Document:

TELESTONE
TECHNOLOGIES CORPORATION

     

    and

     

                        ,
As Warrant Agent

     

    FORM OF
DEBT SECURITIES

    WARRANT
AGREEMENT

     

    Dated
As Of
                    

    
      
        

      

    

    TABLE
OF CONTENTS

     

    
      
        
          
            	
                    ARTICLE 1

                  	
                      

                  	
                    ISSUANCE
      OF WARRANTS AND EXECUTION AND DELIVERY OF WARRANT
    CERTIFICATES

                  	
                    3

                  
	 
      	 
	
                    1.1       
      Issuance of Warrants

                  	
                    3

                  
	 
      	 
	
                    1.2       
      Execution and Delivery of Warrant Certificates

                  	
                    3

                  
	 
      	 
	
                    1.3       
      Issuance of Warrant Certificates

                  	
                    4

                  
	 
      	 
      	 
	
                    ARTICLE 2

                  	
                      

                  	
                    WARRANT
      PRICE, DURATION AND EXERCISE OF WARRANTS

                  	
                    4

                  
	 
      	 
	
                    2.1       
      Warrant Price

                  	
                    4

                  
	 
      	 
	
                    2.2       
      Duration of Warrants

                  	
                    4

                  
	 
      	 
	
                    2.3       
      Exercise of Warrants

                  	
                    5

                  
	 
      	 
      	 
	
                    ARTICLE 3

                  	
                      

                  	
                    OTHER
      PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT
      CERTIFICATES

                  	
                    5

                  
	 
      	 
	
                    3.1       
      No Rights as Holders of Warrant Debt Securities Conferred by Warrants or
      Warrant Certificates

                  	
                    5

                  
	 
      	 
	
                    3.2       
      Lost, Stolen, Mutilated or Destroyed Warrant Certificates

                  	
                    6

                  
	 
      	 
	
                    3.3       
      Holder of Warrant Certificate May Enforce Rights

                  	
                    6

                  
	 
      	 
	
                    3.4       
      Merger, Sale, Conveyance or Lease

                  	
                    6

                  
	 
      	 
	
                    3.5       
      Notice to Warrantholders

                  	
                    6

                  
	 
      	 
      	 
	
                    ARTICLE 4

                  	
                      

                  	
                    EXCHANGE
      AND TRANSFER OF WARRANT CERTIFICATES

                  	
                    7

                  
	 
      	 
	
                    4.1       
      Exchange and Transfer of Warrant Certificates

                  	
                    7

                  
	 
      	 
	
                    4.2       
      Treatment of Holders of Warrant Certificates

                  	
                    7

                  
	 
      	 
	
                    4.3       
      Cancellation of Warrant Certificates

                  	
                    7

                  
	 
      	 
      	 
	
                    ARTICLE 5

                  	
                      

                  	
                    CONCERNING
      THE WARRANT AGENT

                  	
                    7

                  
	 
      	 
	
                    5.1       
      Warrant Agent

                  	
                    7

                  
	 
      	 
	
                    5.2       
      Conditions of Warrant Agent’s Obligations

                  	
                    8

                  
	 
      	 
	
                    5.3       
      Resignation, Removal and Appointment of Successors

                  	
                    9

                  

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                	
                        ARTICLE 6

                      	
                          

                      	
                        MISCELLANEOUS

                      	
                        10

                      
	 
      	 
	
                        6.1       
      Amendment

                      	
                        10

                      

              

            

          

        

      

    

     

    
      
        
          	
                  6.2       
      Notices and Demands to the Company and Warrant Agent

                	
                  10

                
	 
      	 
	
                  6.3       
      Addresses

                	
                   10

                
	 
      	 
	
                  6.4       
      Governing Law

                	
                   10

                
	 
      	 
	
                  6.5       
      Delivery of Prospectus

                	
                   10

                
	 
      	 
	
                  6.6       
      Obtaining of Governmental Approvals

                	
                   10

                
	 
      	 
	
                  6.7       
      Persons Having Rights Under Warrant Agreement

                	
                   10

                
	 
      	 
	
                  6.8       
      Headings

                	
                   10

                
	 
      	 
	
                  6.9       
      Counterparts

                	
                   10

                
	 
      	 
	
                  6.10     
      Inspection of Agreement

                	
                   10

                

        

      

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    TELESTONE
TECHNOLOGIES CORPORATION

    Form of
Debt Securities Warrant Agreement

     

    DEBT SECURITIES WARRANT AGREEMENT
(this “Agreement”),
dated as of
                    
between TELESTONE TECHNOLOGIES
CORPORATION, a Delaware corporation (the “Company”)
and
                    ,
a [corporation] [national banking association] organized and existing under the
laws of
                    
and having a corporate trust office in
                    ,
as warrant agent (the “Warrant
Agent”).

     

    WHEREAS, the Company has
entered into an indenture dated as of
[                     
(the “Senior
Indenture”), with
                    ,
as trustee (such trustee, and any successors to such trustee, herein called the
“Senior
Trustee”), providing for the issuance from time to time of its
unsubordinated debt securities, to be issued in one or more series as provided
in the Senior Indenture (the “Debt
Securities”);]
[                     
(the “Subordinated
Indenture”), with
                    ,
as trustee (such trustee, and any successors to such trustee, herein called the
“Subordinated
Trustee”), providing for the issuance from time to time of its
subordinated debt securities, to be issued in one or more series as provided in
the Subordinated Indenture (the “Debt
Securities”);]

     

    WHEREAS, the Company proposes
to sell [If Warrants are sold with other securities — title of such other
Securities being offered (the “Other
Securities”) with] warrant certificates evidencing one or more warrants
(the “Warrants”
or, individually, a “Warrant”)
representing the right to purchase [title of Debt Securities purchasable through
exercise of Warrants] (the “Warrant Debt
Securities”), such warrant certificates and other warrant certificates
issued pursuant to this Agreement being herein called the “Warrant
Certificates”; and

     

    WHEREAS, the Company desires
the Warrant Agent to act on behalf of the Company, and the Warrant Agent is
willing so to act, in connection with the issuance, registration, transfer,
exchange, exercise and replacement of the Warrant Certificates, and in this
Agreement wishes to set forth, among other things, the form and provisions of
the Warrant Certificates and the terms and conditions on which they may be
issued, registered, transferred, exchanged, exercised and replaced;

     

    NOW, THEREFORE, in
consideration of the premises and of the mutual agreements herein contained, the
parties hereto agree as follows:

     

    ARTICLE 1

     

    ISSUANCE
OF WARRANTS AND EXECUTION AND

    DELIVERY
OF WARRANT CERTIFICATES

     

    1.1 Issuance of
Warrants. [If Warrants alone—Upon issuance, each Warrant Certificate
shall evidence one or more Warrants.] [If Other Securities and
Warrants—Warrant Certificates shall be [initially] issued in connection with the
issuance of the Other Securities [but shall be separately transferable on and
after
                    
(the “Detachable
Date”)] [and shall not be separately transferable] and each Warrant
Certificate shall evidence one or more Warrants.] Each Warrant evidenced
thereby shall represent the right, subject to the provisions contained herein
and therein, to purchase one Warrant Debt Security. [If Other Securities
and Warrants - Warrant Certificates shall be initially issued in units with the
Other Securities and each Warrant Certificate included in such a unit shall
evidence
                    
Warrants for each [$         
principal amount] [         
shares] of Other Securities included in such unit.].

     

    1.2 Execution and Delivery of
Warrant Certificates. Each Warrant Certificate, whenever issued,
shall be in registered form substantially in the form set forth in
Exhibit A hereto, shall be dated the date of its countersignature by the
Warrant Agent and may have such letters, numbers, or other marks of
identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the officers of the Company executing the
same may approve (execution thereof to be conclusive evidence of such approval)
and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange
on which the Warrants may be listed, or to conform to usage. The Warrant
Certificates shall be signed on behalf of the Company by any of its present or
future chief executive officers, presidents, senior vice presidents, vice
presidents, chief financial officers, chief legal officers, treasurers,
assistant treasurers, controllers, assistant controllers, secretaries or
assistant secretaries under its corporate seal reproduced thereon. Such
signatures may be manual or facsimile signatures of such authorized officers and
may be imprinted or otherwise reproduced on the Warrant Certificates. The
seal of the Company may be in the form of a facsimile thereof and may be
impressed, affixed, imprinted or otherwise reproduced on the Warrant
Certificates.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    No
Warrant Certificate shall be valid for any purpose, and no Warrant evidenced
thereby shall be exercisable, until such Warrant Certificate has been
countersigned by the manual signature of the Warrant Agent. Such signature
by the Warrant Agent upon any Warrant Certificate executed by the Company shall
be conclusive evidence that the Warrant Certificate so countersigned has been
duly issued hereunder.

     

    In case
any officer of the Company who shall have signed any of the Warrant Certificates
either manually or by facsimile signature shall cease to be such officer before
the Warrant Certificates so signed shall have been countersigned and delivered
by the Warrant Agent, such Warrant Certificates may be countersigned and
delivered notwithstanding that the person who signed Warrant Certificates ceased
to be such officer of the Company; and any Warrant Certificate may be signed on
behalf of the Company by such persons as, at the actual date of the execution of
such Warrant Certificate, shall be the proper officers of the Company, although
at the date of the execution of this Agreement any such person was not such
officer.

     

    The term
“holder” or “holder of a Warrant Certificate” as used herein shall mean any
person in whose name at the time any Warrant Certificate shall be registered
upon the books to be maintained by the Warrant Agent for that purpose [If Other
Securities and Warrants are not immediately detachable - or upon the
registration of the Other Securities prior to the Detachable Date. Prior to
the Detachable Date, the Company will, or will cause the registrar of the Other
Securities to, make available at all times to the Warrant Agent such information
as to holders of the Other Securities as may be necessary to keep the Warrant
Agent’s records up to date].

     

    1.3 Issuance of Warrant
Certificates. Warrant Certificates evidencing the right to purchase
Warrant Debt Securities may be executed by the Company and delivered to the
Warrant Agent upon the execution of this Agreement or from time to time
thereafter. The Warrant Agent shall, upon receipt of Warrant Certificates
duly executed on behalf of the Company, countersign such Warrant Certificates
and shall deliver such Warrant Certificates to or upon the order of the
Company.

     

    ARTICLE 2

     

    WARRANT
PRICE, DURATION AND

    EXERCISE
OF WARRANTS

     

    2.1 Warrant
Price. During the period specified in Section 2.2, each Warrant
shall, subject to the terms of this Agreement and the applicable Warrant
Certificate, entitle the holder thereof, to purchase the principal amount of
Warrant Debt Securities specified in the applicable Warrant Certificate at an
exercise price of     % of the principal amount thereof
[plus accrued amortization, if any, of the original issue discount of the
Warrant Debt Securities] [plus accrued interest, if any, from the most recent
date from which interest shall have been paid on the Warrant Debt Securities or,
if no interest shall have been paid on the Warrant Debt Securities, from the
date of their initial issuance.] [The original issue discount
($          for each $1,000
principal amount of Warrant Debt Securities) will be amortized at a
    % annual rate, computed on a[n] [semi-] annual basis
[using a 360-day year consisting of twelve 30-day months].] Such purchase price
for the Warrant Debt Securities is referred to in this Agreement as the “Warrant
Price.”

     

    2.2 Duration of
Warrants. Each Warrant may be exercised in whole or in part at any
time, as specified herein, on or after [the date thereof]
[            ] and
at or before
[            ] p.m.,
[City] time, on
                    
or such later date as the Company may designate by notice to the Warrant Agent
and the holders of Warrant
                    
Certificates mailed to their addresses as set forth in the record books of the
Warrant Agent (the “Expiration
Date”). Each Warrant not exercised at or before
[            ] p.m.,
[City] time, on the Expiration Date shall become void, and all rights of the
holder of the Warrant Certificate evidencing such Warrant under this Agreement
shall cease.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    2.3 Exercise
of Warrants.

     

    (a) During the period
specified in Section 2.2, the Warrants may be exercised to purchase a whole
number of Warrant Debt Securities in registered form by providing certain
information as set forth on the reverse side of the Warrant Certificate and by
paying in full, in lawful money of the United States of America, [in cash or by
certified check or official bank check in New York Clearing House funds] [by
bank wire transfer in immediately available funds] the Warrant Price for each
Warrant Debt Security with respect to which a Warrant is being exercised to the
Warrant Agent at its corporate trust office, provided that such exercise
is subject to receipt within five business days of such payment by the Warrant
Agent of the Warrant Certificate with the form of election to purchase Warrant
Debt Securities set forth on the reverse side of the Warrant Certificate
properly completed and duly executed. The date on which payment in full of
the Warrant Price is received by the Warrant Agent shall, subject to receipt of
the Warrant Certificate as aforesaid, be deemed to be the date on which the
Warrant is exercised; provided, however, that if,
at the date of receipt of such Warrant Certificates and payment in full of the
Warrant Price, the transfer books for the Warrant Debt Securities purchasable
upon the exercise of such Warrants shall be closed, no such receipt of such
Warrant Certificates and no such payment of such Warrant Price shall be
effective to constitute the person so designated to be named as the holder of
record of such Warrant Debt Securities on such date, but shall be effective to
constitute such person as the holder of record of such Warrant Debt Securities
for all purposes at the opening of business on the next succeeding day on which
the transfer books for the Warrant Debt Securities purchasable upon the exercise
of such Warrants shall be opened, and the certificates for the Warrant Debt
Securities in respect of which such Warrants are then exercised shall be
issuable as of the date on such next succeeding day on which the transfer books
shall next be opened, and until such date the Company shall be under no duty to
deliver any certificate for such Warrant Debt Securities. The Warrant Agent
shall deposit all funds received by it in payment of the Warrant Price in an
account of the Company maintained with it and shall advise the Company by
telephone at the end of each day on which a payment for the exercise of Warrants
is received of the amount so deposited to its account. The Warrant Agent
shall promptly confirm such telephone advice to the Company in
writing.

     

    (b) The Warrant Agent
shall, from time to time, as promptly as practicable, advise the Company of
(i) the number of Warrant Debt Securities with respect to which Warrants
were exercised, (ii) the instructions of each holder of the Warrant
Certificates evidencing such Warrants with respect to delivery of the Warrant
Debt Securities to which such holder is entitled upon such exercise,
(iii) delivery of Warrant Certificates evidencing the balance, if any, of
the Warrants for the remaining Warrant Debt Securities after such exercise, and
(iv) such other information as the Company or the [Senior] [Subordinated]
Trustee shall reasonably require.

     

    (c) As soon as
practicable after the exercise of any Warrant, the Company shall issue, pursuant
to the Indenture, in authorized denominations, to or upon the order of the
holder of the Warrant Certificate evidencing such Warrant, the Warrant Debt
Securities to which such holder is entitled, in fully registered form,
registered in such name or names as may be directed by such holder. If
fewer than all of the Warrants evidenced by such Warrant Certificate are
exercised, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, a new Warrant Certificate
evidencing Warrants for the number of Warrant Debt Securities remaining
unexercised.

     

    (d) The Company shall not
be required to pay any stamp or other tax or other governmental charge required
to be paid in connection with any transfer involved in the issue of the Warrant
Debt Securities, and in the event that any such transfer is involved, the
Company shall not be required to issue or deliver any Warrant Debt Securities
until such tax or other charge shall have been paid or it has been established
to the Company’s satisfaction that no such tax or other charge is
due.

     

    (e) Prior to the issuance
of any Warrants there shall have been reserved, and the Company shall at all
times through the Expiration Date keep reserved, out of its authorized but
unissued Warrant Debt Securities, a number of shares sufficient to provide for
the exercise of the Warrants.

    

    ARTICLE 3

     

    OTHER
PROVISIONS RELATING TO RIGHTS OF

    HOLDERS
OF WARRANT CERTIFICATES

     

    3.1 No Rights as Holders of
Warrant Debt Securities Conferred by Warrants or Warrant
Certificates. No Warrant Certificate or Warrant evidenced thereby
shall entitle the holder thereof to any of the rights of a holder of Warrant
Debt Securities, including, without limitation, the right to receive the payment
of principal of (or premium, if any) or interest, if any, on the Warrant Debt
Securities or to enforce any of the covenants in the Indenture.

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    3.2 Lost, Stolen, Mutilated or
Destroyed Warrant Certificates. Upon receipt by the Warrant Agent of
evidence reasonably satisfactory to it and the Company of the ownership of and
the loss, theft, destruction or mutilation of any Warrant Certificate and/or
indemnity reasonably satisfactory to the Warrant Agent and the Company and, in
the case of mutilation, upon surrender of the mutilated Warrant Certificate to
the Warrant Agent for cancellation, then, in the absence of notice to the
Company or the Warrant Agent that such Warrant Certificate has been acquired by
a bona fide purchaser, the Company shall execute, and an authorized officer of
the Warrant Agent shall manually countersign and deliver, in exchange for or in
lieu of the lost, stolen, destroyed or mutilated Warrant Certificate, a new
Warrant Certificate of the same tenor and evidencing Warrants for a like
principal amount of Warrant Debt Securities. Upon the issuance of any new
Warrant Certificate under this Section 3.2, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Warrant Agent) in connection therewith. Every
substitute Warrant Certificate executed and delivered pursuant to this
Section 3.2 in lieu of any lost, stolen or destroyed Warrant Certificate
shall represent an additional contractual obligation of the Company, whether or
not the lost, stolen or destroyed Warrant Certificate shall be at any time
enforceable by anyone, and shall be entitled to the benefits of this Agreement
equally and proportionately with any and all other Warrant Certificates duly
executed and delivered hereunder. The provisions of this Section 3.2
are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement of mutilated, lost, stolen or destroyed
Warrant Certificates.

