<PAGE>   1
                                                                   EXHIBIT 10.4


                                  INTERNATIONAL

                             DISTRIBUTION AGREEMENT


         THIS AGREEMENT is made as of the 14th day of June 1996 by and between
BIOMATRIX, INC., a corporation duly organized and existing under the laws of the
State of Delaware, having its principal office at 65 Railroad Avenue,
Ridgefield, New Jersey 07657, U.S.A. ("Biomatrix") and COLLAGEN CORPORATION, a
corporation duly organized and existing under the laws of the State of Delaware,
having its principal office at 2500 Faber Place, Palo Alto, California 94303,
U.S.A. (the "Distributor").

         WHEREAS, Biomatrix is engaged in the development and manufacture of the
Agreement Product (as hereinafter defined);

         WHEREAS, the Distributor desires to enter into a distribution agreement
and be appointed the exclusive distributor (even to Biomatrix) of the Agreement
Product and any Improved Agreement Product(s) in the Territory (as such terms
are hereinafter defined), and Biomatrix is willing to so appoint the Distributor
on the terms and subject to the conditions set forth herein; and

         WHEREAS, the Distributor desires to purchase from Biomatrix, and
Biomatrix desires to sell to the Distributor, the Distributor's orders of the
Agreement Product and any Improved Agreement Product(s) in the Territory on the
terms and subject to the conditions set forth herein.

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants of the parties hereto, it is hereby agreed as follows:

         1. DEFINITIONS AND INTERPRETATION.

         1.1. In this Agreement, the following words and expressions shall have
the following meanings:

         "Affiliate" shall mean, with respect to any party, any Person which,
         directly or indirectly, is controlled by, controls or is under common
         control with such party. For purposes of this definition, the term
         "control" (including with correlative meanings, the terms "controlled
         by" and "under common control with") shall mean, with respect to any
         Person, the direct or indirect ownership of more than fifty percent
         (50%) of the voting or income interest in such Person or the possession
         otherwise, directly or indirectly, of the power to direct the
         management or policies of such Person.



<PAGE>   2
                                      -2-

         "Agreement Product" shall mean the one product made of hylan B and
         called by Biomatrix Hylaform(R), the specifications for which are set
         forth on Exhibit A, for use in the correction of wrinkles and depressed
         scars.

         "Agreement Product Specifications" shall mean the specifications for
         the Agreement Product set forth in Exhibit A, as such specifications
         may be modified or supplemented by Biomatrix from time to time in
         accordance with Product License Approvals or to reflect any Improved
         Agreement Product(s).

         "Agreement Year" shall mean, with respect to a country or Region, as
         applicable, in the Territory, the twelve (12) month period commencing
         on the date of first commercial sale of the Agreement Product in such
         country or Region, as applicable, and each separate successive twelve
         (12) month period thereafter.

         "Contract Quarter" shall mean, for sales of Agreement Product in a
         country or Region, as applicable in the Territory, the period
         commencing with the Distributor's first commercial sale of the
         Agreement Product in such country or Region, as applicable, and ending
         on the first to occur of March 31, June 30, September 30 and December
         31, as applicable, and each three (3) month period thereafter
         throughout the term of this Agreement.

         "Dermal Tissue Augmentation Products" shall mean biomaterial(s) that
         are [ *** ].

         "Dollars" and "$" shall mean the lawful currency of the United States
         of America.

         "Effective Date" shall mean June 17, 1996.

         "EU Countries" shall mean, collectively, Austria, Belgium, Denmark,
         Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the
         Netherlands, Portugal, Spain, Sweden and the United Kingdom.

         "European Territory" shall mean, collectively, the EU Countries,
         Switzerland, Norway, Liechtenstein and Iceland.

         "Formula Price" shall mean an amount equal to [ *** ] of the
         Agreement Product by Distributor or an Affiliate of Distributor,
         calculated on a [ *** ] basis, provided that if the [ *** ] the
         Agreement Product in a Region [ *** ], then the Formula Price for
         such Region shall mean an amount equal to [ *** ] of the
         Agreement Product on a [ *** ] basis by Distributor or an
         Affiliate of Distributor in such Region. [ *** ]


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

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                                      -3-

         [ *** ] the Formula Price shall mean an amount equal to [ *** ] by
         Distributor or an Affiliate of Distributor, [ *** ], for or an
         [ *** ,] including without limitation [ *** .]

         "Improved Agreement Product(s)" shall mean (i) any modification of the
         Agreement Product (made entirely from hylan B) regarding the
         formulation of hylan B in the Agreement Product, that is changes of
         concentration of the polymer or other changes in the Agreement Product
         Specifications, whether or not requiring new regulatory approval in the
         EU Countries or in the United States, and (ii) any modifications or
         changes related to the packaging of the Agreement Product, including
         the syringe used, mode of application or dosage.

         "Incremental Royalties" shall mean that term as defined in Section 8.2.

         "Initial Term" shall mean that term as defined in Section 3.2.

         "Launch" shall mean, with respect to a country in the Territory, the
         commencement by Distributor of sales of the Agreement Product in
         commercial quantities for use in such country. Such Launch shall be
         made with respect to each country in the Territory in accordance with
         the dates set forth on Exhibit B.

         "Minimum Price" shall mean an amount equal to [ *** ] for each
         Treatment Syringe, [ *** ,] then the Minimum Price payable in such
         Region [ *** ] Agreement Years immediately following such [ *** ]
         shall equal [ *** ,] and [ *** ] Agreement Years following such
         [ *** ] shall equal [ *** ] for each Treatment Syringe.

         "Net Retail Sales" shall mean, with respect to sales of a Dermal Tissue
         Augmentation Product in a country in the Territory, the aggregate gross
         price invoiced for retail sales of such product during a period in such
         country to unaffiliated third-party purchasers [ *** .] It is
         Biomatrix's understanding that the foregoing definition is consistent
         with how the Distributor reports its sales in its audited financial
         statements.


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

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                                      -4-


         "New Products" shall mean [ *** ]

         "Patents" shall mean Letters Patent or similar statutory rights
         relating to any Agreement Product and any Improved Agreement Product(s)
         (including any continuation-in-part, continuation or division thereof
         or substitute thereof), and patent applications which are pending as of
         the Effective Date, in each case as set forth in Exhibit C, together
         with any supplementary or complementary protection certificates
         therefor if and when such are granted.

         "Person" shall mean an individual, a corporation, limited liability
         company, a partnership, a trust, an unincorporated organization or a
         government or any agency or political subdivision thereof.

         "Product License Approvals" shall mean those regulatory approvals
         required for the importation, promotion, marketing and sale of the
         Agreement Product and any Improved Agreement Product(s) in the
         Territory (including any reimbursement or pricing approvals).

         "Region" shall mean any one of the following countries or groups of
         countries: (i) the United Kingdom and Ireland; (ii) Germany; (iii)
         France; (iv) Italy; (v) Spain and Portugal; (vi) Denmark, Finland,
         Sweden, Norway and Iceland; (vii) Belgium, Luxembourg and the
         Netherlands; (viii) Japan; (ix) Austria, Liechtenstein and Switzerland;
         (x) Australia and New Zealand; (xi) Greece and Israel; (xii) Argentina,
         (xiii) Brazil, (xiv) Chile, (xv) Mexico, (xvi) Canada, (xvii) Columbia,
         (xviii) Cyprus, (xix) Lebanon, and (xx) Turkey.

         "Supply Forecast" shall mean that term as defined in Section 7.3(b).

         "Territory" shall mean, collectively, the EU Countries, Switzerland,
         Norway, Liechtenstein, Iceland, Australia, New Zealand, Japan, Israel,
         Argentina, Brazil, Mexico, Chile, Columbia, Cyprus, Lebanon, Turkey and
         Canada and any countries added hereto pursuant to Section 2.4.

         "Trademarks" shall mean (i) the trademark Hylaform(R), the details of
         which are described in Exhibit C, and (ii) any other trademarks, as may
         be agreed upon in writing from time to time by the parties hereto for
         use by the Distributor in connection with the promotion, marketing and
         sale of the Agreement Product and any Improved Agreement Product(s)
         under this Agreement.


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

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                                      -5-


         "Treatment Syringe" shall mean a ready-for-injection 1.0cc syringe of
         the Agreement Product.

         "United States Consumer Price Index" shall mean the Consumer Price
         Index, All Items, United States, as published by the Bureau of Labor
         Statistics.

         1.2. In this Agreement, unless the context otherwise requires:

         (a) clause headings are inserted for convenience of reference only and
have no legal effect;

         (b) references to sections, exhibits and schedules are to be construed
as references to the sections of, and exhibits and schedules to, this Agreement
and references to this Agreement include its exhibits and schedules.

         (c) references to (or to any specified provision of) this Agreement or
any other document shall be construed as references to this Agreement, that
provision or that document as in force for the time being and as amended,
varied, substituted, supplemented, restated or novated in accordance with the
terms thereof or, as the case may be, with the agreement of the relevant parties
and (where such consent is, by the terms of this Agreement or the relevant
document, required to be obtained as a condition to such amendment being
permitted) the prior written consent of Biomatrix;

         (d) words importing the plural shall include the singular and vice
versa;

         (e) references to a person shall be construed as including references
to an individual, firm, consortium, company, corporation, unincorporated body of
persons or any State or any agency thereof; and

         (f) references to statutory provisions shall be construed as references
to those provisions as replaced, amended or re-enacted from time to time.

         2. APPOINTMENT; BEST EFFORTS; EXCLUSIVITY.

         2.1. Appointment.

         (a) Subject to the terms and conditions hereinafter set forth,
Biomatrix hereby appoints the Distributor as its exclusive [ *** ] (except to
the extent set forth in Section 2.3) distributor for the registration (other
than in the European Territory), promotion, marketing, sale and distribution
within the Territory of the Agreement Product and any Improved Agreement
Product(s) supplied by Biomatrix or an Affiliate of Biomatrix to the Distributor
pursuant to this Agreement. Such appointment does not include the right to
sublicense or appoint subdistributors except to an Affiliate of Distributor or a
Subdistributor of Distributor set forth on Exhibit E hereto (each a
"Subdistributor") without


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

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                                      -6-


the approval of Biomatrix; (and only for such time as such an Affiliate remains
an Affiliate or Subdistributor of Distributor).

         (b) Except as specifically provided to the contrary herein, the
foregoing appointment shall not be construed, by implication or otherwise, (i)
to effect any sale of proprietary Biomatrix technology, (ii) to grant any
license relating to Biomatrix's proprietary methods of formulating, fabricating
and manufacturing the Agreement Product or any Improved Agreement Product(s), or
(iii) to grant the Distributor any rights in or to any proprietary technology or
Patents or Trademarks of Biomatrix.

         (c) During the term of this Agreement the Distributor shall neither
seek customers for the Agreement Product or any Improved Agreement Product(s)
outside the Territory nor establish any branch or maintain any distribution
facilities outside the Territory for the registration, promotion, marketing,
sale or distribution of the Agreement Product or any Improved Agreement
Product(s).

