Document:

Unassociated Document

    EXECUTIVE
      EMPLOYMENT AGREEMENT

    

    This
      EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of this
      9th day of Feburary 2008, by and between Skins Inc., a Nevada corporation (the
      “Company”), and Dennis Walker, an individual (the “Executive”). Company or
      Executive are sometimes referred to herein as a “party,” or collectively, as the
“parties”. 

    

    WHEREAS,
      the Company desires to continue to employ the Executive in the position of
      Vice
      President of Sales and to have the benefits of his expertise and knowledge;
      

    

    WHEREAS,
      the Executive desires to continue to be employed by the Company as its Vice
      President of Sales; and

    

    WHEREAS,
      the parties desire to enter into this Agreement to establish the terms and
      conditions of the Executive’s employment as Senior Vice President of Sales of
      the Company.

    

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements hereinafter
      contained, and for other good and valuable consideration, it is hereby agreed
      by
      and between the parties hereto as follows:

    

    1. Employment,
      Duties, and Authority.

    

    1.1  Employment.
      The
      Company hereby employs Executive per the terms of this Agreement as the Senior
      Vice President of Sales of the Company and Executive hereby accepts such terms
      of employment as of the date hereof pursuant to the terms, covenants and
      conditions set forth herein. Executive shall report to the Chief Executive
      Officer and the Board of Directors of the Company.

    

    1.2  Duties
      and Authority.
      During
      the Term of this Agreement, Executive shall serve as the Company’s Senior Vice
      President of Sales, and, in such capacities, shall perform the duties and
      functions and have the authority that is commensurate with such position and
      such other duties, and functions consistent with status as an executive officer
      of the Company as may be assigned by the Company’s Chief Executive Officer and
      Board of Directors. Executive’s level of authority shall at all times be subject
      to the policies and directives of the Chief Executive Officer and Board of
      Directors as they may from time to time deem in the best interests of the
      Company.

    

    1.3  Time
      and Efforts.
      Executive shall devote his best efforts, energies, skills and attention to
      the
      business and affairs of the Company. Executive shall also devote substantially
      all of his business time to his duties hereunder and shall, to the best of
      his
      ability, perform such duties in a manner that will faithfully and diligently
      further the business interests of the Company. Executive’s services shall be
      exclusive to the Company, but does not limit Executive’s right to be involved in
      other not-for-profit, civic or charitable activities, provided that such
      activities do not materially interfere with the providing of his services
      hereunder. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2. Term.

    

    The
      term
      of employment under this Agreement shall be for a period of three (3) years
      commencing on the date hereof (the “Term”), unless terminated earlier pursuant
      to the provisions of Section 5 below. Thereafter, this Agreement shall
      automatically be renewed for successive one-year terms unless either party
      shall
      give the other no less than one hundred and eighty (180) days prior written
      notice of intent not to renew this Agreement.

    

    3. Compensation
      and Benefits.

    

    As
      the
      total consideration for Executive’s services rendered hereunder, Executive shall
      be entitled to the following:

    

    3.1  Base
      Salary.
      Executive shall be paid an annual base salary of Two Hundred Thousand Dollars
      ($200,000) per year (“Base Salary”) beginning on the date hereof and payable in
      regular installments in accordance with the customary payroll practices of
      the
      Company. The Base Salary shall be subject to all legally required deductions
      and
      withholdings. The Base Salary will be reviewed by the Board of the Directors
      of
      the Company annually in a manner that is consistent with Company’s compensation
      policy. The Base Salary may be increased (but not decreased without Executive’s
      written consent) from time to time by the Board of Directors in its absolute
      discretion, the determination of which shall be based upon such standards,
      guidelines and factual circumstances as the Board of Directors or its
      Compensation Committee deems relevant, including, without limitation, the
      operating results for the Company during such calendar year, the importance
      of
      the efforts of Executive in achieving such operating results and the achievement
      by the Company and/or Executive of performance goals previously established
      by
      the Board of Directors for such year. 

    

    3.2  Annual
      Incentive Bonus.
      During
      each calendar year, or part thereof, the Company may pay Executive an annual
      performance bonus as determined by the Board of Directors or the Compensation
      Committee of the Company, in their sole discretion, the determination of which
      shall be based upon such standards, guidelines and factual circumstances as
      the
      Board of Directors or its Compensation Committee deems relevant, including,
      without limitation, the operating results for the Company during such calendar
      year, the importance of the efforts of Executive in achieving such operating
      results and the achievement by the Company and/or Executive of performance
      goals
      previously established by the Board of Directors for such contract year.
      Performance bonus reviews shall occur at such time consistent with the Company’s
      compensation policy and procedures for executive officers. The annual
      performance bonus shall be up to forty percent (40%) of the Base Salary and
      may
      be paid in cash and/or stock options, at the discretion of the Board of
      Directors; provided
      that,
      however, the value of any stock option granted shall not be counted against
      the
      forty percent maximum limit. Bonuses granted to Executive under this Section
      3.2, if any, shall be paid no later than as is consistent with the Company’s
      policies for payment of annual incentive bonuses to its executive
      officers.

    

    3.3  Expenses.
      During
      employment, Executive is entitled to reimbursement for reasonable and necessary
      business expenses incurred by Executive in connection with the performance
      of
      Executive’s duties. Payments to Executive will be made upon presentation of
      itemized statements of such business expenses in such detail as the Company
      may
      reasonably require and pursuant to applicable Company policy. In addition,
      Executive shall receive $6,000 per year for purposes of an automobile allowance
      to be paid in accordance with the customary payroll practices of the
      Company.