     

    3.3 Holder of Warrant
Certificate May Enforce Rights. Notwithstanding any of the
provisions of this Agreement, any holder of any Warrant Certificate, without the
consent of the Warrant Agent, the [Senior] [Subordinated] Trustee, the holder of
any Warrant Debt Securities or the holder of any other Warrant Certificate, may,
in such holder’s own behalf and for such holder’s own benefit, enforce, and may
institute and maintain any suit, action or proceeding against the Company
suitable to enforce, or otherwise in respect of, such holder’s right to exercise
the Warrants evidenced by such holder’s Warrant Certificate in the manner
provided in such holder’s Warrant Certificates and in this
Agreement.

     

    3.4 Merger, Sale, Conveyance or
Lease. In case of (a) any share exchange, merger or similar
transaction of the Company with or into another person or entity (other than a
share exchange, merger or similar transaction in which the Company is the
acquiring or surviving corporation) or (b) the sale, exchange, lease,
transfer or other disposition of all or substantially all of the properties and
assets of the Company as an entirety (in any such case, a “Reorganization
Event”), then, as a condition of such Reorganization Event, lawful
provisions shall be made, and duly executed documents evidencing the same from
the Company’s successor shall be delivered to the holders of the Warrants, so
that such successor shall succeed to and be substituted for the Company, and
assume all the Company’s obligations under, this Agreement and the
Warrants. The Company shall thereupon be relieved of any further obligation
hereunder or under the Warrants, and the Company as the predecessor corporation
may thereupon or at any time thereafter be dissolved, wound up or
liquidated. Such successor or assuming entity thereupon may cause to be
signed, and may issue either in its own name or in the name of the Company, any
or all of the Warrants issuable hereunder which heretofore shall not have been
signed by the Company, and may execute and deliver securities in its own name,
in fulfillment of its obligations to deliver Warrant Debt Securities upon
exercise of the Warrants. All the Warrants so issued shall in all respects
have the same legal rank and benefit under this Agreement as the Warrants
theretofore or thereafter issued in accordance with the terms of this Agreement
as though all of such Warrants had been issued at the date of the execution
hereof. In any case of any such Reorganization Event, such changes in
phraseology and form (but not in substance) may be made in the Warrants
thereafter to be issued as may be appropriate.

     

    The
Warrant Agent may receive a written opinion of legal counsel as conclusive
evidence that any such Reorganization Event complies with the provisions of this
Section 3.4.

    

    3.5 Notice to
Warrantholders. In case the Company shall (a) effect any
Reorganization Event or (b) make any distribution on or in respect of the
[title of Warrant Debt Securities] in connection with the dissolution,
liquidation or winding up of the Company, then the Company shall mail to each
holder of Warrants at such holder’s address as it shall appear on the books of
the Warrant Agent, at least ten days prior to the applicable date hereinafter
specified, a notice stating the date on which such Reorganization Event,
dissolution, liquidation or winding up is expected to become effective, and the
date as of which it is expected that holders of [title of Warrant Debt
Securities] of record shall be entitled to exchange their shares of [title of
Warrant Debt Securities] for securities or other property deliverable upon such
Reorganization Event, dissolution, liquidation or winding up. No failure to
mail such notice nor any defect therein or in the mailing thereof shall affect
any such transaction.

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    ARTICLE 4

     

    EXCHANGE
AND TRANSFER OF WARRANT CERTIFICATES

     

    4.1 Exchange and Transfer of
Warrant Certificates. [If Other Securities with Warrants which are
immediately detachable—Upon] [If Other Securities with Warrants which are not
immediately detachable—Prior to the Detachable Date, a Warrant Certificate may
be exchanged or transferred only together with the Other Security to which the
Warrant Certificate was initially attached, and only for the purpose of
effecting or in conjunction with an exchange or transfer of such Other
Security. Prior to any Detachable Date, each transfer of the Other Security
shall operate also to transfer the related Warrant Certificates. After the
Detachable Date, upon] surrender at the corporate trust office of the Warrant
Agent, Warrant Certificates evidencing Warrants may be exchanged for Warrant
Certificates in other denominations evidencing such Warrants or the transfer
thereof may be registered in whole or in part; provided that such other
Warrant Certificates evidence Warrants for the same aggregate principal amount
of Warrant Debt Securities as the Warrant Certificates so surrendered. The
Warrant Agent shall keep, at its corporate trust office, books in which, subject
to such reasonable regulations as it may prescribe, it shall register Warrant
Certificates and exchanges and transfers of outstanding Warrant Certificates,
upon surrender of the Warrant Certificates to the Warrant Agent at its corporate
trust office for exchange or registration of transfer, properly endorsed or
accompanied by appropriate instruments of registration of transfer and written
instructions for transfer, all in form satisfactory to the Company and the
Warrant Agent. No service charge shall be made for any exchange or
registration of transfer of Warrant Certificates, but the Company may require
payment of a sum sufficient to cover any stamp or other tax or other
governmental charge that may be imposed in connection with any such exchange or
registration of transfer. Whenever any Warrant Certificates are so
surrendered for exchange or registration of transfer, an authorized officer of
the Warrant Agent shall manually countersign and deliver to the person or
persons entitled thereto a Warrant Certificate or Warrant Certificates duly
authorized and executed by the Company, as so requested. The Warrant Agent
shall not be required to effect any exchange or registration of transfer which
will result in the issuance of a Warrant Certificate evidencing a Warrant for a
fraction of a Warrant Debt Security or a number of Warrants for a whole number
of Warrant Debt Securities and a fraction of a Warrant Debt Security. All
Warrant Certificates issued upon any exchange or registration of transfer of
Warrant Certificates shall be the valid obligations of the Company, evidencing
the same obligations and entitled to the same benefits under this Agreement as
the Warrant Certificate surrendered for such exchange or registration of
transfer.

     

    4.2 Treatment of Holders of
Warrant Certificates. [If Other Securities and Warrants are not
immediately detachable—Prior to the Detachable Date, the Company, the Warrant
Agent and all other persons may treat the owner of the Other Security as the
owner of the Warrant Certificates initially attached thereto for any purpose and
as the person entitled to exercise the rights represented by the Warrants
evidenced by such Warrant Certificates, any notice to the contrary
notwithstanding. After the Detachable Date and prior to due presentment of
a Warrant Certificate for registration of transfer, the] [The] Company, the
Warrant Agent and all other persons may treat the registered holder of a Warrant
Certificate as the absolute owner thereof for any purpose and as the person
entitled to exercise the rights represented by the Warrants evidenced thereby,
any notice to the contrary notwithstanding.

     

    4.3 Cancellation of Warrant
Certificates. Any Warrant Certificate surrendered for exchange,
registration of transfer or exercise of the Warrants evidenced thereby shall, if
surrendered to the Company, be delivered to the Warrant Agent and all Warrant
Certificates surrendered or so delivered to the Warrant Agent shall be promptly
canceled by the Warrant Agent and shall not be reissued and, except as expressly
permitted by this Agreement, no Warrant Certificate shall be issued hereunder in
exchange therefor or in lieu thereof. The Warrant Agent shall deliver to
the Company from time to time or otherwise dispose of canceled Warrant
Certificates in a manner satisfactory to the Company.

    

    ARTICLE 5

     

    CONCERNING
THE WARRANT AGENT

     

    5.1 Warrant
Agent. The Company hereby appoints
                    
as Warrant Agent of the Company in respect of the Warrants and the Warrant
Certificates upon the terms and subject to the conditions herein set forth, and
hereby accepts such appointment. The Warrant Agent shall have the powers
and authority granted to and conferred upon it in the Warrant Certificates and
hereby and such further power and authority to act on behalf of the Company as
the Company may hereafter grant to or confer upon it. All of the terms and
provisions with respect to such power and authority contained in the Warrant
Certificates are subject to and governed by the terms and provisions
hereof.

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    5.2 Conditions of Warrant
Agent’s Obligations. The Warrant Agent accepts its obligations
herein set forth upon the terms and conditions hereof, including the following
to all of which the Company agrees and to all of which the rights hereunder of
the holders from time to time of the Warrant Certificates shall be
subject:

     

    (a) Compensation and
Indemnification. The Company agrees promptly to pay the Warrant
Agent the compensation to be agreed upon with the Company for all services
rendered by the Warrant Agent and to reimburse the Warrant Agent for reasonable
out-of-pocket expenses (including reasonable counsel fees) incurred without
negligence, bad faith or willful misconduct by the Warrant Agent in connection
with the services rendered hereunder by the Warrant Agent. The Company also
agrees to indemnify the Warrant Agent for, and to hold it harmless against, any
loss, liability or expense incurred without negligence, bad faith or willful
misconduct on the part of the Warrant Agent, arising out of or in connection
with its acting as Warrant Agent hereunder, including the reasonable costs and
expenses of defending against any claim of such liability.

     

    (b) Agent for the
Company. In acting under this Agreement and in connection with the
Warrant Certificates, the Warrant Agent is acting solely as agent of the Company
and does not assume any obligations or relationship of agency or trust for or
with any of the holders of Warrant Certificates or beneficial owners of
Warrants.

     

    (c) Counsel. The
Warrant Agent may consult with counsel satisfactory to it, which may include
counsel for the Company, and the written advice of such counsel shall be full
and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in accordance with the
advice of such counsel.

     

    (d) Documents. The
Warrant Agent shall be protected and shall incur no liability for or in respect
of any action taken or omitted by it in reliance upon any Warrant Certificate,
notice, direction, consent, certificate, affidavit, statement or other paper or
document reasonably believed by it to be genuine and to have been presented or
signed by the proper parties.

     

    (e) Certain
Transactions. The Warrant Agent, and its officers, directors and
employees, may become the owner of, or acquire any interest in, Warrants, with
the same rights that it or they would have if it were not the Warrant Agent
hereunder, and, to the extent permitted by applicable law, it or they may engage
or be interested in any financial or other transaction with the Company and may
act on, or as depositary, trustee or agent for, any committee or body of holders
of Warrant Debt Securities or other obligations of the Company as freely as if
it were not the Warrant Agent hereunder. Nothing in this Agreement shall be
deemed to prevent the Warrant Agent from acting as [Senior] [Subordinated]
Trustee under the [Senior] [Subordinated] Indenture.

     

    (f) No Liability for
Interest. Unless otherwise agreed with the Company, the Warrant
Agent shall have no liability for interest on any monies at any time received by
it pursuant to any of the provisions of this Agreement or of the Warrant
Certificates.

    

    (g) No Liability for
Invalidity. The Warrant Agent shall have no liability with respect
to any invalidity of this Agreement or any of the Warrant Certificates (except
as to the Warrant Agent’s countersignature thereon).

     

    (h) No Responsibility for
Representations. The Warrant Agent shall not be responsible for any
of the recitals or representations herein or in the Warrant Certificates (except
as to the Warrant Agent’s countersignature thereon), all of which are made
solely by the Company.

     

    (i) No Implied
Obligations. The Warrant Agent shall be obligated to perform only
such duties as are herein and in the Warrant Certificates specifically set forth
and no implied duties or obligations shall be read into this Agreement or the
Warrant Certificates against the Warrant Agent. The Warrant Agent shall not
be under any obligation to take any action hereunder which may tend to involve
it in any expense or liability, the payment of which within a reasonable time is
not, in its reasonable opinion, assured to it. The Warrant Agent shall not
be accountable or under any duty or responsibility for the use by the Company of
any of the Warrant Certificates authenticated by the Warrant Agent and delivered
by it to the Company pursuant to this Agreement or for the application by the
Company of the proceeds of the Warrant Certificates. The Warrant Agent
shall have no duty or responsibility in case of any default by the Company in
the performance of its covenants or agreements contained herein or in the
Warrant Certificates or in the case of the receipt of any written demand from a
holder of a Warrant Certificate with respect to such default, including, without
limiting the generality of the foregoing, any duty or responsibility to initiate
or attempt to initiate any proceedings at law or otherwise or, except as
provided in Section 6.2 hereof, to make any demand upon the
Company.

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    5.3 Resignation,
Removal and Appointment of Successors.

     

    (a) The Company agrees,
for the benefit of the holders from time to time of the Warrant Certificates,
that there shall at all times be a Warrant Agent hereunder until all the
Warrants have been exercised or are no longer exercisable.

     

    (b) The Warrant Agent may
at any time resign as agent by giving written notice to the Company of such
intention on its part, specifying the date on which its desired resignation
shall become effective; provided that such date shall
not be less than three months after the date on which such notice is given
unless the Company otherwise agrees. The Warrant Agent hereunder may be
removed at any time by the filing with it of an instrument in writing signed by
or on behalf of the Company and specifying such removal and the intended date
when it shall become effective. Such resignation or removal shall take
effect upon the appointment by the Company, as hereinafter provided, of a
successor Warrant Agent (which shall be a bank or trust company authorized under
the laws of the jurisdiction of its organization to exercise corporate trust
powers) and the acceptance of such appointment by such successor Warrant
Agent. The obligation of the Company under Section 5.2(a) shall
continue to the extent set forth therein notwithstanding the resignation or
removal of the Warrant Agent.

     

    (c) In case at any time
the Warrant Agent shall resign, or shall be removed, or shall become incapable
of acting, or shall be adjudged a bankrupt or insolvent, or shall commence a
voluntary case under the Federal bankruptcy laws, as now or hereafter
constituted, or under any other applicable Federal or state bankruptcy,
insolvency or similar law or shall consent to the appointment of or taking
possession by a receiver, custodian, liquidator, assignee, trustee, sequestrator
(or other similar official) of the Warrant Agent or its property or affairs, or
shall make an assignment for the benefit of creditors, or shall admit in writing
its inability to pay its debts generally as they become due, or shall take
corporate action in furtherance of any such action, or a decree or order for
relief by a court having jurisdiction in the premises shall have been entered in
respect of the Warrant Agent in an involuntary case under the Federal bankruptcy
laws, as now or hereafter constituted, or any other applicable Federal or state
bankruptcy, insolvency or similar law, or a decree or order by a court having
jurisdiction in the premises shall have been entered for the appointment of a
receiver, custodian, liquidator, assignee, trustee, sequestrator (or similar
official) of the Warrant Agent or of its property or affairs, or any public
officer shall take charge or control of the Warrant Agent or of its property or
affairs for the purpose of rehabilitation, conservation, winding up or
liquidation, a successor Warrant Agent, qualified as aforesaid, shall be
appointed by the Company by an instrument in writing, filed with the successor
Warrant Agent. Upon the appointment as aforesaid of a successor Warrant
Agent and acceptance by the successor Warrant Agent of such appointment, the
Warrant Agent shall cease to be Warrant Agent hereunder.

    

    (d) Any successor Warrant
Agent appointed hereunder shall execute, acknowledge and deliver to its
predecessor and to the Company an instrument accepting such appointment
hereunder, and thereupon such successor Warrant Agent, without any further act,
deed or conveyance, shall become vested with all the authority, rights, powers,
trusts, immunities, duties and obligations of such predecessor with like effect
as if originally named as Warrant Agent hereunder, and such predecessor, upon
payment of its charges and disbursements then unpaid, shall thereupon become
obligated to transfer, deliver and pay over, and such successor Warrant Agent
shall be entitled to receive, all monies, securities and other property on
deposit with or held by such predecessor, as Warrant Agent
hereunder.

     

    (e) Any corporation into
which the Warrant Agent hereunder may be merged or converted or any corporation
with which the Warrant Agent may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Warrant Agent shall be
a party, or any corporation to which the Warrant Agent shall sell or otherwise
transfer all or substantially all the assets and business of the Warrant Agent,
provided that it shall
be qualified as aforesaid, shall be the successor Warrant Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    ARTICLE 6

     

    MISCELLANEOUS

     

    6.1 Amendment. This
Agreement may be amended by the parties hereto, without the consent of the
holder of any Warrant Certificate, for the purpose of curing any ambiguity, or
of curing, correcting or supplementing any defective provision contained herein,
or making any other provisions with respect to matters or questions arising
under this Agreement as the Company and the Warrant Agent may deem necessary or
desirable; provided
that such action shall not materially adversely affect the interests of
the holders of the Warrant Certificates.

     

    6.2 Notices and Demands to the
Company and Warrant Agent. If the Warrant Agent shall receive any
notice or demand addressed to the Company by the holder of a Warrant Certificate
pursuant to the provisions of the Warrant Certificates, the Warrant Agent shall
promptly forward such notice or demand to the Company.

     

    6.3 Addresses. Any
communication from the Company to the Warrant Agent with respect to this
Agreement shall be addressed to
                    ,
Attention:                     
and any communication from the Warrant Agent to the Company with respect to this
Agreement shall be addressed to Telestone Technologies Corporation, Floor 6,
Saiou Plaza No. 5, Haiying Road, Fengtai Technology Park, Beijing, China 100070,
Attention: Secretary (or such other address as shall be specified in
writing by the Warrant Agent or by the Company).

     

    6.4 Governing
Law. This Agreement and each Warrant Certificate issued hereunder
shall be governed by and construed in accordance with the laws of the State of
New York.

     

    6.5 Delivery of
Prospectus. The Company shall furnish to the Warrant Agent
sufficient copies of a prospectus meeting the requirements of the Securities Act
of 1933, as amended, relating to the Warrant Debt Securities deliverable upon
exercise of the Warrants (the “Prospectus”),
and the Warrant Agent agrees that upon the exercise of any Warrant, the Warrant
Agent will deliver to the holder of the Warrant Certificate evidencing such
Warrant, prior to or concurrently with the delivery of the Warrant Debt
Securities issued upon such exercise, a Prospectus.

     

    The
Warrant Agent shall not, by reason of any such delivery, assume any
responsibility for the accuracy or adequacy of such Prospectus.