         (d) [ *** ] to enter into subdistribution arrangements [ *** ]
hereto and no Subdistributor shall have any further right to sublicense any
rights or appoint additional subdistributors. The rights of Subdistributors to
maintain a sublicense hereunder shall be subject to the following:

         (i)      Each Subdistributor shall agree with Distributor that its
                  rights to sell the Agreement Product and Improved Agreement
                  Product(s) are subject to the terms of this Agreement,
                  including without limitation Distributor's or Biomatrix's
                  rights to terminate or convert this Agreement into a
                  non-exclusive arrangement;

         (ii)     [ *** ]

         (iii)    [ *** ]

         (iv)     Without the prior written consent of Biomatrix, Distributor
                  shall not waive any default or breach of any Subdistributor
                  which would adversely affect Biomatrix; and

         (v)      Upon any termination of this Agreement (or with respect to any
                  country), all subdistributor arrangements shall automatically
                  terminate; provided that Biomatrix may, in its sole
                  discretion, negotiate a license directly with any terminated
                  Subdistributor.


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

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                                      -7-


         2.2. Acceptance of Obligations; Best Efforts. The Distributor hereby
accepts the appointment described in Section 2.1 and hereby agrees to use its
best efforts at all times during the term hereof to register, promote, market,
sell and distribute the Agreement Product and any Improved Agreement Product(s)
in the Territory. [ *** ]

         2.3. Conversion to Non-Exclusive Distributorship. In the event that (i)
in any Agreement Year after and including the third Agreement Year or (ii) from,
after and including the first year of the Distributor acquiring and/or
commercializing a New Product pursuant to Section 10.1(b) (and so long as (i) no
force majeure condition of the Distributor exists at such time pursuant to
Section 20, (ii) Biomatrix has met its supply obligations under Section 7.4 and
(iii) Distributor is able to lawfully sell the Agreement Product and any
Improved Agreement product(s) in each of the countries within any such Region)
the Distributor's (or its Affiliates' or Subdistributors', as applicable) Net
Retail Sales of the Agreement Product and any Improved Agreement Product(s) in a
Region comprise less than [ *** ] of its Net Retail Sales of [ *** ,] including
the Agreement Product and any Improved Agreement Product(s), [ *** ] Upon
conversion of Distributor's rights to a


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

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non-exclusive distribution arrangement in any Region, Biomatrix shall have the
right to distribute the Agreement Product and Improved Agreement Product and/or
engage another distributor for such Region. Biomatrix will give Distributor [
*** ] days notice prior to appointing a third party distributor for such Region.
From and after the date of a conversion to a non-exclusive distribution
arrangement within a Region, the Distributor shall lose its rights hereunder to
register, promote, market, sell and distribute within such Region any Improved
Agreement Product(s) commercialized on or after such date. Notwithstanding the
foregoing, the Distributor shall retain the exclusive rights in all trademarks
under which the Distributor launched the Agreement Product or any Improved
Agreement Product(s) in such Region. Upon conversion of Distributor's rights to
a non-exclusive distribution arrangement in any Region in the European
Territory, the arrangements between the parties under this Agreement shall no
longer be governed by this Agreement and such Region shall no longer be deemed a
part of the Territory, but rather, such Region shall become the subject of a new
agreement between the parties upon the same terms and conditions set forth in
this Agreement. Upon such conversion to a non-exclusive arrangement, the parties
agree to execute such further documents and agreements as are necessary in order
to give effect to the provisions of this Section.

         2.4. Expansion of Territory. One or more countries may be added to the
Territory from time to time after the Effective Date by mutual written agreement
of the parties hereto, conditional upon the satisfactory completion of the
necessary due diligence in such country and the satisfaction of Biomatrix with
the proposed arrangements for the registration, promotion, marketing, sale and
distribution of the Agreement Product and any Improved Agreement Product(s) by
the Distributor in such country. Biomatrix agrees to discuss the appointment of
Distributor or one of its subdistributors prior to appointing a third party
distributor of the Agreement Product in any additional country.

         3. TERM AND TERMINATION.

         3.1. Effective Date. This Agreement shall take effect as of the
Effective Date.

         3.2. Term.

         (a) Unless this Agreement is sooner terminated, in its entirety or as
to a country or Region in the Territory in accordance with the provisions of
this Agreement, the term of the appointment hereunder for a country in the
Territory shall commence on the first day of the first Agreement Year for such
country and shall end on the last day of the tenth (10th) Agreement Year for
such country (the "Initial Term").


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

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         (b) Unless this Agreement is sooner terminated, in its entirety or as
to any Region in the Territory in accordance with the provisions of this
Agreement, the appointment of the Distributor hereunder as exclusive distributor
of the Agreement Product for each Region in the Territory shall be renewable by
the Distributor, at its option, upon written notice to Biomatrix received at
least ninety (90) days prior to the end of the Initial Term for such Region, for
an additional consecutive term of five (5) years following the date of
expiration of the Initial Term for such Region, provided that the Distributor
shall only be entitled to exercise such renewal option with respect to any
Region if as of the date of expiration of the Initial Term for such Region the
Distributor is not in material breach of any of its obligations under this
Agreement with respect to any Region (it being understood that any payment
default by Distributor under this Agreement will be deemed a default as to the
entire Territory). Thereafter, the appointment of the Distributor as exclusive
distributor of the Agreement Product for such Region shall be renewable upon the
expiration of such additional five (5) year term, upon written notice to
Biomatrix received at least ninety (90) days prior to the end of such term for
such Region, for one additional consecutive renewal term of five (5) years,
provided that, as of the date of expiration of the first renewal term for such
Region, the Distributor is not in material breach of any of its obligations
under this Agreement with respect to any Region (it being understood that any
payment default by Distributor under this Agreement will be deemed a default as
to the entire Territory). For the avoidance of any doubt, the Distributor's
rights with respect to any Improved Agreement Product(s) commercialized after
the tenth anniversary of the Effective Date shall terminate upon the tenth
anniversary of the Effective Date. Subject to the terms of this Agreement,
Distributor shall have the right to continue to sell the Agreement Product and
any Improved Agreement Products it is then currently selling.

         (c) This Agreement may be terminated with respect to any country in the
Territory by either party, by written notice to the other party, in the event
that (i) a mutual decision not to Launch the Agreement Product in such country
is reached or (ii) a Launch is not commenced with respect to such country within
thirty (30) days after the time period set forth on Exhibit B.

         (d) In the event that in any Agreement Year commencing with the third
Agreement Year (and so long as (i) no force majeure condition of the Distributor
exists at such time pursuant to Section 20, (ii) Biomatrix has met its supply
obligations under Section 7.4, and (iii) Distributor is able to lawfully sell
the Agreement product and any Improved Agreement Product(s) in each of the
countries within any such Region), the Distributor's (and its Affiliates' or
Subdistributors', as applicable) Net Retail Sales of the Agreement Product and
any Improved Agreement Product(s) in any Region comprise less than seven and
one-half percent (7-1/2%) of its Net Retail Sales in such Region of all Dermal
Tissue Augmentation Products, including the Agreement Product and any Improved
Agreement Product(s), the Distributor's distribution rights (including, without
limitation, its right to use the Trademarks) under this Agreement for the
Agreement Product and any Improved Agreement Product(s) in such Region shall
terminate upon 90 days notice, but in any event no later than 120 days after the
end of the applicable Agreement Year, to Distributor from Biomatrix; provided,
however, that Distributor may within thirty (30) days after receipt of any such
notice from Biomatrix, cure a shortfall of Net Retail Sales with respect to a
Region in the Territory, other than Regions in the European Territory, Australia
and Canada, for an Agreement Year by paying to Biomatrix an amount equal to
twenty-five percent (25%) of the total dollar amount of any such shortfall of
Net Retail Sales in such Agreement Year for such Region (such amount the "Cure
Amount"); further provided that with respect to any Region in the Territory, at
Biomatrix's election, Biomatrix may refuse to allow such cure if Distributor has
taken advantage of such cure provision with respect to such Region in each of
the two preceding Agreement Years.


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

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By way of example, if Distributor's Net Retail Sales of all Dermal Tissue
Augmentation Products in a Region in a given Agreement Year [$10,000,] and
Distributor's Net Retail Sales of the Agreement Product in such Region in such
Agreement Year were $500, then Distributor could cure such shortfall and prevent
termination by paying Biomatrix $62.50. Distributor may cure a shortfall of Net
Retail Sales with respect to Regions in the European Territory, Australia or
Canada in an Agreement Year by paying the Cure Amount to Biomatrix with respect
to any such Region for such Agreement Year as provided above; provided, however,
that in exchange for such Cure Amount Biomatrix will supply Distributor with an
amount of units of the Agreement Product purchasable for such Cure Amount at the
applicable Minimum Price or Formula Price for the applicable Agreement Year for
such Region; further provided that with respect to any such Region, at
Biomatrix's election, Biomatrix may refuse to allow such cure if Distributor has
taken advantage of such cure provision w/respect to such Region in each of the
two preceding Agreement Years. Upon any such termination of the Distributor's
distribution rights in a Region, the Distributor's obligation to pay any
royalties pursuant to Sections 8.1 and 8.2 for any sales in such Region after
such termination shall cease, but the Distributor shall remain obligated to pay
all such royalties for sales in such Region accrued prior to such termination.

         (e) If the Distributor's rights to distribute the Agreement Product and
any Improved Agreement Product(s) in any country in the European Territory shall
terminate solely pursuant to subsection (d) above, Biomatrix agrees to sell the
Agreement Product and any Improved Agreement Product(s) developed before the
date of such termination to the Distributor a price not greater than the price
paid by another distributor appointed in such country in the European territory,
for the period of time equal to the period that would have remained in the
Initial Term in such country had the Distributor's distribution rights not
terminated.

         3.3. Inventory.

         (a) Upon termination of this Agreement for any reason, Biomatrix shall
have the right (but not the obligation) to repurchase all or part of the
inventory of the Agreement Product and any Improved Agreement Product(s) held by
the Distributor or its Affiliates or Subdistributors.

         (b) The price for inventory to be repurchased by Biomatrix pursuant to
Section 3.3(a) above shall be the landed cost thereof actually paid by the
Distributor to Biomatrix. With respect to any quantities not repurchased by
Biomatrix, the Distributor shall have the


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   11
                                      -11-


right to sell such inventory of the Agreement Product and any Improved Agreement
Product(s), in its usual and customary manner, in the ordinary course of
business, for a period of six (6) months following termination of this Agreement
and notwithstanding such termination the terms and conditions of this Agreement
shall apply to such sales.