     

    
      
         

      

      
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    3.4  Vacation.
      Executive shall be entitled to receive four (4) weeks of paid vacation each
      calendar year. Any unused vacation days shall be carried over to the next
      calendar year, provided Executive shall be entitled to no more than six (6)
      weeks of paid vacation in any calendar year. All vacation leave is subject
      to
      and in accordance with the vacation policies of the Company with respect to
      senior executives as are in effect from time to time. 

    

    3.5  Benefits.
      Executive shall be entitled to participate in and receive other benefits made
      available by the Company to its executives, subject to and on a basis consistent
      with the terms, conditions, co-payments and overall administration of such
      plans
      and arrangements, including without limitation, medical, dental, vision, life
      and disability insurance plans and coverage, and any applicable 401k or other
      pension plans, to the extent they are provided. 

    

    3.6 Insurance
      and Indemnification.
      Executive shall receive coverage under the Company’s director’s and officer’s
      liability insurance policy and indemnification in accordance with the Company’s
      Certificate of Incorporation.

    

    4. Equity
      Compensation.
      

    

    4.1
       Participation
      in Stock Option Plan.
      

    

    Executive
      will be granted a total of Fifty Thousand (50,000) options exercisable at fair
      market value (the “Options”) under the Company’s 2005 Incentive Plan (the
“Plan”). The Options are subject to the terms and conditions of the Plan and the
      Company’s standard stock option agreement (“Stock Option Agreement”) to be
      entered into by and between the Company and Executive. 

    

    4.2 Vesting
      Schedule.

    

    Subject
      to the terms and conditions of the Stock Option Agreement, the shares underlying
      the Options shall vest in three (3) equal annual installments over the course
      of
      three (3) years, with the first installment vesting one year from the date
      of
      the grant of options, unless otherwise adjusted by the Board of
      Directors.

    

    5. Termination.

    

    5.1  Termination
      For Cause.
      The
      Company may terminate Executive’s employment for Cause if the Company determines
      that Cause exists. 

    

    (a)  For
      purposes of this Agreement, “Cause” shall mean

    

    (i)  An
      act of
      dishonesty, fraud, embezzlement, or misappropriation of funds or proprietary
      information in connection with the Executive’s responsibilities as an
      Executive;

     

    
      
         

      

      
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    (ii)  Executive’s
      conviction of, or plea of nolo contendere to, a felony or a crime involving
      moral turpitude;

    

    (iii)  Executive’s
      willful or gross misconduct in connection with his employment duties which,
      directly or indirectly, has a material adverse effect on the Company;
      or

    

    (iv)  Executive’s
      habitual failure or refusal to perform his employment duties under this
      Agreement, if such failure or refusal is not cured by Executive within ten
      (10)
      days after receiving written notice thereof from the Company.

    

    (b)
       In
      the
      event that Executive’s employment is terminated pursuant to this Section
      5.1:

    

    (i) The
      Company shall pay to Executive, or his representatives, on the date of
      termination of employment (the “Termination Date”) only that portion of the Base
      Salary provided in Section 3.1 that has been earned to the Termination Date,
      and
      any accrued but unpaid Vacation pay provided in Section 3.4, and any expense
      reimbursements due and owing to Executive as of the Termination Date;
      and

    

    (ii) Executive
      shall not be entitled to (i) any other salary, compensation, or severance,
      (ii)
      any Bonus pursuant to Section 3.2, (iii) any further vesting of stock options
      pursuant to Section 4.2, nor (iv) any Benefits pursuant to Section 3.5, except
      for benefit continuation under COBRA or similar state or federal legislation,
      as
      permissible by law.

    

    5.2  Termination
      Due to Disability.
      Executive’s employment hereunder may be terminated by the Company, to the extent
      permitted by law, in the event that Executive has been unable to perform his
      duties under this Agreement due to injury or illness for an aggregate of 180
      days (inclusive of weekends and holidays) within any 12-month period, or in
      the
      event Executive is unable to perform the essential functions of his job due
      to a
      physical or mental disability and after reasonable accommodation made by the
      Company, by providing Executive with written notice of termination. In such
      event, the Company shall provide notice to Executive and make payment to the
      Executive of all accrued salary, bonus compensation to the extent fully earned
      and vested, vested deferred compensation (other than pension plan or profit
      sharing plan benefits which will be paid in accordance with the applicable
      plan), any benefits under any plans of the Company in which Executive is a
      participant to the full extent of the Executive's rights under such plans,
      accrued vacation pay and any appropriate business expenses incurred by the
      Executive in connection with his duties hereunder, all to the date of
      termination, with the exception of any medical and dental benefits which, if
      applicable, shall continue through the expiration of this Agreement, but the
      Executive shall not be paid any other compensation or reimbursement of any
      kind,
      including without limitation, Severance Pay or Continued Benefits as defined
      in
      Section 5.4(a).

    

    5.3 Termination
      Due to Death.
      In the
      event of the Executive’s death during the term of this Agreement, the
      Executive's employment shall be deemed to have terminated as of the last day
      of
      the month during which his death occurs and the Company shall promptly pay
      to
      his estate or such beneficiaries as the Executive may from time to time
      designate all accrued salary, bonus compensation to the extent earned, vested
      deferred compensation (other than pension plan or profit sharing plan benefits
      which will be paid in accordance with the applicable plan), any benefits under
      any plans of the Corporation in which the Executive is a participant to the
      full
      extent of the Executive’s rights under such plans, accrued vacation pay and any
      appropriate business expenses incurred by the Executive in connection with
      his
      duties hereunder, all to the date of termination, but the Executive's estate
      shall not be paid any other compensation or reimbursement of any kind, including
      without limitation, Severance Pay or Continued Benefits as defined in Section
      5.4(a).

