Document:

GUARANTY AND SURETYSHIP AGREEMENT

                IN
CONSIDERATION of the credit accommodation granted or to be granted by CITIZENS BANK OF PENNSYLVANIA,
a banking institution organized under the laws of the Commonwealth of Pennsylvania (the “Lender”),
to INTERNATIONAL PLASTICS AND EQUIPMENT CORP., a Pennsylvania corporation (the “Principal”),
pursuant to that certain Revolving Credit and Term Loan Agreement dated as of February 18, 2005 between
the Lender and the Principal (the “Loan Agreement”) and that certain Revolving Credit Loan
Note in the maximum principal amount of $3,500,000, the Term Note in the original principal amount
of $1,500,000 and the Multi-Draw Term Note in the maximum principal amount of $1,000,000 each dated
as of February 18, 2005 and payable by the Principal to the Lender (the “Notes”) and
under the other Guaranteed Liabilities (as hereinafter defined), the undersigned; (i) guarantees
and unconditionally becomes surety to the Lender, its successors, endorsees and assigns, for the
payment on demand or at maturity of all Guaranteed Liabilities (as hereinafter defined); (ii) assents
to all agreements made or to be made with the Lender by the Principal under or in connection with
the transactions contemplated by the Loan Agreement or any of the other Guaranteed Liabilities; (iii)
consents that the Lender may, by action or inaction, (a) exchange or surrender any property pledged
by the Principal or any other obligor or provider of security for the Guaranteed Liabilities or any
other obligations of the Principal to the Lender, (b) renew or change the terms of any or all of
the Principal’s liabilities under the Loan Agreement or any of the other Guaranteed Liabilities,
or (c) waive any of the Lender’s rights or remedies against the Principal or any other surety
or guarantor of the Principal’s liabilities under the Loan Agreement, any of the other Guaranteed
Liabilities or under any other agreement or instrument of indebtedness; and (iv) waives any right,
under any statute or rule of law, where such right or rights can be legally waived, to require the
Lender to take any action against the Principal or to marshal its claims against any or all of the Principal’s assets. 

“Guaranteed Liabilities” shall mean all liabilities (primary, secondary, direct, contingent,
sole, joint and/or several) of the Principal to the Lender, now or hereafter arising, including,
without limitation, (a) all liabilities now or hereafter arising under the Loan Agreement, the Notes
and any and all other documents and agreements executed and delivered by the Principal to the Lender
in connection with the Loan Agreement, (b) all other debts, liabilities, duties and obligations of
the Principal to the Lender now existing or contracted or incurred after the date of this Agreement,
whether arising under or in connection with the Loan Agreement or arising under any other agreement,
instrument or undertaking made by or for the benefit of the Borrower to or for the benefit of the
Bank including, without limitation, all obligations under any interest rate cap, swap, hedge or other
interest rate protection agreement, cash management or treasury agreement or currency exchange agreement,
credit or debit card program or agreement and all reimbursement and other obligations arising under
or with respect to any letters of credit, and (c) all costs and expenses incurred by the Lender in
the collection of any of the Guaranteed Liabilities or in connection with the enforcement of any
of the duties and obligations of the Principal to the Lender, including reasonable attorneys’
fees and legal expenses.

The obligations of the undersigned under this Agreement are direct and primary obligations of the undersigned
and are independent of the Guaranteed Liabilities, and a separate action or actions may be brought
against the undersigned regardless of whether action is brought against the Principal, any other
guarantor or surety or any other person or whether the Principal, any other guarantor or surety or
any other person is joined in any such action or actions. Furthermore, the obligations of the undersigned
under this Agreement shall be absolute, unconditional and irrevocable, irrespective of (x) any lack
of legality, validity, enforceability, allowability (in a bankruptcy, insolvency, reorganization,
dissolution or similar proceeding, or otherwise), or any avoidance or subordination, in whole or
in part, of any of the Guaranteed Liabilities, (y) any bankruptcy, insolvency, reorganization, dissolution
or similar proceedings with respect to, or any change, restructuring or termination of the corporate
structure or existence of, the Principal, the undersigned or any other person, or (z) any other circumstance
that might otherwise constitute a defense available to, or a discharge of, the Principal or a guarantor or surety.

                The undersigned
further agrees that:

                1.
            The undersigned need not
be notified by the Lender of its acceptance of this Agreement or of its intention to act in reliance
on this Agreement, or of any loan to or any other transaction between the Lender and the Principal
or any default by the Principal or Event of Default under the Loan Agreement or any of the other
Guaranteed Liabilities.

                2.
            The undersigned will hold
harmless the Lender and will pay to the Lender on demand all costs and expenses (including reasonable
counsel and paralegal fees) which may be incurred in the enforcement of any of the Guaranteed Liabilities
of the Principal, or of the rights of the Lender against the undersigned.

                3.             Until such time as all Guaranteed Liabilities are finally and irrevocably paid in full, the undersigned agrees not to seek recourse against the Principal by subrogation or otherwise
in the event the undersigned is called upon to pay the Lender under the suretyship established by
this Agreement. Until such time as all Guaranteed Liabilities are paid in full, the undersigned irrevocably
waives any and all rights it may have at any time (whether arising directly or indirectly, by operation
of law or contract) to assert any claim against any or all of the Principal on account of payments
made by the undersigned under this Agreement, including, without limitation, any and all rights of
subrogation, reimbursement, exoneration, contribution or indemnity.

2

                4.
            If any Secured Liability
of the Principal to the Lender is not paid when due, the Lender: (a) may forthwith recover from
the undersigned the full amount of any liability under this Agreement, at any time or times without
demand, notice, presentment or protest of any kind to any party including the undersigned (all of
which are waived); and (b) may sell all or any part of any property held as security under this Agreement
on any exchange or at public or private sale at the option of the Lender, at any time or times without
advertisement or demand upon or notice to the undersigned (all of which are waived), except such
notice as is required by applicable statute and cannot be waived, with the right on the part of the
Lender or its nominee to become the purchaser of the property at such sale (unless prohibited by statute).

                5.
            The undersigned agrees and
acknowledges that its liability under this Agreement is absolute and that no set-off, recoupment,
claim, reduction or diminution of any obligation, or any defense of any kind or nature, which the
undersigned or the Principal now have or in the future may have against the Lender shall be available
under this Agreement to the undersigned against the Lender, except that the undersigned may assert
as a defense against the Lender only full, final and irrevocable payment and performance by the undersigned
or the Principal of all obligations of the Principal and the undersigned to the Lender. 

                6.
            This Agreement will continue
as to the undersigned until all Guaranteed Liabilities of the Principal to the Lender are satisfied
in full and all loan agreements, obligations and duties with respect to such indebtedness are terminated.

