Document:

EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    This
      EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of this
      13th day of April 2007, by and between Skins Inc., a Nevada corporation (the
      “Company”), and Antonio Pavan, 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 employ the Executive in the position of Chief Operating
      Officer and Executive Vice President and to have the benefits of his expertise
      and knowledge; 

     

    WHEREAS,
      the Executive desires to be employed by the Company as its Chief Operating
      Officer and Executive Vice President; and

     

    WHEREAS,
      the parties desire to enter into this Agreement to establish the terms and
      conditions of the Executive’s employment as Chief Operating Officer and
      Executive Vice President 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 as the Chief Operating Officer and Executive
      Vice President of the Company and Executive hereby accepts such employment
      as of
      the date hereof pursuant to the terms, covenants and conditions set forth
      herein. Executive shall report directly to 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 Chief
      Operating Officer and Executive Vice President, and, in such capacities, shall
      perform the duties and functions and have the authority that is commensurate
      with such positions and such other duties, functions, and authority consistent
      with his status as a senior 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. Executive may also serve as a non-employee member on the board of
      directors of other for-profit companies if such service does not interfere
      with
      the providing of his services hereunder as reasonably determined by the Board
      of
      Directors of the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    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 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 Twenty-Five
      Thousand Dollars ($225,000.00) 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 or 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. The
      first performance bonus review for Executive shall occur approximately six
      (6)
      months after the date of this Agreement, the second of such review shall occur
      for Executive’s performance during the 2008 fiscal year at such time consistent
      with the Company’s compensation policy and procedures for executive officers,
      and such reviews thereafter shall occur annually in accordance with the
      Company’s compensation policy and procedures for executive officers. The annual
      performance bonus shall be up to fifty percent (50%) 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 fifty 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.

     

    
      
         

      

      
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    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. As a one time
      benefit to Executive, and following being provided a copy of the legal fee
      invoices, the Company shall pay reasonable legal fees actually incurred by
      Executive in connection with the negotiation of this Agreement of up to Four
      Thousand Dollars ($4,000).

     

    3.4
      Vacation.
      Executive shall be entitled to receive four (4) weeks of paid vacation each
      year. Any accrued but unused vacation days may be rolled over to the next
      12-month period, provided that the number of unused vacation days for any period
      shall not exceed six (6) vacation weeks. 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 any applicable 401k or other pension plans, to
      the
      extent they are provided. Notwithstanding the foregoing, Executive has opted
      not
      to receive health benefits from the Company in lieu of extended disability
      insurance coverage in an amount equal to the approximate cost of the health
      benefits for Executive. In addition, the Company shall furnish the Executive,
      without cost to him, with a Company-owned or leased automobile of the make
      and
      model authorized by the Company's policy. 

     

    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
      shall be granted a total of Five Hundred Thousand (500,000) options exercisable
      at fair market value (the “Options”) under the Company’s 2005 Incentive Plan
      (the “Plan”). The grant of Options to Executive will be subject to the terms and
      conditions of the Plan and the Company’s standard Stock Option Agreement, which
      will be executed by Executive and is attached hereto as Exhibit
      A.

     

    4.2
      Vesting
      Schedule.

    

    Subject
      to the terms and conditions of the Company’s standard Stock Option Agreement,
      the shares underlying the options shall vest in six (6) equal semi-annual
      installments over the course of three (3) years, with the first installment
      vesting six months from the date of this Agreement.

     

    
      
         

      

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

     

    (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).

     

    
      
         

      

      
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    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).

     

    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 a period of twelve (12) months (“Severance
      Period”) 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 during
      the Severance Period 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”). 

     

    
      
         

      

      
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    (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, if any, of any options granted to the Executive
      under the Plan), accrued vacation pay and any appropriate business expenses
      incurred by the Executive in connection with his duties hereunder, all to the
      date of termination. 

     

    (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.