     

    
      
         

      

      
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    5.4  Termination
      Without Cause or for Good Reason.
      

    

    (a) Executive
      may voluntarily terminate employment for Good Reason. For purposes of this
      Agreement, “Good Reason” shall mean the Company materially breaches this
      Agreement, and such change or breach is not cured by the Company within thirty
      (30) days from the date the Executive delivers a written notice of termination
      for Good Reason, where such notice shall include the specific section of this
      Agreement which was relied upon and the reason that the Company's act or failure
      to act has given rise to his termination for Good Reason. In the event the
      Executive’s employment is terminated without Cause or for Good Reason, the
      Company shall continue to be responsible to Executive for the payment of all
      Base Salary Amount solely for the Severance Period, as defined below, payable
      on
      the Company’s usual paydays (“Severance Pay”); provided,
      however,
      that
      (i) Executive shall perform his covenants, duties and obligations under Sections
      6.1, 6.2 and 6.3, and (ii) Executive executes a separation agreement that
      includes a general mutual release by the Company and Executive in favor of
      the
      other and their successors, affiliates and estates to the fullest extent
      permitted by law, drafted by and in a form reasonably satisfactory to the
      Company and Executive, and Executive does not revoke the mutual general release
      within any legally required revocation period, if applicable. All legally
      required and authorized deductions and tax withholdings shall be made from
      the
      Severance Pay, including for wage garnishments, if applicable, to the extent
      required or permitted by law. Company shall continue to provide Executive for
      a
      period of twelve (12) months after the date of termination continued coverage
      under the medical and other health plans of Company, as permissible under law,
      in which Executive was a participant immediately prior to the date of his
      termination, subject to timely payment by Executive of all premiums,
      contributions and other co-payments required to be paid during such period
      by
      senior executives of Company under the terms of such plans as in effect from
      time to time (“Continued Benefits”). Upon expiration of the Continued Benefits,
      Executive may participate in benefit continuation under COBRA or similar state
      or federal legislation, as permissible by law. For purposes of this Agreement,
      Severance Period shall mean a period of Ten (10) months where the termination
      of
      Executive’s employment occurs during the first year of employment under this
      Agreement, (ii) a period of Eleven (11) months where the termination of
      Executive’s employment occurs during the second year of employment under this
      Agreement, and (iii) a period of Twelve (12) months where the termination of
      Executive’s employment occurs during the third year of employment under this
      Agreement.

    

    (b) In
      addition, Executive shall be paid all accrued salary, bonus compensation to
      the
      extent earned, vested deferred compensation (other than pension plan or profit
      sharing plan benefits which will be paid in accordance with the applicable
      plan), any benefits under any plans of the Company in which the Executive is
      a
      participant to the full extent of the Executive’s rights under such plans
      (including accelerated vesting of options granted to the Executive under the
      Plan per terms of the Stock Option Agreement), accrued vacation pay and any
      appropriate business expenses incurred by the Executive in connection with
      his
      duties hereunder, all to the date of termination. 

     

    
      
         

      

      
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    (c) Notwithstanding
      Section 5(a), if during the Severance Period the Executive accepts other
      employment or consultancy, the Severance Pay awarded to the Executive hereunder
      shall be reduced by the amount of any compensation payable as a result of such
      other employment or consultancy, and any Continued Benefits shall be reduced
      also. Executive shall provide written notification to the Company of any
      employment or consultancy he accepts during the Severance Period.

    

    (d) For
      purposes of clarification, in the event the Executive’s employment is terminated
      without Cause or for Good Reason after the occurrence of a Change of Control
      of
      the Company, the Company shall be responsible to Executive for payment of the
      amounts described in Section 5.4(a) and 5.4(b), above, subject to Section
      5.4(c), above.

    

    (e)
       Any
      delay
      in payments to the Executive of up to 6 months to the extent (and only to the
      extent) needed to avoid the application of Section 409A of the Internal Revenue
      Code of 1986 shall not be considered a breach by the Company of its obligations
      hereunder.

    

    6. Confidentiality;
      Non-Solicitation; Non-Competition. 

    

    6.1  Confidentiality.
      Executive agrees that he will not use or disclose to any third party any trade
      secret, information, knowledge or data not generally known or available to
      the
      public which Executive may have learned, discovered, developed, conceived,
      originated or prepared during or as a result of Executive’s employment by the
      Company with respect to the operations, businesses, affairs, products, services,
      technology, intellectual properties, operations, customers, clients, policies,
      procedures, accounts, personnel, concepts, format, style, techniques or software
      of the Company (collectively “Confidential Information”) during the Term and
      thereafter. Executive agrees to execute and deliver, as requested by the
      Company, reasonable confidentiality agreements with respect to the Confidential
      Information. Immediately following the termination of Executive’s employment
      with the Company, Executive will return to the Company all materials, except
      for
      Executive’s rolodex or personal phone book and other personal items provided to
      Executive by the Company during the Term hereof, all works created by Executive
      or others in the course of his or their employment duties during the term of
      Executive’s employment hereunder, and all copies thereof. Notwithstanding the
      foregoing, the limitations imposed on Executive pursuant to this Section 6.1
      shall not apply to Executive’s (i) compliance with legal process or subpoena, or
      (ii) statements in response to inquiry from a court or regulatory body, provided
      that Executive gives the Company reasonable prior written notice of such
      process, subpoena or request.