                7.
            If any settlement, discharge,
payment, grant of security or transfer of property relating to discharging any duty or liability
created under this Agreement is rescinded or avoided by virtue of any provision of any bankruptcy,
insolvency, or other similar law affecting creditors’ rights, the Lender will be entitled to
recover the value or amount of any such settlement, discharge, payment, grant of security or transfer
of property from the undersigned as if such settlement, discharge, payment, grant of security or
transfer of property had not occurred.

                8.
            Any failure by the Lender
to exercise any right under this Agreement will not be construed as a waiver of the right to exercise
the same or any other right at any other time and from time to time thereafter.

3

                9.
            The undersigned represents
and warrants to the Lender that: (a) the undersigned is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Nevada; (b) the undersigned has power
and authority to execute, deliver and perform the provisions of this Agreement and all such action
has been duly and validly authorized by all necessary corporate proceedings on its part; (c) this
Agreement has been duly and validly executed by the undersigned and constitutes a legal, valid and
binding obligation of the undersigned, enforceable in accordance with the terms of this Agreement
and; (d) neither the execution and delivery of this Agreement nor the consummation of the transactions
contemplated in this Agreement nor the performance of or compliance with the terms and conditions
of this Agreement will (i) violate any law, or (ii) conflict with or result in a breach of or a default
under the articles of incorporation or bylaws of the undersigned or any material agreement or instrument
(other than agreements and instruments in favor of the Lender) to which the undersigned or any of
its properties may be subject or bound.

                10.           This Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. The undersigned consents to the exclusive jurisdiction and venue
of the Federal and State courts located in Allegheny County, Pennsylvania in any action on, relating
to or mentioning this Agreement.

                (a)           The undersigned hereby agrees
that any suit, action or proceeding with respect to this Agreement or any judgment entered by any court in respect of any thereof may be brought in
the Court of Common Pleas of the Commonwealth of Pennsylvania, Allegheny County or in the United
States District Court for the Western District of Pennsylvania, as the party commencing such suit,
action or proceeding may elect in its sole discretion; and the undersigned hereby irrevocably submits
to the jurisdiction of such courts for the purpose of any suit, action, proceeding or judgment.

                (b)           The
undersigned hereby irrevocably waives any objection that it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating
to this Agreement brought in Court of Common Pleas of the Commonwealth of Pennsylvania, Allegheny
County or in the United States District Court for the Western District of Pennsylvania, and hereby
further irrevocably waives any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum.

                (c)           The
undersigned irrevocably waives, to the fullest extent permitted by applicable law, any claim that
any action or proceeding commenced by the Lender relating in any way to this Agreement should be
dismissed or stayed by reason, or pending the resolution, of any action or proceeding commenced by
the undersigned relating in any way to this Agreement whether or not commenced earlier. To the fullest
extent permitted by applicable law, the undersigned shall take all measures necessary for any such
action or proceeding commenced by the Lender to proceed to judgment prior to the entry of judgment
in any such action or proceeding commenced by the undersigned.

4

                                11.
          The undersigned hereby represents and
warrants to the Lender as follows:

                (a)           The provisions of Article III
of the Loan Agreement are hereby incorporated by reference (together with all related definitions
and cross references). The undersigned hereby represents and warrants to the Lender as provided therein.

                (b)           Each
request (including any deemed request) by the Principal for any extension of credit under the Loan
Agreement or any other document or agreement evidencing any of the Guaranteed Liabilities shall be
deemed to constitute a representation and warranty by the undersigned to the Lender that the representations
and warranties made by the undersigned in this Section 11 are true and correct on and as of the date
of such request with the same effect as though made on and as of such date. Failure by the Lender
to receive notice from the undersigned to the contrary before the Lender makes any extension of credit
under the Loan Agreement or any other document or agreement evidencing any of the Guaranteed Liabilities
shall constitute a further representation and warranty by the undersigned to the Lender that the
representations and warranties made by the undersigned in this Section 11 are true and correct on
and as of the date of such extension of credit with the same effect as though made on and as of such date.

                12.
          Reference is hereby made to the provisions
of Articles V and VI of the Loan Agreement (together with all related definitions and cross­
references). To the extent such provisions impose upon the Principal a duty to cause the undersigned
to do or refrain from doing certain acts or things or to meet or refrain from meeting certain conditions,
the undersigned shall do or refrain from doing such acts or things, or meet or refrain from meeting
such conditions, as the case may be.

                13.
          (a)           Neither the undersigned nor
any Affiliate of the undersigned is in violation of any Anti-Terrorism Law or engages in or conspires
to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.

5

                (b)           Neither the undersigned nor any
Affiliate of the undersigned or their respective agents acting or benefiting in
any capacity in connection with the Guaranteed Liabilities or other transactions hereunder, is any
of the following (each a “Blocked Person”): (i) a Person that is listed in the annex
to, or is otherwise subject to the provisions of, the Executive Order No. 13224; (ii) a Person owned
or controlled by, or acting for or on behalf of, any Person that is listed
in the annex to, or is otherwise subject to the provisions of, the Executive Order No. 13224; (iii)
a Person or entity with which the Lender is prohibited from dealing or otherwise engaging
in any transaction by any Anti-Terrorism Law; (iv) a Person or entity that commits, threatens or
conspires to commit or supports “terrorism” as defined in the Executive Order No. 13224;
(v) a Person or entity that is named as a “specially designated national”
on the most current list published by the U.S. Treasury Department Office of Foreign Asset Control
at its official website or any replacement website or other replacement official publication
of such list, or (vi) a person or entity who is affiliated or associated with a person or entity
listed above. Neither the undersigned, nor to the best of its knowledge, any of the Affiliates of
the undersigned, acting in any capacity in connection with the Guaranteed Liabilities or any other
transaction hereunder (i) conducts any business or engages in making or receiving any contribution
of funds, goods or services to or for the benefit of any Blocked Person, or (ii) deals in, or otherwise
engages in any transaction relating to, any property or interests in property blocked pursuant
to the Executive Order No. 13224.

                (c)           For purposes of this Section 12,
the following terms shall have the meanings ascribed to such terms below.

Anti-Terrorism Laws  shall mean any Laws relating to terrorism or money laundering, including Executive Order No.
13224, the USA Patriot Act, the Laws comprising or implementing the Bank Secrecy Act, and the Laws
administered by the United States Treasury Department’s Office of Foreign Asset Control (as
any of the foregoing Laws may from time to time be amended, renewed, extended, or replaced). 

Executive Order No. 13224  shall mean the Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001,
as the same has been, or shall hereafter be, renewed, extended, amended or replaced.

