWRITER" (as defined in Rule 2720(b)(15) of the NASD
          Rules (or any successor provision thereto)) to participate in the
          preparation of the Registration Statement relating to such Registrable
          Securities, to exercise usual standards of due diligence in respect
          thereof and to recommend the public offering price of such Registrable
          Securities, (B) indemnifying such qualified independent underwriter to
          the extent of the indemnification of underwriters provided in Section
          6 hereof and (C) providing such information to such broker-dealer as
          may be required in order for such broker-dealer to comply with the
          requirements of the NASD Rules.

     4. OBLIGATIONS OF THE INVESTORS

     In connection with the registration of the Registrable Securities, the
     Investors shall have the following obligations:

          (a) It shall be a condition precedent to the obligations of the
          Company to complete the registration pursuant to this Agreement with
          respect to the Registrable Securities of a particular Investor that
          such Investor shall furnish to the Company such information regarding
          itself, the Registrable Securities held by it and the intended method
          of disposition of the Registrable Securities held by it as shall be
          reasonably required to effect the registration of such Registrable
          Securities and shall execute such documents in connection with such
          registration as the Company may reasonably request. As least seven (7)
          days prior to the first anticipated filing date of the Registration
          Statement, the Company shall notify each Investor of the information
          the Company requires from each such Investor (the "REQUESTED
          INFORMATION") if such Investor elects to have any of its Registrable
          Securities included in the Registration Statement. If at least two (2)
          business days prior to the anticipated filing date the Company has not
          received the Requested Information from an Investor (a "NON-RESPONSIVE
          INVESTOR"), then the Company may file the Registration Statement
          without including Registrable Securities of such Non-Responsive
          Investor and have no further obligations to the Non-Responsive
          Investor;

          (b) Each Investor by its acceptance of the Registrable Securities
          agrees to cooperate with the Company in connection with the
          preparation and filing of the Registration Statement hereunder, unless
          such Investor has notified the Company in writing of its election to
          exclude all of its Registrable Securities from the Registration
          Statement and

          (c) Each Investor agrees that, upon receipt of any notice from the
          Company of the occurrence of any event of the kind described in
          Section 3(e) or 3(f), it shall immediately discontinue its disposition
          of Registrable Securities pursuant to the Registration Statement
          covering

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                                       9
<PAGE>

          such Registrable Securities until such Investor's receipt of the
          copies of the supplemented or amended Prospectus contemplated by
          Section 3(e) and, if so directed by the Company, such Investor shall
          deliver to the Company (at the expense of the Company) or destroy (and
          deliver to the Company a certificate of destruction) all copies in
          such Investor's possession, of the Prospectus covering such
          Registrable Securities current at the time of receipt of such notice.

     5. EXPENSES OF REGISTRATION

     All expenses, other than underwriting discounts and commissions, incurred
     in connection with registrations, filings or qualifications pursuant to
     Section 3, but including, without limitation, all registration, listing,
     and qualifications fees, printing and engraving fees, accounting fees, and
     the fees and disbursements of counsel for the Company, and the reasonable
     fees of one firm of counsel to the holders of a majority in interest of the
     Registrable Securities shall be borne by the Company.

     6. INDEMNIFICATION AND CONTRIBUTION

          (a) INDEMNIFICATION BY THE COMPANY. The Company shall indemnify and
          hold harmless each Investor and each underwriter, if any, which
          facilitates the disposition of Registrable Securities, and each of
          their respective officers and directors and each person who controls
          such Investor or underwriter within the meaning of Section 15 of the
          Securities Act or Section 20 of the Exchange Act (each such person
          being sometimes hereinafter referred to as an "INDEMNIFIED PERSON")
          from and against any losses, claims, damages or liabilities, joint or
          several, to which such Indemnified Person may become subject under the
          Securities Act or otherwise, insofar as such losses, claims, damages
          or liabilities (or actions in respect thereof) arise out of or are
          based upon an untrue statement or alleged untrue statement of a
          material fact contained in any Registration Statement or an omission
          or alleged omission to state therein a material fact required to be
          stated therein or necessary to make the statements therein, not
          misleading, or arise out of or are based upon an untrue statement or
          alleged untrue statement of a material fact contained in any
          Prospectus or an omission or alleged omission to state therein a
          material fact required to be stated therein or necessary to make the
          statements therein, in the light of the circumstances under which they
          were made, not misleading; and the Company hereby agrees to reimburse
          such Indemnified Person for all reasonable legal and other expenses
          incurred by them in connection with investigating or defending any
          such action or claim as and when such expenses are incurred; PROVIDED,
          HOWEVER, that the Company shall not be liable to any such Indemnified
          Person in any such case to the extent that any such loss, claim,
          damage or liability arises out of or is based upon (i) an untrue
          statement or alleged untrue statement made in, or an omission or
          alleged omission from, such Registration Statement or Prospectus in
          reliance upon and in conformity with written information furnished to
          the Company by such Indemnified Person expressly for use therein or
          (ii) in the case of the occurrence of an event of the type specified
          in Section 3(e), the use by the Indemnified Person of an outdated or
          defective Prospectus after the Company has provided to such
          Indemnified Person an updated Prospectus correcting the untrue
          statement or alleged untrue statement or omission or alleged omission
          giving rise to such loss, claim, damage or liability.