         3.4. Insolvency. This Agreement may be immediately terminated as to the
entire Territory by either party, upon giving written notice to the other party,
in the event that the other party shall become insolvent or be declared bankrupt
by a court of competent jurisdiction or shall be the subject of any
reorganization (other than a corporate reorganization effected in the ordinary
course of business and not arising out of any insolvency) or winding up,
receivership or dissolution, bankruptcy or liquidation proceeding, or any
proceeding or action similar to one or more of the above, in which case
termination shall be effective upon such written notice. The failure of either
party to give notice of termination upon obtaining knowledge of any such event
shall not be interpreted as a waiver of such party's rights under this Section
3.4, and such party reserves the right to exercise any such rights at any time
after the occurrence of any such event.

         3.5. Breach. This Agreement may be terminated as to the entire
Territory by either party if the other party shall breach any of its payment
obligations hereunder or with respect to any Region if Distributor (or its
Affiliates or Subdistributors, as applicable) shall commit a material breach of
any of its warranties, covenants, conditions, obligations or agreements
contained herein with respect to such Region, provided that such breach shall
continue for a period of thirty (30) days after written notice thereof and
provided further that such termination shall be immediately effective upon
further written notice to that effect to the breaching party after its failure
to cure such breach within such applicable notice period. For avoidance of
doubt, the parties agree that if a Launch is not reached with respect to a
country within thirty days after the time period set forth on Exhibit B, then
either party may terminate this Agreement with respect to such country (provided
that such failure to reach a Launch is not caused by a force majeure condition
of the Distributor or Biomatrix's failure to meet its supply obligations under
Section 7.4).

         3.6. Certain Rights Upon Termination. Upon termination of this
Agreement for any reason whatsoever, Biomatrix shall have the following rights,
or if such termination is as to a country in the Territory in accordance with
the provisions of this Agreement, Biomatrix shall have the following rights in
such country:

         (a) Biomatrix shall have the unrestricted right to review, access, use
and permit others to review, access and use, either directly or by
cross-reference or incorporation or otherwise, all information, data,
investigations, preclinical and clinical protocols, marketing information
disseminated by Distributor publicly to customers and patients and all
information required to be provided to Biomatrix by law, information relating to
laboratory, animal and human studies, and related regulatory approvals
pertaining to the Agreement Product or any Improved Agreement Product(s) (the
"Information") which are possessed or controlled by the Distributor or any of
its Affiliates or Subdistributors, or to which the Distributor or any of its
Affiliates or Subdistributors has a right to review, access or use.


<PAGE>   12
                                      -12-


The  Distributor  unconditionally agrees promptly to take any action and
to execute and deliver to Biomatrix any documents or instruments reasonably
requested by Biomatrix to permit Biomatrix to make full use of such unrestricted
right.

         (b) Further, Biomatrix shall have exclusive ownership rights to the
Trademarks and to all other product specific logos, slogans and other
intangibles used by the Distributor solely in association with the independent
sale of the Agreement Product and any Improved Agreement Product(s) (including
all registrations relating thereto) possessed or controlled by the Distributor
or any of its Affiliates or Subdistributors, and the Distributor unconditionally
agrees, subject to the provisions of Section 3.3(b), (i) immediately upon
termination to cease using the Trademarks and any such logos, slogans, and
marketing rights of Biomatrix or any imitations thereof and (ii) immediately to
execute and deliver to Biomatrix any documents or instruments reasonably
requested by Biomatrix to give full effect to the provisions of this Section
3.6; provided, however, if the Distributor maintains a license to distribute the
Agreement Product(s) in (a) two Regions, (b) one Region in the European
Territory or (c) in the United States, then Distributor shall retain the
exclusive rights in the Trademarks in the entire Territory.

         (c) In addition, the Distributor unconditionally agrees, subject to the
provisions of Section 3.3(b), that it shall, upon the request of Biomatrix,
immediately inform all relevant regulatory authorities that the Distributor (or
its Affiliate or Subdistributor) is no longer a distributor of the Agreement
Product or the Improved Agreement Product(s) and shall take all action and
execute and deliver all documents and instruments necessary in order to transfer
to the fullest extent permitted under applicable law all registrations and
Product License Approvals, or applications therefor, for the Agreement Product
or any Improved Agreement Product(s) to Biomatrix or any Person nominated by
Biomatrix.

         3.7. Effects of Termination.

         (a) Upon termination of this Agreement for any reason, the Distributor
shall immediately discontinue making any representations regarding its status as
a distributor for Biomatrix and shall immediately cease conducting any
activities with respect to the marketing, promotion, sale or distribution of the
Agreement Product and any Improved Agreement Product(s), provided, however, that
the Distributor shall be permitted to sell inventory not repurchased by
Biomatrix in accordance with Section 3.3.

         (b) Termination of this Agreement shall not affect obligations of
either party that may have accrued prior to the effective date of termination.
Subject to Clause 3.8 below, termination of this Agreement shall be in addition
to, and shall not be exclusive of or prejudicial to, any other grounds for
termination or rights or remedies at law or in equity which either party may
have on account of any default of the other party.

         3.8. Waiver. The Distributor (for itself and on behalf of its
Affiliates and Subdistributors) hereby waives, to the extent it is able to do so
under the law of 


<PAGE>   13
                                      -13-


every country in the Territory and other applicable law, any statutory rights it
may have or acquire in respect of the termination of the relationship
established hereby pursuant to the terms hereof, and agrees that the rights
available to it hereunder in the event of such termination are adequate and
reflect the agreement of the parties. The Distributor shall not have any right
to claim any indemnity for goodwill or lost profits or any damages arising from
the rightful termination of this Agreement in accordance with the terms hereof.

         4. PAYMENTS. All payments hereunder shall be made in Dollars. Payments
to Biomatrix shall be wired to an account designated by Biomatrix and the costs
of any such remittance shall be borne by the Distributor. All amounts (except
for the Minimum Price, which shall be denominated in Dollars) denominated in
another currency shall be converted to Dollars using the average month-end rates
of exchange for the relevant period as published in The Wall Street Journal (or,
if The Wall Street Journal shall no longer publish such exchange rates, as
determined by a method that is mutually agreed upon in writing by the parties).

         5. WITHHOLDING. All payments to be made by the Distributor under this
Agreement shall be made in full, free and clear of and without any deduction of
or withholding for or on account of any taxes levied in any country of the
Territory or elsewhere; provided that if the Distributor shall be required by
law to make any deduction or withholding from any payment to Biomatrix then:

         (a) the Distributor shall ensure that such deduction or withholding
does not exceed the minimum legal liability therefor; and

         (b) not later than five (5) days before each deduction or withholding
of any taxes, the Distributor shall forward to Biomatrix such documentary
evidence as may be required by Biomatrix in respect of the proposed deduction,
withholding or payment; and

         (c) prior to any deduction or withholding the parties shall attempt in
good faith to agree upon revised mutually acceptable pricing and/or payment
terms.

         6. TRADEMARKS; AGREEMENT PRODUCT MARKING; PROMOTIONAL INFORMATION.

         6.1. Trademarks. Subject to the provisions of Section 3.6, Biomatrix
hereby licenses to the Distributor the right to use, and hereby requires solely
in association with the independent sale by the Distributor of the Agreement
Product and any Improved Agreement Products the use of, the Trademarks in the
Territory during the term of this Agreement. The Distributor warrants that it
shall not use any of the Trademarks at any time outside the Territory or use any
of the Trademarks for any products other than the Agreement Product and any
Improved Agreement Product(s) within the Territory. The Distributor shall not
use a trademark or other mark (other than a Trademark) in connection with its
distribution of the Agreement Product and any Improved Agreement Products unless
and until it has been agreed upon in writing by each of the parties and become a
Trademark as defined herein. 


<PAGE>   14
                                      -14-


Biomatrix shall prosecute, maintain and defend the Trademarks throughout the
Term of this Agreement in all countries in the Territory in which the
Distributor, any of its Affiliates or any Subdistributor is selling the
Agreement Product and/or any Improved Agreement Product. The parties shall
execute a short form Trademark assignment agreement to the extent that it is
necessary to record the Trademark license under this Section 6.1 in any country
whose laws require any such registration.

         6.2. Termination of Right to Use Trademarks. Subject to the sell-out
right of Section 3.3(b) and except as otherwise provided in Section 3.6, upon
termination of this Agreement, the license to use the Trademarks in the
Territory shall terminate, and the Distributor unconditionally agrees promptly
to take all necessary action and execute and deliver to Biomatrix all necessary
documents and instruments to remove the Distributor as a registered user and/or
a recorded licensee of the Trademarks. In the event that the Distributor fails
promptly upon written request by Biomatrix to comply with any of its agreements
in the preceding sentence of this Section 6.2, the Distributor hereby
irrevocably consents to Biomatrix's taking any action necessary to give effect
to such agreements.

         6.3. Notice. Each party hereto agrees promptly to notify the other in
writing of any infringements or imitations of the Trademarks by third parties
which may come to its attention.

         6.4. Labelling and Promotional Materials; Approved Use of Product.

         (a) The Distributor shall provide Biomatrix with labelling masters,
instructions, specifications and copies of all marketing, labelling and
promotional material it intends to use relating to the Agreement Product and any
Improved Agreement Product(s). All such labelling, packaging and promotional
material shall be consistent with the relevant Product License Approvals and all
labelling and packaging materials shall be reviewed by Biomatrix and shall be
subject to its written approval prior to use, such approval not to be
unreasonably withheld. Biomatrix shall communicate its acceptance or rejection
of such labelling, packaging and any major promotional materials that include
claims or items impacting regulatory approvals within [ *** ] of its receipt
thereof and if no such communication is received by Distributor from Biomatrix
within such [ *** ] Biomatrix shall be deemed to have accepted. Distributor
shall provide Biomatrix with all major promotional materials for launches and
subsequent promotions within a reasonable time prior to their use in order to
allow Biomatrix to comment on such materials. Distributor shall provide
Biomatrix with copies of all other promotional materials at or prior to their
use.

         (b) The Distributor agrees that its (and its Affiliates' and
Subdistributors') promotion, marketing, sale and distribution of the Agreement
Product and any Improved Agreement Product(s) in the Territory, and the
promotional materials and labelling used in connection therewith, shall be
strictly in accordance with the approved use of the Agreement Product and any
Improved Agreement Product(s) as specified in the Product License Approvals and
as further provided in this Agreement. Specifically, for purposes of this


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   15
                                      -15-


Agreement, the Distributor (and its Affiliates and Subdistributors) agrees
[ *** ,] or unless agreed to in writing by Biomatrix.

         6.5. Legend. Subject to applicable laws and regulations in the
Territory, all relevant packaging and promotional material for the Agreement
Product and any Improved Agreement Product(s) used or sold by the Distributor
(and its Affiliates and Subdistributors) shall contain (i) all applicable
markings needed to keep the Trademarks enforceable throughout the Territory as
reasonably specified by Biomatrix to the Distributor and (ii) a legend which
shall be displayed in a reasonably conspicuous manner on all packaging of such
Agreement Product and any Improved Agreement Product(s) containing the corporate
identification logo of Biomatrix and indicating that such product has been
developed and manufactured by Biomatrix, Inc., and its affiliates, 65 Railroad
Avenue, Ridgefield, New Jersey, 07657 U.S.A.