USA Patriot Act  shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been, or shall hereafter
be, renewed, extended, amended or replaced.

                14.
          The provisions of this Agreement are
intended to be severable. If any provision of this Agreement shall for any reason be held invalid
or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction,
be ineffective to the extent of such invalidity or unenforceability without in any manner affecting
the validity or enforceability of such provision in any other jurisdiction or any other provision
of this Agreement in any jurisdiction.

6

           

	                15.           THE UNDERSIGNED WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ON, RELATING TO OR MENTIONING  THIS AGREEMENT.	 	INITIAL:

	 	 	
                 JG        
	 

                IN
WITNESS WHEREOF, and intending to be legally bound hereby, the undersigned has duly executed this
Agreement as of the 18th day of February, 2005.

IPEC HOLDINGS, INC.

	By:	 	/s/ Joseph Giordano, Jr.	 	 
	 	—————————————	 	 
	Title:	 	President	 	 
	 	—————————————	 	 
	Name:	 	 Joseph Giordano, Jr. 	 	 
	 	—————————————	 	 

             7distribagrmt Ex 10-1

DISTRIBUTION
AGREEMENT 

THIS
AGREEMENT made as of the 1st day of February, 2005. ("Effective
Date")

BETWEEN:

	
      
	
      SKINVISIBLE
      PHARMACEUTICALS, INC., a
      company incorporated under the laws of the State of Nevada having its
      principal place of business located at Unit #10 - 6320 South Sandhill
      Road, Las Vegas, Nevada, 89120 (“Skinvisible”);

AND:

DERMAL
DEFENSE, INC., a
company incorporated under the laws of the State of Michigan having its
principal place of business located at 2447 Cumberland Drive, Whitelake, MI
48383 (the “Distributor”).

WHEREAS:

A.   Skinvisible
is in the business of developing polymer-based delivery systems and related
technologies for combining hydrophilic and hydrophobic polymer emulsions and
licensing its technologies and/or selling its polymer delivery systems to
established brand manufacturers and providers of topical prescription and
over-the-counter cosmetic and skin-care Product.

B.   The
Distributor is engaging in the business of marketing and distributing skin-care
Product.

C.   Skinvisible and the Distributor
have agreed to enter into this Agreement, whereby the Distributor will have the
exclusive right to distribute, market, sell and promote the Product throughout
the Territory.

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants
herein set forth and other good and valuable consideration, the parties agree as
follows:

I. DEFINITIONS

In this
Agreement, the following terms have the following meanings:

1.1         
“Customers”
means, at any time and from time to time, the customers of the Distributor in
respect of the Product.

1.2         
“Confidential
Information” means any
and all technical or business information, data, designs, concepts, ideas,
Product, processes, methods, techniques, specifications, formulas, compositions,
samples, know-how, trade secrets, and improvements of a confidential or
proprietary nature, whether in tangible form or not, which relate to the
Product, or the development, manufacture, end-use, or commercialization thereof,
and were disclosed by one 

 

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party to
the other party under this Agreement. As used herein, “Confidential Information”
shall not include information a party can demonstrate through its
records:

(a)           
is, at
the time of disclosure, available to the general public;

	 	
      (b)
	
      becomes
      at a later date available to the general public through no fault of the
      receiving party, and then only after said later
date;

	 	
      (c)
      
	
      was
      already in the possession of the receiving party without restriction prior
      to the date of disclosure;

	 	
      (d)
	
      is
      disclosed to the party without secrecy obligations by a third party who
      had a lawful right to disclose it; or

	 	
      (e)
	
      is
      independently developed by personnel of the receiving party who had no
      direct or indirect access to the Confidential Information of the
      disclosing party.

1.3          
"Formula"
shall mean the specific ingredients, composition, and process for preparing the
Product (as defined below). 

1.4          
"Patents"
shall
mean U.S. Patent No. 6,582,683 issued on June 24, 2003 for "Dermal Barrier
Composition"; U.S.S.N. 09/933,275 filed on August 20, 2001 and U.S.S.N.
10/154,723 filed on May 23, 2002, both for "Topical Composition, Topical
Composition Precursor, and Methods for Manufacturing and Using the Same";
Canadian Application No. 2,457,124 filed on August 16, 2002 for "Topical
Composition, Topical Composition Precursor, and Methods for Manufacturing and
Using the Same"; PCT Application No. US02/26301 filed on August 16, 2002 for
purposes of the countries designated therein that are within the Territory; and
all divisions, continuations, continuation-in-parts, reissues, reexamination
applications, extensions, foreign equivalents within the Territory, and patents
issuing therefrom which are owned or controlled by Skinvisible pertaining to the
Product, Confidential Information, and Improvement Inventions.

1.5          
"Product"
means
Skinvisible's proprietary antimicrobial hand sanitizer product incorporating 1%
Triclosan as an active ingredient, and further identified in Appendix
A.

1.6           "Product
Specifications"
shall mean the specifications for the Product that will likely be needed to meet
customer and regulatory requirements. These Product Specifications shall not be
modified without the express, written agreement of the parties. 

 

1.7           "Territory" means
those countries identified in Schedule C.

 

II. APPOINTMENT,
TERRITORY AND PRODUCT

2.1          
Subject
to the terms hereof, Skinvisible hereby appoints the Distributor and grants to
the Distributor the exclusive right to distribute, sell, market and promote the
Product within 

 

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the
Territory. For greater certainty, while this Agreement shall remain in effect,
except for sub-distributors appointed by the Distributor and consented to in
writing by Skinvisible, no person, firm or corporation will be granted the right
to distribute, sell, market or promote the Product within the Territory other
than the Distributor.

2.2         
The
Distributor shall not be entitled to appoint sub-distributors to distribute,
market, sell, or promote the Product within the Territory without the prior
express written consent of Skinvisible, pursuant to Article VIII, which shall
not be unreasonably withheld.

 2.3         
The
Distributor shall be restricted from integrating the Product into the
manufacture and production of finished Product to be distributed, sold, marketed
and promoted by or on behalf of the Distributor or its permitted agents,
associates, affiliates, or sub-distributors. However, the Product may be sold
under a "private" label by the Distributors or its permitted agents, associates,
affiliates, or sub-distributors, provided that all packaging costs are paid in
advance to Skinvisible. 

2.4          
Distributor
recognizes that Skinvisible is in the business of developing, marketing,
selling, and distributing its polymer-based delivery systems and related
technologies (including Product), and developing end-use applications therefore,
on worldwide bases. For so long as Distributor retains its exclusive
distribution rights for the Product granted under Section 2.1 of this Agreement,
Skinvisible shall refrain from selling the Product to customers within the
Territory, or engaging any third party as a distributor of the Product within
the Territory.

