Document:

EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    THIS
      EXECUTIVE EMPLOYMENT AGREEMENT (“the Agreement”) is effective September 1, 2007
      (the “Effective Date”), by and between Auriga Laboratories, Inc., (the
“Company”) and Frank Greico (“Executive”).

     

    	1.  	
            ENGAGEMENT
              AND DUTIES

          

     

    1.1  Engagement.
      Subject
      to the terms and conditions set forth in this Agreement, the Company
      will employ Executive as its Chief Financial Officer, pursuant to the terms
      of this Agreement. Executive hereby accepts such engagement and employment,
      pursuant to the terms of this Agreement. 

     

    1.2  Employment
      Period.
      Unless
      terminated earlier pursuant to Section 4, Executive’s term of employment as
      Chief Financial Officer under this Agreement shall commence on the Effective
      Date and shall continue for a period of one (1) year following the Effective
      Date. If the parties mutually agree, the parties shall have the option to extend
      the term of this Agreement for an additional one (1) year period upon either
      party notifying the other party, in accordance with section 7.2, of intent
      to
      renew at least ninety (90) days prior to the end of the initial one (1) year
      term, subject to acceptance of such renewal by the other party. The initial
      one
      (1) year term, and any additional renewal period, shall together be referred
      to
      as the “Employment Period” as such term is used in this Agreement.

     

    1.3  Duties
      and Responsibilities.
      During
      the Employment Period, the duties, authority and responsibilities of Executive
      shall be commensurate with the duties, authority and responsibilities
      customarily accorded a Chief Financial Officer at comparable companies, and
      shall include such duties and responsibilities as may be legally assigned to
      Executive by the Chief Executive Officer or Board of Directors of the Company
      (the “Board”). During the Employment Period, Executive shall report to the Chief
      Executive Officer and the Board. Executive shall exercise such authority and
      perform such duties and services, consistent with his position, as may be
      assigned to him from time to time by the Chief Executive Officer and the Board
      and the Executive hereby agrees to perform well and faithfully such duties
      and
      responsibilities. 

     

    1.4  Devotion
      of Time and Best Efforts.
      Except
      for vacations as provided herein and absences due to temporary illness, under
      an
      approved leave, or as required by applicable law, Executive agrees to devote
      his
      best efforts and energies on a full time basis during the Employment Period
      to
      the performance of his duties hereunder and to advance the Company’s interests.
      Notwithstanding the foregoing, Executive acknowledges during his employment
      with
      the Company, Executive may engage in any other business activity, whether or
      not
      such business activity is pursued for profit, or other pecuniary advantage,
      including, without limitation, personal investments, conducting private business
      affairs, participating on boards of nonprofit foundations and similar activities
      which, in each such case, do not materially interfere with the services rendered
      by Executive under this Agreement. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

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        Employment Agreement

    

     

    	2.  	
            COMPENSATION

          

     

    2.1  Base
      Salary.
      During
      the Employment Period, in exchange for the services provided by Executive
      hereunder, Executive shall receive an annual “Base Salary” of Two Hundred And
      Fifty Thousand Dollars ($250,000) commencing on the first day of the Employment
      Period, payable in accordance with the Company’s regular payroll practices and
      policies which are in effect from time to time. The Board, and/or the
      Compensation Committee of the Board, as applicable, shall review the Base Salary
      at least once a year to determine whether the Base Salary should be increased
      effective January 1st
      of any
      year during the Employment Period. The amount of the increase shall be
      determined no later than two (2) weeks prior to the annual filing of the
      Company’s Form 10k and any such increase shall be retroactive until January
      1st
      of the
      year in which the salary increase occurs. The Company shall deduct and withhold
      all necessary social security and withholding taxes and any other similar sums
      required by law from such Base Salary, bonuses, benefits and other payments
      to
      the Executive, as applicable. 