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                                       10
<PAGE>

          (b) INDEMNIFICATION BY THE INVESTORS AND UNDERWRITERS. Each Investor
          agrees, as a consequence of the inclusion of any of its Registrable
          Securities in a Registration Statement, and each underwriter, if any,
          which facilitates the disposition of Registrable Securities shall
          agree, as a consequence of facilitating such disposition of
          Registrable Securities, severally and not jointly, to (i) indemnify
          and hold harmless the Company, its directors (including any person
          who, with his or her consent, is named in the Registration Statement
          as a director nominee of the Company), its officers who sign any
          Registration Statement and each person, if any, who controls the
          Company within the meaning of either Section 15 of the Securities Act
          or Section 20 of the Exchange Act, against any losses, claims, damages
          or liabilities to which the Company or such other persons may become
          subject, under the Securities Act or otherwise, insofar as such
          losses, claims, damages or liabilities (or actions in respect thereof)
          arise out of or are based upon an untrue statement or alleged untrue
          statement of a material fact contained in such Registration Statement
          or Prospectus or arise out of or are based upon the omission or
          alleged omission to state therein a material fact required to be
          stated therein or necessary to make the statements therein (in light
          of the circumstances under which they were made, in the case of the
          Prospectus), not misleading, in each case to the extent, but only to
          the extent, that such untrue statement or alleged untrue statement or
          omission or alleged omission was made in reliance upon and in
          conformity with written information furnished to the Company by such
          holder or underwriter expressly for use therein; PROVIDED, HOWEVER,
          that no Investor or underwriter shall be liable under this Section
          6(b) for any amount in excess of the net proceeds paid to such
          Investor or underwriter in respect of shares sold by it and (ii)
          reimburse the Company for any legal or other expenses incurred by the
          Company in connection with investigating or defending any such action
          or claim as such expenses are incurred.

          (c) NOTICE OF CLAIMS, ETC. Promptly after receipt by a party seeking
          indemnification pursuant to this Section 6 (an "INDEMNIFIED PARTY") of
          written notice of any investigation, claim, proceeding or other action
          in respect of which indemnification is being sought (each, a "CLAIM"),
          the Indemnified Party promptly shall notify the party against whom
          indemnification pursuant to this Section 6 is being sought (the
          "INDEMNIFYING PARTY") of the commencement thereof; but the omission to
          so notify the Indemnifying Party shall not relieve it from any
          liability that it otherwise may have to the Indemnified Party, except
          to the extent that the Indemnifying Party is materially prejudiced and
          forfeits substantive rights and defenses by reason of such failure. In
          connection with any Claim as to which both the Indemnifying Party and
          the Indemnified Party are parties, the Indemnifying Party shall be
          entitled to assume the defense thereof. Notwithstanding the assumption
          of the defense of any Claim by the Indemnifying Party, the Indemnified
          Party shall have the right to employ separate legal counsel and to
          participate in the defense of such Claim, and the Indemnifying Party
          shall bear the reasonable fees, out-of-pocket costs and expenses of
          such separate legal counsel to the Indemnified Party if (and only if):
          (x) the Indemnifying Party shall have agreed to pay such fees, costs
          and expenses, (y) the Indemnified Party and the Indemnifying Party
          shall reasonably have concluded that representation of the Indemnified
          Party by the Indemnifying Party by the same legal counsel would not be
          appropriate due to actual or, as reasonably determined by legal
          counsel to the Indemnified Party, potentially differing interests
          between such parties in the conduct of the defense of such Claim, or
          if there may be legal defenses