 

III. DISTRIBUTOR
NOT MADE AGENT OR LEGAL REPRESENTATIVE

This
Agreement does not render Distributor an agent or legal representative of
Skinvisible for any purpose whatsoever. The Distributor is not granted any right
or authority to assume or to create any obligation or responsibility, express or
implied, on behalf of or in the name of Skinvisible or to bind Skinvisible in
any manner or thing whatsoever.

IV. PRICING
AND PAYMENT

4.1          
Product
shall be sold to the Distributor by Skinvisible at the pre-determined prices set
forth in Schedule B hereto. Any change in the price of Product shall not affect
orders by the Distributor that were accepted by Skinvisible prior to such
change. As business conditions warrant, Skinvisible shall have the unrestricted
right to change the price of the Product, provided that the increase is directly
attributable to higher costs of raw materials, other manufacturing costs, or an
increase in the Cost of Living Index, and that Skinvisible provides Distributor
sixty (60) days prior written notice of any such price increase before it
becomes effective. 

4.2           
The
Distributor shall pay for all orders for Product by electronic bank transfer,
certified check or bank draft in favor of Skinvisible

 

4.3            Except as
provided in Section 5.5(b), the purchase price for each order of Product must be
paid by the Distributor prior to shipment of the Product and the Distributor
shall incur all shipping and packaging costs.

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4.4            
The
Distributor shall pay Skinvisible an up-front license fee in the amount of
$1,000,000 USD for the exclusive right to distribute, sell, market and promote
the Product within the Territory. Skinvisible acknowledges receipt of a $250,000
nonrefundable deposit applicable toward this up-front license fee. The remaining
$750,000 USD is payable under the following schedule until Skinvisible has
received the $750,000:

 

	
       
      Date of Payment
	
       
      Amount of Payment

       

	
       
      June 30, 2004
	
       
      $75,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the prior quarter, whichever is
      greater

	
       
      September 30, 2004
	
       
      $75,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the prior quarter, whichever is
      greater

	
       
      December 31, 2004
	
       
      $75,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the prior quarter, whichever is
      greater

	
       
      March 31, 2005
	
       
      $75,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the prior quarter, whichever is
      greater

	
       
      June 30, 2005
	
       
      $75,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the prior quarter, whichever is
      greater

	
       
      September 30, 2005
	
       
      $75,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the prior quarter, whichever is
      greater

	
       
      December 31, 2005
	
       
      $75,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the prior quarter, whichever is
      greater

	
       
      March 31, 2006
	
       
      $75,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the prior quarter, whichever is
      greater

	
       
      June 30, 2006
	
       
      $75,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the prior quarter, whichever is
      greater

	
       
      September 30, 2006
	
       
      $75,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the prior quarter, whichever is
      greater

Under no
circumstances shall the installments towards such up-front license fee exceed in
the aggregate $750,000.

	 	
      (a)
	
      Payments
      made under this Section 4.4 are separate and in addition to payments to be
      made under Section 4.1 for the Product and the running royalties due under
      Section 4.5.

	 	
      (b)
	
      In
      the event that payments are not made as set forth in this Section 4.4 and
      the parties are unable to agree to a revised schedule of payments within
      thirty (30) days of the date for payment, then Skinvisible may in its sole
      discretion terminate the Agreement or any provision therein and retain,
      without any claim or demand from the Distributor, all monies previously
      paid.

 

4.5           
The
Distributor shall pay quarterly to Skinvisible a running royalty fee in order to
maintain the exclusivity granted herein no later than thirty (30) days after the
end of each quarter. The amount of the royalty shall be calculated as
follows:

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      Quarter Ended
	
       
      Amount of Payment

       

	
       
      June 30, 2004
	
       
      $5,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the quarter, whichever is
    greater

	
       
      September 30, 2004
	
       
      $10,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the quarter, whichever is
    greater

	
       
      December 31, 2004
	
       
      $15,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the quarter, whichever is
    greater

	
       
      March 31, 2005 and subsequent 

       
      Year Quarters
	
       
      $20,000 or 5% of gross revenues generated by Distributor from sales of the
      Product in the Territory in the quarter, whichever is
    greater

 

	 	
      (a)
	
      In
      the event that payments are not made as set forth in section 4.2, then
      Skinvisible shall give the Distributor a written notice of default. If
      payment is not received within thirty (30) days following receipt of the
      notice of default, then Skinvisible may in its sole discretion terminate
      the Agreement or any provision therein and retain, without claim or demand
      from the Distributor, all monies previously
paid.

	 	
      (b)
	
      The
      Distributor shall provide to Skinvisible documentation including, but not
      limited to, receipts, invoices, or other documentation that shall
      reasonably allow Skinvisible to confirm the accuracy of the royalty
      payment made. 

	 	
      (c)
	
      Skinvisible
      shall be entitled to audit the accuracy of the royalty payments made by
      the Distributor. Skinvisible shall incur the expense of the audit only if
      it is determined that Skinvisible received ninety percent (90%) or more of
      the audited amount and in all other circumstances the Distributor shall
      incur the expense of the audit. The existence of an audit for any
      quarterly payment does not suspend or relieve the Distributor from their
      obligation to make a royalty payment within thirty (30) days after the end
      of each quarter. 

 

4.6          
All
payments by the Distributor to Skinvisible to be made hereunder shall be in
United States dollars.

 

V. TERMS
AND CONDITIONS OF PRODUCT ORDERS 

5.1           
The
Distributor shall submit a written purchase order to Skinvisible specifying the
amount of Product required. Skinvisible agrees to provide an acceptance of an
order within three (3) business
days after receiving a written purchase order from the Distributor.

5.2           
All of
the Product ordered by the Distributor shall be shipped within three (3) weeks
from the date the acceptance of an order has been delivered to the Distributor
and shall carry an 

 

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expiration
date of three (3) years from the date of shipment. Delivery of all Product sold
by Skinvisible to the Distributor shall be F.O.B. the place of Product
manufacture. The
method and route of shipment shall be at the sole discretion of the Distributor
subject to Skinvisible’s guidelines for the method and conditions of shipment
which would provide for arrival of the Product at the Distributor’s point of
delivery in substantially the same condition as such Product were at the point
of shipment. These guidelines include conditions regarding temperature (which
shall not exceed at a maximum of 450 Celsius
and at a minimum of 40 Celsius)
to preserve the quality and integrity of the Product during shipment. Failure of
Distributor to abide by Skinvisible’s guidelines in the shipment of the Product
shall bar the Distributor from making any claim whatsoever against Skinvisible
arising from any defect in the Product which occurred or arose during shipment.
Nothing in this section shall mean or be implied to mean that there is any
shifting of the risk of loss of goods to Skinvisible once such goods are placed
in the control of Distributor’s carrier. All such risk of loss is borne by
Distributor once the Product to be shipped have been delivered to or placed in
the control of the carrier.