    

    5.5
      Termination
      Upon a Change in Control.
      In the
      event of a Termination Upon a Change in Control, as defined below, the 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, if not already accelerated pursuant to the Option
      Agreement, of any options granted to the Executive under the Plan), accrued
      vacation pay and any appropriate business expenses incurred by the Executive
      in
      connection with his duties hereunder, all to the date of termination, and
      Severance Pay in accordance with Section 5.4(a) but subject to Section 5.4(c),
      but no other compensation or reimbursement of any kind. For the purposes of
      this
      Section 5.5, the following terms shall have the following meanings:

     

    (a) “Termination
      Upon a Change in Control” shall mean the Executive’s termination of his
      employment with the Company within One Hundred Twenty (120) days following
      a
“Change in Control.”

    

    (b) “Change
      in Control” shall mean (i) the time, after the date of this Agreement, that the
      Company first determines that any person and all other persons who constitute
      a
      group (within the meaning of Sec. 13(d)(3) of the Securities Exchange Act of
      1934 (“Exchange Act”)) have acquired direct or indirect beneficial ownership
      (within the meaning of Rule 13d-3 under the Exchange Act) of fifty percent
      (50%)
      or more of the Company’s outstanding securities, unless a majority of the
“Continuing Directors” approves the acquisition not later than ten (10) business
      days after the Company makes that determination, or (ii) the first day on which
      a majority of the members of the Company's board of directors are not
“Continuing Directors.”

    

    (c) “Continuing
      Directors” shall mean, as of any date of determination, any member of the
      Company's board of directors who (i) was a member of that board of directors
      on
      the date of this Agreement, (ii) has been a member of that board of directors
      for the two years immediately preceding such date of determination, or (iii)
      was
      nominated for election or elected to the Company’s board of directors with the
      affirmative vote of the greater of (x) a majority of the Continuing Directors
      who were members of the Company’s board of directors at the time of such
      nomination or election or (y) at least three Continuing Directors.

     

    
      
         

      

      
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    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:

     

    (a)
      Solicit
      or attempt to solicit the business of any customer or client of the
      Company;

     

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

     

    (c)
      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 United States, 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.

     

    
      
         

      

      
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    (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.
      

    

    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.

            

    

    45
      West
      21st Street, 2nd Floor

    New
      York,
      NY 10010

    

    
      	If
              to Executive:	
              Antonio
                Pavan

            

    

    [RESIDENT
      ADDRESS]

    

    
      
         

      

      
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    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.
      

     

    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. 

     

    
      
         

      

      
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    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. 

     

    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]

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    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: 	 
	 	 	 	 
	 	 	ANTONIO PAVAN 	 
	 	 	 	 
	 	 	/s/
              Antonio Pavan 	 

    

     

    
      
         

      

      
        11SKINS
      INC.

    2005
      INCENTIVE PLAN

     

    NON-QUALIFIED
      STOCK OPTION AGREEMENT

     

    NOTICE
      OF STOCK OPTION GRANT

     

    Optionee:
      Antonio Pavan

     

    The
      Optionee has been granted an Option to purchase a number of shares of Skins
      Inc.
      Common Stock as designated below (“Shares”), subject to the terms and conditions
      of the Skins Inc. 2005 Incentive Plan, as amended from time to time (the
“Plan”), and this Option Agreement, as follows:

     

    
      	Date of Grant:	
              04/13/2007

            	Type of Option:	
              Non-Qualified
                Stock
                Option

            
	Exercise Price per
              Share:	
              $1.25

            	Expiration Date:	
              04/12/2012 

            
	Total Number of Shares
              Granted:	
              500,000

            	Total Exercise
              Price:	
              $625,000

            
	 	 	 	 
	Vesting
              Schedule: 	1/6th of the Options
              shall
              vest on a semi-annual basis, with the first vesting to occur six (6)
              months from the Date of Grant. 
	 	 	 	 

    

    
      Vesting
        is accelerated upon a Change in Control under Section
        2(c).

    

     

    
      	
              Exercise
                After Termination of Employment:

               

              a.
                Termination of Employment for any reason:
                any non-vested portion of the Option expires immediately, except
                as
                indicated in subsection b and c, below.