     

    6.6 Obtaining of Governmental
Approvals. The Company will from time to time take all action which
may be necessary to obtain and keep effective any and all permits, consents and
approvals of governmental agencies and authorities and securities act filings
under United States Federal and state laws (including without limitation a
registration statement in respect of the Warrants and Warrant Debt Securities
under the Securities Act of 1933, as amended), which may be or become requisite
in connection with the issuance, sale, transfer, and delivery of the Warrant
Debt Securities issued upon exercise of the Warrants, the issuance, sale,
transfer and delivery of the Warrants or upon the expiration of the period
during which the Warrants are exercisable.

    

    6.7 Persons Having Rights Under
Warrant Agreement. Nothing in this Agreement shall give to any
person other than the Company, the Warrant Agent and the holders of the Warrant
Certificates any right, remedy or claim under or by reason of this
Agreement.

     

    6.8 Headings. The
descriptive headings of the several Articles and Sections of this Agreement are
inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

     

    6.9 Counterparts. This
Agreement may be executed in any number of counterparts, each of which as so
executed shall be deemed to be an original, but such counterparts shall together
constitute but one and the same instrument.

     

    6.10 Inspection of
Agreement. A copy of this Agreement shall be available at all
reasonable times at the principal corporate trust office of the Warrant Agent
for inspection by the holder of any Warrant Certificate. The Warrant Agent
may require such holder to submit such holder’s Warrant Certificate for
inspection by it.

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed, all as of the day
and year first above written.

     

    
      
        
          
            
              	 
      	 
      	 
      	 
      	 
      	 
      	
                      TELESTONE
      TECHNOLOGIES
CORPORATION

                    
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
                      By

                    	 
      	 
      
	 	 	 	 	 	 	 	 	 
	 
      	 
      	 
      	 
      	 
      	 
      	
                      Its

                    	 
      	 
      
	
                      Attest:

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
                        

                    	 
      
	 
       	 
      	 
       	 
      	  
      	 
      	
                        

                    	,
      as  
	 
      	 
      	 
      	 
      	 
      	 
      	
                      WARRANT
      AGENT

                    
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
                      By

                    	 
      	 
      
	 	 	 	 	 	 	 	 	 
	 
      	 
      	 
      	 
      	 
      	 
      	
                      Its

                    	 
      	 
      
	
                      Attest:

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

            

          

        

      

    

     

    [SIGNATURE
PAGE TO DEBT SECURITIES WARRANT AGREEMENT]

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    

    EXHIBIT A

     

    FORM OF
WARRANT CERTIFICATE

    [Face
of Warrant Certificate]

     

    
      
        	
                [Form if
      Warrants are attached to Other Securities and are not immediately
      detachable.

              	 
      	
                Prior
      to
                          ,
      this Warrant Certificate cannot be transferred or exchanged unless
      attached to a [Title of Other Security].]

              
	 
      	 
      
	
                [Form of
      Legend if Warrants are not immediately exercisable.

              	 
      	
                Prior
      to
                          ,
      Warrants evidenced by this Warrant Certificate cannot be
      exercised.]

              

      

    

     

    EXERCISABLE
ONLY IF COUNTERSIGNED BY THE WARRANT

    AGENT AS
PROVIDED HEREIN

     

    VOID
AFTER
[            ] P.M.,
[CITY] TIME, ON
            ,

     

    TELESTONE
TECHNOLOGIES CORPORATION

     

    WARRANT
CERTIFICATE REPRESENTING

    WARRANTS
TO PURCHASE

    [TITLE OF
WARRANT DEBT SECURITIES]

     

    
      
        

      

    

     

    
      	
              No.

            	
                

            	
              Warrants

            

    

     

    This
certifies that
                    
or registered assigns is the registered owner of the above indicated number of
Warrants, each Warrant entitling such owner [If Warrants are attached to Other
Securities and are not immediately detachable —, subject to the registered owner
qualifying as a “Holder” of this Warrant Certificate, as hereinafter defined)]
to purchase, at any time [after
[            ] p.m.,
[City] time, on
             and] on
or before
[            ] p.m.,
[City] time, on
            ,
$          principal amount of
[Title of Warrant Debt Securities] (the “Warrant Debt
Securities”), of Telestone Technologies Corporation (the “Company”),
issued or to be issued under the Indenture (as hereinafter defined), on the
following basis: during the period from
                    ,
through and including
                    ,
each Warrant shall entitle the Holder thereof, subject to the provisions of this
Agreement, to purchase the principal amount of Warrant Debt Securities stated in
the Warrant Certificate at the warrant price (the “Warrant
Price”) of     % of the principal amount thereof
[plus accrued amortization, if any, of the original issue discount of the
Warrant Debt Securities] [plus accrued interest, if any, from the most recent
date from which interest shall have been paid on the Warrant Debt Securities or,
if no interest shall have been paid on the Warrant Debt Securities, from the
date of their original issuance]. [The original issue discount
($          for each $1,000
principal amount of Warrant Debt Securities) will be amortized at a
    % annual rate, computed on a[n] [semi-]annual basis
[using a 360-day year consisting of twelve 30-day months]. The Holder may
exercise the Warrants evidenced hereby by providing certain information set
forth on the back hereof and by paying in full, in lawful money of the United
States of America, [in cash or by certified check or official bank check in New
York Clearing House funds] [by bank wire transfer in immediately available
funds], the Warrant Price for each Warrant Debt Security with respect to which
this Warrant is exercised to the Warrant Agent (as hereinafter defined) and by
surrendering this Warrant Certificate, with the purchase form on the back hereof
duly executed, at the corporate trust office of [name of Warrant Agent], or its
successor as warrant agent (the “Warrant
Agent”), which is, on the date hereof, at the address specified on the
reverse hereof, and upon compliance with and subject to the conditions set forth
herein and in the Warrant Agreement (as hereinafter defined).

     

    The term
“Holder”
as used herein shall mean [If Warrants are attached to Other Securities and are
not immediately detachable—, prior to
                    ,
             (the
“Detachable
Date”), the registered owner of the Company’s [title of Other Securities]
to which this Warrant Certificate was initially attached, and after such
Detachable Date,] the person in whose name at the time this Warrant Certificate
shall be registered upon the books to be maintained by the Warrant Agent for
that purpose pursuant to Section 4 of the Warrant
Agreement.

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    The
Warrants evidenced by this Warrant Certificate may be exercised to purchase
Warrant Debt Securities in the principal amount of $1,000 or any integral
multiple thereof in registered form. Upon any exercise of
fewer than all of the Warrants evidenced by this Warrant Certificate, there
shall be issued to the Holder hereof a new Warrant Certificate evidencing
Warrants for the aggregate principal amount of Warrant Debt Securities remaining
unexercised.

     

    This
Warrant Certificate is issued under and in accordance with the Warrant Agreement
dated as of
                    ,
                    
(the “Warrant
Agreement”), between the Company and the Warrant Agent and is subject to
the terms and provisions contained in the Warrant Agreement, to all of which
terms and provisions the Holder of this Warrant Certificate consents by
acceptance hereof. Copies of the Warrant
Agreement are on file at the above-mentioned office of the Warrant
Agent.

     

    The
Warrant Debt Securities to be issued and delivered upon the exercise of Warrants
evidenced by this Warrant Certificate will be issued under and in accordance
with an Indenture, [dated as of
                ,
                    
(the “Senior
Indenture”), between the Company and
                    ,
as trustee (such trustee, and any successors to such trustee, the “Senior
Trustee”)] [dated as of
            ,
        , (the “Subordinated
Indenture”), between the Company and
                    ,
as trustee (such trustee, and any successors to such trustee, the “Subordinated
Trustee”)] and will be subject to the terms and provisions contained in
the Warrant Debt Securities and in the Indenture. Copies of the [Senior]
[Subordinated] Indenture, including the form of the Warrant Debt Securities, are
on file at the corporate trust office of the Trustee.

     

    [If
Warrants are attached to Other Securities and are not immediately
detachable—Prior to the Detachable Date, this Warrant Certificate may be
exchanged or transferred only together with the [Title of Other Securities] (the
“Other
Securities”) to which this Warrant Certificate was initially attached,
and only for the purpose of effecting or in conjunction with, an exchange or
transfer of such Other Security. Additionally, on or prior to the
Detachable Date, each transfer of such Other Security on the register of the
Other Securities shall operate also to transfer this Warrant
Certificate. After such date, transfer of this] [If Warrants are attached
to Other Securities and are immediately detachable — Transfer of this] Warrant
Certificate may be registered when this Warrant Certificate is surrendered at
the corporate trust office of the Warrant Agent by the registered owner or such
owner’s assigns, in the manner and subject to the limitations provided in the
Warrant Agreement.

     

    [If Other
Securities with Warrants which are not immediately detachable-Except as provided
in the immediately preceding paragraph, after] [If Other Securities with
Warrants which are immediately detachable or Warrants alone—After]
countersignature by the Warrant Agent and prior to the expiration of this
Warrant Certificate, this Warrant Certificate may be exchanged at the corporate
trust office of the Warrant Agent for Warrant Certificates representing Warrants
for the same aggregate principal amount of Warrant Debt Securities.

     

    This
Warrant Certificate shall not entitle the Holder hereof to any of the rights of
a holder of the Warrant Debt Securities, including, without limitation, the
right to receive payments of principal of (and premium, if any) or interest, if
any, on the Warrant Debt Securities or to enforce any of the covenants of the
Indenture.

     

    Reference
is hereby made to the further provisions of this Warrant Certificate set forth
on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

     

    This
Warrant Certificate shall not be valid or obligatory for any purpose until
countersigned by the Warrant Agent.

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed in its name and on its behalf by
the facsimile signatures of its duly authorized officers.

     

    
      
        
          
            
              
                
                  	
                          Dated:
      ______________

                        	 
      	
                          TELESTONE
      TECHNOLOGIES
CORPORATION

                        
	 
      	 
      	 
      
	 
      	 
      	
                          
                            By

                          

                        	 
      
	 
      	 
      	 
      
	 
      	 
      	
                          
                            Its

                          

                        	 
      
	
                          Attest:

                        	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                          Countersigned:

                        	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                          As
      Warrant Agent

                        	 
      	 
      
	 
      	 
      	 
      	 
      
	
                          By

                        	 
      	 
      	 
      
	 
      	
                          Authorized
      Signature

                        	 
      	 
      

                

              

            

          

        

      

    

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    

    [REVERSE
OF WARRANT CERTIFICATE]

     

    (Instructions
for Exercise of Warrants)

     

    To
exercise any Warrants evidenced hereby for Warrant Debt Securities (as
hereinafter defined), the Holder must pay, in lawful money of the United States
of America, [in cash or by certified check or official bank check in New York
Clearing House funds] [by bank wire transfer in immediately available funds],
the Warrant Price in full for Warrants exercised, to [Warrant Agent] [address of
Warrant Agent],
Attn:                     ,
which payment must specify the name of the Holder and the number of Warrants
exercised by such Holder. In addition, the Holder must complete the
information required below and present this Warrant Certificate in person or by
mail (certified or registered mail is recommended) to the Warrant Agent at the
appropriate address set forth above. This Warrant Certificate, completed
and duly executed, must be received by the Warrant Agent within five business
days of the payment.

     

    (To be
executed upon exercise of Warrants)

     

    The
undersigned hereby irrevocably elects to exercise
                    
Warrants, represented by this Warrant Certificate, to purchase
$          principal amount of the
[Title of Warrant Debt Securities] (the “Warrant Debt
Securities”) of Telestone Technologies Corporation and represents that
the undersigned has tendered payment for such Warrant Debt Securities, in lawful
money of the United States of America, [in cash or by certified check or
official bank check in New York Clearing House funds] [by bank wire transfer in
immediately available funds], to the order of Telestone Technologies
Corporation, c/o [insert name and address of Warrant Agent], in the amount of
$          in accordance with the
terms hereof. The undersigned requests that said principal amount of
Warrant Debt Securities be in fully registered form in the authorized
denominations, registered in such names and delivered all as specified in
accordance with the instructions set forth below.

     

    If the
number of Warrants exercised is less than all the Warrants evidenced hereby, the
undersigned requests that a new Warrant Certificate evidencing the Warrants for
the aggregate principal amount of Warrant Debt Securities remaining unexercised
be issued and delivered to the undersigned unless otherwise specified in the
instructions below.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	Dated	
                                                     

                              	 
      	
                                
                                  Name

                                

                              	
                                
                                    

                                

                              
	 
      	 
      	 
      	
                                (Please
      Print)

                              
	 
      	 
      	 
      
	 
      	 
      	
                                
                                  Address

                                

                              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                                 (Insert Social Security or Other
      Identifying Number of
Holder)

                              

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    

    
      	 
      	 
      	
              
                  

              

            
	
              Signature
      Guaranteed

            	 
      	
              Signature

            
	 
      	 
      	 
      
	 
      	 
      	
               (Signature must conform in all
      respects to name of holder as specified on the face of this Warrant
      Certificate and must bear a signature guarantee by a bank, trust company
      or member broker of the New York, Midwest or Pacific Stock
      Exchange)

            

    

     

    This
Warrant may be exercised at the following addresses:

     

    
      	
              By hand at

            	
              
                 

              

            
	 	
              
                 

              

            
	 
      	
              
                 

              

            
	 
      	 
      
	
              By mail at

            	
              
                 

              

            
	 	
              
                 

              

            
	 	
              
                 

              

            

    

     

    [Instructions
as to form and delivery of Warrant Debt Securities and, if applicable, Warrant
Certificates evidencing Warrants for the number of Warrant Debt Securities
remaining unexercised — complete as appropriate.]

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    

    ASSIGNMENT

     

    [Form of
assignment to be executed if

    Warrant
Holder desires to transfer Warrant]

    
      	 
      	 
      	 
      	 
      	 
      
	
              FOR
      VALUE RECEIVED,

            	 
      	 
      	 
      	
              hereby
      sells, assigns and transfers unto:

            
	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              (Please
      print name and address including zip code)

            	 
      	 
      	 
      	
              Please
      insert Social Security or other identifying
  number

            

    

     

    the right
represented by the within Warrant to purchase
$          aggregate principal
amount of [Title of Warrant Debt Securities] of Telestone Technologies
Corporation to which the within Warrant relates and appoints
                    
attorney to transfer such right on the books of the Warrant Agent with full
power of substitution in the premises.

    
      	 
      	 
      	 
      	 
      	 
      
	
              Dated

            	
                

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
              Signature

            
	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
              (Signature
      must conform in all respects to name of holder as specified on the face of
      the Warrant)

            
	 
      	 
      	 
      
	
              Signature
      Guaranteed

            	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

    

    
      
         

      

      
        -17-Unassociated Document

    

      Exhibit
10.01

      

      COMVITA
NEW ZEALAND LIMITED

       

      DERMA
SCIENCES, INC

       

      
        
          
            

          

        

        LICENCE
AGREEMENT

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      AGREEMENT dated February 23,
2010

      

      PARTIES

       

      COMVITA NEW ZEALAND LIMITED,
of Paengaroa, New Zealand (“Comvita”)

       

      DERMA SCIENCES, INC, of
Princeton, New Jersey, United States of America (“Derma Sciences”)

       

      INTRODUCTION

       

      
        	
                A.

              	
                Comvita
      or its licensors are the owner of the Patent Rights, Know-How and Trade
      Marks.

              

      

       

      
        	
                B.

              	
                Comvita
      is willing to grant to Derma Sciences, and Derma Sciences is willing to
      accept, a licence under the Patent Rights, Know-How and Trade Marks, in
      accordance with the provisions of this
  Agreement.

              

      

      

      AGREEMENT

       

      
        	
                1.