5.3    Title to
the Product shall pass from Skinvisible to the Distributor upon the delivery to
a recognized commercial carrier of the Product for shipment to the Distributor.

5.4    Skinvisible
shall deliver the Product to the Distributor free and clear of all liens,
encumbrances and security interests and shall not, without the prior written
consent of the Distributor: (a) transfer, deliver or otherwise provide the
Product as listed in the written purchase order submitted by the Distributor to
any other person or entity; or (b) assign any rights to the Product as listed in
the written order submitted by the Distributor to any other person or
entity.

5.5    Prior to
receiving an acceptance of the written order from Skinvisible, the Distributor
may cancel any order at any time, with or without cause, and the Distributor’s
liability for such cancellation shall be limited to Skinvisible’s out-of-pocket
costs and expenses incurred for such cancelled order.

5.6    The
Distributor shall give notice to Skinvisible of any claims relating to the
non-conformity of Product. The Distributor shall make all claims with respect to
the Product as follows:

 

	 	
      (a)
      
	
      Any
      claim that a shipment contains a shortage of Product or other error in
      delivery must be made by the Distributor to Skinvisible in writing within
      seven (7) days from the date of receipt by the
      Distributor of
      such shipment of Product together with a reasonable description of the
      delivery error. The Distributor’s failure to make a claim in accordance
      with the foregoing sentence shall constitute agreement by the Distributor
      that there was no error in delivery. Provided that the Distributor makes a
      claim in accordance with this Section 5.6(a) and proves that the shipment
      contained a shortage of Product or other error in delivery, Skinvisible,
      at the Distributor’s option, shall deliver to the Customer to such
      location(s) designated by the Distributor, at Skinvisible’s risk and cost
      and expense, the number of Product in shortage in such shipment, or credit
      the Distributor the amount of such shortage.

 

Page6of
19

 

	 	
      (b)
	
      In
      the event that the Distributor claims that upon delivery any of the
      Product are non-conforming because the product is not consistent with the
      Certificate of Analysis, the Distributor may reject the same, provided
      that (i) within thirty (30) days after receipt by the
      Distributor of such shipment of Product, the Distributor notifies
      Skinvisible in writing of the nonconformity, (ii) the Distributor sends
      the product out for further review and inspection and it is determined
      that the Product are not consistent with the Certificate of Analysis,
      (iii) the Distributor returns to Skinvisible, at Skinvisible’s expense,
      the rejected Product or shipment, subject to the terms and conditions
      hereinafter provided, within seven (7) days after the Distributor receives
      notice that the further review and inspection of the Product found the
      Product to be inconsistent with the Certificate of Analysis, and (iv) none
      of the Product has been changed from its original condition. The
      Distributor’s failure to make a claim in accordance with the foregoing
      sentence shall constitute unqualified acceptance of all shipments and
      Product. Following receipt of the rejected Product under this Section
      5.6(b), Skinvisible shall deliver Product consistent with the Certificate
      of Analysis within fourteen (14) days. Provided that the rejected Product
      have been rejected by the Distributor in accordance with the terms of this
      Section 5.6(b) and are proved to have been non-conforming, then
      Skinvisible shall credit the Distributor for the cost of the Product and
      all costs and expenses incurred by the Distributor in shipping the
      rejected Product back to Skinvisible, if such Product return requested is
      made by Skinvisible to the distributor. The Distributor shall pay the
      costs of the conforming Product within thirty (30) days after receipt by
      the Distributor. The Distributor shall not be responsible for any royalty
      payments on the sale of any Product that do not conform to the Certificate
      of Analysis.

	 	
      (c)
      
	
      In
      the event that the Distributor claims that upon delivery any of the
      Product are non-conforming for any reasons other than as set forth in
      Section 5.6(a) or (b), then Distributor may reject the same, provided that
      (i) within thirty (30) days after receipt by the
      Distributor of such shipment of Product, the Distributor notifies
      Skinvisible of such rejection, in writing, together with a reasonable
      description of why the Product have been rejected (the “Rejection
      Notice”), (ii) the Distributor, at Skinvisible’s option, may return to
      Skinvisible the rejected Product or shipment, subject to the terms and
      conditions hereinafter provided, within thirty (30) days after the
      Distributor sends the Rejection Notice, and (iii) none of the Product has
      been changed from its original condition. The Distributor’s failure to
      make a claim in accordance with the foregoing sentence shall constitute
      unqualified acceptance of all shipments and Product. Provided that the
      rejected Product have been rejected by the Distributor in accordance with
      the terms of this Section 5.5(c) and are proved to have been
      non-conforming, Skinvisible shall credit the Distributor for the cost of
      the Product and all costs and expenses incurred by the Distributor in
      shipping the rejected Product back to Skinvisible, if such Product return
      requested is made by Skinvisible to the
distributor.

Page7of
19

 

5.7    The
warranty for defective Product of Skinvisible as from time to time in effect
shall be applicable to all sales of the Product by Skinvisible to the
Distributor. Notwithstanding the provisions of Article XIII hereof, Skinvisible
shall have no obligation or liability to the Distributor for any loss, damage or
expense of any kind caused directly or indirectly by the Product or the use,
maintenance, repairs or adjustments of or to the Product except as may be
provided in such warranty.

 

VI. OBLIGATIONS
OF THE SKINVISIBLE

6.1    Skinvisible shall at
all times during the Term of the Agreement:

	 	
      (a)
	
      publish
      and make available to the Distributor from time to time a list of the
      Product and a list of the prices charged by Skinvisible
      therefore;

	 	
      (b)
	
      with
      respect to each Product sold to the Distributor, provide the Distributor
      with a standard Certificate of Analysis;

 

(c)           
reimburse
the Distributor under any warranty obligation of Skinvisible;

	 	
      (d)
	
      provide
      Distributor with copies of the research and efficacy studies for the
      Product in Skinvisible's possession as of the Effective Date of this
      Agreement.

	 	
      (e)
	
      permit
      the Distributor to use Skinvisible's INVISICARE trademark (collectively
      "Trademark") for the sole purpose of advertising, marketing and
      distributing the Product within the Territory, and strictly in accordance
      with the terms and conditions of the Trademark License Agreement of
      Appendix D.