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                                       11
<PAGE>

          available to the Indemnified Party that are in addition to or
          disparate from those available to the Indemnifying Party or (z) the
          Indemnifying Party shall have failed to employ legal counsel
          reasonably satisfactory to the Indemnified Party within a reasonable
          period of time after notice of the commencement of such Claim. If the
          Indemnified Party employs separate legal counsel in circumstances
          other than as described in clauses (x), (y) or (z) above, the fees,
          costs and expenses of such legal counsel shall be borne exclusively by
          the Indemnified Party. Except as provided above, the Indemnifying
          Party shall not, in connection with any Claim in the same
          jurisdiction, be liable for the fees and expenses of more than one
          firm of counsel for the Indemnified Party (together with appropriate
          local counsel). The Indemnified Party shall not, without the prior
          written consent of the Indemnifying Party (which consent shall not
          unreasonably be withheld), settle or compromise any Claim or consent
          to the entry of any judgment that does not include an unconditional
          release of the Indemnifying Party from all liabilities with respect to
          such Claim or judgment.

          (d) CONTRIBUTION. If the indemnification provided for in this Section
          6 is unavailable to or insufficient to hold harmless an Indemnified
          Person under subsection (a) or (b) above in respect of any losses,
          claims, damages or liabilities (or actions in respect thereof)
          referred to therein, then each Indemnifying Party shall contribute to
          the amount paid or payable by such Indemnified Party as a result of
          such losses, claims, damages or liabilities (or actions in respect
          thereof) in such proportion as is appropriate to reflect the relative
          fault of the Indemnifying Party and the Indemnified Party in
          connection with the statements or omissions which resulted in such
          losses, claims, damages or liabilities (or actions in respect
          thereof), as well as any other relevant equitable considerations. The
          relative fault of such Indemnifying Party and Indemnified Party shall
          be determined by reference to, among other things, whether the untrue
          or alleged untrue statement of a material fact or omission or alleged
          omission to state a material fact relates to information supplied by
          such Indemnifying Party or by such Indemnified Party, and the parties'
          relative intent, knowledge, access to information and opportunity to
          correct or prevent such statement or omission. The parties hereto
          agree that it would not be just and equitable if contribution pursuant
          to this Section 6(d) were determined by pro rata allocation (even if
          the Investors or any underwriters were treated as one entity for such
          purpose) or by any other method of allocation which does not take
          account of the equitable considerations referred to in this Section
          6(d). The amount paid or payable by an Indemnified Party as a result
          of the losses, claims, damages or liabilities (or actions in respect
          thereof) referred to above shall be deemed to include any legal or
          other fees or expenses reasonably incurred by such Indemnified Party
          in connection with investigating or defending any such action or
          claim. No person guilty of fraudulent misrepresentation (within the
          meaning of Section 11(f) of the Securities Act) shall be entitled to
          contribution from any person who was not guilty of such fraudulent
          misrepresentation. The obligations of the Investors and any
          underwriters in this Section 6(d) to contribute shall be several in
          proportion to the percentage of Registrable Securities registered or
          underwritten, as the case may be, by them and not joint.

          (e) Notwithstanding any other provision of this Section 6, in no event
          shall any (i) Investor be required to undertake liability to any
          person under this Section 6 for any amounts in excess of the dollar
          amount of the proceeds to be received by such Investor from the sale
          of such Investor's Registrable Securities (after deducting any fees,
          discounts and commissions applicable

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                                       12
<PAGE>

          thereto) pursuant to any Registration Statement under which such
          Registrable Securities are to be registered under the Securities Act
          and (ii) underwriter be required to undertake liability to any Person
          hereunder for any amounts in excess of the aggregate discount,
          commission or other compensation payable to such underwriter with
          respect to the Registrable Securities underwritten by it and
          distributed pursuant to the Registration Statement.