     

    2.2  Bonus.
      During
      the Employment Period, the Executive shall be entitled to receive an annual
      bonus based on increases in market capitalization of the Company which occur
      subsequent to the Effective Date such that Executive shall be entitled to the
      amount of five thousand dollars ($5,000) for every one million dollar
      ($1,000,000) increase in market capitalization, with the foregoing bonus being
      payable each calendar quarter (“Quarterly Bonus”). Such Quarterly Bonus shall be
      prorated for any partial increase in market capitalization of the Company
      measured each quarter of the year. The first $100,000 of this bonus earned
      in
      any particular quarter will be paid in cash and the Company shall have the
      discretion to pay any part of this Quarterly Bonus over $100,000 earned in
      that
      same quarter in the equivalent fair market value of the Company’s registered
      common stock. By way of example, if, during the first calendar quarter
      subsequent to the Effective Date, the market capitalization of the Company
      increases from $60 million to $62 million, Executive would be entitled to a
      Quarterly Bonus of $10,000. If, however, the market capitalization of the
      Company was only to remain at $60 million during the first calendar quarter
      subsequent to the Effective Date, Executive would receive no Quarterly Bonus.
      Notwithstanding the foregoing, Executive shall not be entitled to any Quarterly
      Bonus if the amount of market capitalization of the Company is below any
      previous market capitalization amount on which Executive was paid. The amount
      of
      such Quarterly Bonus shall be payable to Executive within fifteen (15) days
      of
      the end of each calendar quarter. In addition to and without in any way limiting
      Executive rights to receive the Quarterly Bonus, Executive shall also be
      entitled to participate in any bonuses provided to senior management personnel
      of the Company as determined by the Board in their discretion. 

     

    2.3  Equity
      Incentive Award.
      Concurrently herewith, the Company is granting Executive an award consisting
      of
      options to purchase One Million Four Hundred Thousand (1,400,000) shares of
      common stock of the Company. The exercise price per share will be equal to
      the
      fair market value per share on the date the option is granted by the Board,
      pursuant to the terms of the 2007 Stock Option Plan and Stock Option Agreement
      of the Company, or any successor thereto, as applicable. The Board shall grant
      said stock options to Executive no later than September 30, 2007. Executive
      will
      vest in 400,000 of the option shares on the Effective Date, and in 25% of the
      remaining 1,000,000 option shares on the first anniversary of the Effective
      Date
      before the expiration of Executive’s first term of employment with the Company.
      The balance will vest in thirty six equal monthly installments over the
      following three years of services, as described in the applicable stock option
      agreement. Executive shall continue to have the right to exercise any vested
      options for a period of at least twelve (12) months after the date of
      termination of employment for any of the reasons set forth in paragraph 4,
      below, other than for a termination for Cause. Additionally, Executive shall
      be
      entitled to participate in any equity grants provided to senior management
      personnel of the Company under the 2007 Stock Option and Equity Incentive Plans
      or any successor thereto as determined by the Board in their discretion.

     

    
      
         

      

      
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    2.4  Expense
      Reimbursements.
      The
      Company agrees that during the Employment Period, the Executive shall be
      authorized to incur ordinary and necessary expenses in connection with the
      promotion, operation and furtherance of the business affairs of the Company,
      including reasonable expenses incurred for purposes of entertainment, travel,
      business and educational/professional meetings, professional association
      membership dues and fees (including but not necessarily limited to AICPA and
      NYSSCPA), and expenses associated with continuing education requirements, as
      shall be in accordance with normal Company policy approved by the Board and
      which are in accordance with Executive’s position as Chief Financial Officer of
      the Company. The Executive shall be entitled to reimbursement by the Company
      for
      such reasonable business expenditures upon presentation by the Executive to
      the
      Company of an itemized account of such expenditures, together with appropriate
      receipts and vouchers or other evidence as shall be required for tax or
      accounting purposes. 

     

    2.5  Auto
      Allowance.
      The
      Executive shall be entitled to a monthly auto allowance of Seven Hundred Fifty
      Dollars ($750) to be paid in accordance with the Company’s standard payroll and
      expense practices.

     

    	3.  	
            BENEFITS

          

     

    3.1  Health
      and Welfare.
      During
      the Employment Period, Executive shall be eligible to participate in the health
      and welfare benefits generally available to other senior management employees
      of
      the Company and shall have the same rights and privileges to participate in
      any
      employee benefit plans and arrangements, in accordance with the Company’s
      policies in effect from time to time as any other senior management employee
      of
      the Company. The Executive, at his election, may choose to continue his existing
      health insurance in place of participating in the Company’s health insurance
      plan and, upon this election, the Company shall reimburse Executive for his
      monthly health insurance premiums incurred during the Employment
      Period.