6.2    Skinvisible
hereby grants Distributor a royalty-free, non-exclusive, non-transferable
license to use Skinvisible's Confidential Information, Improvement Inventions,
and Patents that are directly relevant to the advertising, marketing,
distribution, and sale of the Product within the Territory under this Agreement,
and the manufacture by Distributor of the Product, where applicable under
Article VII. This license is limited in scope, and shall not authorize
Distributor to use Skinvisible's Confidential Information, Improvement
Inventions, or Patents outside of this Agreement without Skinvisible's prior,
written consent.

VII. RIGHT
TO MANUFACTURE

7.1    Distributor
shall have the right to manufacture the Product covered by this Agreement,
instead of sourcing it from Skinvisible, provided that: (a) Distributor makes
the Product strictly in accordance with the Formula, and that it achieves the
Product Specifications; (b) Distributor sources the "M1 Polymer" ingredient for
the Product from Skinvisible; (c) Distributor applies Skinvisible's INVISICARE
Trademark in a prominent fashion to all packaging, labels, tags, advertising,
and promotional materials associated with the Products; and (d) Distributor pays
Skinvisible the license fees and royalties due pursuant to Sections 4.4 and 4.5.
Distributor shall notify Skinvisible ninety (90) days prior to its commencement
of the manufacture of Product under this Section 7.1.

Page8of
19

 

7.2    Should
Distributor decide to manufacture Product under this Agreement, Skinvisible
shall disclose to Distributor as soon reasonably practicable the Formula,
Product Specification, and manufacturing know-how in sufficient detail (using
reasonable commercial efforts) to enable Distributor to make the Products. This
information shall be treated as Skinvisible's Confidential Information pursuant
to Article X. Notwithstanding the foregoing, Skinvisible shall not be required
to disclose any specific information to Distributor in the event that any
agreement with a third party would preclude Skinvisible from doing
so.

7.3    Distributor
shall bear all costs associated with the: (a) disclosure of the Formula, Product
Specifications, manufacturing know-how; (b) adapting such information or
technology for its use by Distributor; (c) any necessary training; and (d) any
documentation done for Distributor's internal purposes.

7.4    Distributor
and Skinvisible shall negotiate in good faith a separate agreement for supplying
the M1 Polymer to Distributor for incorporation into the Product to be
manufactured by Distributor, including the purchase price for such M1
Polymer.

7.5    Distributor
shall permit duly authorized representatives of Skinvisible, at reasonable
times, upon reasonable nature, and in the company of Distributor's employees to
enter any facility where the Product is being manufactured for the purpose of:
(a) inspecting those portions of the facility used in the manufacture, handling,
or storage of the Product; (b) inspecting the manufacture, handling, and storage
of the Product; and (c) ensuring that the provisions of this Agreement are being
complied with by Distributor. Such representatives shall comply with all of
Distributor's plant safety and other rules and regulations while at the
facility. 

VIII. SUB-DISTRIBUTORS

 

8.1    In the
event that Distributor determines that commercial exploitation of the Product
within the Territory requires the appointment of sub-distributors through which
the Product may be sold, then Distributor shall identify such sub-distributors
to Skinvisible, and seek Skinvisible's prior written approval of them, which
shall not be unreasonably withheld, before appointing any such sub-distributors
under this Agreement.

8.2    Any
sub-distributor approved in writing by Skinvisible shall have the right during
the continuance of this Agreement to use Skinvisible’s Trademark, Patents, and
other intellectual property rights licensed under this Agreement for the sole
purpose of promoting the sales of the Product throughout the Territory under the
same terms and conditions imposed upon Distributor under this
Agreement.

IX. IMPROVEMENT
INVENTIONS

9.1    Distributor
shall have no right to make any modifications or improvements to the Product
without Skinvisible's prior, written permission. In the event that Distributor
does conceive, develop, or reduce to practice any invention or other information
arising from or based upon the use of Skinvisible's Confidential Information or
Product (hereinafter "Improvement Invention"), then Skinvisible shall be the
sole owner of such Improvement Invention, which shall be subject to the
exclusive distributorship grant of Article II. Should Distributor desire
modification or 

 

Page9of
19

 

improvement
to be made to the Product, then it shall contract with Skinvisible under a
separate agreement to develop such modifications or improvements.

9.2    Only
Skinvisible shall have the right, in its sole discretion, to patent the Product
and Improvement Inventions.

X. CONFIDENTIALITY

10.1    Each
party recognizes the importance to the other party that of that other party’s
Confidential Information, and such information is critical to the business of
the disclosing party. Each party recognizes that neither party would enter into
this Agreement without assurance that its Confidential Information and the value
thereof will be protected as provided in this Section 10 and elsewhere in this
Agreement.

10.2    All
Confidential Information shall remain the property of the disclosing party. The
receiving party shall hold in strict confidence the disclosing party’s
Confidential Information and with no less than the same degree of care that it
holds its own confidential and proprietary information, and it will take all
reasonable precautions to protect such Confidential Information. The receiving
party shall make the Confidential Information received under this Agreement
available only to those of its employees who have a need to know the same in
connection with their work assignments to further the objections contemplated
under this Agreement. No disclosures to third parties shall be made by the
receiving party of such Confidential Information without the prior written
approval of the disclosing party. The receiving party will use the disclosing
party’s Confidential Information only for the purposes and under the
circumstances provided in this Agreement.

10.3    Upon any
termination of this Agreement, or earlier at a party's request, each party will
return the other party’s Confidential Information and all documents or media
containing any such Confidential Information to the other party, except that the
receiving party has the right to keep one copy of such information for legal
purposes (which shall remain subject to the confidentiality provisions set forth
herein), including, but not limited to, copies of all documentation required by
the FDA.

10.4    Each
party acknowledges and agrees that the other party shall be entitled to
appropriate equitable relief in addition to whatever remedies it may have at law
in the event of a breach by the other party of its covenants contained in this
Section 10. The foregoing provision is in addition to, and not in limitation of,
any and all remedies at law, in equity or otherwise, that the non-breaching
party may have upon the other party’s breach of this Agreement.

10.5    Except as
otherwise provided in this Agreement, either party shall immediately notify the
other party of any private or governmental request for Confidential Information
or any other information or documents relating to the Product or this Agreement.
Each party shall have the right to participate in the other party’s response to
any such request. If a party receives any legal instrument requiring the
production of data, work papers, reports, or other materials relating to this
Agreement, that party shall: (a) give the other party, if possible, the
opportunity to participate in quashing, modifying or otherwise responding to any
compulsory process in an appropriate and timely manner; and (b) cooperate fully
with the other party’s efforts to narrow 

 

Page10of
19

 

the scope
of any such compulsory process, to obtain a protective order limiting the use or
disclosure of the information sought, or in any other lawful way to obtain
continued protection of the Confidential Information.