         6.6. Promotional Support. Biomatrix and the Distributor (and its
Affiliates and Subdistributors) shall provide to each other on an ongoing basis
and without charge (to the extent not prevented by law or contract from doing
so) all medical information relating to the Agreement Product and any Improved
Agreement Product(s) (including summary data from studies, clinical trials and
the like as well as information regarding adverse events associated with the use
of the Agreement Product), the proceedings of all symposia on the Agreement
Product and any Improved Agreement Product(s) and all promotional information
that is available to such party relating to the Agreement Product and any
Improved Agreement Product(s). In addition, Biomatrix and the Distributor (and
its Affiliates and Subdistributors) shall provide each other with access to such
primary data and information in its possession as the other may reasonably
request regarding the results of the studies contained in such summary data
referred to above.

         6.7 Joint Coordinating Committee. Upon the execution of this Agreement,
Biomatrix and the Distributor shall establish a joint coordinating committee
(the "Committee") to review all matters relating to product labelling, product
claims, regulatory matters or clinical trials. The Committee shall consist of an
equal number, not to [ *** ,] of voting representatives from each of Biomatrix
and the Distributor and shall meet [ *** .] In the event of a dispute between
representatives of Biomatrix and the Distributor on the Committee, a senior
representative of each such party shall be appointed to resolve such dispute,
and in the event such senior representatives are unable to resolve the matter,
Biomatrix's view shall prevail over the Distributor's.

         6.8 Recalls of the Agreement Product.

         (a) If either party in good faith determines that a recall of the
Agreement Product in any country in the Territory is warranted, such party shall
immediately notify the other party in writing and shall advise such other party
of the reasons underlying its determination that a recall is warranted. The
parties shall consult with each other as to any action to be 


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   16
                                      -16-


taken in regard to such a recall, but in any event if after consultations either
party in good faith still believes that such a recall should be undertaken, the
parties shall cooperate in carrying out such recall.

         (b) Except as otherwise provided in (c) below, in the event of a recall
of the Agreement Product, Biomatrix shall correct any deficiency relating to its
manufacturing, packaging, testing, labelling, storing or handling of the
Agreement Product for which it is responsible, if applicable, and shall at its
cost replace the Agreement Product recalled.

         (c) Biomatrix shall reimburse Distributor for all direct costs and
expenses (including without limitation shipping, quality control testing and
notification costs) incurred by Distributor and its Affiliates as a result of
any recall, except where such recall (i) is the result of the failure of
Distributor or its Affiliates or Subdistributors to comply with their
obligations under this Agreement and/or (ii) was opposed by Biomatrix and proved
to be unwarranted, in which case Distributor shall reimburse Biomatrix for all
direct costs and expenses (including without limitation shipping, quality
control testing and notification costs) incurred by Biomatrix and its Affiliates
as a result of such recall.

         6.9. Product Vigilance System. The Distributor shall be responsible for
maintaining medical device vigilance systems, as established for the Agreement
Product by Biomatrix, and shall promptly provide Biomatrix with notice of all
product complaints, including medical complaints. Biomatrix shall be solely
responsible for processing, analyzing and, if necessary, reporting medical
complaints to regulatory authorities. The Distributor shall provide all
necessary support to Biomatrix for carrying out such activities.

         7. SUPPLY OF AGREEMENT PRODUCT.

         7.1. General; Fee.

         (a) Biomatrix agrees to sell the Agreement Product and any Improved
Agreement Product(s) to the Distributor, on the terms and subject to the
conditions set forth herein, for resale by the Distributor within the Territory,
and the Distributor shall obtain the Agreement Product and any Improved
Agreement Product(s) for resale in the Territory only from Biomatrix or its
Affiliates. Biomatrix shall not sell the Agreement Product or any Improved
Agreement Product(s) itself or supply or license the manufacture of the
Agreement Product or any Improved Agreement Product(s) to any third party for
resale within the Territory, provided that Biomatrix's obligations under this
sentence shall be subject to (i) applicable law, including without limitation EU
competition law and, in particular, EEC Regulation 1983/83 (as amended or
succeeded) and (ii) the provisions of this Agreement, including Section 2.3.

         (b) [ *** ]


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   17
                                      -17-

[ *** ,] the Distributor shall pay to Biomatrix a fee in the amount of five
million Dollars (US$5,000,000) in cash or by wire transfer on the execution of
this Agreement by the parties hereto. Such fee shall not be refundable in whole
or part.

         7.2. Price; Adjustment; Reports; Payment.

         (a) The parties shall attempt in good faith to agree in writing, prior
to the Launch in each country, upon mutually acceptable supply pricing for the
Distributor's purchase of the Agreement Product and any Improved Agreement
Product(s), but such pricing in any event shall not be less than the greater of
(i) the Minimum Price, or (ii) the Formula Price, except as provided in
subsection (b) below. The parties shall attempt in good faith to agree in
writing upon mutually acceptable minimum pricing for the Agreement Product in
sizes other than the 1.0cc Treatment Syringe and for any Improved Agreement
Product(s). For any syringe with a fill volume of greater than one cc (1cc), the
Minimum Price shall be the amount calculated as [ *** ] plus the dollar amount
which equals [ *** ] of such product with a larger fill volume [ *** ] of the
one cc(1cc) syringe. In the event that Biomatrix's actual incremental Cost of
Goods Sold exceeds such dollar amount, the Minimum Price shall be the amount
calculated as [ *** .] Subject to the general commercial availability of
appropriate syringes for the Agreement Product, the [ *** ] for a one and
one-half (1.5)cc syringe, [ *** ] for a two (2.0)cc syringe, and [ *** ] for a
two and one-half (2.5)cc syringe.

         (b) If Biomatrix has appointed a new distributor for a country in the
Territory pursuant to Section 2.3 and the Distributor has the right to
distribute the Agreement Product and any Improved Agreement Product(s) in such
country, the supply pricing for the Distributor's purchase of the Agreement
Product and any Improved Agreement Product(s) for resale in such country
[ *** .]

         (c) The price initially payable by the Distributor to Biomatrix for
each unit of the Agreement Product during each month of each Agreement Year
shall be the Minimum Price applicable to sales in such country (subject to
adjustment at the close of each applicable Contract Quarter and Agreement Year
in accordance with Section 7.2(e) below).

         (d) Within [ *** ] after the end of each month of each
Agreement Year for each country in the Territory, the Formula Price for the
Agreement Product in such 


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   18
                                      -18-


country shall be calculated, and, to the extent that such Formula Price exceeds
the applicable Minimum Price for such Agreement Year for such country, an
adjustment resulting from the [ *** ] with respect to all units of the
Agreement Product sold by the Distributor (and its Affiliates and
Subdistributors) in such country during such monthly period, such payment to be
made [ *** ] after the end of the month following such monthly period.

         (e) Within [ *** ] after the end of each Contract Quarter and Agreement
Year for each country, the Formula Price for the Agreement Product in such
country shall be calculated and an adjustment resulting from the [ *** ,] as
appropriate, to the other party with respect to all units of the Agreement
Product sold by the Distributor in such country during such Contract Quarter and
Agreement Year, such payment to be made within [ *** ] after the end of such 
[ *** ] period following the end of such Contract Quarter and Agreement Year. 
The price calculated annually in this manner shall be the final price payable
for all units of the Agreement Product sold by the Distributor, any Affiliates
or Subdistributors of Distributor during such Agreement Year. For the avoidance
of doubt, the aggregate amount payable by Distributor for the Agreement
Product(s) and any Improved Agreement Product(s) in any country for any
Agreement Year shall in no event be lower than the Minimum Price multiplied by
the total units sold in such Agreement Year in such country.

         (f) Within [ *** ] following the end of each calendar month in each
Agreement Year, the Distributor shall submit to Biomatrix written reports
detailing the units and value of the Distributor's, Affiliates' and
Subdistributors' Net Retail Sales and aggregate number of units sold of the
Agreement Product and any Improved Agreement Product(s) in each country in the
Territory during the immediately preceding calendar month.

         (g) Within [ *** ] following the end of each Agreement Year, the
Distributor shall submit to Biomatrix written reports detailing the
Distributor's and its Affiliates' and Subdistributors' sales of the Agreement
Product and any Improved Agreement Product(s) during the immediately preceding
Agreement Year, which reports shall contain the Net Retail Sales of the
Agreement Product and any Improved Agreement Product(s) in each country in the
Territory, and the aggregate number of units of the Agreement Product and any
Improved Agreement Product(s) sold in each country in the Territory during the
applicable Agreement Year.

         (h) All purchases of the Agreement Product and any Improved Agreement
Product(s) hereunder shall be billed and paid in Dollars within [ *** ] after
the later of the date of delivery or the date of the Distributor's receipt of
the invoice for each shipment of same to the Distributor.


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.
<PAGE>   19
                                      -19-

        7.3.   Sales and Supply Forecasts; Accounts.

         (a) Exhibit D, which shall be supplied by the Distributor within
[ *** ] of the Effective Date, sets forth a sales forecast of units of the
Agreement Product in the Territory for the first year after the Effective Date.

         (b) Within [ *** ] after the end of each month, the Distributor shall
provide to Biomatrix an updated rolling twelve (12) month monthly supply
forecast for all unit sizes of the Agreement Product in the Territory. Each such
supply forecast described in this subsection (b) is referred to herein as a
"Supply Forecast"; provided, that updated Supply Forecasts shall not vary
(whether up or down) from the immediately preceding Supply Forecast by more than
[ *** ] with respect to each month covered by such preceding Supply Forecast.

        (c) The Distributor shall maintain, and shall require its Affiliates and
Subdistributors to maintain, books of account with respect to sales of the
Agreement Product in the Territory by it and its Affiliates and Subdistributors.
Biomatrix shall have the right, not more than once during each calendar year, to
have an independent accountant selected and retained by Biomatrix (reasonably
acceptable to the Distributor, provided that any "big six" accounting firm shall
be deemed reasonable) to inspect and examine such books of the Distributor, its
Affiliates and Subdistributors during regular business hours for the purpose of
verifying the statements of the aggregate Net Retail Sales of all Dermal Tissue
Augmentation Products for all purposes hereunder, including verification of
Formula Price and the royalties described in Section 8. The cost of each such
audit shall be borne by Biomatrix unless a material error is discovered in the
course of such audit, in which case the cost shall be borne by the Distributor.
For purposes of this Section 7.3(d), a material error shall be defined as an
understatement of five percent (5%) or more of the aggregate amount owed to
Biomatrix with respect to sales of Dermal Tissue Augmentation Products in a
country in the Territory. Any additional payments required as a result of such
inspection and examination shall be immediately paid to Biomatrix and shall bear
interest from the date such amount would otherwise have been paid until the date
of actual payment at the rate per annum set forth in Section 20. Such
independent accounting firm shall conduct such inspections and examinations
under conditions of confidentiality.