              	
                DEFINITIONS
      AND INTERPRETATION

              

      

       

      
        	
                1.1

              	
                Definitions:  In
      this Agreement, including the Introduction, unless the context otherwise
      requires, the following terms will have the following
      meanings:

              

      

       

      “Agreement” means this
agreement and the attached Schedules;

       

      “Business Day” means a day,
excluding Saturdays, Sundays, statutory public holidays or any day in the period
starting on 24 December and ending on 5 January, on which banks are open for
ordinary over-the-counter business in either Tauranga, New Zealand or New
Jersey, United States of America;

       

      “Commencement Date” means the
date of signing of this Agreement by both parties;

       

      “Confidentiality Agreement”
means the agreement entered into between the parties and entitled
“Confidentiality Agreement” and dated on or about the Commencement
Date;

       

      “Confidential Information”
means all information of any kind, whether in tangible or documentary form, and
whether marked or identified as being confidential, relating to the Disclosing
Party or its business affairs and includes information relating to any
of:

       

      
        	
                 
      

              	
                 (a)

              	
                the
      business operations, business strategies, marketing plans and technologies
      of the Disclosing Party; or

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                the
      terms of this Agreement;

              

      

       

      “Cost of Production” means the
cost of direct materials, direct labour and any other expenses directly related
(and fairly allocated based on actual value added or percentage contribution
(whichever is lower)) to the manufacturing cost of the relevant product, along
with a reasonable and systematic allocation of fixed and variable production
overheads;

      
         

        
          

        

      

      
        
          	
                  exhibit
      10.01 licence agmt with redactions

                	
                  Licence
      Agreement

                	
                  
                    1

                  

                

        

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Disclosing Party” means the
party to whom or to whose business affairs the Confidential Information
relates;

       

      “European Royalties” has the
meaning given to that term in clause 4.5(c);

       

      “First Commercial Sale” means
the initial Supply of a Licensed Product in exchange for cash or some equivalent
that can be assigned value for the purpose of determining Net Sales
Value;

       

      “Force Majeure” has the
meaning given to that term in clause 13.1;

       

      “Gel Sheet Products” means any
product the making, using or selling of which falls within the scope of
any of the claims of any of the patents and patent applications listed in
Schedule 1 under the
Comvita name and description “Manugel (Use of Honey in Medical
Dressings)”;

       

      “Honey Gel Products” means any
product the making, using or selling of which falls within the scope of any of
the claims of any of the patent applications listed in Schedule 1 under the
Comvita name and description “Honey Gel (A Medical Composition)”;

       

      “Improvement” means any
improvement, addition, modification, development or amendment to the Inventions
or any Licensed Product or OTC Product including, without limitation, patentable
inventions and unpatentable know-how;

       

      “Infringement” means
any:

       

      
        	
                 
      

              	
                 (a)

              	
                infringement
      or potential infringement of any Patent Rights;
  or

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                improper
      or wrongful use or misappropriation of the Know-How or Trade
      Marks,

              

      

       

      in the
Territory;

       

      “Intellectual Property Rights”
means all industrial and intellectual property rights whether conferred
by statute, at common law or in equity, including, but not limited
to:

       

      
        	
                 
      

              	
                 (a)

              	
                all
      copyright and similar rights that may subsist in works or other subject
      matter;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                rights
      in relation to inventions (including all patents and patent
      applications);

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                trade
      secrets and know-how;

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                rights
      in relation to designs (whether
registrable);

              

      

       

      
        	
                 
      

              	
                 (e)

              	
                rights
      in relation to registered and unregistered trade
  marks;

              

      

       

      
        	
                 
      

              	
                 (f)

              	
                business
      names; and

              

      

       

      
        	
                 
      

              	
                 (g)

              	
                rights
      in relation to domain names;

              

      

       

      “Inventions” means the
inventions claimed in the Patents and Patent Applications;

       

      “Know-How” means:

       

      
        	
                 
      

              	
                 (a)

              	
                all
      information, knowledge, experience, formulae, data and designs comprising
      Research Results; and

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      2

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (b)

              	
                all
      other information, knowledge, experience, formulae, data and designs in
      the possession or control of Comvita relating directly to the Licensed
      Products or associated with the sourcing, supply or collection of Medical
      Honey;

              

      

       

      “Licensed Products”
means:

       

      
        	
                 
      

              	
                 (a)

              	
                the
      specific products listed in Schedule 3;
or

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                products
      existing as of the Commencement Date or developed by the parties
      subsequent thereto (whether pursuant to the R&D Agreement or
      otherwise) that contain Medical Honey, and are used or useful in the
      treatment, mitigation or prevention of the following human diseases or the
      following conditions:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                dermal
      scar;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                acute
      and chronic wounds, irrespective of whether the wound is of partial or
      full thickness, including but not limited to diabetic ulcers, venous
      stasis ulcers, and decubitus
ulcers;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                skin
      injuries or lesions, including but not limited to cuts and
      abrasions;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                any
      other  diseases or conditions affecting the skin;
    or

              

      

       

      
        	
                 
      

              	
                (v)

              	
                burns.

              

      

       

      Notwithstanding
anything to the contrary in paragraph (b) above, Licensed Products will not
include any products whose primary purpose is either toiletry, cosmetic or
beauty-related, or that have a veterinary, ophthalmic, digestive health, or
non-dermal ear, nose or throat application;

       

      “Lower Royalty” has the
meaning given to that term in clause 6.2(b);

       

      “Manufacturing Agreement”
means the agreement entered into between the parties and entitled
“Manufacturing Agreement” and dated on or about the Commencement
Date;

       

      “Medical Honey” means honey
being to the specifications set out in Schedule 4, or such other specifications
as the parties may agree in writing;

       

      “Medical Honey Supply Agreement”
means the agreement entered into between the parties and entitled
“Medical Honey Supply Agreement” and dated on or about the Commencement
Date;

       

      “Minimum European Royalties”
has the meaning given to that term in clause 4.6(a);

       

      “Minimum Royalty” means, in
respect of each calendar year of the Term, the minimum royalty as specified in
Schedule 6;

       

      “Net Sales Value”
means:

       

      
        	
                 
      

              	
                 (a)

              	
                the
      gross invoiced price of Licensed Products Supplied by Derma Sciences to
      independent third parties in arm’s length transactions and exclusively for
      money; or

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      3

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (b)

              	
                where
      Derma Sciences Supplies such Licensed Products other than according to
      paragraph (a), the price that would have been paid had Derma Sciences
      Supplied the Licensed Products in accordance with paragraph
      (a),

              

      

       

      as the
case may be, but in either case after deduction of:

       

      
        	
                 
      

              	
                 (c)

              	
                normal
      and reasonable trade discounts and credits actually granted to
      unaffiliated third parties in respect of such Licensed Products;
      and

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                provided
      Derma Sciences charges the amounts separately on the relevant
      invoice:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                any
      costs of transportation, insurance, carriage and freight charged by
      unaffiliated third parties;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                any
      goods and services, value added or sales taxes;
  and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                any
      import duties or similar applicable government
  levies;

              

      

       

      “Non-Severable Improvements”
means Improvements that fall within the scope of a claim of any of the
Patent Rights;

       

      “Notice” has the meaning given
to that term in clause 13.7(a);

       

      “OTC Products”
means:

       

      
        	
                 
      

              	
                 (a)

              	
                the
      products listed in Schedule 5; and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                such
      other products containing Medical Honey that Comvita believes are suitable
      for sale in an OTC Store;

              

      

       

      “OTC Store”:

       

      
        	
                 
      

              	
                 (a)

              	
                means
      any retail outlet or website where an end customer could purchase products
      containing Medical Honey without the need for a prescription or an order
      by a clinician or physician; but

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                excludes
      any part of such retail outlet or website where an end customer could
      purchase products containing Medical Honey with a prescription or an order
      by a clinician or physician;

              

      

       

      “Patent Rights” means:

       

      
        	
                 
      

              	
                 (a)

              	
                the
      Patents and Patent Applications, together
with:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                all
      divisions and continuations of the Patents and Patent
      Applications;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                all
      patents issuing from such Patents and Patent Applications, divisions and
      continuations; and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                any
      reissues, re-examinations and extensions of all such
    patents;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                to
      the extent that the following contain one or more claims directed to the
      Inventions:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                continuations-in-part
      of the patents and patent applications referred to in paragraph (a)
      above;

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      4

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (ii)

              	
                all
      divisions and continuations of such
  continuations-in-part;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                all
      patents issuing from such continuations-in-part, divisions and
      continuations; and

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                any
      reissues, re-examinations, and extensions of all such patents;
      and

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                to
      the extent the following contain one or more claims directed to the
      Inventions, all equivalent patent applications and patents in the
      Territory, irrespective of whether or not such equivalent patent
      applications or patents derive priority from the patent applications and
      patents referred to in paragraphs (a) and (b)
  above;

              

      

       

      “Patents and Patent
Applications” means:

       

      
        	
                 
      

              	
                 (a)

              	
                the
      patents and patent applications listed in Schedule 1;
  and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                any
      other patents and patent applications owned by or exclusively licensed to
      Comvita at any time during the Term and that claim any Licensed
      Product;

              

      

       

      “R&D Agreement” means the
agreement entered into between the parties and entitled “Collaborative Research
and Development Agreement” and dated on or about the Commencement
Date;

       

      “Reporting Period” means each
successive calendar quarter or portion of a calendar quarter as from the
Commencement Date;

       

      “Research Results” means all
results, outcomes, conclusions, products, discoveries, inventions, reports,
records, data, materials, research processes, research protocols, lab books,
associated documents and research notes, memoranda and other writings and
drawings, created, discovered, invented, reduced to practice or developed during
or as a result of the research and development under the R&D
Agreement;

       

      “Recipient” means the party
receiving Confidential Information under this Agreement;

       

      “Restraint Agreement” means
the agreement entered into between the parties and entitled “Restraint
Agreement” and dated on or about the Commencement Date;

       

      “Severable Improvements” means
Improvements that do not fall within the scope of a claim of any of the Patent
Rights;

       

      “Supply” means
to sell, lend, let out for hire, lease, gift or otherwise dispose
of;

       

      “Term” means the term of this
Agreement as specified in clause 11.1;

       

      “Territory” means the
world;

       

      “Third Party Infringement
Claim” means a:

       

      
        	
                 
      

              	
                 (a)

              	
                warning
      letter or notice of infringement that is received by a party;
      or

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                legal
      suit or other action that is brought against a
  party,

              

      

       

      alleging
that the manufacture, importation, distribution, promotion, use or Supply of any
Licensed Product or use of any of the Patent Rights, Know-How or Trade Marks in
the Territory, infringes a third party’s rights; and

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      5

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Trade Marks” means the trade
marks (together with any applications or registration for those trade marks)
described in Schedule 2.

       

      
        	
                1.2

              	
                Interpretation:  In
      this Agreement:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                headings
      are used for convenience only and will not affect its
      interpretation;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                references
      to the singular include the plural and vice
  versa;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                references
      to a party include that party’s successors, executors, administrators and
      permitted assignees (as the case may
be);

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                references
      to clauses and Schedules are to those clauses and Schedules in this
      Agreement;

              

      

       

      
        	
                 
      

              	
                 (e)

              	
                where
      a word or phrase is defined, its other grammatical forms have a
      corresponding meaning;

              

      

       

      
        	
                 
      

              	
                 (f)

              	
                references
      to a gender includes all genders;

              

      

       

      
        	
                 
      

              	
                 (g)

              	
                references
      to the grant of “exclusive” rights will mean that the person granting the
      rights will neither grant the same rights to any other person, nor itself
      exercise those rights directly;

              

      

       

      
        	
                 
      

              	
                 (h)

              	
                references
      to the grant of “non-exclusive” rights will mean that the person granting
      the rights may grant the same rights to any other person, or itself
      exercise those rights directly;

              

      

       

      
        	
                 
      

              	
                 (i)

              	
                references
      to a “person” include:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                an
      individual, firm, company, corporation or unincorporated body of
      persons;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                any
      public, territorial or regional
authority;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                any
      government; and

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                any
      agency of any government or authority;
and

              

      

       

      
        	
                 
      

              	
                 (j)

              	
                any
      obligation not to do anything includes an obligation not to suffer, permit
      or cause that thing to be done.

              

      

       

      
        	
                2.

              	
                GRANT

              

      

       

      
        	
                2.1

              	
                Grant of
      licences:  Comvita grants to Derma Sciences for the Term,
      subject to the provisions of this
Agreement:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                an
      exclusive licence in the Territory under the Patent Rights and to use the
      Know-How, to make, use, import, offer to Supply and Supply Licensed
      Products that are not also OTC
Products;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                a
      non-exclusive licence in the Territory under the Patent Rights and to use
      the Know-How:

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      6

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (i)

              	
                to
      make, use, import, offer to Supply and Supply Licensed Products that are
      also OTC Products; and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                to
      make and Supply to Comvita OTC Products strictly in accordance with the
      Manufacturing Agreement;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                an
      exclusive licence in the Territory to use the Trade Marks solely in
      connection with the distribution, promotion and Supply of Licensed
      Products that are not also OTC Products;
and

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                a
      non-exclusive licence in the Territory to use the Trade Marks in
      connection with the distribution, promotion and Supply of Licensed
      Products that are also OTC Products, provided that Comvita may only use
      the Trade Marks and license third parties to use the Trade Marks on or in
      relation to OTC Products that are sold in OTC
  Stores.

              

      

       

      
        	
                2.2

              	
                Acceptance of
      licences:  Derma Sciences accepts the licences granted
      under clause 2.1.

              

      

       

      
        	
                2.3

              	
                Meaning of
      “licence”:  For the purposes of this Agreement,
      references to the word “licence” will mean “licence or sub-licence” (as
      the case may be depending on whether Comvita is the owner or licensee of
      the Intellectual Property Rights in
question).

              

      

       

      
        	
                2.4

              	
                No other
      licences:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Derma
      Sciences acknowledges and agrees that Comvita grants no licences to Derma
      Sciences other than the licences expressly granted under clause
      2.1.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                For
      the avoidance of doubt, no rights or licences are granted by Comvita to
      Derma Sciences under this
Agreement:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                under
      any Intellectual Property Rights owned by or licensed to Comvita, other
      than the Patent Rights, Know-How and Trade Marks;
  or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                to
      make, use, import, offer to Supply or Supply any products other than the
      Licensed Products, except as permitted under the Manufacturing
      Agreement.

              

      

       

      
        	
                2.5

              	
                Licensed
      Products:  The Licensed Products that Derma Sciences may
      make, use, import, offer to Supply and Supply under this Agreement as at
      the Commencement Date are listed in Schedule 3.  Further
      products may be developed or created during the Term that will become
      Licensed Products, provided they meet the definition of Licensed
      Products.

              

      

       

      
        	
                2.6

              	
                Derma Sciences not to Supply to
      OTC Stores:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Derma
      Sciences will not offer to Supply or Supply any Licensed Products to OTC
      Stores unless it has first obtained the written consent of Comvita, which
      consent may be granted on such terms as Comvita believes are
      appropriate.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Derma
      Sciences acknowledges and agrees that Comvita and its affiliates are
      entitled to make, use and sell OTC Products that are also Licensed
      Products, provided that such OTC Products are sold exclusively in OTC
      Stores.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                The
      parties acknowledge that although Derma Sciences will not sell directly to
      OTC Stores, it is possible that Derma Sciences may Supply Licensed
      Products to third parties that are then resold into OTC
      Stores.  Where practical, Derma Sciences will use commercially
      reasonable efforts to include in its agreements with its customers a
      prohibition on selling the Licensed Products to OTC Stores and will
      otherwise advise its customers that the Licensed Products are not to be
      sold to OTC Stores.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      7

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (d)

              	
                If
      either Comvita or Derma Sciences discovers that Licensed Products
      manufactured by Derma Sciences are being sold in an OTC Store, then Derma
      Sciences will use all commercially reasonable means to investigate the
      source of such Supply and upon discovering the origin
  will:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                notify
      its customer responsible for such Supply and request that it cease and
      desist from Supplying the Licensed Products to OTC Stores or any person
      who is on-selling such products to OTC Stores;
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if
      the customer does not confirm that it will comply with such request within
      ten days of such notice, cease all sales of Licensed Products to such
      customer until such time as the customer agrees to comply with such
      request.

              

      

       

      
        	
                2.7

              	
                Comvita Supply
      limitations:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Comvita
      may Supply Licensed Products that are also OTC Products (and license third
      parties to Supply such Licensed Products) only to OTC
      Stores.  Comvita will not offer to Supply or Supply any OTC
      Products that are also Licensed Products to non-OTC Stores unless it has
      first obtained the written consent of Derma Sciences, which consent may be
      granted on such terms as Derma Sciences believes are
      appropriate.  For the avoidance of doubt, Comvita may sell OTC
      Products that are not also Licensed Products to non-OTC
      Stores.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                The
      parties acknowledge that although Comvita will not sell OTC Products that
      are also Licensed Products directly to non-OTC Stores, it is possible that
      Comvita may Supply such OTC Products to third parties that are then resold
      into non-OTC Stores.  Where practical, Comvita will use
      commercially reasonable efforts to include in its agreements with its
      customers a prohibition on selling such OTC Products to non-OTC Stores and
      will otherwise advise its customers that such OTC Products are not to be
      sold to non-OTC Stores.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                If
      either Derma Sciences or Comvita discovers that OTC Products that are also
      Licensed Products are being sold in a non-OTC Store, then Comvita will use
      all commercially reasonable means to investigate the source of such Supply
      and upon discovering the origin
will:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                notify
      Comvita’s customer responsible for such Supply and request that it cease
      and desist from Supplying such OTC Products to non-OTC Stores or any
      person who is on-selling such products to non-OTC Stores;
    and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if
      the customer does not confirm that it will comply with such request within
      ten days of such notice, cease all sales of such OTC Products to such
      customer until such time as the customer agrees to comply with such
      request.

              

      

       

      
        	
                2.8

              	
                Sub-licensing:  Derma
      Sciences may grant sub-licences of the rights granted to Derma Sciences
      under this Agreement only in accordance with the following
      provisions:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Derma
      Sciences must obtain the prior written consent of Comvita to the grant of
      any sub-licence;

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      8

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (b)

              	
                no
      sub-licence will be granted except to the extent necessary to Supply Derma
      Sciences exclusively with Licensed Products or OTC Products manufactured
      by such sub-licensee;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                every
      sub-licence must:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                be
      in a form approved by Comvita in
writing;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                impose
      obligations on the sub-licensee that are equivalent to the obligations of
      Derma Sciences under this
Agreement;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                prohibit
      any right to sub-sub-license, or to assign any of the rights granted under
      the sub-licence, without Comvita’s written consent;
  and

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                terminate
      automatically on the termination or expiration of this Agreement for any
      reason, subject to clause 11.8(e);

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                within
      14 days following the grant of any sub-licence, Derma Sciences will
      provide to Comvita a true and complete copy of the document recording the
      terms of such sub-licence; and

              

      

       

      
        	
                 
      

              	
                 (e)

              	
                Derma
      Sciences will be responsible under this Agreement for all acts and
      omissions of its sub-licensees as if such acts or omissions were those of
      Derma Sciences.  Derma Sciences will defend, indemnify, keep
      indemnified and hold harmless Comvita against any and all losses, damages,
      costs, claims or expenses awarded against or suffered by Comvita as a
      result of any such acts or
omissions.

              

      

       

      Any
purported grant of sub-licence other than in accordance with this clause 2.8
will be ineffective and will be regarded as a material breach by Derma Sciences
of this Agreement.

       

      
        	
                2.9

              	
                Formal
      licences:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                If
      requested by Derma Sciences, Comvita will sign all formal documents
      reasonably necessary or appropriate to enable registration of the licences
      under clause 2.1, with intellectual property offices and other relevant
      authorities within the Territory.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Derma
      Sciences will pay all costs of preparing and registering any documents
      required under clause 2.9(a). Derma Sciences will also pay all legal costs
      incurred by Comvita in connection with such
  documents.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                Comvita
      will not be required to sign any document under clause 2.9(a) if such
      document imposes a liability or responsibility on Comvita in addition to
      those liabilities and responsibilities of Comvita under this
      Agreement.