10.6    If either
party becomes aware of the loss, theft or misappropriation of Confidential
Information which is in its possession or control, it shall notify the other
party in writing within seven (7) days of its discovery of such loss, theft or
misappropriation.

10.7    The
rights and duties of this Article 10 shall survive the termination of this
Agreement, whether upon expiration or termination by either party.

XI. TERM
AND TERMINATION

11.1    This
Agreement shall continue in full force and effect for twenty (20) years from the
Effective Date or the last to expire of the Patents, whichever occurs first,
unless otherwise terminated as provided in Section 11.2 below, or by mutual
written consent of the parties hereto.

11.2    Either
party may terminate this Agreement at any time as follows:

	 	
      (a)
      
	
      By
      either party, effective immediately, in the event that the other party
      should fail to materially perform any of its material obligations under
      this Agreement and should fail to remedy such failure within thirty (30)
      calendar days after receiving written demand to remedy such failure, or in
      the event such other party, despite remedying a particular failure within
      thirty (30) days as aforesaid, is guilty of chronic or persistent breaches
      of such material obligation in question, in the end result having a
      material adverse effect upon the other party;
or

	 	
      (b)
	
      By
      either party, upon thirty (30) days’ written notice if a force majeure
      event described in Section 16.1 shall have occurred and continue for sixty
      (60) days.

11.3    Skinvisible
may terminate this agreement at any time if the Distributor should become the
subject of any voluntary or involuntary bankruptcy, receivership or other
insolvency proceedings or make an assignment or other arrangement for the
benefit of its creditors, or if such other party should be nationalized or have
any of its material assets expropriated.

	
      11.4
	
        
      This Agreement may also be terminated by mutual agreement of the
      parties.

11.5    The
Distributor may not manufacture, market, distribute, or sell any Competing
Product while this Agreement is in full force and effect.

  
XII. EFFECT
OF TERMINATION

12.1    The
rights, duties and obligations of the parties upon and following the expiration
or termination of this Agreement however occurring shall be governed by the
following provisions:

 

Page11of
19

 

	 	
      (a)
      
	
      The
      termination of this Agreement shall not release or affect, and this
      Agreement shall remain fully operative as to, any obligations or
      liabilities incurred by either party prior to the effective date of such
      termination;

	 	
      (b)
	
      Skinvisible,
      subject to its production capabilities, shall fill all orders submitted by
      the Distributor during the term of this Agreement regardless of whether
      any of the Product in such orders are to be delivered after the expiration
      or termination of this Agreement. During such period of time that
      Skinvisible is filling such orders, all terms of this Agreement shall
      apply between the parties with respect to such production;
    and

	 	
      (c)
	
      Notwithstanding
      the provisions of section 10 hereof, Skinvisible shall, by reason only of
      the expiration or termination of this Agreement in accordance with the
      terms of this Agreement, be liable in any manner whatsoever to the
      Distributor for any damage of any kind whether direct, indirect or
      conse-quential, or for any profits on anticipated sales, or for any
      expenditures or investments;

	 	
      (d)
	
      Upon
      the effective date of termination of this Agreement, the parties hereto
      acknowledge that the exclusivity provisions set forth in Paragraph 2
      herein will no longer be in effect and that any limitations on the parties
      pertaining to sales and marketing and potential customers are dissolved
      and the parties are free to contract with any third party for future
      business; and

	 	
      (e)
	
      Termination
      or expiration of this Agreement for any reason shall not relieve the
      parties of their obligations under Articles IX, X, XI, XII, XIII, XIV, and
      XV of this Agreement.

  
XIII. WARRANTY
AND REPRESENTATIONS

13.1    As an
essential term of this Agreement, each party hereby warrants and represents to
the other party that it is entitled to disclose to and license the other party
to sue its Confidential Information, Improvement Inventions, and Patents under
the terms of this Agreement without violating the trade secret or contractual
rights of any third party.

13.2    EXCEPT AS
SET FORTH IN SECTION 13.1, OR AS OTHERWISE SPECIFICALLY STATED HEREIN, THE
PARTIES EXPRESSLY DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS OR A PARTICULAR PURPOSE,
PATENT VALIDITY, OR NON-INFRINGEMENT OF A THIRD-PARTY PATENT OF OTHER
INTELLECTUAL PROPERTY RIGHTS REGARDING THE USE OR COMMERCIALIZATION OF PRODUCT,
CONFIDENTIAL INFORMATION, IMPROVEMENT INVENTIONS, OR PATENTS.

 
XIV. INDEMNIFICATION

14.1    Each
party shall indemnify, defend and hold harmless the other party from any and all
claims, costs, liabilities, or damages (including reasonable attorney's fees)
arising from its:

Page12of
19

 

               
(a)           uncured
material breach of this Agreement;

(b)          
breach of
any Warranty or Representation provided pursuant to Article XII;

	 	
      (c)
	
      negligent,
      grossly negligent, reckless, or willful acts or omissions. Each party
      shall be responsible for any and all damages that it is subjected to by
      means of its own negligent, grossly negligent, reckless or willful acts or
      omissions.

14.2    In the
event a third-party lawsuit is filed against a party (the "Indemnitee") due to
the negligent, grossly negligent, reckless or wilful actions or omissions of the
other party (the "Indemnitor"), then the Indemnitee shall promptly provide
notice of such suit to the Indemnitor, and permit the Indemnitor to control its
defense, including the terms under which any such suit is settled. The
Indemnitee shall provide all reasonable cooperation to the Indemnitor at the
Indemnitor's expense in the defense of that suit.

XV. PATENT
MARKING

Distributor
shall cause each unit of Product that it manufactures, markets, sells, or
otherwise introduces into commerce under this Agreement to have affixed thereto
a label bearing the following legend: "U.S. Patent No. 6,582,683 under license
from Skinvisible Pharmaceuticals, Inc." Skinvisible shall update this legend for
Distributor as additional Patents are issued.

                
XVI.  MISCELLANEOUS
PROVISIONS

16.1    Neither
party shall be in default hereunder by reason of any failure or delay in the
performance of any obligation under this Agreement where such failure or delay
arises out of any cause beyond the reasonable control and without the fault or
negligence of such party. Such causes shall include, without limitation, storms,
floods, other acts of nature, fires, explosions, riots, war or civil
disturbance, strikes or other labor unrests, embargoes and other governmental
actions or regulations which would prohibit either party from ordering or
furnishing the Product or from performing any other aspects of the obligations
hereunder, delays in transportation, and liability to obtain necessary labor,
supplies or manufacturing facilities.