               

              b.
                Termination of Employment due to death or Disability:
                vested portion and an additional 1/3 of the unvested portion of the
                Option
                is exercisable by the Optionee (or, in the event of the Optionee’s death,
                the Optionee’s Beneficiary) for one year after the Optionee’s Termination.
                

               

              c.
                Termination of Employment Without Cause or for Good Reason (as defined
                in
                the Employment Agreement):
                vested portion and an additional 1/6 unvested portion of the Option
                shall
                be exercisable by the Optionee for one year after the Optionee’s
                Termination

               

              d.
                Termination of Employment for Cause (as
                defined in the Employment Agreement): all vested and unvested options
                shall terminate immediately and cease to remain outstanding

               

              e.
                Termination of Employment for any reason other than as indicated
                in b, c,
                and d, above:
                vested portion of the Option is exercisable for a period of ninety
                (90)
                days following the Optionee’s Termination. 

               

              In
                no event may this Option be exercised after the Expiration Date as
                provided above.
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    I. AGREEMENT

     

    1.    Grant
      of Option.
      The
      Option granted to the Optionee and described in the Notice of Grant is subject
      to the terms and conditions of the Plan, which is incorporated by reference
      in
      its entirety into this Option Agreement. In the event of a conflict between
      the
      terms and conditions of the Plan and this Option Agreement, the terms and
      conditions of the Plan shall prevail. Capitalized terms not otherwise defined
      in
      this Agreement shall have the meaning given to the terms in the
      Plan.

     

    If
      designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this
      Option is intended to qualify as an Incentive Stock Option as defined in Section
      422 of the Code. Nevertheless, to the extent that the Option fails to meet
      the
      requirements of an ISO under Section 422 of the Code, this Option shall be
      treated as a Non-Qualified Stock Option (“NSO”).

     

    2.    Exercise
      of Option.

     

    (a)
      Right
      to Exercise.
      This
      Option shall be exercisable, in whole or in part, during its term in accordance
      with the Vesting Schedule set out in the Notice of Grant and with the applicable
      provisions of the Plan and this Option Agreement. No Shares shall be issued
      pursuant to the exercise of an Option unless the issuance and exercise comply
      with applicable laws. Assuming such compliance, for income tax purposes the
      Shares shall be considered transferred to the Optionee on the date on which
      the
      Option is exercised with respect to such Shares. The Board may, in its
      discretion, (i) accelerate vesting of the Option, or (ii) extend the applicable
      exercise period to the extent permitted under Section 6.03 of the
      Plan.

     

    (b)
      Method
      of Exercise.
      The
      Optionee may exercise the Option by delivering an exercise notice in a form
      approved or otherwise acceptable to the Company (the “Exercise Notice”) which
      shall state the election to exercise the Option, the number of Shares with
      respect to which the Option is being exercised, and such other representations
      and agreements as may be required by the Company. The Exercise Notice shall
      be
      accompanied by payment of the aggregate Exercise Price as to all Shares
      exercised. This Option shall be deemed to be exercised upon receipt by the
      Company of such fully executed Exercise Notice accompanied by the aggregate
      Exercise Price.

     

    (c)
      Acceleration
      of Vesting on Change in Control.
      Subject
      to the exception contained in Section 6.05 of the Plan, all Options outstanding
      on the date of a Change of Control that have not previously vested or terminated
      under the terms of the applicable Award Agreement shall be immediately and
      fully
      vested and exercisable upon the date of a Change of Control (as defined in
      the
      Employment Agreement).

     

    3.    Method
      of Payment.
      If the
      Optionee elects to exercise the Option by submitting an Exercise Notice under
      Section 2(b) of this Agreement, the aggregate Exercise Price (as well as any
      applicable withholding or other taxes) shall be paid by cash or check;
provided,
      however,
      that
      the Board may consent, in its discretion, to payment in any of the following
      forms, or a combination of them:

     

    (a)
      cash
      or
      check;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) consideration
      received by the Company under a formal cashless exercise program adopted by
      the
      Company in connection with the Plan;

     

    (c) surrender
      of other Shares which (i) have been owned by the Optionee for more than six
      (6)
      months on the date of surrender, and (ii) have a Fair Market Value on the date
      of surrender equal to the aggregate Exercise Price of the Exercised Shares;
      or

     

    (d) any
      other
      consideration that the Board deems appropriate and in compliance with applicable
      law.