    

    6.2  Non-Solicitation.
      Executive agrees that at all times during the Term of this Agreement and for
      one
      (1) year after the termination of Executive’s employment with the Company,
      Executive, except on behalf of the Company, shall not, directly or indirectly,
      and in any way as related to the Business (as defined below), as it may change
      from time to time:

     

    
      
         

      

      
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    (a)  Induce
      or
      attempt to induce any client or customer of the Company to reduce its business
      with the Company; or

    

    (b)  Induce
      or
      attempt to induce any employee of the Company to terminate his or her employment
      with the Company or attempt to hire any such person. 

    

    6.3 Non-Competition.
      

    

    (a) Executive
      agrees that he shall not in the in cities in the United States where the
      Business is conducted in any manner, at any time during his employment by the
      Company and during the Severance Period, directly or indirectly, as owner,
      partner, joint venturer, stockholder, employee, broker, agent, principal,
      trustee, corporate officer or manager, licensor or in any capacity whatsoever
      engage in, become financially interested in, be employed by, render consulting
      services to, or have any connection with, any business which engages in the
      design, marketing, sale, license and/or distribution of casual or athletic
      footwear (the “Business”). Notwithstanding the foregoing, Executive may (i) own
      an equity interest in the Company, and (ii) own up to 1% of the securities
      in a
      corporation engaged in a business that competes with the Company, provided
      that
      such securities are listed on a national securities exchange or reported on
      The
      Nasdaq National Market.

    

    (b) Executive
      declares that the foregoing limitations are reasonable and necessary to protect
      the business of the Company and its affiliates. If any portion of the
      restrictions set forth in this Section 6.3 should, for any reason whatsoever,
      be
      declared invalid by a court of competent jurisdiction, the validity or
      enforceability of the remainder of such restrictions shall not thereby be
      adversely affected, but rather such court shall reform the provision deemed
      invalid so that it shall be as near to the terms of this Agreement as possible
      and still remain enforceable under applicable law.

    

    7. Developmental
      Rights.
      

    

    Executive
      agrees that any developments by way of invention, design, copyright, trademark
      or other matters which may be developed or perfected by him during the term
      hereof, and which relate to the business of the Company or its subsidiaries
      or
      affiliates, shall be the property of the Company without any interest therein
      by
      Executive, and he will, at the request and expense of the Company, cooperate
      with the Company in applying for and prosecuting letters patent thereon in
      the
      United States or in foreign countries if the Company so requests, and will
      assign and transfer the same to the Company together with any letters patent,
      copyrights, trademarks and applications therefore; provided, however, that
      the
      foregoing shall not apply to an invention that Executive develops entirely
      on
      his own time without using the Company’s equipment, supplies, facilities or
      trade secret information except for those inventions that either (i) relate
      at
      the time of conception or reduction to practice of the invention to the
      Company’s business, or actual or demonstrably anticipated research or
      development of the Company; or (ii) result from any work performed by Executive
      for the Company. 

    

    8. Notices.
      

     

    
      
         

      

      
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    All
      notices and other communications required or permitted under this Agreement,
      which are addressed as provided below (or otherwise provided in writing by
      the
      party to receive such notice) shall be delivered personally, or sent by
      certified or registered mail with postage prepaid, or sent by Federal Express
      or
      similar courier service with courier fees paid by the sender, and, in either
      case, shall be effective upon delivery. 

    

      
        	
                If
                  to the Company: 

              	 	
                Skins
                  Inc.

              
	 	 	
                1115
                  Broadway, 12th
                  Floor

              
	 	 	
                New
                  York, NY 10010

              
	 	 	 
	
                If
                  to Executive:

              	 	
                Dennis
                  Walker

              
	 	 	
                [PERSONAL
                  ADDRESS]

              

      

    

    

    9. Assignability.
      

    

    This
      Agreement is personal in nature, and neither this Agreement nor any part of
      any
      obligation herein shall be assignable by Executive. The Company shall be
      entitled to assign this Agreement to any affiliate or successor of the Company
      that assumes the ownership or control of the business of the Company, and the
      Agreement shall inure to the benefit of any such successor or
      assign.

    

    10. Entire
      Agreement. 

    

    This
      Agreement contains the entire agreement between the Company and Executive with
      respect to the subject matter hereof, and supersedes all prior oral and written
      agreements between the Company and Executive with respect to the subject matter
      hereof.

    

    11. Captions. 

    

    The
      Section captions herein are inserted only as a matter of convenience and
      reference and in no way define, limit or describe the scope of this Agreement
      or
      the intent of any provisions hereof.

    

    12. Waivers
      and Further Agreements. 

    

    Neither
      this Agreement nor any term or condition hereof may be waived or modified in
      whole or in part as against the Company or Executive except by a written
      instrument executed by or on behalf of the party to be charged therewith. Each
      of the parties agrees to execute all such further instruments and documents
      and
      to take all such further action as the other party may reasonably require in
      order to effectuate the terms and purposes of this Agreement as stated herein.
      

     

    
      
         

      

      
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    13. Amendments. 

    

    This
      Agreement may not be amended, nor shall any change, modification, consent or
      discharge be effected, except by a written instrument executed by or on behalf
      of the party against whom enforcement of any change, modification, consent
      or
      discharge is sought. 

    

    14. Applicable
      Law; Severability. 

    

    This
      Agreement shall be interpreted, construed and enforced in accordance with the
      laws of the State of New York, without regard or effect being given to that
      State’s choice of law or conflict of law provisions. If any provision of this
      Agreement shall be held to be illegal, invalid, or unenforceable, such provision
      shall be construed and enforced as if it had been more narrowly drawn so as
      not
      to be illegal, invalid or unenforceable, and such illegality, invalidity or
      unenforceability shall have no effect upon and shall not impair the
      enforceability or any other provision of this Agreement. 

