Exhibit 10.42

# AGREEMENT

THIS
AGREEMENT, made this __ day of March, 2005 by and between Derma Sciences, Inc., a
business corporation organized under the laws of the Commonwealth of Pennsylvania , United
States (Derma U.S.), Derma Sciences Canada Inc., a corporation organized under
the laws of the Province of Ontario, Canada (Derma Canada) and Frederic Eigner
(Employee).

WHEREAS, Employee is
currently employed by Derma U.S. as its Executive Vice President - Operations and by Derma Canada as its General Manager, and

WHEREAS,the parties desire to memorialize the terms and conditions of Employees
employment, NOW, THEREFORE, the parties hereto, in consideration of the mutual
promises and covenants herein contained, hereby agree as follows:

1.
          Employment. Derma U.S. hereby employs Employee, and Employee agrees to be
          employed, as its Executive Vice President  Operations and Derma Canada
          hereby employs Employee, and Employee agrees to be employed, as its General
          Manager upon the terms and conditions hereinbelow set forth.

2. Time and Efforts.Employee will devote substantially all of his business time and efforts to his duties hereunder.

3. Compensation. During
the Term hereof Derma Canada shall pay compensation to Employee as follows:

(a) Base compensation at the
rate of One Hundred Forty-Two Thousand Dollars ($142,000) Cdn. per year;

(b) Bonus, stock options
and/or such other incentive compensation as may be

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determined by the board of directors of Derma U.S. upon recommendation of its
compensation committee.

Reviews by the compensation
committee of Employees base compensation and incentive compensation shall be undertaken not less often than annually. The
principal criteria utilized by the compensation committee in the conduct of its reviews shall be the extent to which Derma U.S.
and Derma Canada attain their performance objectives and the extent of Employees contributions thereto.

4. Term. This
Agreement shall be effective as of March 3, 2005 and shall expire on February 28, 2006 unless sooner terminated pursuant to
Sections 5 or 6 hereinbelow or unless renewed or extended by mutual agreement of the parties hereto.

5. Severance. In the
event Derma U.S. or Derma Canada, without cause, either terminates the employment of Employee or fails to renew this Agreement
upon expiration hereof, Derma U.S. shall pay to Employee severance compensation in the amount of one years base
compensation, from the date of said termination or expiration, as applicable, at the rate most recently in effect pursuant to
paragraph 3(a) hereof.

6. Change in Control.
Within six months of the occurrence of a change in control of Derma U.S. (defined below), Employee may, but shall have
no obligation to, tender his resignation and receive severance compensation as provided in paragraph 5 above to the same extent as
if Derma U.S. or Derma Canada had terminated Employee without cause as of the date of Employees resignation. For purposes of
this paragraph, a change in control shall mean a change in ownership of stock possessing greater than fifty percent
(50%) of the total combined voting power of all classes of stock entitled to vote of Derma U.S.

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7. Option Exercise
Extension. In the event that Derma U.S. or Derma Canada, without cause, either terminates Employees employment or fails
to renew this Agreement upon expiration hereof, or in the event Employee tenders his resignation upon a change in
control, then the period to exercise any option to purchase the securities of Derma U.S. of which Employee may be possessed
shall be extended to the expiration thereof as set forth in the option instrument.

IN
WITNESS WHEREOF, this Agreement has been executed by Employer and Employee as of the
date first hereinabove written.

| | EMPLOYER:                            
| | -------------------------------------
| | DERMA SCIENCES, INC.                 
| | By:________________________________  
| | Edward J. Quilty                     
| | President and Chief Executive Officer
| | DERMA SCIENCES CANADA INC.           
| | By:________________________________  
| | Edward J. Quilty                     
| | President and Chief Executive Officer
| | EMPLOYEE:                            
| | ___________________________________  
| | Fredric Eigner                       

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