              

      

       

      
        	
                2.10

              	
                Disclosure of
      Agreement:  If any registration or application for
      registration by Derma Sciences under clause 2.9 would require the
      disclosure of a copy of this Agreement to any authority within the
      Territory, Derma Sciences will at its own
cost:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                notify
      Comvita of the requirement;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                take
      all steps reasonably requested by Comvita to maintain the confidentiality
      of this Agreement, including (if required by Comvita and permitted by the
      relevant authority) by filing a redacted or abridged version of this
      Agreement with the authority; and

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      9

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (c)

              	
                take
      all steps reasonably available to it to ensure the relevant authority does
      not make public the terms and conditions of this
  Agreement.

              

      

       

      
        	
                2.11

              	
                Medical
      Honey:  Derma Sciences will ensure that all honey used in
      the manufacture of the Licensed Products is Medical Honey supplied
      by:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Comvita;
      or

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                such
      other party as may be permitted under the Medical Honey Supply
      Agreement.

              

      

       

      
        	
                2.12

              	
                Medical Honey Supply
      Agreement:  If:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Derma
      Sciences fails to agree to an extension of the five year restriction under
      clause 2.2 of the Medical Honey Supply Agreement for any further period;
      or

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                the
      Medical Honey Supply Agreement is terminated by Comvita pursuant to clause
      10.2 of the Medical Honey Supply
Agreement,

              

      

       

      Comvita
may by written notice to Derma Sciences elect to either:

       

      
        	
                 
      

              	
                 (c)

              	
                convert
      the rights granted under clauses 2.1(a) and (c) to non-exclusive rights;
      or

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                terminate
      this Agreement with immediate effect by giving written notice to Derma
      Sciences.

              

      

       

      
        	
                3.

              	
                KNOW-HOW

              

      

       

      
        	
                3.1

              	
                Supply of
      Know-How:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Comvita,
      under the Comvita Licensing, Manufacturing and Sales Agreement signed
      between the parties dated 13 February 2006, provided all Know-How in
      Comvita’s possession or under its control which it deemed reasonably
      necessary or desirable to enable Derma Sciences to manufacture,
      distribute, promote, use and Supply in the Territory all Licensed Products
      in existence as at the Commencement
Date.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Comvita
      has continued to provide Derma Sciences with all Know-How developed since
      13 February 2006 and will continue to provide to Derma Sciences at the
      relevant time all relevant Know-How in Comvita’s possession, or under
      Comvita’s control, reasonably necessary or desirable to manufacture,
      distribute, promote, use and Supply any Licensed Product that comes into
      existence after the Commencement
Date.

              

      

       

      
        	
                3.2

              	
                Confidentiality of
      Know-How:  Derma Sciences agrees that for so long as any
      substantial part of the Know-How remains subject to the obligations of
      confidence under the Confidentiality Agreement, it will not use that
      Know-How for any purpose except as expressly licensed under this
      Agreement.

              

      

       

      
        	
                4.

              	
                COMMERCIALISATION

              

      

       

      
        	
                4.1

              	
                Promote and expand
      Supply:  Derma Sciences will use commercially reasonable
      endeavours to promote and expand the Supply of the Licensed Products to
      the maximum extent throughout the Territory, and will keep full and
      accurate records of all aspects of its commercialisation of the Licensed
      Products.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      10

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                4.2

              	
                Reporting:  Without
      limiting Derma Sciences’ obligations under clause 4.1, Derma Sciences
      will, within 30 days following the end of each Reporting Period (which may
      be by email), provide to Comvita an updated, written progress report
      summarising:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                the
      activities taken by Derma Sciences during that Reporting Period to market
      the Licensed Products in the Territory;
and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                any
      other developments of note in relation to the Licensed Products, or the
      market for the Licensed Products.

              

      

       

      Comvita’s
receipt or approval of any such plan will not be taken to waive or qualify Derma
Sciences’ obligations under clause 4.1.

       

      
        	
                4.3

              	
                Marketing
      plans:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Derma
      Sciences will promote the Licensed Products in the Territory in accordance
      with a marketing plan to be proposed by Derma Sciences annually and
      reviewed by Comvita.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                The
      proposed marketing plan for the period ending on 31 December 2010 will be
      provided by Derma Sciences to Comvita within five Business Days following
      the Commencement Date.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                Marketing
      plans for subsequent 12 month periods will be provided by Derma Sciences
      to Comvita by no later than 60 days following the beginning of the
      relevant 12 month period covered by the marketing
  plan.

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                The
      parties will endeavour to mutually agree on all the terms of the marketing
      plans, but Derma Sciences will make all final
  decisions.

              

      

       

      
        	
                4.4

              	
                Transfer customer
      details:  Comvita will following the Commencement
      Date:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                transfer,
      assign or provide (as the case may be) to Derma Sciences its and its
      related companies’ existing customer lists and agreements relating to any
      Licensed Products, including in particular
by:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                arranging
      for its affiliate Medihoney Europe Limited to enter into an assignment
      agreement with Derma Sciences in respect of the distribution agreements
      with ApoFit Arzneimittelvertrieb GMBH (Germany) and Sorbion Mayrhofer GMBH
      (Austria), on terms to be agreed;
and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                arranging
      for its affiliate Comvita HK Limited to enter into an assignment agreement
      with Derma Sciences in respect of the distribution agreement with Adaltis
      Healthcare (H.K) Limited (Hong Kong), on terms to be agreed;
      and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                use
      commercially reasonable efforts to assist Derma Sciences in transitioning
      to Derma Sciences on terms to be agreed the existing customers of Comvita
      and its related companies in the Territory who purchase Licensed
      Products.

              

      

       

      
        	
                4.5

              	
                European
      Union:  With respect to the European Union, Derma
      Sciences will:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                by
      no later than 1 April 2010 appoint a manager for the European Union who
      will be responsible for ensuring the promotion and expansion of the Supply
      of the Licensed Products in the European
Union;

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      11

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (b)

              	
                ensure
      that at least [*]% of the total royalties payable under clause 6.1 for all
      Supplies of the Licensed Products during the calendar year 2010 are
      generated from the Supply of the Licensed Products in the European Union
      (“European
Royalties”);  and

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                for
      Supplies during the five succeeding years following the calendar year
      2010, increase European Royalties  by [*]% per annum per year
      (e.g., if European Royalties for 2010 are $[*] then the minimum European
      Royalties for 2011 will be $[*], and for 2012 will be
    $[*]).

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                Solely
      for determining compliance with clause 4.5(b) and for establishing the
      base European Royalties for clause 4.5(c), the 2010 European Royalties
      shall determined as follows: Derma Sciences’ total European sales for 2010
      shall be divided by the number of days that Derma Sciences was selling for
      its account in Europe. The resulting sum shall be multiplied by 365 and
      then multiplied by the applicable royalty percentage under clause 6.1.
      Notwithstanding the above, the royalties payable by Derma shall be
      calculated based on actual sales.

              

      

       

      
        	
                4.6

              	
                Minimum European
      Royalties:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                If
      the European Royalties payable for any calendar year are less than the
      minimum European Royalties payable for that calendar year under clauses
      4.5(b) or 4.5(c) (“Minimum European Royalties”),
  then:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Derma
      Sciences may, at its sole option, pay to Comvita the amount by which the
      European Royalties for that calendar year are less than the relevant
      Minimum European Royalties;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Derma
      Sciences will pay such amount within 30 days following the end of the
      relevant calendar year; and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                upon
      making such payment Derma Sciences will be deemed to have achieved its
      obligation for that calendar year.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                If:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Derma
      Sciences fails to comply with clause 4.5(a) by the due date;
      or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      European Royalties payable for any calendar year are less than the Minimum
      European Royalties for that calendar year, and Derma Sciences does not
      meet its obligation for that calendar year by making a payment under
      clause 4.6(a)(i) by the due date,

              

      

       

      then
Comvita may with immediate effect on giving written notice to that effect to
Derma Sciences either:

       

      
        	
                 
      

              	
                (iii)

              	
                convert
      the rights granted under clauses 2.1(a) and (c) in respect of the European
      Union to non-exclusive rights; or

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                terminate
      all rights granted under this Agreement in respect of the European Union,
      and with effect from the date of such termination the definition of
      “Territory” will be deemed to exclude the European
  Union.

              

      

       

      [*]
Redacted pursuant to a request for confidential treatment submitted to the
SEC.

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      12

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                4.7

              	
                Commercial
      launch:  Derma Sciences agrees that if, by the dates set
      forth in and for the countries specified in clause 4.8, it has not
      achieved the bona fide commercial launch of the Licensed Products (for
      reasons other than failure to obtain any relevant regulatory approval
      despite reasonable commercial efforts to do so), such commercial launch to
      be evidenced by:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                the
      development of a formal bona fide marketing plan, including the
      appointment of one or more bona fide distributors for the Licensed
      Products; and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                the
      achievement of the First Commercial Sale of a Licensed Product in such
      country,

              

      

       

      then
Comvita may with immediate effect on giving written notice to that effect to
Derma Sciences either:

       

      
        	
                 
      

              	
                 (c)

              	
                convert
      the rights granted under clauses 2.1(a) and (c) in respect of that country
      to non-exclusive rights; or

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                terminate
      all rights granted under this Agreement in respect of that country, and
      with effect from the date of such termination the definition of
      “Territory” will be deemed to exclude that
  country.

              

      

       

      
        	
                4.8

              	
                Launch
      dates:  For the purposes of clause 4.7, the commercial
      launch dates are:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                for
      each of Japan, Singapore, and South Africa:  31 December 2013;
      and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                for
      all other countries in the Territory:  31 December
      2018.

              

      

       

      
        	
                5.

              	
                STANDARDS
      OF MANUFACTURE

              

      

       

      
        	
                5.1

              	
                Approved
      standards:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Derma
      Sciences will manufacture the Licensed Products in accordance with the
      standards and specifications provided by Comvita from time to time or
      otherwise approved by Comvita in
writing.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Derma
      Sciences may not distribute, promote, use or Supply any Licensed Product
      that does not comply with such standards and
    specifications.

              

      

       

      
        	
                5.2

              	
                Samples and
      data:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                At
      least 20 Business Days before the First Commercial Sale of a particular
      Licensed Product, Derma Sciences must submit to Comvita for the purposes
      of verifying compliance with any standards and specifications approved or
      provided by Comvita under clause
5.1(a):

              

      

       

      
        	
                 
      

              	
                (i)

              	
                a
      reasonable number of samples of that Licensed Product;
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                any
      testing data required by Comvita to verify that such Licensed Product has
      been manufactured to those standards and
  specifications.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Without
      limiting clause 5.2(a), Derma Sciences will provide Comvita with a
      reasonable number of additional samples of any Licensed Product
      manufactured by Derma Sciences as and when requested by Comvita following
      the date of such First Commercial Sale, in order to verify compliance with
      the standards and specifications.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      13

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (c)

              	
                All
      costs incurred by Derma Sciences in supplying any samples or data under
      this clause 5.2, including all costs of freight and insurance, will
      be the responsibility of Derma Sciences.  Risk in any such
      samples or data will not pass to Comvita until delivery of them to
      Comvita.

              

      

       

      
        	
                5.3

              	
                Approvals:  Derma
      Sciences will:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                apply
      in its own name for any licences, approvals, permits and applications
      required by any governmental authority or agency in the Territory in
      connection with the development, manufacture, importation, distribution,
      promotion, use or Supply of the Licensed Products in the
      Territory;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                provide
      Comvita with copies of any licences, approvals, permits and applications
      under clause 5.3(a) requested by Comvita;
and

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                comply
      with all applicable laws and regulations in the Territory in the
      development, manufacture, importation, distribution, promotion, use or
      Supply of the Licensed Products.

              

      

       

      
        	
                5.4

              	
                Inspection:  Derma
      Sciences will itself, and will ensure that its permitted sub-licensees,
      permit Comvita or its representative to inspect the manner of manufacture
      and the quality control systems of Derma Sciences and any such
      sub-licensees relating to the Licensed
Products.

              

      

       

      
        	
                5.5

              	
                Markings:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Derma
      Sciences will ensure that all Licensed Products Supplied under this
      Agreement are marked with:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                details
      of the relevant applications and registrations comprising the Patent
      Rights and Trade Marks; and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                clear
      and prominent statements that the Licensed Products are manufactured and
      Supplied by Derma Sciences under licence from
  Comvita.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Derma
      Sciences must obtain Comvita’s prior written approval
  of:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                all
      markings and statements under clause 5.5(a);
and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                any
      use of any secondary marks or other words, designs, slogans or symbols on
      or in connection with the Licensed
Products.

              

      

       

      
        	
                6.

              	
                PAYMENTS

              

      

       

      
        	
                6.1

              	
                Royalties:  In
      consideration of the rights granted under this Agreement, Derma Sciences
      will pay to Comvita the following
royalties:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                a
      royalty being a percentage of the aggregate Net Sales Value of all
      Licensed Products Supplied by Derma Sciences in the Territory, as
      calculated in the table below:

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      14

                    

                  

          

        

         

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Amount of Net Sales Value

                                  	 	
                                    Royalty

                                    Percentage

                                  
	 	 	 
	
                                    Less
      than US$[*] of Net Sales Value generated in any calendar
    year

                                  	 	
                                    [*]%

                                  
	 	 	 
	
                                    US$[*]
      or more but less than US$[*] of Net Sales Value generated in any calendar
      year

                                  	 	
                                    [*]%

                                  
	 	 	 
	
                                    US$[*]
      or more Net Sales Value generated in any calendar year

                                  	 	
                                    [*]%

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      Where
sales of the Licensed Products are made in a currency other than US dollars,
such local currency will be converted into US dollars at a rate of exchange
equal to the average of the daily exchange rate reported on Bloomberg for the
purchase of US dollars from that local currency over the relevant Reporting
Period;

       

      
        	
                 
      

              	
                 (b)

              	
                an
      additional royalty to the royalty specified in the table in clause 6.1(a),
      being [*]% of the Net Sales Value of each Gel Sheet Product Supplied by
      Derma Sciences in the Territory, for so long as Comvita is obligated to
      pay a royalty in an amount equal to or more than the additional royalty to
      its licensor with respect to such
Supply;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                an
      additional royalty to the royalty specified in the table in clause 6.1(a),
      being [*]% of the Net Sales Value of each Honey Gel Product Supplied by
      Derma Sciences in the Territory, for so long as Comvita is obligated to
      pay a royalty in an amount equal to or more than the additional royalty to
      its licensor with respect to such Supply;
and

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                an
      additional royalty to the royalty specified in the table in clause 6.1(a),
      being [*]% of the Net Sales Value of each Licensed Product Supplied by
      Derma Sciences in the Territory that has not been manufactured using
      Medical Honey supplied solely by Comvita under the Medical Honey Supply
      Agreement, provided that this additional royalty will not be payable if
      Derma Sciences has purchased that Medical Honey from another supplier
      because Comvita has failed to supply Derma Sciences with its demand for
      Medical Honey pursuant to clause 2.5(a) of the Medical Honey Supply
      Agreement.

              

      

       

      
        	
                6.2

              	
                Royalty
      calculations:  In determining the royalties payable under
      clause 6.1, the following provisions will
apply:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                the
      royalty percentage to be used for the first Reporting Period of each
      calendar year will be the royalty percentage that applied at the end of
      the previous calendar year.  If at any time during any calendar
      year the total Net Sales Value generated by Derma Sciences equals an
      amount that would mean a higher royalty percentage would be payable by
      Derma Sciences, Derma Sciences will at the end of the Reporting Period in
      which such event occurred:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                use
      the higher royalty percentage when calculating the royalties payable to
      Comvita for such Reporting Period;
and

              

      

       

      [*]
Redacted pursuant to a request for confidential treatment submitted to the
SEC.

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      15

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (ii)

              	
                pay,
      within 30 days following the end of that Reporting Period, an additional
      amount equal to the difference between the royalties that would have been
      paid by Derma Sciences for any previous Reporting Periods in that same
      calendar year had the higher royalty percentage applied, and the royalties
      that were actually paid by Derma Sciences for such Reporting
      Periods;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                if
      at the end of a calendar year, the royalty percentage used for calculating
      royalties during the first three Reporting Periods of that calendar year
      is determined to have been higher than the royalty percentage that should
      have been used by Derma Sciences (“Lower Royalty”), then Derma
      Sciences:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                will
      use the Lower Royalty for determining the royalties payable to Comvita for
      the final Reporting Period of that calendar year;
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                may
      deduct from such royalties so determined an amount equal to the difference
      between the royalties actually paid by Derma Sciences to Comvita for the
      first three Reporting Periods of that calendar year, and the royalties
      that would have been paid by Derma Sciences for such Reporting Periods had
      the Lower Royalty applied;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                only
      one royalty will be payable on any Licensed Product that is both a Gel
      Sheet Product and a Honey Gel Product under clauses 6.1(b) and
      (c).  If a Licensed Product is both a Gel Sheet Product and a
      Honey Gel Product, the additional royalty to the royalty specified in the
      table in clause 6.1(a) will be [*]% of the Net Sales
  Value;

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                for
      the avoidance of doubt, the royalties payable for Licensed Products that
      are Honey Gel Products or Gel Sheet Products under clauses 6.1(b) or (c)
      are in addition to those payable under clauses 6.1(a) and (d);
      and

              

      

       

      
        	
                 
      

              	
                 (e)

              	
                for
      the avoidance of doubt, Derma Sciences will pay to Comvita the royalties
      specified in clause 6.1 in respect of Licensed Products Supplied anywhere
      in the Territory, including in countries where no Patent Rights
      exist.