    

    15. No
      Conflicting Obligations. 

    

    Executive
      represents and warrants to the Company that he is not now under any obligation
      to any person other than the Company, which would prevent Executive’s
      performance of any of the covenants or duties hereinabove set forth, and that
      Executive is not subject to any restrictive covenant, restraint, or agreement
      as
      a result of any employment with a prior employer.

    

    16. Resolution
      of Disputes - Binding Arbitration. 

    

    Pursuant
      to the Federal Arbitration Act and applicable state law, the parties mutually
      agree that all disputes arising out of or relating to this Agreement, the
      matters covered herein, and Executive's employment with the Company shall be
      decided by final and binding arbitration pursuant to the American Arbitration
      Association Rules and Procedures for Employment Disputes in effect at the time.
      Among the disputes that must be submitted to arbitration are those concerning
      the interpretation, enforcement or alleged breach of this Agreement, and the
      termination of Executive’s employment, as well as those based on state and/or
      federal civil rights and discrimination laws, and other state and/or federal
      statutes, torts, and public policies, regardless of whether such disputes are
      asserted against the Company or its related entities, employees or agents,
      or
      against the Executive. The arbitration shall be held in New York City. The
      decision or award of the Arbitrator shall be issued in writing pursuant to
      New
      York law and shall be final and binding on all parties, subject only to such
      limited review as may be permitted or required by New York law. The prevailing
      party shall be entitled to recover all provable damages and other remedies
      that
      would otherwise be available at law or equity in a civil action, including
      costs
      and fees that may be awarded by any applicable statute. Executive and the
      Company agree that the right to take limited discovery and the right to seek
      injunctive or other equitable relief in court prior to the arbitration shall
      be
      available to either party pursuant to applicable New York law covering the
      arbitration of disputes, but the right to pursue a civil action or seek a jury
      trial is waived and shall not be available pursuant to this agreement to
      arbitrate all disputes. 

     

    
      
         

      

      
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    17. Counterparts.
      

    

    This
      Agreement may be executed in one or more facsimile counterparts, and by the
      parties hereto in separate facsimile counterparts, each of which when executed
      shall be deemed to be an original while all of which taken together shall
      constitute one and the same instrument.

    

    [SIGNATURE
      PAGE TO FOLLOW]

     

    
      
         

      

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

    

     

    COMPANY:

    

    SKINS
      INC.

    

    /s/
      Mark
      Klein                                                                               

    Mark
      Klein, Chief Executive Officer   

     

     

    EXECUTIVE:

    

    DENNIS
      WALKER

    

    /s/
      Dennis
      Walker                                                                       
  

     

     

    

    
      
         

      

      
        11Unassociated Document

    SKINS
      INC.

    

    SECURED
      PROMISSORY NOTE

    

    $__________February
      __, 2008

    

    FOR
      VALUE
      RECEIVED, the undersigned, SKINS INC., a company organized under the laws of
      the
      State of Nevada (the “Company”), promises to pay to the order of _____________
      or his registered assigns (the “Holder”), the principal sum of ________________
      Dollars (US$________________), with interest from the date hereof at the rate
      of
      five percent (5%) per annum on the unpaid balance hereof until paid. The purpose
      of this Note is to provide bridge financing for the Company until it is able
      to
      complete an equity or debt financing (the “Financing”).

    

    1. Payment.
      The
      Company agrees to pay in full all principal and interest due under this Note
      upon the closing of the Financing and from the proceeds of such financing.
      Notwithstanding, repayment of this Note in full shall occur no later than six
      (6) months from the date hereof.

    

    2. Interest.
      Interest on the unpaid principal balance of this Note shall accrue at the rate
      of five percent (5%) per annum compounded annually (computed on the basis of
      a
      365-366 day year (as applicable) based on actual days elapsed) commencing on
      the
      date hereof, and payable in accordance with Paragraph 1, above. 

    

    3. Security.

    

    (a) Company.
      In
      order to secure the payment of the Note, the Company hereby grants to Holder
      a
      continuing first priority security interest in intellectual property rights,
      patents, copyrights, trademarks in which the Company now has or hereafter may
      acquire any right, title or interest, all proceeds and products thereof and
      all
      additions, accessions and substitutions thereto or therefore (the
“Security”).

    

    (b) Subsidiary.
      In
      order to secure the payment of the Note, Skins Footwear Inc., a Delaware
      corporation and the wholly-owned subsidiary of the Company (the “Subsidiary”),
      hereby grants to Holder a continuing first priority security interest in the
      Security.

     

    Holder
      shall have the rights of a secured party under the Uniform Commercial Code.
      To
      effect the foregoing, each of the Company and the Subsidiary agrees to execute
      promptly such additional security documentation as Holder may request and hereby
      authorizes Holder to file financing and other statements as Holder deems
      advisable to perfect the first priority security interest granted
      herein.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
 

    4. Shares
      of Common Stock.
      As a
      part of the consideration of entering into this Note, the Holder shall receive
      ________________________ (_________) shares of Common Stock of the Company
      (the
“Shares”). 