     

    4.    Restrictions
      on Exercise.
      This
      Option may not be exercised until such time as the Plan has been approved by
      the
      stockholders of the Company, or if the issuance of the Shares upon exercise
      or
      the method of payment of consideration for those shares would constitute a
      violation of any applicable law or regulation.

     

    5.    Non-Transferability
      of Option.
      This
      Option may not be transferred in any manner otherwise than by will or by the
      laws of descent or distribution and may be exercised during the lifetime of
      the
      Optionee only by the Optionee. Following transfer, the Options shall continue
      to
      be subject to the same terms and conditions as were applicable immediately
      prior
      to transfer. In the event an Option is transferred as contemplated in this
      Section 5, such Option may not be subsequently transferred by the transferee
      except by will or the laws of descent and distribution. The terms of the Plan
      and this Option Agreement shall be binding upon the executors, administrators,
      heirs, successors and assigns of the Optionee.

     

    6.    Term
      of Option.
      This
      Option may be exercised only within the term set out in the Notice of Grant,
      and
      may be exercised during such term only in accordance with the Plan and the
      terms
      of this Option Agreement.

     

    7.    Entire
      Agreement, Amendment and Governing Law.
      The
      Plan and this Option Agreement constitute the entire agreement of the parties
      with respect to the subject matter hereof and supersede in their entirety all
      prior undertakings and agreements of the Company and the Optionee with respect
      to the subject matter hereof (but not agreements, if any, relating to other
      matters), and may not be modified adversely to the Optionee’s interest except by
      means of a writing signed by the Company and the Optionee. This Option Agreement
      is governed by, and shall be construed and enforced in accordance with, the
      internal laws of the State of Delaware.

     

    8.    Further
      Assurances.
      The
      Optionee agrees, upon demand of the Company or the Board, to do all acts and
      execute, deliver and perform all additional documents, instruments and
      agreements (including, without limitation, stock powers with respect to shares
      of Common Stock issued upon exercise of the Option) which may be reasonably
      required by the Company or the Board.

     

    9.    No
      Guarantee of Continued Service.
      THE
      OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE
      VESTING SCHEDULE IS EARNED ONLY BY CONTINUING AS AN EMPLOYEE AT THE WILL OF
      THE
      COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR
      ACQUIRING SHARES HEREUNDER). THE OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT
      THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED UNDER IT AND THE VESTING SCHEDULE
      DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED EMPLOYMENT FOR
      THE
      VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY
      WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S EMPLOYMENT
      AT ANY TIME, WITH OR WITHOUT CAUSE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Optionee acknowledges receipt of a copy of the Plan and represents that he
      or
      she is familiar with the terms and provisions of the Plan, and accepts this
      Option subject to all of those terms and provisions. The Optionee has reviewed
      the Plan and this Option Agreement in their entirety, has had an opportunity
      to
      obtain the advice of counsel prior to executing this Option Agreement and fully
      understands all provisions of the Option. The Optionee agrees to accept as
      binding, conclusive and final all decisions or interpretations of the Board
      upon
      any questions arising under the Plan or this Option Agreement. The Optionee
      further agrees to notify the Company upon any change in the residence address
      indicated below.

     

    [SIGNATURE
      PAGE TO FOLLOW]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, intending to be legally bound, the parties have signed this
      Option Agreement as of the Date of Grant.

     

    
      	Optionee: 	 	 	SKINS
              INC.: 
	 	 	 	 
	 	 	 	 
	/s/
              Antonio
              Pavan	 	 	/s/
              Mark
              Klein
	Signature	 	 	By: Mark Klein
	 	 	 	 
	Antonio
              Pavan 	 	 	President
              and Chief Executive Officer 
	Print Name 	 	 	Title 
	 	 	 	 
	[RESIDENCE
              ADDRESS] 	 	 	 
	 	 	 	 
	Residence Address

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