     

    3.2  Pension
      & Retirement Benefits.
      During
      the Employment Period, Executive shall be eligible to participate in the
      qualified and nonqualified pension, profit sharing and retirement plans
      generally available to other senior management employees of the Company.
      Executive may begin participating in the Company’s 401(k) Plan during the
      enrollment period following the first 90 days of employment. Company will match
      up to 3% of Executive’s base salary. Executive is eligible to contribute up to
      the statutory limits as specified in the Internal Revenue Code. 

     

    
      
         

      

      
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    3.3  Vacation.
      During
      the Employment Period, the Executive shall be entitled to five weeks of vacation
      each full calendar year in accordance with the Company’s policies and procedures
      related to vacation time. Executive may accrue up to a maximum of 2 times his
      yearly vacation allotment. However, upon reaching this maximum level of accrual,
      Executive will cease to accrue additional vacation time until the level of
      accrual falls below this maximum accrual cap. The first year’s vacation will be
      prorated based on the Effective Date of September 1, 2007. Executive will also
      receive 6 personal/sick days per year. Executive must be employed greater than
      90 days to use sick/personal days, which accrue at a rate of 1.85 hours per
      bi-weekly pay date. 

     

    	4.  	
            TERMINATION
              OF EMPLOYMENT

          

     

    4.1  Death
      or Disability.
      If the
      Executive dies during the Employment Period, the Executive’s employment shall be
      deemed to terminate on or after the date of death, as of the date the
      Executive’s death is established by reasonable documentation. If the Executive
      is incapacitated or disabled by accident, sickness or otherwise so as to render
      him mentally or physically incapable of fully performing the essential functions
      of his position with reasonable accommodation for a period of six (6) months
      or
      more during any consecutive twelve (12) month period or twelve (12) consecutive
      weeks, after such twelve (12) month period, the Company, in its reasonable
      discretion, may terminate Executive’s employment due to “Disability” by
      providing written notice of such termination to Executive. A termination of
      Executive’s employment, and the Employment Period, by either Executive or the
      Company, for Disability shall be communicated to the other party by written
      notice, and shall be effective the thirtieth (30th)
      day
      after receipt of such notice of Disability by the other party.

     

    4.2  Termination
      for Cause.
      The
      Company may terminate the Employment Period and the Executive’s employment for
“Cause” (such termination being hereinafter called a “Termination For Cause”) by
      giving the Executive notice in writing of such termination which sets forth
      in
      general the grounds for such termination. Such termination shall be effective
      immediately upon such notice. For purposes of this Agreement, “Cause” shall
      mean: a) Executive’s conviction or plea of guilty or nolo contendere to a felony
      or any crime involving dishonesty or moral turpitude, b) his willful failure
      to
      perform any of his material duties under this Agreement which results in
      demonstrable material injury to the Company, or c) commission by Executive
      of an
      act or omission that could adversely and materially affect the Company’s
      business or reputation. If the Company contends the Executive is in violation
      of
      either subparts (b) and (c) of this paragraph, then it shall provide written
      notice to the Executive of its contention and the factual basis therefore and
      shall provide Executive a period of thirty (30) days to remedy or cure said
      breach.

     

    4.3  Termination
      Without Cause.
      The
      Company may terminate Executive’s employment at any time during the Employment
      Period without “Cause” by giving the Executive written notice of such
      termination which shall be effective immediately upon such notice. 

     

    4.4  Voluntary
      Termination.
      Executive may terminate the Employment Period and his employment hereunder
      by
      providing the Company with thirty (30) days written notice of his resignation.
      Any termination of the employment of the Executive hereunder by resignation
      (or
      other voluntary action of the Executive) shall be deemed to be a “Voluntary
      Termination.”