    

    5. Piggy-back
      Registration Rights.
      The
      Shares shall be eligible for registration pursuant to the Securities Act under
      the following terms and conditions:

    

    (a) At
      any
      time that the Shares are not freely saleable under Rule 144 under the Securities
      Act, the Company agrees to include the Shares, at the option of the Holder,
      in
      the first registration statement it files with the Securities and Exchange
      Commission, whether on its own account or on behalf of other shareholders,
      excluding registration statements on Forms S-4 or S-8 (an “Eligible
      Registration Statement”).
      

    

    (b) All
      registration expenses will be borne by the Company, whether or not the
      registration statement becomes effective and whether or not any Shares are
      sold
      pursuant to such registration statement; provided, however, that such expenses
      shall not include (i) any underwriting discount or commissions with respect
      to
      the Holder’s shares and/or (ii) cost of special counsel for the
      Holder.

    

    (c) In
      the
      event of a registration statement filed in connection with an underwritten
      offering, these registration rights are subject to the requirement that the
      Holder submits to any lock-up provisions and cut-backs, if any, as may be
      proposed by the underwriter(s). 

    

    (d) The
      Company shall send to the Holder written notice of any decision to file an
      Eligible Registration Statement at least fifteen (15) days prior to the initial
      filing date; if within five (5) days after receipt of such notice, the Holder
      requests in writing that some or all of such Holder’s Shares be included in such
      registration statement, the Company shall then cause the registration under
      the
      Securities Act of all or part of the Holder’s Shares, as requested by holder;
provided,
      however,
      that if
      at any time after giving written notice of its intention to register any
      securities and prior to the effective date of the Eligible Registration
      Statement, the Company shall determine for any reason not to register, or to
      delay registration of, such securities, the Company may, at its election, give
      written notice of such determination to the Holder and, thereupon, (i) in the
      case of a determination not to register, shall be relieved of its obligation
      to
      register any Shares in connection with such registration and (ii) in the case
      of
      a determination to delay registering, shall be permitted to delay registering
      any Shares for the same period as the delay in registering any other
      securities.

    

    (e) 
      In
      connection with each registration statement covering the Shares, the Holder
      shall be required to furnish to the Company information regarding such Holder
      and the distribution of such Shares as is required by law to be disclosed in
      the
      registration statement, and the Company may exclude from such registration
      the
      Shares of the Holder if it fails to furnish such information within a reasonable
      time prior to the filing of such registration statement or any supplemented
      prospectus and/or amended registration statement.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (f) Notwithstanding
      the foregoing, the Company shall not be required to register the Shares if
      the
      primary and direct cause of such failure to satisfy said obligations is as
      result of comments from the SEC regarding the ability of the Company to utilize
      and rely upon Rule 415 of the Securities Act of 1933, as amended, or the SEC’s
      refusal to permit the registration of securities issued after the filing of
      the
      initial Registration Statement. In the event the SEC does not permit the Company
      to register all of the securities covered by the Eligible Registration
      Statement, the Company shall be permitted to remove the Shares from such
      registration statement and, in such event, the Company agrees to use its best
      efforts to register the Shares that were not registered in such Eligible
      Registration Statement as promptly as possible thereafter and in a manner
      permitted by the SEC or otherwise ensure that the Shares are freely saleable,
      in
      full, under Rule 144 of the Securities Act. 

    

    6. Restrictions
      on Transfer of Shares.
      The
      Holder, by acceptance hereof, agrees that, absent an effective registration
      statement filed with the SEC under the 1933 Act, covering the disposition or
      sale of the Shares and registration or qualification under applicable state
      securities laws, such Holder will not sell, transfer, pledge, or hypothecate
      any
      or all such Shares, as the case may be, unless either (i) the Company has
      received an opinion of counsel, in form and substance reasonably satisfactory
      to
      the Company, to the effect that such registration is not required in connection
      with such disposition or (ii) the sale of such securities is made pursuant
      to
      SEC Rule 144.

    

    7. Compliance
      With Securities Laws.
      By
      executing this Note, the Holder hereby represents, warrants and covenants that
      he/she/it qualify under either or both of Sections 7.1 and 7.2, and the Holder
      agrees to complete supporting documentation in connection with this Section
      7.

    

    (a) Accredited
      Investor.
      By
      execution of this Note, the Holder hereby represents, warrants and covenants
      that he/she/it is an “accredited investor” as that term is defined under Rule
      501 of Regulation D, that the Shares are acquired for investment only and not
      with a view to, or for sale in connection with, any distribution thereof, that
      the Holder has had such opportunity as such Holder has deemed adequate to obtain
      from representatives of the Company such information as is necessary to permit
      the Holder to evaluate the merits and risks of its investment in the Company;
      that the Holder is able to bear the economic risk of holding the Shares for
      an
      indefinite period; that the Holder understands that the Shares will not be
      registered under the 1933 Act (unless otherwise required pursuant to exercise
      by
      the Holder of the registration rights, if any, granted to the Holder) and will
      be “restricted securities” within the meaning of Rule 144 under the 1933 Act and
      that the exemption from registration under Rule 144 will not be available for
      at
      least one year from the date hereof under current laws, and even then will
      not
      be available unless a public market then exists for the stock, adequate
      information concerning the Company is then available to the public, and other
      terms and conditions of Rule 144 are complied with; and that all stock
      certificates representing the Shares will have affixed thereto a legend
      substantially in the following form:

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE.
      THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE
      AND
      MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND ANY
      APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
      THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
      FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER
      OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
      SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE
      IS
      IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS.

    

    (b) Regulation
      S Investor.
      By
      execution of this Note, the Holder hereby represents, warrants and covenants
      that he/she/it to the representations and warranties contained in Appendix
      A,
      attached hereto. 