              

      

       

      
        	
                6.3

              	
                Commercial arm’s-length
      percentages: The parties agree and acknowledge
  that:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                the
      royalty percentages referred to in clause 6.1 are commercial arm’s-length
      percentages; and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                the
      parties would have agreed to those percentages if this Agreement had been
      the only arrangement between them.

              

      

       

      
        	
                6.4

              	
                Date for
      payment:  Derma Sciences will pay the sums due under
      clause 6.1 within 30 days following the end of each Reporting Period in
      respect of Licensed Products Supplied by Derma Sciences during that
      Reporting Period.

              

      

       

      
        	
                6.5

              	
                Combination
      products:  If:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                any
      Licensed Product is incorporated in any product Supplied by Derma
      Sciences; or

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                any
      Licensed Product is Supplied together with any other product as a bundle
      or package,

              

      

       

      [*]
Redacted pursuant to a request for confidential treatment submitted to the
SEC.

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      16

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      then the
Net Sales Value of such Licensed Product will be deemed to be the fair market
value of the Licensed Product in that country of Supply when Supplied
separately.

       

      
        	
                6.6

              	
                Method of
      payment:  Derma Sciences will pay all royalties in US
      dollars to the credit of a bank account to be designated in writing by
      Comvita.

              

      

       

      
        	
                6.7

              	
                Taxes and
      deductions:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                All
      royalties payable under this Agreement will be exclusive of any goods and
      services taxes or value-added taxes, which, where applicable, will be paid
      in addition.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                All
      royalties payable under this Agreement will be paid without deduction or
      set-off of any kind, and without deduction of income tax or other taxes,
      charges or duties that may be imposed, except for any taxes, charges or
      duties that Derma Sciences is required by law to
  deduct.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                If
      Derma Sciences is required by law to make any such deduction, it will
      provide Comvita with such certificates or other documents as it can
      reasonably obtain to enable Comvita to obtain appropriate relief from
      double taxation of the payment in
question.

              

      

       

      
        	
                6.8

              	
                Default
      interest:  If Derma Sciences fails to pay any amount
      payable under this Agreement by the due date for payment, Comvita may
      charge interest on the outstanding amount at the rate of 12% per annum.
      Interest will be calculated on a daily basis from the due date until the
      date of actual payment

              

      

       

      
        	
                6.9

              	
                Minimum
      Royalty:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Without
      prejudice to and in addition to Comvita’s rights under clauses 4.6, 4.7 or
      6.9(d), if in any calendar year the royalties payable under clause 6.1 are
      less than the Minimum Royalty for that calendar
  year:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Derma
      Sciences may, at its sole option, pay to Comvita the amount by which the
      royalties for that calendar year are less than the Minimum
      Royalty;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Derma
      Sciences will pay such amount within 30 days following the end of the
      relevant calendar year; and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                if
      Derma Sciences fails to make the payment provided for in this clause
      6.9(a)(i) by the due date, Comvita may elect to terminate this Agreement
      with immediate effect by notice in writing to Derma
    Sciences.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                The
      rights and obligations of the parties under clause 6.9(a) will be
      suspended if:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Derma
      Sciences has been enjoined or otherwise legally restrained from selling or
      marketing more than 50% of the Licensed Products in either the United
      States or the European Union, until such time as the injunction or other
      legal restriction has been lifted;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Comvita
      is in material breach of any representation, warranty or covenant in the
      Medical Honey Supply Agreement; or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                an
      event of Force Majeure occurs materially affecting the ability of Derma
      Sciences to market and sell all of the Licensed Products in either the
      United States or the European
Union.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      17

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (c)

              	
                If
      any of the events set forth in clause 6.9(b) occurs,
  then:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      rights and obligations of the parties under clause 6.9(a) will remain
      suspended only for so long as the relevant conditions prevail;
      and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if
      only a portion of the calendar year is affected by the conditions, the
      Minimum Royalty payable for such year will be pro-rated
      accordingly.

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                Without
      prejudice to and in addition to Comvita’s rights under clauses 4.6, 4.7 or
      6.9(a), if over any period of five consecutive calendar years (excluding
      any calendar years during which the rights and obligations of the parties
      under clause 6.9(a) have been suspended for the entire calendar year
      pursuant to clause 6.9(b)), the total royalties payable under clause 6.1
      (before any payments under clause 6.9(a) have been made) are less than the
      sum of the Minimum Royalty payable for all of those five consecutive
      calendar years, Comvita may elect to terminate this Agreement with
      immediate effect by notice in writing to Derma
  Sciences.

              

      

       

      
        	
                6.10

              	
                Royalties
      statement:  Derma Sciences will provide to Comvita a
      written royalties statement within 30 days following the end of each
      Reporting Period. The royalties statement must contain the following
      information:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                the
      types of Licensed Product Supplied during the relevant Reporting
      Period;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                the
      quantity of each type of Licensed Product Supplied during the relevant
      Reporting Period;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                the
      total Net Sales Value of each type of Licensed Product Supplied during the
      relevant Reporting Period, expressed both in the currency of receipt and
      in US dollars and showing the conversion rates
  used;

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                a
      breakdown showing which royalties have been generated from the Supply of
      Licensed Products in the European
Union;

              

      

       

      
        	
                 
      

              	
                 (e)

              	
                the
      total amount of royalties payable for the relevant Reporting Period;
      and

              

      

       

      
        	
                 
      

              	
                 (f)

              	
                the
      amount of any taxes withheld or deducted from the royalties
      payable,

              

      

       

      and must
be in a format reasonably approved or specified by Comvita.

       

      
        	
                6.11

              	
                Monthly
      statement:  Derma Sciences will also provide to Comvita
      within ten days following the end of each calendar month a written report
      of:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                the
      Net Sales Value generated during that calendar month;
  and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                the
      royalties payable to Comvita.

              

      

       

      
        	
                6.12

              	
                Maintenance of
      records: Derma Sciences
      will ensure that it keeps detailed and up to date records and accounts
      showing the quantity, description, price and date of Licensed Products
      Supplied under this Agreement. Such records and accounts must
      be:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                kept
      at its normal place of business;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                kept
      separate from any records and accounts not relating solely to the Licensed
      Products; and

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      18

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (c)

              	
                sufficient
      to ascertain the royalties due under this Agreement and to verify any
      royalties statement given under clause
6.10.

              

      

       

      
        	
                6.13

              	
                Inspection of
      records:  Derma Sciences must ensure that all records and
      accounts under clause 6.12 are made available for inspection by a
      representative of Comvita, if reasonably requested by
      Comvita.  The following terms and conditions will apply to any
      such inspection:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Comvita
      must give reasonable notice to Derma Sciences of any such
      inspection;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                only
      one such inspection will be permitted each calendar
  year;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                Comvita’s
      representative will be entitled to take copies of or extracts from such
      records and accounts; and

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                Comvita
      will be responsible for Comvita’s representative’s charges, unless
      Comvita’s representative certifies that there is an inaccuracy of more
      than 5% in any royalties statement given under clause 6.10, in which case
      Derma Sciences will pay Comvita’s representative’s charges for that
      inspection.

              

      

       

      
        	
                6.14

              	
                Incorrect
      payment:  If, following any inspection under clause 6.13,
      Comvita’s representative determines that Derma Sciences has underpaid the
      amount of royalties payable to Comvita under this
    Agreement:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Comvita’s
      representative will provide to Derma Sciences a written report of his or
      her determination. Such report will show how Comvita’s representative has
      calculated the underpayment; and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                within
      five Business Days following receipt of the written determination, Derma
      Sciences will pay to Comvita the unpaid amount. Derma Sciences will at the
      same time pay interest on such amount in accordance with clause
      6.8.

              

      

       

      
        	
                6.15

              	
                Duration of rights and
      obligations:  The rights and obligations of the parties
      under clauses 6.12 to 6.14 will continue in force for a period of three
      years after termination or expiration of this Agreement for any
      reason.

              

      

       

      
        	
                7.

              	
                IMPROVEMENTS

              

      

       

      
        	
                7.1

              	
                Notification:  If
      Derma Sciences devises any Improvements then Derma Sciences will notify
      Comvita and provide Comvita with full details of the same in
      writing.

              

      

       

      
        	
                7.2

              	
                Severable
      Improvements:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Severable
      Improvements devised by either party during the Term outside the scope of
      the R&D Agreement, and all Intellectual Property Rights in and to such
      Severable Improvements, will be exclusively owned by the party who devised
      them or their nominee.  For the avoidance of doubt, under the
      R&D Agreement all Research Results and all Intellectual Property
      Rights therein will be owned by Comvita or its
  nominee.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Derma
      Sciences will be free to exploit the Severable Improvements owned by it
      under this clause 7.2 as it may determine at its absolute
      discretion.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      19

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (c)

              	
                All
      Severable Improvements owned by Derma Sciences or its nominee under this
      clause 7.2 will be licensed to Comvita on a perpetual, irrevocable,
      worldwide, royalty-free, non-exclusive, transferable, sub-licensable
      basis.  The licence will be subject to a limitation so that, for
      so long as this Agreement remains in force and the rights granted under
      clauses 2.1(a) and (c) remain exclusive to Derma Sciences, Comvita will
      not be permitted to use or exploit the Severable Improvements, or any
      Intellectual Property Rights in and to such Severable Improvements, to
      make, use, import, offer to Supply or Supply Licensed Products that are
      not also OTC Products in the
Territory.

              

      

       

      
        	
                7.3

              	
                Non-Severable
      Improvements:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                All
      Non-Severable Improvements devised by Comvita or Derma Sciences during the
      Term, and all Intellectual Property Rights in and to such Non-Severable
      Improvements, will be exclusively owned by Comvita or its nominee, and
      will be licensed to Derma Sciences on the terms and conditions of this
      Agreement.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Subject
      to clause 7.3(a), Derma Sciences will have no claim over any Non-Severable
      Improvements, or over any Intellectual Property Rights
      therein.

              

      

       

      
        	
                8.

              	
                INTELLECTUAL
      PROPERTY

              

      

       

      
        	
                8.1

              	
                Filing and
      prosecution:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Comvita
      will at its own expense use reasonable endeavours to obtain and maintain
      reasonable and appropriate patent and trade mark coverage in the Territory
      in respect of the Patent Rights and Trade Marks, but all decisions as to
      the filing, prosecution and maintenance of any such patents and trade
      marks will be made by Comvita, after due and proper consultation with
      Derma Sciences, at Comvita’s sole
discretion.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Derma
      Sciences agrees that the patent and trade mark coverage in existence as at
      the Commencement Date is reasonable and appropriate for those Licensed
      Products set out in
Schedule 3.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                Comvita
      will endeavour to file patent and trade mark applications in the United
      States of America, Japan and Europe, and any other countries agreed by the
      parties in writing, in respect of any Improvements
  that:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                are
      patentable;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                justify
      the cost of patent protection; and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                are
      licensed to Derma Sciences under this
Agreement.

              

      

       

      
        	
                8.2

              	
                Infringements:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Comvita
      represents and warrants as at the Commencement Date that it is only aware
      of an Infringement by Brightwake Limited (trading as Advancis Medical) and
      a potential Infringement by Manuka Medical Limited.  Details of
      this Infringement and potential Infringement have been provided by Comvita
      to Derma Sciences prior to the Commencement
  Date.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Following
      the Commencement Date each party will tell the other party without delay
      if it becomes aware of any Infringement. The parties will then discuss the
      best way to deal with the
Infringement.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      20

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (c)

              	
                The
      parties agree that it is their intention to collaborate together in
      dealing with Infringements, and to share in the costs incurred and damages
      awarded on a 50/50 basis.  If agreement cannot be
      reached:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Comvita
      or its licensor will have the right but not the obligation at its own cost
      to take such action as it thinks appropriate;
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Derma
      Sciences will agree to assist and if necessary be joined in any suit to
      enforce the relevant Intellectual Property Rights, subject to Derma
      Sciences being indemnified and secured as to costs, expenses, damages and
      liability.

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                Any
      damages or other amounts received from an action by Comvita under clause
      8.2(c) will be for the sole account of Comvita or its
      licensor.

              

      

       

      
        	
                 
      

              	
                 (e)

              	
                If
      Comvita or its licensor does not wish to take such action or fails to do
      so within a reasonable period in the circumstances, Derma
      Sciences:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                will
      have the right but not the obligation to take such action at its own cost;
      and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                may
      join Comvita or its licensor to any relevant proceedings to the extent
      necessary for the purpose.

              

      

       

      In doing
so, Derma Sciences will not be regarded as acting on behalf of Comvita or its
licensor, but Comvita or its licensor will give all reasonable help at Derma
Sciences’ expense to facilitate any such Infringement proceedings by Derma
Sciences.

       

      
        	
                 
      

              	
                 (f)

              	
                Derma
      Sciences will:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                keep
      Comvita fully informed of all matters relating to such
      proceedings;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                indemnify
      Comvita or its licensor against all costs, expenses, damages and liability
      in connection with such proceedings;
and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                get
      Comvita’s or its licensor’s written consent before making any statement
      (whether express or implied) about the validity or enforceability of any
      Patent Rights, Know-How or Trade Marks, or any liability of Comvita or its
      licensor.

              

      

       

      
        	
                 
      

              	
                 (g)

              	
                Any
      damages or other amounts received from an action by Derma Sciences under
      clause 8.2(e) will be for the sole account of Derma
    Sciences.

              

      

       

      
        	
                8.3

              	
                Third Party Infringement
      Claims:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Each
      party will tell the other party without delay if it becomes aware of any
      Third Party Infringement Claim. The parties will then discuss the best way
      to deal with the Third Party Infringement
Claim.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                If
      Derma Sciences receives or is subject to a Third Party Infringement Claim
      that relates to either:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                a
      Licensed Product or any part of a Licensed Product, that is not claimed in
      any Patent Right; or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      making, using or Supplying of a Licensed Product in a territory other than
      the United States of America, the European Union, Australia or New
      Zealand,

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      21

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      then
Derma Sciences will defend or settle such claim at its sole
expense.

       

      
        	
                 
      

              	
                 (c)

              	
                If
      Derma Sciences receives or is subject to a Third Party Infringement Claim
      that relates to either:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                a
      Licensed Product or any part of a Licensed Product, that is claimed in any
      Patent Right that exists in the country in which the Third Party
      Infringement Claim is brought; or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      making, using or Supplying of a Licensed Product in the United States of
      America, the European Union, Australia or New
  Zealand,

              

      

       

      then:

       

      
        	
                 
      

              	
                (iii)

              	
                Derma
      Sciences will be solely responsible for the first US$20,000 of out of
      pocket expenses reasonably incurred by it in dealing with such Third Party
      Infringement Claim;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                subject
      to paragraph (iii) above, Comvita will reimburse Derma Sciences for half
      of the out of pocket expenses reasonably incurred by Derma Sciences in
      dealing with such Third Party Infringement Claim, up to a maximum of
      US$500,000 in total for all Third Party Infringement Claims received by
      Derma Sciences during the Term; and

              

      

       

      
        	
                 
      

              	
                (v)

              	
                the
      parties will establish a committee to make decisions in relation to
      dealing with such Third Party Infringement Claim.  The committee
      will appoint appropriate counsel to represent Derma Sciences and/or
      Comvita (as the case may be) in defending or settling such Third Party
      Infringement Claim.

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                In
      defending or settling any Third Party Infringement Claim under this clause
      8.3, Derma Sciences must get Comvita’s or its licensor’s written consent
      before making any statement (whether express or implied) about the
      validity or enforceability of any Patent Rights, Know-How or Trade Marks,
      or any liability of Comvita or its
licensor.

              

      

       

      
        	
                9.

              	
                TRADE
      MARKS

              

      

       

      
        	
                9.1

              	
                Use of Trade
      Marks:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Derma
      Sciences will ensure that all Licensed Products Supplied by Derma Sciences
      under this Agreement are marked with the Trade Marks in a prominent manner
      on the front of the packaging and as otherwise reasonably required by
      Comvita in writing.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Derma
      Sciences will:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                provide
      Comvita with examples of the use of the Trade Marks on packaging materials
      prior to any new use;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                use
      the Trade Marks only in the form stipulated from time to time by
      Comvita;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                observe
      any reasonable directions given by Comvita as to the colours and size of
      representations of the Trade Marks;
and

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                fully
      comply with all guidelines, recommendations and requirements specified by
      Comvita from time to time regarding the use of the Trade
      Marks.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      22

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                9.2

              	
                Restriction:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Derma
      Sciences will use the Trade Marks only for the purposes authorised in this
      Agreement. In particular, Derma Sciences may not use the Trade Marks in
      any way that would tend to allow them
to:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                become
      generic;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                lose
      their distinctiveness;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                become
      liable to mislead the public; or

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                be
      materially detrimental to or inconsistent with the good name, goodwill,
      reputation and image of Comvita.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                For
      the avoidance of doubt, Derma Sciences may not use the Trade Marks on or
      in relation to any goods or services other than the Licensed Products or
      OTC Products.

              

      

       

      
        	
                9.3

              	
                No use in
      name:  Derma Sciences may not at any time without the
      prior written consent of Comvita:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                use
      the Trade Marks as part of any corporate, business or trading name of
      Derma Sciences; or

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                register
      any company name or domain name that incorporates any of the Trade
      Marks.