     

    
      
         

      

      
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    4.5  Termination
      by Executive for Good Reason.
      Executive’s Employment Period may be terminated by Executive for Good Reason.
      For purposes of this Agreement, “Good Reason” shall mean termination by
      Executive for any reason on or after a Change in Control, as defined below,
      or
      the occurrence of any one or more of the following events without Executive’s
      prior written consent, unless Company fully cures the circumstances constituting
      Good Reason (provided such circumstances are capable of cure) within thirty
      (30)
      business days of receipt of written notice of such circumstances by Company
      from
      Executive:

     

    (a)  A
      material reduction in Executive’s titles, duties, authority and
      responsibilities, or the assignment to Executive of any duties materially
      inconsistent with Executive’s position, authority, duties or responsibilities
      without the written consent of Executive; or

     

    (b)  Company’s
      reduction of Executive’s annual Base Salary or bonus opportunity, each as in
      effect on the date hereof or as the same may be increased from time to time;
      or
      failure to pay Base Salary or bonus on a timely basis; or the relocation of
      Company’s headquarters to a location more than twenty-five (25) miles from
      Company’s current headquarters in Los Angeles, California; or

     

    (c)  Company’s
      failure to cure a material breach of its obligations under this Agreement within
      thirty (30) business days after written notice is delivered to the Board by
      Executive which specifically identifies the manner in which Executive believes
      that Company has breached its obligations under Agreement.

     

    For
      purposes of this Agreement, “Change in Control” shall mean (A) the dissolution
      or liquidation of the Company; (B) a reorganization, merger or consolidation
      of
      the Company with one or more corporations as a result of which the Company
      is
      not the surviving corporation; (C) approval by the stockholders of the Company
      of any sale, lease, exchange or other transfer (in one or a series of
      transactions) of all or substantially all of the assets of the Company; (D)
      approval by the stockholders of the Company of any merger or consolidation
      of
      the Company in which the holders of voting stock of the Company immediately
      before the merger or consolidation will not own fifty percent (50%) or more
      of
      the voting shares of the continuing or surviving corporation immediately after
      such merger or consolidation; or (E) a change of fifty percent (50%) (rounded
      to
      the next whole person) in the membership of the Board of Directors of the
      Company within a twelve (12) month period, unless the election or nomination
      for
      election by stockholders of each new director within such period was approved
      by
      the vote of two-thirds (2/3) (rounded to the next whole person) of the directors
      then still in office who were in office at the beginning of the twelve (12)
      month period.

     

    Any
      termination for Good Reason must occur during a pre-determined limited period
      of
      time not to exceed two (2) years following the initial existence of one or
      more
      of the above conditions constituting “Good Reason”, as defined above. Executive
      is required to provide notice to Company of the existence of any condition
      constituting “Good Reason” within a period of ninety (90) days of the initial
      existence of any such condition and Company shall have the opportunity to remedy
      the condition within thirty (30) days.

     

    
      
         

      

      
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    	5.  	
            EFFECT
              OF TERMINATION OF EMPLOYMENT

          

     

    5.1  Termination
      of Employment Other Than For Cause.
      Upon
      the termination of the Executive’s employment hereunder for Death or Disability
      (Paragraph 4.1) or Termination Without Cause by the Company (Paragraph 4.3)
      or
      by Executive for Good Reason (Paragraph 4.5), Executive, or his estate in the
      case of Executive’s death, shall have the right to receive: (i) any unpaid
      portion of Executive’s accrued Base Salary and prorated annual bonus as of the
      date of termination; (ii) payment for any accrued, but unused, vacation pay
      and
      documented unreimbursed expenses; (iii) severance equal to continuation of
      Executive’s then current Base Salary and all insurance benefits provided
      hereunder (including those benefits applicable to Executive’s family) for a one
      (1) year period from the date of termination; and (iv) acceleration of any
      unvested shares of restricted stock or options and no early expiration of
      exercise period due to termination of the Employment Period.  Such
      amounts shall be in addition to any benefits Executive may receive under any
      insurance plan provided by the Company or from the State of California or
      Workers’ Compensation and the cash portions of the foregoing shall be paid in a
      single lump sum severance amount as soon as practicable following such
      termination of employment, but in no event later than thirty (30) days after
      the
      effective date after such termination of employment except for the prorated
      annual bonus which shall be paid within fifteen (15) days of the end of the
      last
      calendar quarter of the applicable Employment Period. 

     

    5.2  Voluntary
      Termination or Termination For Cause.
      Upon
      the termination of Executive’s employment hereunder pursuant to a Voluntary
      Termination (Paragraph 4.4) or a Termination For Cause (Paragraph 4.2),
      Executive shall only have the right to receive (i) any unpaid portion of his
      Base Salary and Bonus as of the date of termination; (ii) payment for any
      accrued but unused vacation pay and documented unreimbursed expenses; and (iii)
      any benefits payable under the provisions of the Company’s benefit
      plans.