         7.4. Shipment and Delivery; Packaging.

         (a) Biomatrix or an Affiliate of Biomatrix shall arrange for shipment
to the Distributor of the Agreement Product and any Improved Agreement
Product(s) ordered by the Distributor [ *** ]. The Distributor shall
pay all customs duties, sales taxes and other governmental charges relating to
the Agreement Product and any Improved Agreement Product(s), and shall be solely
responsible for clearing such products through customs throughout the Territory.


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   20
                                      -20-


         (b) The Distributor shall submit a firm purchase order setting forth
the quantities, delivery date and shipping instructions with respect to each
shipment of the Agreement Product and any Improved Agreement Product(s), such
purchase orders to be received by Biomatrix at least [ *** ] prior to the
requested delivery date; provided that the Distributor shall not submit any
purchase order for fewer than [ *** ] units of the Agreement Product or the
Improved Agreement Product(s) (although multiple delivery sites for purchase
orders shall be allowed). Biomatrix shall use commercially reasonable efforts
but shall have no obligation to supply Distributor with quantities of the
Agreement Product(s) and Improved Agreement Product(s) in excess of the amounts
in the then current Supply Forecast for the relevant monthly period. For
avoidance of doubt, so long as Biomatrix supplies Distributor with quantities of
the Agreement Product and Improved Agreement Product(s) as set forth in the
Supply Forecast, then Biomatrix shall not be deemed to be in default under this
section or any other provision of this Agreement relating to Biomatrix's supply
obligations. In addition to the foregoing, within [ *** ,] in consideration
for which units the Distributor shall pay to Biomatrix a price of [ *** ] per
unit.

         (c) Biomatrix agrees that with respect to languages for packaging for
the European Territory three separate forms of packaging shall be made
available, as applicable, as follows:

                  (i) Northern Europe - English, Dutch, French, German and
                  Italian;

                  (ii) Southern Europe - English, Italian, Spanish, Portuguese
                  and Greek; and

                  (iii) Scandinavia - English, Swedish, Norwegian, Danish and
                  Finnish.

         (d) Each unit of the Agreement Product and any Improved Agreement
Products shipped to the Distributor shall have, as of the time of delivery, a
remaining shelf life of no less than [ *** ] less than the maximum shelf life
for such product, as approved by the United States Food and Drug Administration.
Biomatrix shall continually use its best efforts at all times during the term
hereof to lengthen to [ *** ] the shelf life of the Agreement Product and any
Improved Agreement Products to the extent supported by stability data.
Biomatrix' "best efforts" in this section shall mean that Biomatrix shall use
such methods, exercise such degree of effort and diligence, and adhere to such
standards as are commercially reasonable.

         7.5. Title. Legal title to all quantities of the Agreement Product and
any Improved Agreement Product(s) sold hereunder shall remain in Biomatrix until
delivery of the Agreement Product and any Improved Agreement Product(s) to
Distributor or its agent and acceptance thereof and upon such delivery and
acceptance the title to such Agreement 


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   21
                                      -21-


Product and any Improved Agreement Product(s) shall, without further action, be
transferred to and vested in the Distributor.

         7.6. Risk of Loss. Biomatrix shall bear all risk of loss of, or damage
to, all units of the Agreement Product and any Improved Agreement Product(s) to
the extent the same is in its possession or the possession of its Affiliates,
nominees or agents. The Distributor shall bear all risk of loss of, or damage
to, all units of the Agreement Product and any Improved Agreement Product(s)
after delivery to a common carrier for shipment to the Distributor in accordance
with Section 7.4.

         7.7. Acceptance. [ *** .] All units of the Agreement Product and
Improved Agreement Products delivered to Distributor pursuant to this Agreement
shall be [ *** ,] the specifications listed in Exhibit A. Any non-conformity
which arises after acceptance by Distributor directly associated with product
specification shall be the responsibility of Biomatrix unless such
non-conformity is due to improper storage conditions subsequent to delivery of
the Agreement Product. All other non-conformities of the Agreement Product shall
be the responsibility of the Distributor. Biomatrix and the Distributor agree to
consult with each other in order to resolve the discrepancy between each other's
determinations. If such consultation does not resolve the discrepancy, the
parties agree to nominate a reputable independent laboratory, acceptable to both
parties, that shall carry out tests on representative samples taken from such
shipment, and the results of such tests shall be binding on the parties.
Biomatrix shall at its expense replace any such shipment to the extent that it
does not conform to the Agreement Product Specifications. All defective units of
the Agreement Product or any Improved Agreement Product(s) shall be returned to
Biomatrix at the address set forth in Section 23 of this Agreement, accompanied
or preceded by a reasonably detailed statement of the claimed defect or
non-conformity and proof of date of purchase, and packed and shipped according
to instructions provided by Biomatrix. The shipping costs of any such returned
units shall be borne by Biomatrix, unless such units are determined not to be
defective under the terms of this Agreement, in which case such shipping costs
shall be borne by the Distributor.

         7.8. Purchase Orders. The provisions of this Agreement shall prevail
over any inconsistent statement or provisions contained in any document related
to this Agreement passing between the parties hereto including, but not limited
to, any purchase order, acknowledgment, confirmation or notice.


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   22
                                      -22-


         7.9. Limited Warranty; Limitation on Liability.

         Biomatrix represents and warrants that the Agreement Product and any
Improved Agreement Product(s) supplied to the Distributor hereunder shall:

         (a) conform to the Agreement Product Specifications; and

         (b) be manufactured, labelled, packaged and tested (while in the
possession or control of Biomatrix) in accordance with the applicable Product
License Approvals therefor and all applicable laws and regulations in the
Territory relating to the manufacture, labelling, packaging and testing of the
Agreement Product, and shall be manufactured for use for the indications
specified in the applicable Product License Approvals therefor.

         THE FOREGOING WARRANTY IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY
BIOMATRIX WITH RESPECT TO THE AGREEMENT PRODUCT, AND BIOMATRIX GIVES AND MAKES
NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, OTHER THAN THE
FOREGOING. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, NO IMPLIED WARRANTY
OF MERCHANTABILITY, NO IMPLIED WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE,
AND NO IMPLIED WARRANTY ARISING BY USAGE OF TRADE, COURSE OF DEALING OR COURSE
OF PERFORMANCE IS GIVEN OR MADE BY BIOMATRIX OR SHALL ARISE BY OR IN CONNECTION
WITH ANY SALE OR PROVISION OF THE AGREEMENT PRODUCT BY BIOMATRIX, OR THE
DISTRIBUTOR'S (OR ITS AFFILIATES' OR SUBDISTRIBUTORS') USE OR SALE OF THE
AGREEMENT PRODUCT, OR BIOMATRIX'S AND/OR THE DISTRIBUTOR'S (OR ITS AFFILIATES'
OR SUBDISTRIBUTORS') CONDUCT IN RELATION THERETO OR TO EACH OTHER. NO
REPRESENTATIVE OF BIOMATRIX IS AUTHORIZED TO GIVE OR MAKE ANY OTHER
REPRESENTATION OR WARRANTY OR TO MODIFY THE FOREGOING WARRANTY IN ANY WAY.

         The limited warranty set forth in this Section 7.9 does not apply to
any non-conformity of the Agreement Product or any Improved Agreement Product(s)
resulting from (a) repair or alteration by any party other than Biomatrix or its
Affiliates, (b) misuse, negligence, abuse, accident, mishandling or storage in
an improper environment by any party other than Biomatrix or its Affiliates, or
(c) use, handling, storage or maintenance other than in accordance with
instructions and recommendations provided by Biomatrix or its Affiliates.

         Biomatrix's obligation with respect to units of the Agreement Product
and any Improved Agreement Product(s) which do not meet the warranty contained
herein is limited to replacement of such units of the Agreement Product or
Improved Agreement Product(s) as applicable, provided that such units are
returned to Biomatrix accompanied by a reasonably detailed statement of the
claimed defect or non-conformity and proof of date of purchase, and packed and
shipped according to instructions provided by Biomatrix, and only 


<PAGE>   23
                                      -23-


if, upon examination by Biomatrix, such units of the Agreement Product or the
Improved Agreement Product(s) are determined to have been defective under the
terms of this Agreement.

         BIOMATRIX'S LIABILITY, AND THE EXCLUSIVE REMEDY, IN CONNECTION WITH THE
SALE OR USE OF THE AGREEMENT PRODUCT AND ANY IMPROVED AGREEMENT PRODUCT(S)
(WHETHER BASED ON CONTRACT, NEGLIGENCE, BREACH OF WARRANTY, STRICT LIABILITY OR
ANY OTHER LEGAL THEORY), SHALL BE STRICTLY LIMITED TO BIOMATRIX'S OBLIGATIONS AS
SPECIFICALLY AND EXPRESSLY PROVIDED IN THIS SECTION 7.9 AND IN SECTION 9 BELOW.
EXCEPT AS SPECIFICALLY PROVIDED IN THIS SECTION 7.9 AND IN SECTION 9 BELOW,
BIOMATRIX SHALL HAVE NO LIABILITY, OBLIGATION OR RESPONSIBILITY OF ANY KIND, IN
ANY WAY OR TO ANY EXTENT, FOR ANY DAMAGES, LOSSES, COSTS, EXPENSES OR
LIABILITIES FOR ANY REPRESENTATION OR WARRANTY OF ANY KIND WITH RESPECT TO THE
AGREEMENT PRODUCT AND ANY IMPROVED AGREEMENT PRODUCT(S) OR THE PERFORMANCE
THEREOF, OR ARISING IN ANY WAY IN CONNECTION WITH THE PURCHASE OR USE OR
INABILITY TO USE THE AGREEMENT PRODUCT OR ANY IMPROVED AGREEMENT PRODUCT(S),
EVEN IF BIOMATRIX HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO
EVENT WHATSOEVER SHALL BIOMATRIX HAVE ANY LIABILITY, OBLIGATION OR
RESPONSIBILITY FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY
DAMAGES ARISING IN ANY WAY IN CONNECTION WITH THE AGREEMENT PRODUCT OR ANY
IMPROVED AGREEMENT PRODUCT(S) OR THEIR SALE OR USE.


<PAGE>   24
                                      -24-


         8. ROYALTY PAYMENTS BY DISTRIBUTOR.

         8.1. Royalties for Sales of Dermal Tissue Augmentation Products. The
Distributor shall pay to Biomatrix a royalty of [ *** ] of the Net Retail
Sales by the Distributor and its Affiliates and Subdistributors of all Dermal
Tissue Augmentation Products (other than sales of the Agreement Product and any
Improved Agreement Product(s)) in all countries in the Territory on a
country-by-country basis, including any countries that are added to the
Territory after the Effective Date, [ *** .] Such royalty shall commence with
respect to each country in the Territory at the earlier of (a) the Launch of the
Agreement Product in such country or (b) the Launch date for such country set
forth on Exhibit B; provided that if a Launch is delayed due to Biomatrix's
failure to meet its supply obligations under Section 7.4, due to a force majeure
condition of Distributor or if the Distributor is not able to lawfully sell the
Agreement product in such country, such royalty with respect to any such country
shall not commence until Biomatrix meets its supply obligations, Distributor is
able to lawfully sell the Agreement Product in such country, or until such force
majeure condition ceases. Such royalty shall be paid by not later than [ *** ]
after the end of each Contract Quarter.