              

      

       

      
        	
                9.4

              	
                Prohibitions on Derma
      Sciences:  Derma Sciences may not during or after the
      Term do any of the following things, either directly or
      indirectly:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                seek
      in its own name to register or otherwise protect anywhere in the world any
      trade marks identical or confusingly similar to the Trade
      Marks;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                adopt
      or use any trade mark, symbol or device
that:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                incorporates
      the Trade Marks;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                is
      deceptively or confusingly similar to the Trade Marks;
  or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                unfairly
      competes with the Trade Marks;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                contest,
      dispute or challenge in any legal proceedings or otherwise, anywhere in
      the world:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Comvita’s
      ownership of any of the Trade
Marks;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                any
      registration or application for registration by Comvita of any trade mark
      that is either identical or confusingly similar to any of the Trade Marks;
      or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                the
      validity of any of the Trade Marks;
or

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                allow
      or assist any other person to do any of the things specified in clauses
      9.4(a) to (c).

              

      

       

      
        	
                9.5

              	
                Goodwill:  Comvita
      will own all goodwill arising from Derma Sciences’ use of the Trade Marks.
      To the extent that such goodwill may not be owned by Comvita, this clause
      9.5 will operate as an assignment of such goodwill to
    Comvita.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      23

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                9.6

              	
                Registered
      user:  Derma Sciences will, if requested by Comvita,
      provide all assistance reasonably required by Comvita to obtain
      registration of Derma Sciences as a user of the Trade Marks in the
      Territory.

              

      

       

      
        	
                9.7

              	
                Use by
      Comvita:  Derma Sciences acknowledges and agrees that
      Comvita may use the Trade Marks on or in relation
  to:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                any
      products other than the Licensed Products;
and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Licensed
      Products that are also OTC
Products.

              

      

       

      
        	
                10.

              	
                WARRANTIES,
      INDEMNITY AND LIABILITY

              

      

       

      
        	
                10.1

              	
                Warranties:  Comvita
      warrants that:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                as
      at the Commencement Date it is the owner or exclusive licensee of the
      Patent Rights and Trade Marks;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                the
      Patent Rights and the Know-How are all of the Intellectual Property Rights
      owned by Comvita or its licensors in order to make, use and Supply
      Licensed Products under this
Agreement;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                it
      has not done and will not in the future do, anything that would be
      inconsistent with the exercise by Derma Sciences of the rights granted to
      Derma Sciences under this Agreement;
and

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                it
      is not aware that any third party other than Comvita’s licensors owns or
      claims any rights in the Patent Rights or Trade
  Marks.

              

      

       

      
        	
                10.2

              	
                No implied
      warranties:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Each
      party acknowledges that:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                in
      entering into this Agreement, it does not rely on any representation,
      warranty, term or condition except as expressly provided in this
      Agreement; and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                any
      conditions, warranties or other terms implied by statute or common law are
      excluded from this Agreement to the fullest extent permitted by
      law.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Without
      limiting the scope of clause 10.2(a), Comvita does not give any warranty,
      representation or undertaking:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                about
      the efficacy or usefulness of the Inventions or the rights licensed under
      clause 2.1, or about any fitness for a particular purpose or
      merchantability, other than the warranty in clause
  10.1(b);

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                that
      the making, importation, distribution, promotion, Supply, offering to
      Supply, or use of any Licensed Products in the Territory, or exercise of
      any of the rights granted under clause 2.1, will not infringe the
      Intellectual Property Rights or other rights of any other person;
      or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                that
      Comvita will bring or prosecute any Infringement proceedings, or defend or
      settle any Third Party Infringement Claims, subject to clause
      8.3.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      24

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                10.3

              	
                Indemnity:  Derma
      Sciences will defend, indemnify, keep indemnified and hold harmless
      Comvita against any and all liabilities, losses, damages, costs and
      expenses of any nature arising from any third party claims asserted
      against or suffered by Comvita relating to the manufacture, distribution,
      promotion, use or Supply of the Licensed Products in the
      Territory.

              

      

       

      
        	
                10.4

              	
                Exclusion of
      liability:  In no event will either party (“first party”)
      be liable (whether in contract, tort including negligence, or otherwise)
      to the other for:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                loss
      of revenue or profit, loss of anticipated savings, loss of goodwill or
      opportunity, loss of production, loss or corruption of data or wasted
      management or staff time; or

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                loss,
      damage, cost or expense of any kind whatsoever that is indirect,
      consequential, or of a special
nature,

              

      

       

      arising
directly or indirectly out of this Agreement, even if the first party had been
advised of the possibility of such loss, damage, cost or expense, and even if
such loss, damage, cost or expense was reasonably foreseeable by the first
party.

       

      
        	
                10.5

              	
                Insurance:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                During
      the Term and for three years afterwards, Derma Sciences will maintain with
      a reputable insurer insurance coverage in amounts and against risks that
      are normal for businesses similar to that of Derma
    Sciences.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Comvita
      will be named on such insurance policies as an interested party by
      reason of the indemnity
  in clause 10.4.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                Derma
      Sciences will, upon request, provide to Comvita a certificate from the
      insurer confirming the terms of such
insurance.

              

      

       

      
        	
                11.

              	
                TERM
      AND TERMINATION

              

      

       

      
        	
                11.1

              	
                Commencement and
      term:  This Agreement will come into effect on the
      Commencement Date and will continue in full force and effect in
      perpetuity, unless earlier terminated pursuant to clauses 2.12,
      6.9(a)(iii), 6.9(d), 11.3 to 11.6, or
13.1(b).

              

      

       

      
        	
                11.2

              	
                Expiration of Patent
      Rights:  Upon:

              

      

       

      
        	
                 
       

              	
                 (a)

              	
                the
      expiration of the Patent Rights in one or more of the following countries
      or territories:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      United States; and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                all
      countries within the European Union;
and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                the
      introduction of substantial competition in such market(s) and a
      significant decrease in the gross margins derived by Derma Sciences from
      the sale of the Licensed Products in such
  market(s),

              

      

       

      Comvita
agrees to negotiate with Derma Sciences in good faith an appropriate reduction
of the royalty percentages under clause 6.1 applicable to Net Sales Value
generated in the calendar years following the calendar year in which such events
occur, and/or an adjustment of the Minimum Royalty for such following calendar
years.

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      25

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      
        	
                11.3

              	
                Non-payment of
      royalties:  Comvita may terminate this Agreement with
      immediate effect by giving written notice to Derma Sciences
      if:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                any
      royalties (other than those subject to a good faith dispute) remain unpaid
      within 30 days following their due date;
and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Derma
      Sciences has been given written notice of its failure to pay and has
      failed to remedy that non-payment within ten Business Days following
      receipt of that notice.

              

      

       

      
        	
                11.4

              	
                Challenge:  Comvita
      may terminate this Agreement with immediate effect by giving written
      notice to Derma Sciences if Derma
Sciences:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                directly
      or indirectly challenges the validity, enforceability or ownership
      of:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                any
      of the Patent Rights or Trade Marks;
or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                any
      Know-How,

              

      

       

      whether
or not by legal proceedings; or

       

      
        	
                 
      

              	
                 (b)

              	
                assists
      any other person to do any of the things in clause
  11.4(a);

              

      

       

      
        	
                11.5

              	
                Restraint
      Agreement:  This Agreement will immediately terminate on
      the termination of the Restraint Agreement for any
  reason.

              

      

       

      
        	
                11.6

              	
                Termination on material breach,
      insolvency etc:  Without prejudice to any other right or
      remedy it may have, either party may immediately terminate this Agreement
      at any time by giving to the other party notice in writing
    if:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                the
      other party is in material breach of this Agreement and the material
      breach is not remedied within 20 Business Days of the other party
      receiving notice specifying the material breach and requiring its remedy,
      provided that for non-payment defaults and without limiting the effect of
      clauses 4.6, 4.7 or 6.9, if it is not commercially reasonable for a
      material breach to be fully cured within 20 Business Days, then the cure
      period shall be extended for an additional period of no greater than six
      months provided the party in material breach has commenced remedying the
      default and has clearly demonstrated in writing that it is diligently
      pursuing and continues to diligently pursue such
  cure;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                the
      other party ceases or threatens to cease to carry on all or substantially
      all of its business or operations, is declared or becomes bankrupt or
      insolvent, is unable to pay its debts as they fall due, enters into a
      general assignment of its indebtedness or a scheme of arrangement or
      composition with its creditors, or takes or suffers any similar or
      analogous action in consequence of
debt;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                a
      trustee, manager, administrator, administrative receiver, receiver,
      inspector under any legislation or similar officer is appointed in respect
      of the whole or any part of the other party’s assets or business;
      or

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                an
      order is made or a resolution is passed for the liquidation of the other
      party (other than voluntarily for the purpose of a solvent amalgamation or
      reconstruction).

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      26

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                11.7

              	
                Buyback:  Upon
      termination or expiry of this Agreement for any reason Comvita may (but
      will not be obliged to) purchase some or all of the Licensed Products in
      the possession of Derma Sciences as
follows:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Comvita
      must give written notice to Derma Sciences no later than ten Business Days
      following the date of termination or expiry, that it is interested in
      purchasing from Derma Sciences all or some of the Licensed Products in the
      possession of Derma Sciences and then unsold as at the date of Comvita’s
      notice;

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                upon
      receipt of Comvita’s notice under clause 11.7(a), Derma Sciences will
      allow Comvita or its representatives to have access to all such Licensed
      Products in order to inspect them;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                within
      ten Business Days following completion of the inspection under clause
      11.7(b), Comvita may elect, by giving written notice to Derma Sciences, to
      purchase some or all of those Licensed
Products;

              

      

       

      
        	
                 
      

              	
                 (d)

              	
                following
      receipt of Comvita’s notice under clause
  11.7(c):

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Derma
      Sciences will deliver up to Comvita or its nominee all Licensed Products
      the subject of such notice.  Comvita will pay all costs of
      delivery of such Licensed Products;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Licensed Products purchased by Comvita must be in the same condition as
      they were in at the time of inspection under clause
    11.7(b);

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                risk
      of loss of or damage to such Licensed Products will pass to Comvita upon
      delivery to Comvita or its nominee;
and

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                Comvita
      will pay for such Licensed Products together with any delivery costs by
      the later of 30 days following receipt of a valid tax invoice from Derma
      Sciences, or the date of delivery;
and

              

      

       

      
        	
                 
      

              	
                 (e)

              	
                the
      price for the Licensed Products purchased by Comvita under this clause
      11.7 will be as agreed by the parties.  If the price cannot be
      agreed the price will be the Cost of Production of the Licensed Products
      plus 25%.

              

      

       

      
        	
                11.8

              	
                Consequences of
      termination:  On termination or expiration of this
      Agreement for any reason
whatsoever:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                subject
      to compliance with clause 11.7, Derma Sciences will be entitled to Supply
      on a  non-exclusive basis any unsold or unused stocks of the
      Licensed Products for a period of three months following termination or
      expiration (subject to compliance with the provisions of this Agreement
      including payment of the royalties under clause
  6.1);

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                subject
      to clause 11.8(a), Derma Sciences will no longer be licensed to use or
      otherwise exploit in any way the Patent Rights, Trade Marks or
      Know-How;

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                the
      Recipient will, upon receipt of a written request from the Disclosing
      Party, return or destroy (at the Disclosing Party’s option), all
      Confidential Information in the Recipient’s possession or under the
      Recipient’s control.  Upon the return or destruction (as the
      case may be) of all such Confidential Information, the Recipient will
      provide to the Disclosing Party a certificate stating that the
      Confidential Information returned or destroyed comprises all the
      Confidential Information in the Recipient’s possession or under the
      Recipient’s control;

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      27

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (d)

              	
                Derma
      Sciences will deliver up to Comvita any relevant documents,
      specifications, data, materials and information supplied by Comvita to
      Derma Sciences under this Agreement that are in Derma Sciences’ possession
      or under the control of Derma
Sciences;

              

      

       

      
        	
                 
      

              	
                 (e)

              	
                Derma
      Sciences will transfer to Comvita all of Derma Sciences’ rights and
      obligations under any sub-licences granted under clause 2.8, if required
      by Comvita in writing;

              

      

       

      
        	
                 
      

              	
                 (f)

              	
                Derma
      Sciences will, as soon as reasonably possible and to the extent possible,
      seek to have any product licences, approvals, permits and applications
      relating to the Licensed Products in the Territory transferred into the
      name of Comvita or its nominee;

              

      

       

      
        	
                 
      

              	
                 (g)

              	
                the
      Restraint Agreement, Medical Honey Supply Agreement and R&D Agreement
      will immediately terminate, and either party may elect to terminate the
      Manufacturing Agreement with immediate
effect;

              

      

       

      
        	
                 
      

              	
                 (h)

              	
                the
      provisions of clauses 2.8(e), 3.2, 6.1 to 6.15, 7.2(c),
      8.3,  9.4, 9.5, 10.2 to 10.5, 11.7, 11.8, 12.1 to 12.6, 13.1 to
      13.13, and any other clauses intended to survive termination, together
      with those other provisions of this Agreement that are incidental to, and
      required in order to give effect to those clauses, will remain in full
      force and effect; and

              

      

       

      
        	
                 
      

              	
                 (i)

              	
                subject
      to this clause 11.8, and except for any rights and remedies of the parties
      that have accrued before termination or expiration, including for any
      prior breach of this Agreement, neither party will be under any further
      obligation to the other party.

              

      

       

      
        	
                12.

              	
                DISPUTES

              

      

       

      
        	
                12.1

              	
                Mediation:  In
      the event of a dispute arising out of or relating to this Agreement,
      including any question regarding its existence, validity or termination,
      the parties will first seek settlement of that dispute by mediation in
      accordance with the LCIA Mediation Procedure, which Procedure is deemed to
      be incorporated by reference into this clause
  12.

              

      

       

      
        	
                12.2

              	
                Arbitration:  If
      the dispute is not settled by mediation within five days of the
      commencement of the mediation, or such further period as the parties may
      agree in writing, the dispute will be referred to and finally resolved by
      arbitration under the LCIA Rules, which Rules are deemed to be
      incorporated by reference into this clause
12.

              

      

       

      
        	
                12.3

              	
                Language:  The
      language to be used in the mediation and in the arbitration will be
      English.

              

      

       

      
        	
                12.4

              	
                Governing
      law:  The governing law of this Agreement will be the
      substantive law of New Zealand.

              

      

       

      
        	
                12.5

              	
                Arbitration
      procedure:  In any arbitration commenced pursuant to this
      clause 12:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                the
      number of arbitrators will be three;
and

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                the
      seat, or legal place, of arbitration will be London,
    England.

              

      

       

      
        	
                12.6

              	
                Interlocutory
      relief:  Nothing in this clause 12 will prevent either
      party, at any time, from seeking any urgent interlocutory relief from a
      court of competent jurisdiction in relation to any matter that arises
      under this Agreement.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      28

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                13.

              	
                GENERAL

              

      

       

      
        	
                13.1

              	
                Force
      majeure:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Neither
      party will be liable to the other party for any breach or failure to
      perform any of its obligations under this Agreement where such breach or
      failure is caused by anything beyond that party’s reasonable control,
      including (without limitation) war, civil commotion, hostility, act of
      terrorism, strike, lockout, other industrial act, weather phenomena or
      other act of God, or governmental regulation or direction (“Force
      Majeure”), provided that the party seeking to rely on this
      clause 13.1 has:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                notified
      the other party as soon as reasonably practicable upon becoming aware of
      an actual or potential event of Force
Majeure;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                used
      all reasonable endeavours to avoid, overcome or mitigate the effects of
      the event of Force Majeure as quickly as practicable;
  and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                consulted
      with the other party on its efforts under clause
    13.1(a)(ii).

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                If:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                as
      a result of a Force Majeure a party is unable to perform any of its
      material obligations under this Agreement;
and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      ability of such party to perform any such material obligation has
      been  permanently affected by such Force
  Majeure,

              

      

       

      then the
party not subject to the event of Force Majeure may terminate this Agreement on
giving the other party ten Business Days’ written notice.

       

      
        	
                 
      

              	
                 (c)

              	
                Nothing
      in this clause 13.1 will excuse a party from any obligation to make a
      payment when due under this
Agreement.

              

      

       

      
        	
                13.2

              	
                Variations:  No
      amendment, variation or modification to this Agreement will be effective
      unless it is in writing and signed by duly authorised representatives of
      both parties. 

              

      

       

      
        	
                13.3

              	
                Assignment:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Derma
      Sciences may assign any or all of its rights and obligations under this
      Agreement, provided it first obtains the written consent of Comvita, such
      consent not to be unreasonably
withheld.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Comvita
      may assign any or all of its obligations under this Agreement, provided it
      first obtains the written consent of Derma Sciences, such consent not to
      be unreasonably withheld.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                Comvita
      may assign any or all of its rights under this Agreement at any time,
      without requiring the consent of Derma
Sciences.

              

      

       

      
        	
                13.4

              	
                No
    waiver:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                A
      delay, neglect or forbearance by a party in enforcing any provision of
      this Agreement against the other will not waive or limit any right of that
      party.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      29

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (b)

              	
                No
      provision of this Agreement will be considered waived by a party unless
      that party waives the provision in writing.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                The
      parties will not treat a waiver by a party of any breach as a waiver of
      any continuing or re-occurring breach, unless the parties have expressly
      agreed to do so in writing.

              

      

       

      
        	
                13.5

              	
                Invalid
      clauses:  If any part of this Agreement is held to be
      invalid, unenforceable or illegal for any reason, this Agreement will be
      deemed to be amended by the addition or deletion of wording necessary to
      remove the invalid, unenforceable or illegal part, but otherwise to retain
      the provisions of this Agreement to the maximum extent permissible under
      applicable law.

              

      

       

      
        	
                13.6

              	
                Relationship:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                The
      parties will perform their obligations under this Agreement as independent
      contractors to each other.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                Nothing
      in this Agreement will create, constitute or evidence any partnership,
      joint venture, agency, trust or employer/employee relationship between the
      parties, unless it expressly states otherwise.  Neither party
      may represent, or allow anyone to represent, that any such relationship
      exists between the parties.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                Neither
      party will have the authority to act for, or incur any obligation on
      behalf of, the other party, except as expressly provided for in this
      Agreement.