     

    5.3  Additional
      Payments by Company.
      In the
      event that any payments under this Agreement or any other compensation, benefit
      or other amounts payable from the Company for the benefit of Executive are
      subject to the tax imposed by Section 4999 of the Internal Revenue Code of
      1986, as amended (the “Code”) (including any applicable interest and penalties,
      the “Excise Tax”), no such payment (“Parachute Payment”) shall be reduced
      (except for required tax withholdings) and the Company shall pay to Executive
      by
      the earlier of the date such Excise Tax is withheld from payments made to
      Executive or the date such Excise Tax becomes due and payable by Executive,
      an
      additional amount (the “Gross-Up Payment”) such that the net amount retained by
      Executive (after deduction of any Excise Tax on the Parachute Payments, taxes
      based upon the Tax Rate (as defined below) upon the payment provided for by
      this
      Section 5.3 and Excise Tax upon the payment provided for by this
      Section 5.3), shall be equal to the amount Executive would have received if
      no Excise Tax had been imposed. A Tax counsel chosen by the Company’s
      independent auditors, provided such person is reasonably acceptable to Executive
      (“Tax Counsel”), shall determine in good faith whether any of the Parachute
      Payments are subject to the Excise Tax and the amount of any Excise Tax, and
      Tax
      Counsel shall promptly notify Executive of its determination. The Company and
      Executive shall file all tax returns and reports regarding such Parachute
      Payments in a manner consistent with the Company’s reasonable good faith
      determination. For purposes of determining the amount of the Gross-Up Payment,
      Executive shall be deemed to pay taxes at the Tax Rate applicable at the time
      of
      the Gross-Up Payment. In the event that the Excise Tax is subsequently
      determined to be less than the amount taken into account hereunder at the time
      a
      Parachute Payment is made, Executive shall repay to the Company promptly
      following the date that the amount of such reduction in Excise Tax is finally
      determined the portion of the Gross-Up Payment attributable to such reduction
      (without interest). In the event that the Excise Tax is determined to exceed
      the
      amount taken into account hereunder at the time a Parachute Payment is made
      (including by reason of any payment the existence or amount of which cannot
      be
      determined at the time of the Gross-Up Payment), the Company shall pay Executive
      an additional amount with respect to the Gross-Up Payment in respect of such
      excess (plus any interest or penalties payable in respect of such excess) at
      the
      time that the amount of such excess is finally determined. The Company shall
      reimburse Executive for all reasonable fees, expenses, and costs related to
      determining the reasonableness of any Company position in connection with this
      paragraph and preparation of any tax return or other filing that is affected
      by
      any matter addressed in this paragraph, and any audit, litigation or other
      proceeding that is affected by any matter addressed in this Section 5.3 and
      an amount equal to the tax on such amounts at Executive’s Tax Rate. For the
      purposes of the foregoing, “Tax Rate” means Executive’s effective tax rate based
      upon the combined federal and state and local income, earnings, Medicare and
      any
      other tax rates applicable to Executive, all at the highest marginal rate of
      taxation in the country and state of Executive’s residence on the date of
      determination, net of the reduction in federal income taxes which could be
      obtained by deduction of such state and local taxes.”

     

    
      
         

      

      
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    5.4  No
      Mitigation Required or Allowed.
      The
      Executive shall not be required to mitigate the amount of any payments provided
      for in this section 5 (paragraphs 5.1 through 5.3) of the Agreement by seeking
      employment or otherwise, nor shall the amount of any payment or benefit paid
      under section 5 of this Agreement be reduced by any income earned by the
      Executive as a result of his independent work, as an employee of any other
      business, by the receipt of or right to any form of retirement benefit, or
      by
      any other source of income or benefit.