         8.2. Incremental Royalties. The Distributor shall pay to Biomatrix the
following annual royalties (the "Incremental Royalties") on the Distributor's
and its Affiliates' and Subdistributors' total incremental increases in Net
Retail Sales of all Dermal Tissue Augmentation Products (including the Agreement
Product and any Improved Agreement Product(s)), in each country in the Territory
based on the incremental increases, if any, in Net Retail Sales of all Dermal
Tissue Augmentation Products in such country in each Agreement Year over a base
year amount comprised of Net Retail Sales of Dermal Tissue Augmentation Products
in the twelve (12) months immediately preceding the first commercial sale of
either the Agreement Product or any Improved Agreement Product(s) in such
country:

<TABLE>
<CAPTION>
               Increase in Total
               Sales Over Base                     Royalty on Total  
               Year Amount                         Incremental Sales 
               -----------                         ----------------- 
<S>            <C>                                <C>
               [ *** ]                            [ *** ]
               [ *** ]                            [ *** ]
               [ *** ]                            [ *** ]
               [ *** ]                            [ *** ]
               [ *** ]                            [ *** ]
               [ *** ]                            [ *** ]
</TABLE>


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   25
                                      -25-

The Distributor's obligation to pay the Incremental Royalties shall cease with
respect to a country in the Territory in the event that the Distributor's rights
to sell, distribute, market and promote the Agreement Product and any Improved
Agreement Product have become non-exclusive with respect to such country
pursuant to Section 2.3 or have terminated pursuant to Section 3.2(d). The
Incremental Royalty shall be paid by not later than [ *** ] after the end of
each Agreement Year. For the avoidance of doubt, if the Distributor had no sales
of any Dermal Tissue Augmentation Products in a country prior to the first
commercial sale of either the Agreement Product or any Improved Agreement
Product in such country, the Distributor shall be obligated to pay a [ *** ]
royalty on Net Retail Sales of all Dermal Tissue Augmentation products sold
after such first commercial sale.

         9. INDEMNIFICATION; CONFIDENTIALITY; PUBLIC ANNOUNCEMENT

         9.1. Indemnification from the Distributor. Subject to the provisions of
Section 9.3, the Distributor shall defend, indemnify and hold Biomatrix and its
Affiliates and their respective directors, officers, agents and employees
harmless from and against any and all liabilities, claims, damages and expenses
(including without limitation actual court costs and reasonable attorneys' fees
regardless of outcome) resulting from claims of third parties or arising out of:

         (a) any failure by the Distributor, its Affiliates or Subdistributors
to act in accordance with the terms of this Agreement and/or any applicable laws
and regulations in the Territory in connection with the Agreement Product and
any Improved Agreement Product(s), including without limitation any unauthorized
representations, warranties or guarantees given by the Distributor, its
Affiliates or Subdistributors;

         (b) any unauthorized use of an unapproved label on the Agreement
Product or any Improved Agreement Product(s); and/or

         (c) any activities of the Distributor, its Affiliates or
Subdistributors relating to the promotion, marketing, sale and distribution of
the Agreement Product and any Improved Agreement Product(s);

         provided, however, that upon Biomatrix being advised of any assertions
of any such third party claims or suits or upon the bringing or filing of such
claims or suits by any third party against Biomatrix, Biomatrix will promptly
notify the Distributor thereof and Biomatrix may, at its option, permit the
Distributor's attorneys to handle and control the defense of such claims or
suits at the Distributor's cost and Biomatrix will co-operate with the
Distributor in the defense thereof. The parties agree that there shall be no
settlements, whether agreed to in court or out of court, without the prior
written consent of the indemnifying party.

         9.2. Indemnification from Biomatrix. Subject to the provisions of
Section 9.3, Biomatrix shall defend, indemnify and hold the Distributor and its
Affiliates and their


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   26
                                      -26-


respective directors, officers, agents and employees harmless from and against
any and all liabilities, claims, damages and expenses (including without
limitation actual court costs and reasonable attorneys' fees regardless of
outcome) resulting from claims of third parties arising out of:

         (a) any failure by Biomatrix to act in accordance with applicable laws
and regulations in the Territory in connection with the Agreement Product and
any Improved Agreement Product(s) (including changing a jointly agreed upon
label without the consent of Distributor);

         (b) a product or manufacturing defect in the Agreement Product or any
Improved Agreement Product(s); and

         (c) any infringement of the patent rights of third parties resulting
from the use or sale of the Agreement Product in the Territory in accordance
with this Agreement.

provided, however, that upon the Distributor being advised of any assertions of
any such third party claims or suits or upon the bringing or filing of such
claims or suits by any third party against the Distributor, the Distributor will
promptly notify Biomatrix thereof and, at Biomatrix's cost, permit Biomatrix's
attorneys to handle and control the defense of such claims or suits and will
co-operate with Biomatrix in the defense thereof. The parties agree that there
shall be no settlements, whether agreed to in court or out of court, without the
prior written consent of the indemnifying party.

         9.3. Limitation on Liability.

         NOTWITHSTANDING ANY PROVISION TO THE CONTRARY IN SECTIONS 9.1 AND 9.2
ABOVE, OR ANY OTHER PROVISION OF THIS AGREEMENT, IN NO EVENT (INCLUDING THE
FAULT, NEGLIGENCE OR STRICT LIABILITY OF EITHER PARTY) SHALL EITHER PARTY BE
LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR
EXEMPLARY DAMAGES OTHER THAN TO THE EXTENT NECESSARY TO REIMBURSE SUCH OTHER
PARTY FOR DAMAGES ACTUALLY PAID TO A NON-AFFILIATED THIRD PARTY, PROVIDED THAT
SUCH DAMAGES ARE OTHERWISE COVERED BY THE PROVISIONS OF SECTION 9.1 OR SECTION
9.2, AS THE CASE MAY BE.

         9.4. Confidential Information. All information acquired by either party
(the "Recipient") from the other party or any of its Affiliates (the
"Discloser") during the term of this Agreement or prior to the Effective Date,
relating directly or indirectly to the present or potential business,
operations, corporate, technical or financial situation of the Discloser, or to
manufacturing know-how, patents, data, test results, techniques, processes,
procedures, raw materials, dealer, supplier and customer lists, pre-clinical and
clinical protocols or any improvements thereof of the Discloser ("Confidential
Information") is confidential, and shall be held in trust by the Recipient for
the exclusive benefit of the Discloser. Unless otherwise


<PAGE>   27
                                      -27-


agreed to in writing by the Discloser, the Recipient shall not at any time,
either during or subsequent to the term of this Agreement, use for itself (other
than in accordance with the terms of this Agreement) or any other Person, or
disclose or divulge to any Person, other than to those of its employees and
advisors and Affiliates who require the same for the purposes hereof and who are
bound by the same obligations of confidentiality, non-disclosure and non-use as
set forth herein, any Confidential Information or any other confidential or
proprietary information of the Discloser of which the Recipient may acquire
knowledge; provided, however, that the confidentiality, non-disclosure and
non-use provisions contained in this Section 9.4 shall not apply to any
information or data to the extent that the Recipient:

         (a) shall demonstrate by clear and convincing evidence that such
information or data is known generally to persons in the trade through no act or
omission of the Recipient or any of its Affiliates;

         (b) is required by any government authority to disclose such
information or data, including without limitation for the purposes of obtaining
and maintaining any Product License Approvals under this Agreement; or

         (c) shall demonstrate by its written records was disclosed to or
created by it or its Affiliates on a non-confidential basis from a source other
than the Discloser or its Affiliates and that such disclosure or creation did
not constitute a breach of any applicable confidentiality obligations.

Confidential Information shall be immediately returned to the Discloser upon
termination of this Agreement, along with any copies, reproductions, digests,
abstracts or the like of all or any part thereof in the Recipient's possession
or under the Recipient's control, and upon such return any computer entries or
the like relating thereto shall, to the extent legally permissible, be
destroyed. Such return (and destruction) will not affect the Recipient's
obligations hereunder which shall survive indefinitely. Notwithstanding anything
herein to the contrary, the provisions of this Section 9.4 shall be subject to
Biomatrix's rights under Section 3.6.

         9.5. Public Announcement. Except as shall be necessary for governmental
notification purposes or to comply with applicable laws and regulations, and
except as otherwise agreed to by the parties hereto in writing, the parties
agree to keep the existence of this Agreement, and the transactions contemplated
hereby, strictly confidential. In the event that a party must file this document
or otherwise disclose any of its subject matter pursuant to public filing
requirements, such party shall seek confidential treatment of those portions of
the Agreement as the parties shall mutually agree upon; provided, however, that
the Distributor must provide written notice to Biomatrix no later than June 30,
1996 of those portions of the Agreement for which the Distributor requests
confidential treatment. The parties shall agree upon the text of an initial
public announcement relating to the transactions contemplated by this Agreement
as soon as 


<PAGE>   28
                                      -28-


possible. Any subsequent public announcements regarding this Agreement or the
transactions contemplated herein shall also be agreed upon in writing between
the parties prior to any release thereof.

         10. NEW PRODUCTS.

         10.1 [ *** ,] Distributor shall not commercialize nor begin the
commercialization process with respect to or acquire any New Product anywhere in
the Territory or the United States, either independently or in conjunction with
one or more third parties, unless and until the following conditions have been
satisfied:

         (a) Distributor has made a commercially reasonable written offer to
Biomatrix to participate with Distributor in the development and
commercialization of such New Product; and

         (b) Biomatrix has failed to accept such written offer within [ *** ]
of its receipt of such offer.

         In the event that Biomatrix fails to accept any written offer made by
Distributor pursuant to this Section 10.1 within [ *** ] of Biomatrix's
receipt thereof, then Distributor, subject to the terms of this Agreement, shall
have the right to independently or with other parties develop and/or
commercialize any New Product to which such written offer relates; provided,
however, that any such New Product does not infringe upon any of the
intellectual property rights of Biomatrix. Distributor shall not be required to
make the written offer to Biomatrix set forth in Section 10.1(a) above only in
the event and to the extent that it is prevented from doing so due to patented
proprietary rights of a third party.