    

    8.  Currency.
      All
      references herein to “dollars” or “$” are to U.S. dollars, and all payments of
      principal of, and interest on, this Note shall be made in lawful money of the
      United States of America in immediately available funds. 

    

    9. Waiver.
      The
      Company expressly waives presentment, protest, demand, notice of dishonor,
      notice of nonpayment, notice of maturity, notice of protest, presentment for
      the
      purpose of accelerating maturity, and diligence in collection.

    

    10. Attorneys’
      Fees and Costs.
      In the
      event of any legal proceedings in connection with this Note, all expenses in
      connection with such legal proceedings of the prevailing party, including
      reasonable legal fees and applicable costs and expenses, shall be reimbursed
      by
      the non-prevailing party upon demand. This provision shall not merge with any
      enforcement order or judgment on this Note and shall be applicable to any
      proceeding to enforce or appeal any judgment relating to the Note.

    

    11. Severability.
      If any
      one or more of the provisions contained herein, or the application thereof
      in
      any circumstance, is held invalid, illegal or unenforceable in any respect
      for
      any reason, the validity, legality and enforceability of any such provisions
      hereof shall not be in any way impaired, unless the provisions held invalid,
      illegal or unenforceable shall substantially impair the benefits of the
      remaining provisions hereof.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    12. Successors
      and Assigns.
      This
      Note shall inure to the benefit of the Holder and his successors and permitted
      assigns and shall be binding upon the undersigned and his successors and
      permitted assigns. As used herein, the term “Holder” shall mean and include the
      successors and permitted assigns of the Holder.

    

    13. Governing
      Law.
      The
      parties acknowledge and agree that this Note and the rights and obligations
      of
      all parties hereunder shall be governed by and construed under the laws of
      the
      State of New York, without regard to conflict of laws principles.

    

    14. Modification.
      This
      Note may not be modified or amended orally, but only by an agreement in writing
      signed by the party against whom such agreement is sought to be
      enforced.

    

    15. Entire
      Agreement.
      This
      Note constitutes the entire agreement between the parties with respect to the
      subject matter hereof and supersedes any and all prior written or oral
      agreements and understandings with respect to the matters covered
      hereby.

    

    16. Counterparts.
      This
      Note may be executed in two (2) counterparts, each of which shall be an original
      counterpart, but only all of which together shall constitute one original
      Note.

    

    [The
      next
      page is the signature page]

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    SIGNATURE
      PAGE TO SECURED PROMISSORY NOTE

    

      
        	 	
                SKINS
                  INC.,

              
	 	
                a
                  Nevada corporation

              
	 	 	 
	 	 	 
	 	 	 
	 	
                By:
                  

              	
                Mark
                  Klein

              
	 	
                Its:

              	
                Chief
                  Executive Officer

              
	 	
                Address:

              	
                1115
                  Broadway, 12th Floor

              
	 	 	
                New
                  York, NY 10010

              
	 	
                Fax:

              	
                (___)
                  ___-____

              
	 	 	 
	 	 	 
	 	
                SKINS
                  FOOTWEAR INC.,

              
	 	
                a
                  Delaware corporation

              
	 	 	 
	 	 	 
	 	 	 
	 	
                By:
                  

              	
                Mark
                  Klein

              
	 	
                Its:

              	
                Chief
                  Executive Officer

              
	 	
                Address:

              	
                1115
                  Broadway, 12th Floor

              
	 	 	
                New
                  York, NY 10010

              
	 	
                Fax:

              	
                (___)
                  ___-____

              
	 	 	 
	 	 	 
	 	
                HOLDER,

              
	 	
                 

              	 
	 	
                Michael
                  Rosenthal

              
	 	 	 
	 	 	 
	 	 	 
	 	
                Address:
                  

              	 
	 	 	 
	 	
                Fax:

              	 

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    APPENDIX
      A

    INVESTOR
      REPRESENTATIONS UNDER REGULATION S

    

    By
      executing the Note, the Holder hereby represents, warrants and covenants that
      he/she/it has received the Note and carefully read such Note; the decision
      to
      acquire the Shares has been taken solely in reliance upon the information
      contained in this Note and the Shares, and such other written information
      supplied by an authorized representative of the Company as the Holder may have
      requested. The Holder acknowledges that all documents, records and books
      pertaining to this investment have been made available for inspection by the
      Holder, its attorneys, accountants and purchaser representatives upon request
      prior to executing this Note and acquiring the Shares, and that it has been
      informed by the Company that its books and records will be available for
      inspection by the Holder or his/her/its agents and representatives at any time,
      and from time to time, during reasonable business hours and upon reasonable
      notice. The Holder further acknowledges that it (or its advisors, agents and/or
      representatives) has had a reasonable and adequate opportunity to ask questions
      of and receive answers from the Company concerning the terms and conditions of
      the acquisition of the Shares, the nature of this Note and the Shares and the
      business and operations of the Company, and to obtain from the Company such
      additional information, to the extent possessed or obtainable without
      unreasonable effort or expense, as is necessary to verify the accuracy of the
      information contained in the Note or otherwise provided by the Company; all
      such
      questions have been answered by the Company to the full satisfaction of the
      Holder. The Holder is not relying upon any oral information furnished by the
      Company or any other person in connection with its investment decision, and
      in
      any event, no such oral information has been furnished to the Holder which
      is in
      any way inconsistent with or contradictory to any information contained in
      the
      Note, or otherwise provided to the Holder by the Company in writing as described
      above.