     

    	6.  	
            CONFIDENTIAL
              INFORMATION, NON-SOLICITATION, NON-
              DISPARAGEMENT.

          

     

    6.1  Confidential
      Information.
      In the
      course of his employment with Company, Executive will have access to
      confidential and proprietary information and records, data and other trade
      secrets of Company (“Confidential Information”). Confidential Information shall
      include, without limitation, the following types of information or material,
      both existing and contemplated, regarding Company: Corporate information,
      including plans, strategies, policies, resolutions and any litigation or
      negotiations; marketing information, including strategies, methods, customers,
      prospects or market research data; financial information, including cost and
      performance data, debt arrangement, equity structure, investors and holdings;
      operational and scientific information, including trade secrets and technical
      information; and personnel information, including personnel lists, resumes,
      personnel data, organizational structure, compensation structure and performance
      evaluations. Executive shall not directly or indirectly disclose Confidential
      Information to any person or entity or use any Confidential Information in
      any
      way except as required in the performance of his duties for the Company. For
      purposes of this paragraph, Confidential Information does not include any
      publicly available information or any information, prints, patents or other
      rights that Executive had or owned prior to employment with
      Company.

     

    
      
         

      

      
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    6.2  Non-Solicitation.
      Because
      of the nature of Executive’s work for the Company, Executive’s solicitation or
      serving of certain customers, clients and vendors related to Executive’s work
      for the Company would necessarily involve the unauthorized use or disclosure
      of
      Proprietary Information, and the proprietary relationships and goodwill of
      the
      Company. Accordingly, for two (2) years following the termination of Executive’s
      employment with the Company for any reason, Executive shall not, directly or
      indirectly, solicit, induce, or attempt to solicit or induce, any person or
      entity then known to be a customer or client or vendor of the Company to
      terminate his, her or its relationship with the Company for any purpose,
      including the purpose of associating with or becoming a customer, client or
      vendor, whether or not exclusive, of Executive or any entity of which Executive
      is or becomes an officer, director, member, agent, employee or consultant,
      or
      otherwise solicit, induce, or attempt to solicit or induce, any Restricted
      Customer/Client/Vendor to terminate his, her or its relationship with the
      Company for any other purpose or no purpose.

     

    6.3  Moreover,
      during Executive’s employment with the Company and for two (2) years thereafter,
      Executive shall not, directly or indirectly, solicit, induce, or attempt to
      solicit or induce, any person known to Executive to be an employee or contractor
      of the Company to terminate his, her or its employment or other relationship
      with the Company.

     

    6.4  Non-Disparagement.
      Executive agrees that during his employment and for a period of two (2) years
      thereafter, Executive will not disparage the Company nor take any actions or
      make remarks or comments that may reasonably be interpreted as disparaging
      of
      the Company. 

     

    6.5  Non-Competition.
      Executive agrees that during the term of this Agreement, Executive shall not,
      directly or indirectly, engage in, or serve as an officer, director, employee,
      partner, agent or consultant, or otherwise hold any ownership or other interest
      in any entity which engages in any business which competes with that of the
      Company. 

     

    	7.  	
            MISCELLANEOUS

          

     

    7.1  Severability.
      If any
      one or more provisions contained in this Agreement shall, for any reason, be
      held to be invalid, illegal or unenforceable in any respect, such invalidity,
      illegality or unenforceability shall not affect any other provision of this
      Agreement, but this Agreement shall be construed as if such invalid, illegal,
      or
      unenforceable provision had never been contained herein.

     

    7.2  Notices.
      All
      notices or other communications required or permitted to be given hereunder
      shall be in writing and shall be mailed, telecopied, dispatched by reputable
      commercial courier or delivered by hand as follows:

    

    If
      to
      Executive:

    Frank
      Greico

    3847
      Castleview Drive

    Agoura,
      CA 91301

     

    
      
         

      

      
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    If
      to the
      Company:

    Auriga
      Laboratories, Inc.

    10635
      Santa Monica Blvd. #120

    Los
      Angeles, CA 90025

    Telephone:
      310-461-3600 

    Facsimile:
      310-806-4161 

    Attention:
      Chief Executive Officer

    

    If
      any
      notice, request, demand, direction or other communication required or permitted
      to be given hereunder is given by mail, it will be effective on the third
      calendar day after deposit in the United States mail with first class or airmail
      postage prepaid; if given by telecopier during regular business hours of the
      recipient, when sent; if given by telecopier outside regular business hours
      of
      the recipient, at the opening of business on the next business day; if
      dispatched by reputable commercial courier, on the scheduled delivery date;
      or
      if given by personal delivery, when delivered.

     

    7.3  Binding
      Agreement.
      The
      provisions of this Agreement will be binding upon, and will inure to the benefit
      of, the respective heirs, legal representatives and successors of the parties
      hereto.