16.2     Each and
every right and remedy hereunder is cumulative with each and every other right
and remedy herein or in any other agreement between the parties or under
applicable law.

16.3    Each
party hereby acknowledges receipt of a signed copy of this
Agreement.

16.4    Nothing
contained in this Agreement shall create or shall be construed as creating a
partnership, a joint venture, agency or employment relationship between the
parties. The parties agree to perform their obligations in accordance with this
Agreement at arms’ length and only as independent contractors. Neither party has
the right or authority to assume nor create any obligations or responsibilities,
express or implied, on behalf of the other party, and neither party may bind the
other party in any manner or thing whatsoever. Neither party shall be liable,
except 

 

Page13of
19

 

as
expressly provided otherwise in this Agreement, for any expenses, liabilities or
other obligations incurred by the other.

16.5    Skinvisible
and the Distributor each represent and warrant to the other that it is duly
organized, validly existing and in good standing under the laws of the State or
Commonwealth (as applicable) in which incorporated, and that it has full
corporate power and authority to carry on the business presently being conducted
by it and to enter into and to perform its obligations under this Agreement.

16.6    Skinvisible
and the Distributor each represent and warrant to the other that it has taken
all action necessary to authorize the execution and delivery of this Agreement
and the performance of each party’s respective obligations hereunder. Each
party’s officer executing this Agreement on its behalf has the legal power,
right and authority to bind the party to the terms and conditions of this
Agreement, and when he or she executes and delivers this Agreement and any
instruments contemplated herein, he or she will have the power, right and
authority to bind the party thereto.

16.7    All
notices, requests, demands and other communications hereunder shall be given in
writing and shall be: (a) personally delivered; (b) sent by telecopy, facsimile
transmission or other electronic means of transmitting written documents with
confirmation of receipt; or (c) sent to the parties at their respective
addresses indicated herein by registered or certified mail, return receipt
requested and postage prepaid, or by private overnight mail courier services
with confirmation of receipt. The respective addresses to be used for all such
notices, demands or requests shall be as set forth on page 1 hereof or to such
other person or address as either party shall furnish to the other in writing
from time to time. If personally delivered, such communication shall be deemed
delivered upon actual receipt by the “attention” addressee or a person
authorized to accept for such addressee; if electronically transmitted pursuant
to this paragraph, such communication shall be deemed delivered the next
business day after transmission (and sender shall bear the burden of proof of
delivery); if sent by overnight courier pursuant to this paragraph, such
communication shall be deemed delivered upon receipt by the “attention”
addressee or a person authorized to accept for such address; and if sent by mail
pursuant to this paragraph, such communication shall be deemed delivered as of
the date of delivery indicated on the receipt issued by the relevant postal
service, or, if the addressee fails or refuses to accept delivery, as of the
date of such failure or refusal. Any party to this Agreement may change its
address for the purposes of this Agreement by giving notice thereof in
accordance with this section 16.7.

16.8    This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives. 

16.9    This
Agreement is not intended, nor shall it be construed, to confer upon any person
except the parties hereto and its successors and permitted assigns any rights or
remedies under or by reason of this Agreement, except as contemplated
herein.

16.10    This
Agreement and all matters arising under or growing out of or in connection with
or in respect of this Agreement shall be governed by and construed in accordance
with the laws of the State of Nevada. 

Page14of
19

 

16.11    The
headings in this Agreement are inserted for convenience only and shall not
constitute a part hereof.

16.12    Each
provision contained in this Agreement is declared to constitute a separate and
distinct covenant and provision and to be severable from all other separate,
distinct covenants and provisions. In any provision of this Agreement is or
becomes invalid, illegal, or unenforceable in any jurisdiction, such provision
shall be deemed amended to conform to applicable laws as to be valid and
enforceable or, if it cannot be so amended without materially altering the
intention of the parties, it shall be stricken and the remainder of this
Agreement shall remain in full force and effect.

16.13    No waiver
of a breach of any provision of this Agreement shall be deemed to be, or shall
constitute, a waiver of a breach of any other provision of this Agreement,
whether or not similar, nor shall such waiver constitute a continuing waiver of
such breach unless otherwise expressly provided in such waiver.

16.14    This
Agreement may not be assigned by the Distributor without the prior written
consent of Skinvisible. Skinvisible may assign, transfer, or convey its
manufacturing obligations to third parties who shall be bound by the same
standards as Skinvisible. 

16.15    All
prices quoted in this Agreement are exclusive of all applicable sales, use or
other excise taxes (including sales tax and goods and services tax). The
Distributor is responsible for all taxes and similar charges customary for a
buyer of Product and services as herein contemplated.

16.16    All
disputes, claims or controversies arising out of or relating to this Agreement,
or the breach, termination or invalidity hereof, shall be
finally settled in United States under the Rules of Arbitration of the
International Chamber of Commerce by one or more arbitrators appointed in
accordance with the said Rules. The arbitration shall take place in Las Vegas,
Nevada.

16.17    The
parties agree to execute such documents, make such filings and take such actions
as may be reasonably necessary at the request of the other party to give full
force and effect to the provisions hereof.

16.18    This
Agreement may be executed in one or more counterparts, each of which when taken
together shall constitute one and the same instrument. This Agreement may be
delivered by personal delivery of facsimile transmission.

 

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

 

       
SKINVISIBLE PHARMACEUTICALS, INC.

Page15of
19

 

By:         
/s/ Terry Howlett       

Name:

Title:

DERMAL
DEFENSE, INC.

By:         
/s/ James
Graves                      
2-21-2005       

Name:
James Graves

Title: 
it's President

 

Page16of
19

SCHEDULE
A

Product
List

 

Skinvisible's
Antimicrobial Hand Sanitizer:
Triclosan 1%, Purified Water, PVM/MA Copolymer - VP/Hexadecene Copolymer -
VP/Eicosene Copolymer, Glycerin, Aloe - 10% Solution, Triethanolamine,
Nonoxynol-9, Vegetable Oil, Carbomer, Propylene Glycol, Diazolidinyl Urea,
Iodopropynyl, Butylcarbarnate. 

 

Page17of
19

SCHEDULE
B

Price
List

Product            Packaged
Wholesale Pricing

                                                          
                   
2 oz.                  
4
oz.                         
8 oz.                           
16
oz.                         
1 gal.                             
1
liter                                         
   

Sanitizer
Lotion                                       
*                           
*                       
*                          
*                        
*                           
*

 

*The
confidential portion has been omitted and filed separately with the
Commission.

 

Page18of
19

SCHEDULE
C

Territory

United
States

Canada

Mexico

Page19of
19

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