EXHIBIT 10.02

ACKNOWLEDGEMENT OF
INTELLECTUAL PROPERTY COLLATERAL LIEN

        This Acknowledgement of Intellectual Property Collateral Lien is dated
as of _________, 2006, by DERMA SCIENCES, INC. and SUNSHINE PRODUCTS, INC. (each
a “Grantor” and, collectively, the “Grantors”), in favor of CAPITALSOURCE
FINANCE LLC (the “Lender”).

W I T N E S S E T H:

        WHEREAS, pursuant to that certain Revolving Credit and Security
Agreement, dated as of January 31, 2005 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Security Agreement”)
among the Grantors and the Lender, the Lender has agreed to provide revolving
loans to the Grantors upon the terms and subject to the conditions set forth
therein; and

        WHEREAS, the Grantors granted to Lender certain liens on the Collateral
to secure their Obligations under the Security Agreement; and

        WHEREAS, pursuant to the terms of the Security Agreement the Grantors
are required to execute and deliver this Acknowledgment in favor of the Lender;

        NOW, THEREFORE, in consideration of the premises and to induce the
Lender to enter into the Security Agreement and to make loans to the Grantors
thereunder, each Grantor hereby agrees with the Lender as follows:

        Section 1. Defined Terms. Unless otherwise defined herein, terms defined
in the Security Agreement and used herein have the meaning given to them in the
Security Agreement.

        Section 2. Reaffirmation of Grant of Security Interest in Intellectual
Property Collateral. Each Grantor, as collateral security for the full, prompt
and complete payment and performance when due (whether at stated maturity, by
acceleration or otherwise) of the Obligations of such Grantor, hereby reaffirms
its grant of a first priority security interest in the Collateral, and further
collaterally assigns, conveys, mortgages, pledges, hypothecates and transfers to
the Lender, and grants to the Lender, a lien on and security interest in all of
its right, title and interest in, to and under the following Collateral of such
Grantor (herein referred to as “Intellectual Property Collateral”):

         (a)   all of its owned Trademarks and Trademark Licenses to which it is
a party, including those referred to on Schedule I hereto;

        all reissues, continuations or extensions of the foregoing;

        all goodwill of the business connected with the use of, and symbolized
by, each Trademark and each Trademark License;

        all Proceeds of the foregoing, including any claim by Grantor against
third parties for past, present, future (i) infringement or dilution of any
Trademark or Trademark licensed under any Trademark License or (ii) injury to
the goodwill associated with any Trademark or any Trademark licensed under any
Trademark License;

 

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        (b)    all of its Copyrights and Copyright Licenses to which it is a
party, including those referred to on Schedule II hereto;

        all reissues, continuations or extensions of the foregoing; and

        all Proceeds of the foregoing, including any claim by Grantor against
third parties for past, present, future infringement or dilution of any
Copyright or Copyright licensed under any Copyright License; and

        (c)    all of its Patents and Patent Licenses to which it is a party,
including those referred to on Schedule III hereto;

        all reissues, continuations or extensions of the foregoing; and

        all Proceeds of the foregoing, including any claim by Grantor against
third parties for past, present or future infringement or dilution of any Patent
or any Patent licensed under any Patent License.

        Section 3. Acknowledgement. The security interests reaffirmed herein are
granted in conjunction with the security interest granted to the Lender pursuant
to the Security Agreement and each Grantor hereby acknowledges and affirms that
the rights and remedies of the Lender with respect to the security interest in
the Intellectual Property Collateral made and granted hereby are more fully set
forth in the Security Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein.

[signature page follows]

 

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        IN WITNESS WHEREOF, each Grantor has caused this Acknowledgment of
Intellectual Property Collateral Lien to be executed and delivered by its duly
authorized offer as of the date first set forth above.

  COMPANY:
    DERMA SCIENCES, INC.
 
    By:       Edward J. Quilty
President and Chief
Executive Officer
    SUNSHINE PRODUCTS, INC.
 
    By:       Edward J. Quilty
President and Chief
Executive Officer

Accepted and Agreed:       CAPITALSOURCE FINANCE LLC, as Lender    
 
    By:       Name:
Title:  

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ACKNOWLEDGEMENT OF GRANTORS

STATE OF     )         )   ss. COUNTY OF     )  

        On this ___ day of April, 2006 before me personally appeared Edward J.
Quilty, proved to me on the basis of satisfactory evidence to be the person who
executed the foregoing instrument on behalf of DERMA SCIENCES, INC. and SUNSHINE
PRODUCTS, INC., who being by me duly sworn did depose and say that he is an
authorized officer of each said corporation, that the said instrument was signed
on behalf of each said corporation as authorized by its respective Board of
Directors and that he acknowledged said instrument to be the free act and deed
of each said corporation.

        Notary Public  

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SCHEDULE I
to
ACKNOWLEDGEMENT OF INTELLECTUAL PROPERTY LIEN
TRADEMARK REGISTRATIONS

Trademarks held by Derma Sciences, Inc.

Trademarks   Registration Number
(Serial Number)   BANDNET   1,749,795   SYSTEM FOUR   76/254,603   GLEN-SLEEVE  
1,878,551   HIP-ARMOR   76/421,807   PRIMER FLEX   78/455,097   SURGIGRIP  
1,661,598   SURGITUBE   403,088   PRIMER   1,793,363   SURGILAST   1,619,706  
UNNA-PAK   1,557,791  

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SCHEDULE II
to
ACKNOWLEDGEMENT OF INTELLECTUAL PROPERTY LIEN
COPYRIGHT REGISTRATIONS

N/A

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SCHEDULE III
to
ACKNOWLEDGEMENT OF INTELLECTUAL PROPERTY LIEN
PATENT REGISTRATIONS

N/A

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