     

    7.4  Governing
      Law.
      This
      Agreement and all amendments thereof shall be governed by, and construed and
      enforced in all respects in accordance with, the laws of the State of
      California.

     

    7.5  Waiver
      of Breach.
      The
      waiver by either party of a breach of any provision of this Agreement by the
      other party must be in writing and shall not operate or be construed as a waiver
      of any subsequent breach by such other party.

     

    7.6  Entire
      Agreement.
      This
      Agreement contains the entire agreement between the parties with respect to
      the
      subject matter hereof and supersedes all prior and contemporaneous agreements,
      terms sheets, oral or written representations and understandings among the
      parties with respect thereto. The parties shall enter into the Company’s
      standard indemnification agreement, which shall be binding on the parties;
      however, any conflicts between the indemnification agreement and this Agreement
      shall be resolved in favor of this Agreement’s terms.

     

    7.7  Amendments.
      This
      agreement may be amended only by an agreement in writing signed by Executive
      and
      the Chairman of the Board of the Company.

     

    7.8  Assignment.
      This
      Agreement is personal in its nature and the parties hereto shall not, without
      the consent of the other, assign or transfer this agreement or any rights or
      obligations hereunder.

     

    7.9  Attorneys’
      Fees.
      If any
      Party brings an action or proceeding involving this Agreement, the prevailing
      party in any such proceeding, action, or appeal thereon, shall be entitled
      to
      reasonable attorneys' fees

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    Greico Employment
      Agreement

     

    7.10  Section
      409A.
      Unless
      otherwise expressly provided, any payment of compensation by Company to
      Executive, whether pursuant to this Agreement or otherwise, shall be made within
      two and one-half months (21⁄2 months) after the later of the end of the calendar
      year of the Company’s fiscal year in which Executive’s right to such payment
      vests (i.e.,
      is not
      subject to a “substantial risk of forfeiture” for purposes of Code Section 409A
      of the Internal Revenue Code of 1986, as amended (“Code”)). To the extent that
      any severance payments (including payments on termination for “good reason”)
      come within the definition of “involuntary severance” under Code Section 409A,
      such amounts up to the lesser of two times the Executive’s annual compensation
      for the year preceding the year of termination or two times the 401(a)(17)
      limit
      for the year of termination, shall be excluded from “deferred compensation” as
      allowed under Code Section 409A, and shall not
      be
      subject to the following Code Section 409A compliance requirements. All payments
      of “nonqualified deferred compensation” (within the meaning of Section 409A) are
      intended to comply with the requirements of Code Section 409A, and shall be
      interpreted in accordance therewith. Neither party individually or in
      combination may accelerate any such deferred payment, except in compliance
      with
      Code Section 409A, and no amount shall be paid prior to the earliest date on
      which it is permitted to be paid under Code Section 409A. In the event that
      Executive is determined to be a “key employee” (as defined in Code Section
      416(i) (without regard to paragraph (5) thereof)) of Company at a time when
      its
      stock is deemed to be publicly traded on an established securities market,
      payments determined to be “nonqualified deferred compensation” payable following
      termination of employment shall be made no earlier than the earlier of (i)
      the
      last day of the sixth (6th) complete calendar month following such termination
      of employment, or (ii) Executive’s death, consistent with the provisions of Code
      Section 409A.  Any payment delayed by reason of the prior sentence shall be
      paid out in a single lump sum at the end of such required delay period in order
      to catch up to the original payment schedule.  Notwithstanding anything
      herein to the contrary, no amendment may be made to this Agreement if it would
      cause the Agreement or any payment hereunder not to be in compliance with Code
      Section 409A.

     

    7.11  Arm’s
      Length Agreement.
      This
      Agreement has been negotiated at arm’s length between persons knowledgeable in
      the matters dealt with herein. Each of the parties hereto has been represented
      by independent legal counsel of its own choice. Accordingly, any rule of law
      or
      any statute, legal decision, or common law principle of similar effect, that
      would require interpretation of any ambiguity in this Agreement against the
      party that drafted it, is of no application and is hereby expressly waived.
      The
      provisions of this Agreement shall be interpreted in a reasonable manner to
      effect the intentions of the parties hereto.