          (f) The obligations of the Company under this Section 6 shall be in
          addition to any liability which the Company may otherwise have to any
          Indemnified Person and the obligations of any Indemnified Person under
          this Section 6 shall be in addition to any liability which such
          Indemnified Person may otherwise have to the Company. The remedies
          provided in this Section 6 are not exclusive and shall not limit any
          rights or remedies which may otherwise be available to an indemnified
          party at law or in equity.

     7. RULE 144

     With a view to making available to the Investors the benefits of Rule 144
     under the Securities Act or any other similar rule or regulation of the
     Commission that may at any time permit the Investors to sell securities of
     the Company to the public without registration ("RULE 144"), the Company
     agrees to use its best efforts to:

          (a) comply with the provisions of paragraph (c) (1) of Rule 144 and

          (b) file with the Commission in a timely manner all reports and other
          documents required to be filed by the Company pursuant to Section 13
          or 15(d) under the Exchange Act; and, if at any time it is not
          required to file such reports but in the past had been required to or
          did file such reports, it will, upon the request of any Investor, make
          available other information as required by, and so long as necessary
          to permit sales of, its Registrable Securities pursuant to Rule 144.

     8. ASSIGNMENT

     The rights to have the Company register Registrable Securities pursuant to
     this Agreement shall be automatically assigned by the Investors to any
     permitted transferee of all or any portion of such Registrable Securities
     only if (a) the Investor agrees in writing with the transferee or assignee
     to assign such rights, and a copy of such agreement is furnished to the
     Company within a reasonable time after such assignment, (b) the Company is,
     within a reasonable time after such transfer or assignment, furnished with
     written notice of (i) the name and address of such transferee or assignee
     and (ii) the securities with respect to which such registration rights are
     being transferred or assigned, (c) immediately following such transfer or
     assignment, the securities so transferred or assigned to the transferee or
     assignee constitute Restricted Securities and (d) at or before the time the
     Company received the written notice contemplated by clause (b) of this
     sentence the transferee or assignee agrees in writing with the Company to
     be bound by all of the provisions contained herein.

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                                       13
<PAGE>

     9. AMENDMENT AND WAIVER

     Any provision of this Agreement may be amended and the observance thereof
     may be waived (either generally or in a particular instance and either
     retroactively or prospectively), only with the written consent of the
     Company and Investors who hold a majority-in-interest of the Registrable
     Securities. Any amendment or waiver effected in accordance with this
     Section 9 shall be binding upon each Investor and the Company.

     10. CHANGES IN COMMON STOCK

     If, and as often as, there are any changes in the Common Stock by way of
     stock split, stock dividend, reverse split, combination or
     reclassification, or through merger, consolidation, reorganization or
     recapitalization, or by any other means, appropriate adjustment shall be
     made in the provisions hereof, as may be required, so that the rights and
     privileges granted hereby shall continue with respect to the Common Stock
     as so changed.

     11. MISCELLANEOUS

          (a) A person or entity shall be deemed to be a holder of Registrable
          Securities whenever such person or entity owns of record such
          Registrable Securities. If the Company receives conflicting
          instructions, notices or elections from two or more persons or
          entities with respect to the same Registrable Securities, the Company
          shall act upon the basis of instructions, notice or election received
          from the registered owner of such Registrable Securities.

          (b) If, after the date hereof and prior to the Commission declaring
          the Registration Statement to be filed pursuant to Section 2(a)
          effective under the Securities Act, the Company grants to any Person
          any registration rights with respect to any Company securities which
          are more favorable to such other Person than those provided in this
          Agreement, then the Company forthwith shall grant (by means of an
          amendment to this Agreement or otherwise) identical registration
          rights to all Investors hereunder.

          (c) Except as may be otherwise provided herein, any notice or other
          communication or delivery required or permitted hereunder shall be in
          writing and shall be delivered personally, or sent by telecopier
          machine or by a nationally recognized overnight courier service, and
          shall be deemed given when so delivered personally, or by telecopier
          machine or overnight courier service as follows:

               (i) if to the Company, to:

                        The Auxer Group, Inc.
                        12 Andrews Lane
                        West Paterson, New Jersey 07424

                        Attention: Ronald M. Shaver

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                                       14
<PAGE>

                        Telecopier:      973.890.9877
                        Telephone:       973.890.4925

                        with a copy to:

                        Anslow & Jaclin, LLP
                        4400 Route 9 South
                        Freehold, New Jersey 07728
                        Attention:       Richard I. Anslow
                        Telecopier:      732.577.1188
                        Telephone:       732.409.1212