         (c) At all times during the term of this Agreement, Distributor shall
notify Biomatrix in writing within [ *** ] of each occurrence of one or more of
the following:

                  (i)      Distributor's entering into an agreement with one or
                           more third parties with regard to the development,
                           acquisition and/or commercialization of any New
                           Product, and Distributor shall provide to Biomatrix
                           notice of such agreement and any and all agreements
                           relating thereto and a non-confidential summary of
                           such agreements; or

                  (ii)     Distributor's commencing a clinical trial (either
                           alone or in conjunction with a third party) with
                           respect to any New Product, together with notice of
                           the commencement of such clinical trial and a list of
                           all countries where such clinical trial will take
                           place; or


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   29
                                      -29-


                  (iii)    Distributor's filing of an application (either alone
                           or in conjunction with a third party) for marketing
                           approval with the United States Food and Drug
                           Administration or an equivalent regulatory agency in
                           any country with respect to any New Product stating
                           in which countries any such filings have been made.

         10.2 So long as either [ *** ] Agreement Product and any Improved
Agreement Product [ *** ] and/or (b) Distributor [ *** ,] either independently
or in conjunction with one or more third parties, [ *** ,] Biomatrix shall not
[ *** ] until the following conditions have been satisfied:

                  (i)      Biomatrix has made a commercially reasonable
                           [ *** ] to Distributor to[ *** ;] and

                  (ii)     Distributor has [ *** .]

         In the event that Distributor [ *** ] by Biomatrix pursuant to this
Section 10.2 [ *** ] then Biomatrix [ *** ] by this Agreement [ *** ;] provided,
however, that Biomatrix shall not have the right to commercialize any such New
Products within [ *** ] so long as either of the conditions set forth in Section
10.2(a) or 10.2(b) is satisfied. Specifically, once one of the conditions in
Section 10.2(a) or 10.2(b) is not satisfied, Distributor shall (subject to the
terms of this Agreement) [ *** ,] however, after such date it shall [ *** .]

         10.3. Nothing in this Section 10 shall be construed, by implication or
otherwise, (i) to effect any sale or license of proprietary Biomatrix technology
(including any New Products), (ii) to grant any license relating to Biomatrix's
proprietary methods of formulating, fabricating and manufacturing the Agreement
Product, Improved Agreement 


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   30
                                      -30-


Products or New Products, or (iii) to grant Distributor any rights in or to any
proprietary technology or Patents or Trademarks of Biomatrix.

         11. REPRESENTATIONS OF BIOMATRIX. Biomatrix represents, warrants and
covenants as follows:

         11.1. It is a corporation duly organized and validly existing under the
laws of the State of Delaware with the full power to conduct its affairs as
currently conducted and contemplated hereunder. All necessary action has been
taken to enable it to execute and deliver this Agreement and perform its
obligations hereunder.

         11.2. This Agreement is a valid and binding obligation of Biomatrix
enforceable in accordance with its terms. Biomatrix has the unencumbered right
to enter into this Agreement and to fulfill its duties hereunder. It is not and
will not become a party to any agreement in conflict herewith. Accordingly,
Biomatrix has the right to appoint the Distributor as the exclusive distributor
of the Agreement Product in the Territory in accordance with the terms of this
Agreement and such appointment will not constitute a breach of any existing
contractual or other arrangements between Biomatrix and any Affiliated or
non-Affiliated third party, nor shall it infringe the rights of any Affiliated
or non-Affiliated third party.

         11.3 No approval, consent, order, authorization or license by, giving
notice to or taking any other action with respect to, any governmental or
regulatory authority is required in connection with the execution and delivery
of this Agreement by Biomatrix and the performance by Biomatrix of its
obligations hereunder.

         12. REPRESENTATIONS OF THE DISTRIBUTOR. The Distributor represents,
warrants and covenants as follows:

         12.1 It is a corporation duly organized and validly existing under the
laws of Delaware with full power to conduct its affairs as currently conducted
and contemplated hereunder. All necessary action has been taken to enable it to
execute and deliver this Agreement and perform its obligations hereunder.

         12.2. This Agreement is the Distributor's valid and binding obligation
enforceable in accordance with its terms. The Distributor has the unencumbered
right to enter into this Agreement and to fulfill its obligations hereunder. It
is not and will not become a party to any agreement in conflict herewith.
Accordingly, the Distributor has the right to act as the exclusive distributor
of the Agreement Product in the Territory in accordance with the terms of this
Agreement and the performance of its obligations hereunder will not constitute a
breach of any existing contractual or other arrangements between the Distributor
and any Affiliated or non-Affiliated third party, nor shall it infringe the
rights of any Affiliated or non-Affiliated third party.


<PAGE>   31
                                      -31-


         12.3. No approval, consent, order, authorization or license by, giving
notice to or taking any other action with respect to any governmental or
regulatory authority is required in connection with the execution and delivery
of this Agreement by the Distributor and the performance by the Distributor of
its obligations hereunder.

         13. INSURANCE. Each party hereto shall (a) obtain and maintain such
insurance policies as are adequate to cover its respective obligations hereunder
and which are consistent with normal business practices of prudent companies
similarly situated and (b) provide the other party, upon request, with
certificates of insurance confirming the existence of such insurance policies.

         14. INFRINGEMENT. Each of the Distributor and Biomatrix will promptly
notify the other party in writing of any infringement of a Patent or Trademark
or unauthorized disclosure or use of any Confidential Information, of which it
becomes aware in the Territory. Biomatrix shall have the exclusive right at its
own cost to take all legal action in the Territory it deems necessary or
advisable to eliminate or minimize the consequences of such infringement of a
Patent or Trademark in the Territory. For the purpose of taking any such legal
action, Biomatrix shall have the right, subject to the Distributor's consent
which consent shall not be unreasonably withheld or delayed, to use the name of
the Distributor as plaintiff, either solely or jointly in accordance with the
applicable rules of procedure; provided that Biomatrix shall give the
Distributor prior notice of such use of the Distributor's name. The Distributor
shall promptly furnish Biomatrix with whatever written authority may be required
in order to enable Biomatrix to use the Distributor's name in connection with
any such legal action, and shall otherwise cooperate fully and promptly with
Biomatrix in connection with any such action. All proceeds realized upon any
judgment or settlement regarding such action shall belong to Biomatrix.

         15. REGULATORY ACTIVITIES; CLINICAL TRIALS AND MARKETING STUDIES.

         15.1. General.

         (a) Biomatrix shall be responsible for maintaining at its cost the
Product License Approvals required for the marketing and sale of the Agreement
Product and any Improved Agreement Product(s) in the European Territory
throughout the term of this Agreement. The Distributor shall use its best
efforts to obtain and maintain at its cost any Product License Approvals and to
conduct at its cost any clinical trials required for the marketing and sale of
the Agreement Product and any Improved Agreement Product(s) in each country in
the Territory, except for the European Territory, throughout the term of this
Agreement. "Best efforts" in this context shall mean such that Distributor shall
generally use the same methods, exercise the same degree of effort and
diligence, and adhere to the same standards as Distributor and its Affiliates
would apply to their own actively promoted pharmaceutical products in the
Territory, and shall be as are commercially reasonable.

         (b) Biomatrix shall assist the Distributor in submitting applications
for Product License Approvals, provided that (i) Biomatrix shall be entitled
generally to oversee the 


<PAGE>   32
                                      -32-


strategy and content of regulatory approval applications (in their original form
whether in English or any other language) and (ii) the content of all such
applications shall be subject to Biomatrix's prior written approval, such
approval or disapproval to be given by Biomatrix within [ *** ] of its receipt
thereof. The timing of such applications shall be mutually agreed in writing by
the parties. Biomatrix shall hold in its name all regulatory approvals required
for the marketing and sale of the Agreement Product and any Improved Agreement
Product(s) in the Territory, except to the extent that applicable law requires
that such regulatory approvals be held in the name of the Distributor.

         (c) The Distributor and Biomatrix shall provide reasonable advice and
assistance to each other as may be necessary to obtain and maintain Product
License Approvals.

         (d) Except to the extent necessary to give effect to the provisions of
Section 3.3(b), the Product License Approvals relating to the Agreement Product
and any Improved Agreement Product(s) in the Territory in the name of the
Distributor or any of its Affiliates shall be transferred to Biomatrix
immediately upon termination of the Agreement.

         (e) During the term of this Agreement, each party shall immediately
notify the other in writing in the event that such party becomes aware of any
failure of the Agreement Product and any Improved Agreement Product(s) to comply
with any of the requirements therefor specified in any Product License
Approvals.

         (f) Each of the Distributor and Biomatrix shall keep the other advised
of regulatory interactions, activities and correspondence and the registration
status of the Agreement Product and any Improved Agreement Product(s) on at
least a quarterly basis, and any matters requiring immediate attention shall be
communicated as soon as practicable.

         15.2. Clinical Trials and Marketing Studies.

         (a) The Distributor shall be responsible at its own cost for conducting
and managing any clinical trials which the Distributor or Biomatrix may be
required to undertake in order to obtain Product License Approvals in the
Territory, except in the European Territory. The protocols for any such clinical
trials will be developed jointly by Biomatrix and the Distributor, and Biomatrix
shall have the right to audit the performance of any clinical studies performed
by or on behalf of the Distributor in respect of the Agreement Product and any
Improved Agreement Product(s). The Distributor shall provide Biomatrix with the
results of all such clinical trials, and Biomatrix and its Affiliates shall be
free to use the results of such clinical trials.

         (b) The parties agree that if any marketing-related studies are deemed
necessary, such studies will not delay the Launch in any country in the European
Territory. The protocols for any marketing-related studies requested by the
Distributor will be developed jointly by Biomatrix and the Distributor, and the
Distributor will be responsible for conducting and managing such studies at its
own expense. Biomatrix shall have the right to 


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   33
                                      -33-


audit the performance of any marketing-related studies performed by or on behalf
of the Distributor. The results of such studies will not be published or
publicized in any way without the prior written approval of Biomatrix.

         16. FURTHER ASSURANCES. The parties hereto agree to execute such
further or other documents and assurances as are necessary from time to time in
order to give effect to the provisions of this Agreement.

         17. ASSIGNMENT. The rights and obligations of the parties hereto shall
inure to the benefit of and shall be binding upon the authorized successors and
permitted assigns of each party. Neither party may assign its rights or
obligations under this Agreement or may designate another person to perform all
or part of its obligations under this Agreement, or to have all or part of its
rights and benefits under this Agreement without the prior written consent of
the other party, except to an Affiliate or to a successor of the business, by
merger or otherwise, to which this Agreement relates, provided that in the case
of an assignment to an Affiliate the assigning party shall promptly notify the
other party in writing of such assignment and shall remain liable (both directly
and as guarantor) with respect to all obligations so assigned. In the event of
any assignment or in the event that an Affiliate of either party shall exercise
rights and/or perform obligations hereunder pursuant to the terms of this
Agreement, the assignee or Affiliate, as the case may be, shall specifically
assume and be bound by the provisions of the Agreement by executing and agreeing
to an assumption agreement satisfactory to the other party hereto.