     

    7.12  Fees
      and Expenses for Negotiating this Agreement.
      The
      Company will pay the Executive’s attorney’s fees incurred in connection with the
      negotiation and execution of this Agreement up to but not in excess of $2,000.
      

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    Greico
      Employment
      Agreement

     

    IN
      WITNESS WHEREOF, Executive has hereunto set his hand and, pursuant to due
      authorization from the Board, the Company has caused these promises to be
      executed in its name on its behalf, all as of the day and year first above
      written.

     

    
      	
               

              “COMPANY”
                - Auriga Laboratories, Inc.

            	 	
               

              “EXECUTIVE”

            
	
               

              By:/s/
                Philip S. Pesin
                
                

              

              Name:
                Philip
                S. Pesin

              Its:
                Chief Executive Officer

               

              Dated:August
                27, 2007

            	 	
               

              /s/
                Frank Greico

              
                

              

              Frank
                Greico

               

               

              Dated:August
                27, 2007

            

    

    

    
      
         

      

      
        -11-INDEMNIFICATION
      AGREEMENT

     

    THIS
      AGREEMENT (the “Agreement”) is made and entered into as of September 1, 2007
      between Auriga Laboratories, Inc., a Delaware corporation (“the Company”), and
      Frank Greico, its affiliates, directors, officers, employees, members or agents
      (collectively the “Indemnitee”).

     

    WITNESSETH
      THAT:

     

    WHEREAS,
      Indemnitee performs a valuable service for the Company; and

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    3. Contribution
      in the Event of Joint Liability.

     

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

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

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

     

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

     

    (b) Upon
      written request by Indemnitee for indemnification pursuant to the first sentence
      of Section 6(a) hereof, a determination, if required by applicable law, with
      respect to Indemnitee’s entitlement thereto shall be made in the specific case
      by one of the following three methods, which shall be at the election of
      Indemnitee: (1) by a majority vote of the disinterested directors, even though
      less than a quorum, (2) by independent legal counsel in a written opinion or
      (3)
      by the stockholders.

     

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

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

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

     

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

     

    7. Remedies
      of Indemnitee.

     

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

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

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

     

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

     

    (d) In
      the
      event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication
      of his rights under, or to recover damages for breach of, this Agreement, or
      to
      recover under any directors’ and officers’ liability insurance policies
      maintained by the Company, the Company shall pay on his behalf, in advance,
      any
      and all expenses (of the types described in the definition of Expenses in
      Section 13 of this Agreement) actually and reasonably incurred by him in such
      judicial adjudication, regardless of whether Indemnitee ultimately is determined
      to be entitled to such indemnification, advancement of expenses or insurance
      recovery.

     

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

     

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

     

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

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (b) To
      the
      extent that the Company maintains an insurance policy or policies providing
      liability insurance for directors, officers, employees, or agents or fiduciaries
      of the Company or of any other corporation, partnership, joint venture, trust,
      employee benefit plan or other enterprise that such person serves at the request
      of the Company, Indemnitee shall be covered by such policy or policies in
      accordance with its or their terms to the maximum extent of the coverage
      available for any director, officer, employee, agent or fiduciary under such
      policy or policies.

     

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

     

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

     

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

     

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

     

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

     

    12. Enforcement.

     

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

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

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

     

    13. Definitions.
      For
      purposes of this Agreement:

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (a) If
      to
      Indemnitee, to the address set forth below Indemnitee signature
      hereto.

     

    If
      to the
      Company, to:

    

    Auriga
      Laboratories, Inc.

    10635
      Santa Monica Blvd. #120

    Los
      Angeles, CA 90025

    Attn:
      Chief Executive Officer

    

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

     

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

     

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

     

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

     

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

    
      
        
          

        

         

      

      
        11

        
          

        

      

      
         

        
        

      

    

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

    
      	 	 	 
	 	AURIGA
              LABORATORIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Philip
              S.
              Pesin
	 	
              
Name:
Philip
              S. Pesin 
	 	Title: Chairman
              & CEO 

    

    
      	 	 	 
	 	INDEMNITEE
	 
 	 
 	 
 
	 	 	/s/
              Frank Greico 
	 	
              
Name:
Frank
              Greico 
	 	 
	
               Address:  
                
  	
              Mr.
                Frank Greico

              3847
                Castleview Drive

              Agoura,
                CA 91301

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