    

    The
      Holder meets the criteria established below:

    

    The
      Holder is not a U.S. Person, as defined in Rule 901 of Regulation S, promulgated
      under the 1933 Act and the Holder represents and warrants that:

    

    (i) The
      Holder is not acquiring the Shares as a result of, and the Holder covenants
      that
      he, she or it will not engage in any “directed selling efforts” (as defined in
      Regulation S under the 1933 Act) in the United States in respect of the Shares
      which would include any activities undertaken for the purpose of, or that could
      reasonably be expected to have the effect of, conditioning the market in the
      United States for the resale of any of the Shares;

    

    (ii) The
      Holder is not acquiring the Shares for the account or benefit of, directly
      or
      indirectly, any U.S. Person;

    

    (iii) The
      Holder is a resident of the jurisdiction in which the Holder
      resides;

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (iv) the
      offer
      and the sale of the Shares to the Holder complies with or is exempt from the
      applicable securities legislation of the jurisdiction in which the Holder
      resides;

    

    (v) The
      Holder is outside the United States when receiving and executing the Note and
      that the Holder will be outside the United States when acquiring the Shares,
      and

    

    (vi) the
      Holder covenants with the Company that:

    

    (1) offers
      and sales of any of the Shares prior to the expiration of a period of one year
      after the date of original issuance of the Shares (the one year period
      hereinafter referred to as the “Distribution Compliance Period” under current
      laws) shall only be made in compliance with the safe harbor provisions set
      forth
      in Regulation S, pursuant to the registration provisions of the 1933 Act or
      an
      exemption therefrom, and that all offers and sales after the Distribution
      Compliance Period shall be made only in compliance with the registration
      provisions of the 1933 Act or an exemption therefrom and in each case only
      in
      accordance with applicable state securities laws; and

    

    (2) The
      Holder will not engage in hedging transactions with respect to the Shares until
      after the expiration of the Distribution Compliance Period, or other such period
      as required under current federal securities laws.

    

    The
      Holder: (a) has adequate net worth and means of providing for current financial
      needs and possible personal contingencies, (b) has no need for liquidity in
      this
      investment; and (c) is able to bear the economic risks of an investment in
      the
      Shares for an indefinite period of time, and of losing the entire amount of
      such
      investment.

    

    The
      Holder understands and acknowledges that an acquirer of the Shares must be
      prepared to bear the economic risk of such investment for an indefinite period
      because of: (A) the heightened nature of the risks associated with an investment
      in the Company due to its status as a development stage company; (B) illiquidity
      of the Shares due to the fact such stock has not been registered under the
      1933
      Act or any state securities act (nor passed upon by the SEC or any state
      securities commission), and the Shares has not been registered or qualified
      by
      the Holder under federal or state securities laws solely in reliance upon an
      available exemption from such registration or qualification, and hence such
      Shares cannot be sold unless it is subsequently so registered or qualified
      (which is not likely), or are otherwise subject to any applicable exemption
      from
      such registration requirements; and (C) substantial restrictions on the transfer
      of the Shares, as set forth in, among other documents, the Shares and by legend
      on the face or reverse side of any certificate evidencing an ownership interest
      in the Company.

    

    The
      Holder either (i) has a pre-existing personal or business relationship with
      the
      Company, its officers, directors or affiliates; or (ii) alone or with its
      representatives, such knowledge and experience in financial and business matters
      that it is capable of evaluating the merits and risks of an investment in the
      Shares.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    The
      Holder understands and acknowledges that an investment in the Shares is
      speculative in nature, and involves certain risks.

    

    The
      Holder is not a member of the National Association of Securities Dealers, FINRA,
      or of any other self-regulatory agency which would require approval prior to
      any
      acquisition of the Shares.

    

    The
      Holder is acquiring the Shares for its own investment, and not with a view
      toward the subdivision, resale, distribution, or fractionalization thereof.
      The
      Holder does not have any contract, undertaking, arrangement or obligation with
      or to any person to sell, transfer, or otherwise dispose of the Shares (or
      any
      portion thereof hereby acquired), nor has a present intention to enter into
      any
      such contract, undertaking, agreement or arrangement.

    

    The
      offering of the Shares was made only through direct, personal communication
      between the Holder (or a representative thereof) and the Company; the
      acquisition of the Shares by the Holder is not the result of any form of general
      solicitation or general advertising including, but not limited to, the
      following: (i) any advertisement, article, notice or other communication
      published in any newspaper, magazine, or other written communication, or
      broadcast over television, radio or any other medium; or (ii) any seminar or
      meeting to which the attendees had been invited by any general solicitation
      or
      general advertising.

    

    The
      Holder has been advised to consult with an attorney regarding legal matters
      concerning the acquisition and ownership of the Shares, and with a tax advisor
      regarding the tax consequences of acquiring such stock.

    

    The
      Holder has distributed the Shares and the Note, or any other information
      pertaining to the acquisition of the Shares hereunder, to anyone other than
      its
      representative and/or its investment, legal or accounting advisors in connection
      with its consideration of an acquisition of the Shares.

    

    The
      Holder was not organized for the specific purpose of acquiring the Shares,
      and
      has other investments or business activities besides investing in the Company,
      unless the Holder has indicated the contrary to the Company in writing. The
      Holder has specified in writing the number and character (i.e., individual,
      corporate, company, etc.) of the beneficial owners thereof.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    SCHEDULE
      OF LENDERS

    

    

    Lender:
      Joshua Hermelin

    Amount:
      $40,000

    No.
      of
      Shares: 58,824

    Date:
      February 11, 2008

     

    Lender:
      Michael Rosenthal

    Amount:
      $100,000

    No.
      of
      Shares: 185,185

    Date:
      February 14, 2008

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