         18. GOVERNING LAW; ARBITRATION; INJUNCTIVE RELIEF.

         (a) This Agreement shall be governed by and construed in accordance
with the internal and substantive laws of the State of New York, United States
of America. The parties hereby agree that the United Nations Convention on
Contracts for the International Sale of Goods shall not apply to this Agreement
or any other document contemplated hereby. In the event of any dispute touching
or concerning this Agreement, the parties hereby agree to submit such dispute to
their respective presidents by notice delivered in accordance with the
provisions of Section 23, and if within [ *** ,] or such other period as is
agreed upon in writing by the parties hereto, following such reference the
dispute remains unresolved, to submit the dispute for arbitration in Boston,
Massachusetts under the Rules of the American Arbitration Association in effect
on the date of this Agreement (the "Rules") by arbitrators appointed in
accordance with said Rules. Any decision of such arbitrators shall be written
and shall be final and binding upon the parties. In any arbitration pursuant to
this Section the award shall be rendered by a majority of three (3) arbitrators,
one (1) of whom shall be appointed by each party and the third of whom shall be
appointed by mutual agreement of the two (2) party-appointed arbitrators. In the
event of failure of a party to appoint an arbitrator within thirty (30) days
after commencement of the arbitration proceeding or in the event of failure of
the two (2) party-appointed arbitrators to agree upon the appointment of the
third arbitrator within sixty (60) days after commencement of the arbitration
proceeding, such arbitrator shall be appointed by the American Arbitration
Association in accordance with the Rules. The arbitrators shall apply 


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   34
                                      -34-


the governing law set forth in this Section. Judgment upon an award rendered by
the arbitrators may be entered in any court having jurisdiction thereof.

         (b) Each of the parties hereto acknowledges and agrees that damages
will not be an adequate remedy for any material breach or violation of this
Agreement if such material breach or violation would cause immediate and
irreparable harm (an "Irreparable Breach"). Accordingly, notwithstanding the
provisions of Section 18(a) to the contrary, in the event of a threatened or
ongoing Irreparable Breach, each party hereto shall be entitled to seek, in any
state or federal court in the State of New York, equitable relief of a kind
appropriate in light of the nature of the ongoing threatened Irreparable Breach,
which relief may include, without limitation, specific performance or injunctive
relief; provided, however, that if the party bringing such action is
unsuccessful in obtaining the relief sought, the moving party shall pay the
non-moving party's reasonable costs, including attorney's fees, incurred in
connection with defending such action. Such remedies shall not be the parties'
exclusive remedies, but shall be in addition to all other remedies provided in
this Agreement.

         19. SEVERABILITY. In the event that any provision of this Agreement
shall be held by a court of competent jurisdiction or by any governmental body
to be invalid or unenforceable, such provision shall be deemed severable and the
remaining parts and provisions of this Agreement shall remain in full force and
effect.

         20. FORCE MAJEURE. Each of the parties shall be excused from the
performance of its obligations hereunder in the event such performance is
prevented by force majeure, and such excuse shall continue as long as the
condition constituting such force majeure continues. For the purpose of this
Agreement, force majeure is defined as contingencies beyond the reasonable
control of either party, including, without limitation, acts of God, judicial or
regulatory action, war, civil commotion, destruction of production facilities or
materials by fire, earthquake or storm and labor disturbances (whether or not
any such labor disturbance is within the power of the affected party to settle).

         21. INTEREST. Any overdue amounts payable by either party hereunder
shall bear interest compounded monthly at the prime lending rate for Dollars
published from time to time in The Wall Street Journal plus [ *** ] per annum,
or, if lower, the highest rate permissible by applicable law, from the due date
until the date of payment.

         22. NO PARTNERSHIP OR AGENCY. This Agreement and the relations hereby
established by and between Biomatrix and the Distributor do not constitute a
partnership, joint venture, agency or contract of employment between them.

         23. NOTICES. All communications in connection with this Agreement shall
be in writing and sent by postage prepaid first class mail, courier, or telefax,
and if relating to default, late payment or termination, by certified mail,
return receipt requested, telefax or courier, addressed to each party at the
address set forth at the beginning of this Agreement, in the case of Biomatrix,
Attn: Chief Executive Officer, with a copy to: Justin P. Morreale, Esq.,
Bingham, Dana & Gould LLP, 150 Federal Street, Boston, Massachusetts 02110,


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   35
                                      -35-


U.S.A., and in the case of the Distributor, Attn: President, with a copy to
Kimberlie L. Cerrone, Esq., Venture Law Group, 2800 Sand Hill Road, Menlo Park,
California 94025, or to such other address as the addressee shall last have
designated by notice to the communicating party. The date of giving any notice
shall be the date of its actual receipt.

         24. EU REGULATIONS. It is the intention of the parties hereto that this
Agreement shall at all times qualify for the exemption from the provisions of
Article 85(1) of the Treaty of Rome dated 25 March, 1957, as amended, which
either (a) is available under EEC Regulation Number 1983/83, or (b) may
subsequently be available under any successor regulation or regulations thereto.
In the event that any provision of this Agreement is deemed to violate the
conditions for qualifying for the exemption, set out in whichever of those
regulations may be in effect at the relevant time, or if any such regulation is
amended after the date of this Agreement so as to cause this Agreement to fail
to qualify for the exemption, the parties hereto agree that they will, as soon
as it is practicable to do so, enter into good faith negotiations to amend this
Agreement as necessary in order to re-qualify for the exemption or to notify the
Agreement. If those negotiations are not successfully concluded within a
reasonable time (not to exceed ninety (90) days, or such other period as is
agreed upon in writing by the parties hereto, after the relevant regulation is
amended), either party may terminate this Agreement upon written notice to the
other party.

         25. SURVIVAL. The provisions of Sections 3.3, 3.6, 3.7, 3.8, 6.2, 9.1,
9.2, 9.3, 9.4 and 9.5 of this Agreement shall survive the termination or
expiration of this Agreement (as the case may be) and shall remain in full force
and effect. The provisions of this Agreement that do not survive termination or
expiration hereof (as the case may be) shall, nonetheless, be controlling on,
and shall be used in construing and interpreting the rights and obligations of
the parties hereto with regard to, any dispute, controversy or claim which may
arise under, out of, or in connection with this Agreement.

         26. MISCELLANEOUS. This Agreement sets forth the entire agreement
between the parties with respect to the transactions and arrangements
contemplated hereby and supersedes all prior oral or written arrangements. This
Agreement may be modified or amended only by a written instrument executed and
delivered by both parties. None of the provisions of this Agreement shall be
deemed to have been waived by any act or acquiescence on the part of either
party except by an instrument in writing signed and delivered by the party
executing the waiver. This Agreement may be executed in several identical
counterparts, each of which shall be an original, but all of which constitute
one instrument, and in making proof of this Agreement it shall not be necessary
to produce or account for more than one such counterpart.

            [The remainder of this page is intentionally left blank.]


<PAGE>   36
                                      -36-

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


                                        COLLAGEN CORPORATION


                                        By: /s/ HOWARD D. PALEFSKY
                                           -------------------------------------
                                        Name: HOWARD D. PALEFSKY
                                        Title: CHAIRMAN & CEO



                                        BIOMATRIX, INC.


                                        By: /s/ ENDRE A. BALAZS
                                           -------------------------------------
                                           Name: ENDRE A. BALAZS
                                           Title: CEO


<PAGE>   37
                                      -37-


                                    EXHIBITS


<TABLE>
<S>               <C>    <C>
Exhibit A         -      Agreement Product Specification and Approval Documents

Exhibit B         -      Launch Schedule

Exhibit C         -      Patents and Trademarks

Exhibit D         -      Sales Forecasts

Exhibit E         -      Subdistributors

</TABLE>


<PAGE>   38

                                   EXHIBIT A


             Agreement Product Specification and Approval Documents


TESTS                          PROCEDURES                   SPECIFICATIONS



                                    [ *** ]


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.



<PAGE>   39
                                      -39-


                                   EXHIBIT B


                                 Launch Schedule


<TABLE>
<CAPTION>
        Country:                                   Date of Launch
        --------                                   --------------
<S>     <C>                                        <C>

1.      Australia                                  [ *** ]

2.      Austria                                    [ *** ]

3.      Belgium                                    [ *** ]

4.      Denmark                                    [ *** ]

5.      Finland                                    [ *** ]

6.      France                                     [ *** ]

7.      Germany                                    [ *** ]

8.      Greece                                     [ *** ]

9.      Iceland                                    [ *** ]

10.     Ireland                                    [ *** ]

11.     Italy                                      [ *** ]

12.     Japan                                      [ *** ]

13.     Liechtenstein                              [ *** ]

14.     Luxembourg                                 [ *** ]

15.     The Netherlands                            [ *** ]

16.     New Zealand                                [ *** ]

17.     Norway                                     [ *** ]

18.     Portugal                                   [ *** ]
</TABLE>


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.



<PAGE>   40
                                      -40-


<TABLE>
<S>                                                <C>
19.     Spain                                      [ *** ]

20.     Sweden                                     [ *** ]

21.     Switzerland                                [ *** ]

22.     United Kingdom                             [ *** ]

23.     Israel                                     [ *** ]

24.     Argentina                                  [ *** ]

25.     Brazil                                     [ *** ]

26.     Mexico                                     [ *** ]

27.     Canada                                     [ *** ]

28.     Chile                                      [ *** ]
</TABLE>


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.


<PAGE>   41
                                      -41-

                                   EXHIBIT C

                             Patents and Trademarks

                                   Patents(1)/




                                   [ *** ]


----------

         1 All numbers given are for issued patents except [ ***,] and [ ***.]

         2 This [ *** ] has been allowed and will issue in the next few months
under the same number.


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   42
                                      -42-




                                     [ *** ]



***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.



<PAGE>   43
                                      -43-





                                     [ *** ]


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   44
                                      -44-



                             Trademark - Hylaform*

Country and Status                               Ser Nos. or Reg. Nos.
------------------                               ---------------------






                                   [ *** ]







----------
*       Filed in International Classes 5 and 10

Legend: [ *** ]


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.


<PAGE>   45
                                      -45-

                                   EXHIBIT D


                               Sales Forecasts(1)

                                     (Units)


                              First Agreement Year












(1)      The parties acknowledge that in the event of the addition of other
         syringe sizes this forecast is subject to adjustment to incorporate
         such new sizes.


***Confidential portions have been omitted and filed separately with the 
   Securities and Exchange Commission.

<PAGE>   46
                                      -46-



                                   EXHIBIT E

                            Collagen Subdistributors

<TABLE>
<CAPTION>
Country                                          Subdistributor
-------                                          --------------
<S>                                              <C>
Argentina                                        New Pharma S.A.
Brazil                                           Magistral
Chile                                            Prater Laboratorios
Mexico                                           Bard Mexico SA
Israel                                           T.C. Technocare Ltd.
Japan                                            Lederle (Japan) K.K. Ltd.
Columbia                                         Consumed
Cyprus                                           Charitonos Enterprises
Lebanon                                          Pharmed S.A.L.
Turkey                                           Assos Pharmaceuticals
</TABLE>