               (ii)     if to the Initial Investor, to:

                        c/o Perrin, Holden & Davenport Capital Corp.
                        Mezzanine Level
                        5 Hanover Square
                        New York, New York 10004
                        Attention:       Nelson Braff
                        Telecopier:      212.269.3087
                        Telephone:       212.566.5100

                        with a copy to:

                        Herrick, Feinstein LLP
                        2 Park Avenue
                        New York, New York 10016
                        Attention:       Irwin A. Kishner
                        Telecopier:      212.592.1500
                        Telephone:       212.592.1435

               (iii) if to any other Investor, at such address as
         such Investor shall have provided in writing to the Company.

The Company, the Initial Investor or any Investor may change the foregoing
address by notice given pursuant to this Section 11(c).

          (d) Failure of any party to exercise any right or remedy under this
          Agreement or otherwise, or delay by a party in exercising such right
          or remedy, shall not operate as a waiver thereof.

          (e) This Agreement shall be governed by and interpreted in accordance
          with the laws of the State of New York. Each of the parties consents
          to the jurisdiction of the federal courts

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                                       15
<PAGE>

          whose districts encompass any part of the City of New York or the
          state courts of the State of New York sitting in the City of New York
          in connection with any dispute arising under this Agreement and hereby
          waives, to the maximum extent permitted by law, any objection
          including any objection based on forum non conveniens, to the bringing
          of any such proceeding in such jurisdictions.

          (f) The remedies provided in this Agreement are cumulative and not
          exclusive of any remedies provided by law. If any term, provision,
          covenant or restriction of this Agreement is held by a court of
          competent jurisdiction to be invalid, illegal, void or unenforceable,
          the remainder of the terms, provisions, covenants and restrictions set
          forth herein shall remain in full force and effect and shall in no way
          be affected, impaired or invalidated, and the parties hereto shall use
          their best efforts to find and employ an alternative means to achieve
          the same or substantially the same result as that contemplated by such
          term, provision, covenant or restriction. It is hereby stipulated and
          declared to be the intention of the parties that they would have
          executed the remaining terms, provisions, covenants and restrictions
          without including any of such that may be hereafter declared invalid,
          illegal, void or unenforceable.

          (g) Except for the Other Registration Rights Agreements, the Company
          is not currently a party to any agreement granting any registration
          rights with respect to any of its securities to any person which
          conflicts with the Company's obligations hereunder or gives any other
          party the right to include any securities in any Registration
          Statement filed pursuant hereto.

          (h) This Agreement and the Securities Purchase Agreement constitute
          the entire agreement between the parties hereto with respect to the
          subject matter hereof. There are no restrictions, promises, warranties
          or undertakings, other than those set forth or referred to herein.
          This Agreement and the Securities Purchase Agreement supersede all
          prior agreements and undertakings between the parties hereto with
          respect to the subject matter hereof.

          (i) Subject to the requirements of Section 8 hereof, this Agreement
          shall inure to the benefit of and be binding upon the successors and
          assigns of each of the parties hereto.

          (j) All pronouns and any variations thereof refer to the masculine,
          feminine or neuter, singular or plural, as the context may require.

          (k) The headings in this Agreement are for convenience of reference
          only and shall not limit or otherwise affect the meaning thereof.

               (l) The Company acknowledges that any failure by the Company to
               perform its obligations under Section 3, or any delay in such
               performance, could result in direct damages to the Investors and
               the Company agrees that, in addition to any other liability the
               Company may have by reason of any such failure or delay, the
               Company shall be liable for all direct damages caused by such
               failure or delay.

          (m) This Agreement may be executed in two (2) counterparts, each of
          which shall

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                                       16
<PAGE>

          be deemed an original but both of which shall constitute one and the
          same agreement. A facsimile transmission of this signed Agreement
          shall be legal and binding on the parties hereto.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK.
                          NEXT PAGE IS SIGNATURE PAGE.]

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                                       17
<PAGE>

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

                              THE AUXER GROUP, INC.

                              By:
                                  ----------------------------
                                           Name:
                                           Title:

                                  ----------------------------

                              By:
                                   ---------------------------
                                           Name:
                                           Title:

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                                       18
<PAGE>

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