              

      

       

      
        	
                13.7

              	
                Notices:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                Each
      notice or other communication to be given under this Agreement (“Notice”)
      must be in writing and must be:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                in
      the English language and clearly
legible;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                sent
      by pre-paid post, facsimile (confirmed by pre-paid post) or personal
      delivery to the addressee at the facsimile number, physical address, or
      postal address specified in clause 13.7(b);
and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                marked
      for the attention of the person or office holder (if any) specified in
      clause 13.7(b).

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                The
      initial facsimile number, address, and relevant person or office holder of
      each party are, unless otherwise notified by the relevant party in writing
      to the other party, as set out
below:

              

      

       

      
        	
                 
      

              	
                Comvita:

              	
                Comvita
      New Zealand Limited

              

      

      Wilson
Road South

      Paengaroa

      NEW
ZEALAND

      

      Facsimile:        +64
7 533 1988

      Attention:       Chief
Executive Officer

      

      
        	
                 
      

              	
                Derma
      Sciences:

              	
                Derma
      Sciences, Inc.

              

      

      214
Carnegie Centre

      Suite
300

      Princeton

      New
Jersey 08540

      UNITED
STATES OF AMERICA

      

      Facsimile:        +1(609)
514-8554

      Attention:       Chief
Executive Officer

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      30

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                 
      

              	
                 (c)

              	
                No
      Notice will be effective until received.  A Notice is, however,
      deemed to be received:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                in
      the case of posting, on the third Business Day following the date of
      posting;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                in
      the case of personal delivery, when received;
  and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                in
      the case of a facsimile, following receipt of a report from the machine on
      which the facsimile was sent confirming that all pages were successfully
      transmitted,

              

      

       

      but any
Notice personally delivered or received by facsimile either after 5.00 pm on a
Business Day, or on any day that is not a Business Day, will be deemed to have
been received on the next Business Day.

       

      
        	
                 
      

              	
                 (d)

              	
                Despite
      clauses 13.7(a) and (c)(i), if the Notice is posted from a country other
      than the country of the addressee, the method of posting must be pre-paid
      airmail, and the Notice will be deemed to be received on the seventh
      Business Day following the date of
posting.

              

      

       

      
        	
                13.8

              	
                Further
      action:  Each party agrees to execute, acknowledge and
      deliver all instruments, make all applications and do all things, as may
      be necessary or appropriate to carry out the purposes and intent of this
      Agreement.

              

      

       

      
        	
                13.9

              	
                Announcements:  Neither
      party may:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                make
      any press or other public announcement about any aspect of this Agreement;
      or

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                use
      the name of the other party in connection with or as a result of this
      Agreement,

              

      

       

      without
the other party’s prior written consent.

       

      
        	
                13.10

              	
                Entire
      agreement:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                This
      Agreement and the Confidentiality Agreement contains the whole of the
      contract and understanding between the parties relating to the matters
      covered by it.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                This
      Agreement supersedes all prior representations, agreements, statements and
      understandings between the parties relating to those matters, whether
      verbal or in writing.

              

      

       

      
        	
                 
      

              	
                 (c)

              	
                The
      parties acknowledge that they do not rely on any representation,
      agreement, term or condition that is not set out in this
      Agreement.

              

      

       

      
        	
                13.11

              	
                Counterparts:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                The
      parties may sign this Agreement in any number of counterparts (including
      facsimile or PDF copies), and a party may enter into this Agreement by
      signing any counterpart.

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      31

                    

                  

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                 (b)

              	
                The
      parties confirm that their signing of this Agreement by such means will be
      valid and sufficient.  All counterparts, when taken together,
      will constitute one and the same
agreement.

              

      

       

      
        	
                13.12

              	
                Costs:  Each
      party will bear its own legal costs and expenses incurred in connection
      with the preparation, negotiation and execution of this
      Agreement.

              

      

       

      
        	
                13.13

              	
                Remedies
      cumulative:

              

      

       

      
        	
                 
      

              	
                 (a)

              	
                The
      rights of the parties under this Agreement are
  cumulative.

              

      

       

      
        	
                 
      

              	
                 (b)

              	
                The
      parties do not exclude any rights provided by law, unless otherwise
      expressly stated in this Agreement.

              

      

       

      SIGNED

      

      
        
          
            
              
                
                  
                    	
                            COMVITA NEW ZEALAND
      LIMITED  

                          	by:	/s/
      Brett D. Hewlett
	 
      	 	
                            Signature of Authorised
      Signatory

                          
	 	 	 
	 
      	 	Brett
      D. Hewlett
	 
      	 	
                            Name
      of Authorised
Signatory

                          

                  

                

              

            

          

        

      

      

      
        
          
            
              
                
                  
                    	
                            DERMA SCIENCES, INC
      

                          	by:	/s/
      Edward J. Quilty
	 
      	 	
                            Signature of Authorised
      Signatory

                          
	 	 	 
	 
      	 	Edward
      J. Quilty
	 
      	 	
                            Name
      of Authorised
Signatory

                          

                  

                

              

            

          

        

      

      
         

        
          

        

      

      
        
          	
                  exhibit
      10.01 licence agmt with redactions

                	
                  Licence
      Agreement

                	
                  
                    32

                  

                

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
1

       

      PATENTS
AND PATENT APPLICATIONS

      

      
        
          
            
              
                	
                        Country

                      	 	
                        Comvita name and description

                      	 	
                        Number

                      
	 
      	 	 
      	 	 
      
	
                        Australia

                      	 	
                        Honey
      Wax and Oil Ointment

                      	 	
                        2003234758

                      
	 
      	 	 
      	 	 
      
	
                        Germany

                      	 	
                        Honey
      Wax and Oil Ointment

                      	 	
                        10337340

                      
	 
      	 	 
      	 	 
      
	
                        United
      Kingdom

                      	 	
                        Honey
      Wax and Oil Ointment

                      	 	
                        2391809

                      
	 
      	 	 
      	 	 
      
	
                        United
      States of America

                      	 	
                        Honey
      Wax and Oil Ointment

                      	 	
                        11/106,473

                      
	 
      	 	 
      	 	 
      
	
                        Australia

                      	 	
                        Hydrocolloid
      composition

                      	 	
                        2003234758

                      
	 
      	 	 
      	 	 
      
	
                        Europe

                      	 	
                        Hydrocolloid
      composition

                      	 	
                        06790431.8

                      
	 
      	 	 
      	 	 
      
	
                        United
      States of America

                      	 	
                        Hydrocolloid
      composition

                      	 	
                        12/091897

                      
	 
      	 	 
      	 	 
      
	
                        New
      Zealand

                      	 	
                        Apinate
      (Honey Impregnated Wound Dressing)

                      	 	
                        505514

                      
	 
      	 	 
      	 	 
      
	
                        Australia

                      	 	
                        Apinate
      (Honey Impregnated Wound Dressing)

                      	 	
                        2001-282707

                      
	 
      	 	 
      	 	 
      
	
                        Australia

                      	 	
                        Apinate
      (Honey Impregnated Wound Dressing)

                      	 	
                        2007100007

                      
	 
      	 	 
      	 	 
      
	
                        United
      States of America

                      	 	
                        Apinate
      (Honey Impregnated Wound Dressing)

                      	 	
                        10/312,742

                      
	 
      	 	 
      	 	 
      
	
                        Canada

                      	 	
                        Apinate
      (Honey Impregnated Wound Dressing)

                      	 	
                        2415272

                      
	 
      	 	 
      	 	 
      
	
                        Japan

                      	 	
                        Apinate
      (Honey Impregnated Wound Dressing)

                      	 	
                        2002-505050

                      
	 
      	 	 
      	 	 
      
	
                        Europe

                      	 	
                        Manusorb
      (Wound Dressings)

                      	 	
                        02804300.8

                      
	 
      	 	 
      	 	 
      
	
                        United
      States of America

                      	 	
                        Manusorb
      (Wound Dressings)

                      	 	
                        12/108421

                      
	 
      	 	 
      	 	 
      
	
                        Canada

                      	 	
                        Manusorb
      (Wound Dressings)

                      	 	
                        2,469,033

                      
	 
      	 	 
      	 	 
      
	
                        Australia

                      	 	
                        Manusorb
      (Wound Dressings)

                      	 	
                        2002365662

                      
	 
      	 	 
      	 	 
      
	
                        New
      Zealand

                      	 	
                        Manusorb
      (Wound Dressings)

                      	 	
                        545248

                      
	 
      	 	 
      	 	 
      
	
                        Europe

                      	 	
                        Manugel
      (Use of Honey in Medical Dressings)

                      	 	
                        1237561

                      
	 
      	 	 
      	 	 
      
	
                        Australia

                      	 	
                        Manugel
      (Use of Honey in Medical Dressings)

                      	 	
                        781878

                      
	 
      	 	 
      	 	 
      
	
                        United
      States of America

                      	 	
                        Manugel
      (Use of Honey in Medical Dressings)

                      	 	
                        6,956,144

                      

              

            

          

        

      

      
         

        
          

        

      

      
        
          	
                  exhibit
      10.01 licence agmt with redactions

                	
                  Licence
      Agreement

                	
                  
                    33

                  

                

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                	
                        Country

                      	 	
                        Comvita name and description

                      	 	
                        Number

                      
	 
      	 	 
      	 	 
      
	
                        Canada

                      	 	
                        Manugel
      (Use of Honey in Medical Dressings)

                      	 	
                        2,397,614

                      
	 
      	 	 
      	 	 
      
	
                        Japan

                      	 	
                        Manugel
      (Use of Honey in Medical Dressings)

                      	 	
                        2001-543121

                      
	 
      	 	 
      	 	 
      
	
                        Singapore

                      	 	
                        Manugel
      (Use of Honey in Medical Dressings)

                      	 	
                        89560

                      
	 
      	 	 
      	 	 
      
	
                        South
      Africa

                      	 	
                        Manugel
      (Use of Honey in Medical Dressings)

                      	 	
                        2002/4615

                      
	 
      	 	 
      	 	 
      
	
                        New
      Zealand

                      	 	
                        Manugel
      (Use of Honey in Medical Dressings)

                      	 	
                        501687

                      
	 
      	 	 
      	 	 
      
	
                        New
      Zealand

                      	 	
                        Wound
      Closure Dressing (Wound Closure Dressing)

                      	 	
                        533121

                      
	 
      	 	 
      	 	 
      
	
                        Australia

                      	 	
                        Wound
      Closure Dressing (Wound Closure Dressing)

                      	 	
                        2005244719

                      
	 
      	 	 
      	 	 
      
	
                        New
      Zealand

                      	 	
                        Honey
      Gel (A Medical Composition)

                      	 	
                        542258

                      
	 
      	 	 
      	 	 
      
	
                        Australia

                      	 	
                        Honey
      Gel (A Medical Composition)

                      	 	
                        2006288017

                      
	 
      	 	 
      	 	 
      
	
                        Canada

                      	 	
                        Honey
      Gel (A Medical Composition)

                      	 	
                        2621774

                      
	 
      	 	 
      	 	 
      
	
                        China

                      	 	
                        Honey
      Gel (A Medical Composition)

                      	 	
                        200680032701.7

                      
	 
      	 	 
      	 	 
      
	
                        Europe

                      	 	
                        Honey
      Gel (A Medical Composition)

                      	 	
                        060799584

                      
	 
      	 	 
      	 	 
      
	
                        United
      States of America

                      	 	
                        Honey
      Gel (A Medical Composition)

                      	 	
                        12/066,077

                      

              

            

          

        

      

      
         

        
          

        

      

      
        
          	
                  exhibit
      10.01 licence agmt with redactions

                	
                  Licence
      Agreement

                	
                  
                    34

                  

                

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
2

       

      TRADE
MARKS

       

      Trade
marks:

       

      MEDIHONEY

       

      

       

      

       

      

       

      Trade
mark registrations and applications:

       

      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  Country

                                	 	
                                  Number

                                	 	
                                  Mark

                                	 	
                                  Classes

                                
	 
      	 	 
      	 	 
      	 	 
      
	
                                  Australia

                                	 	
                                  1077514

                                	 	
                                  MEDIHONEY

                                	 	
                                  3,
      5, 30

                                
	 
      	 	 
      	 	 
      	 	 
      
	
                                  Australia

                                	 	
                                  703128

                                	 	
                                  

                                	 	
                                  5

                                
	 
      	 	 
      	 	 
      	 	 
      
	
                                  Australia

                                	 	
                                  861941

                                	 	
                                  

                                	 	
                                  3,
      30

                                
	 
      	 	 
      	 	 
      	 	 
      
	
                                  Canada

                                	 	
                                  553239

                                	 	
                                  

                                	 	
                                  5

                                
	 
      	 	 
      	 	 
      	 	 
      
	
                                  China

                                	 	
                                  4109683

                                	 	
                                  

                                	 	
                                  5

                                
	 
      	 	 
      	 	 
      	 	 
      
	
                                  China

                                	 	
                                  4109682

                                	 	
                                  

                                	 	
                                  30

                                
	 
      	 	 
      	 	 
      	 	 
      
	
                                  China

                                	 	
                                  4109684

                                	 	
                                  

                                	 	
                                  3

                                
	 
      	 	 
      	 	 
      	 	 
      
	
                                  China

                                	 	
                                  7147550

                                	 	
                                  

                                	 	
                                  3

                                
	 
      	 	 
      	 	 
      	 	 
      
	
                                  China

                                	 	
                                  7147548

                                	 	
                                  

                                	 	
                                  5

                                

                        

                      

                    

                  

                

              

            

          

        

      

      
         

        
          

        

      

      
        
          	
                  exhibit
      10.01 licence agmt with redactions

                	
                  Licence
      Agreement

                	
                  
                    35

                  

                

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  
                    	
                            Country

                          	 	
                            Number

                          	 	
                            Mark

                          	 	
                            Classes

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            China

                          	 	
                            7147549

                          	 	
                            

                          	 	
                            30

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Hong
      Kong

                          	 	
                            2001B01778

                          	 	
                            

                          	 	
                            5

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Hong
      Kong

                          	 	
                            301205487

                          	 	
                            

                          	 	
                            3,
      5, 30

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            India

                          	 	
                            1286029

                          	 	
                            

                          	 	
                            3

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            India

                          	 	
                            1286030

                          	 	
                            

                          	 	
                            5

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            India

                          	 	
                            1286031

                          	 	
                            

                          	 	
                            30

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Japan

                          	 	
                            11-106028

                          	 	
                            

                          	 	
                            5

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            South
      Korea

                          	 	
                            40-2003-0040869

                          	 	
                            

                          	 	
                            3

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            South
      Korea

                          	 	
                            40-2003-0040870

                          	 	
                            

                          	 	
                            5

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            South
      Korea

                          	 	
                            40-2003-0040871

                          	 	
                            

                          	 	
                            30

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Malaysia

                          	 	
                            2004-09060

                          	 	
                            

                          	 	
                            30

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Malaysia

                          	 	
                            2004-09061

                          	 	
                            

                          	 	
                            5

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Malaysia

                          	 	
                            2004-09062

                          	 	
                            

                          	 	
                            3

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            New
      Zealand

                          	 	
                            735743

                          	 	
                            

                          	 	
                            3,
      5, 30

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            New
      Zealand

                          	 	
                            605127

                          	 	
                            

                          	 	
                            5

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Norway

                          	 	
                            227059

                          	 	
                            

                          	 	
                            3,
      5, 30

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Singapore

                          	 	
                            T0003651D

                          	 	
                            

                          	 	
                            5

                          

                  

                

              

            

          

        

      

      
         

        
          

        

      

      
        
          	
                  exhibit
      10.01 licence agmt with redactions

                	
                  Licence
      Agreement

                	
                  
                    36

                  

                

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  
                    	
                            Country

                          	 	
                            Number

                          	 	
                            Mark

                          	 	
                            Classes

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Thailand

                          	 	
                            584169

                          	 	
                            

                          	 	
                            3

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Thailand

                          	 	
                            584170

                          	 	
                            

                          	 	
                            05

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Thailand

                          	 	
                            584171

                          	 	
                            

                          	 	
                            30

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Taiwan

                          	 	
                            01150454

                          	 	
                            

                          	 	
                            5

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Taiwan

                          	 	
                            01152039

                          	 	
                            

                          	 	
                            30

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Taiwan

                          	 	
                            01140175

                          	 	
                            

                          	 	
                            3

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            Taiwan

                          	 	
                            97044374

                          	 	
                            

                          	 	
                            3,
      5, 30

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            United
      States of America

                          	 	
                            2694376

                          	 	
                            

                          	 	
                            5

                          
	 
      	 	 
      	 	 
      	 	 
      
	
                            European
      Union

                          	 	
                            001386259

                          	 	
                            

                          	 	
                            05

                            30

                            32

                          

                  

                

              

            

          

        

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      37

                    

                  

          

        

         

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
3

       

      LICENSED
PRODUCTS

      

      Honey
impregnated non adhesive alginates

      
        	
                 
      

              	
                ·

              	
                rope
      – 31012

              

      

      
        	
                 
      

              	
                ·

              	
                2x2”
      (5x5cm) – 31022,

              

      

      
        	
                 
      

              	
                ·

              	
                4x5”
      – 31045

              

      

      
        	
                 
      

              	
                ·

              	
                10x10cm

              

      

      

      Honey
impregnated tulle type dressings

      
        	
                 
      

              	
                ·

              	
                Actilite
      2x2” (5x5cm)

              

      

      
        	
                 
      

              	
                ·

              	
                Actilite
      10x10cm

              

      

      
        	
                 
      

              	
                ·

              	
                Actilite
      4x5”

              

      

      
        	
                 
      

              	
                ·

              	
                Gauze
      2x2” (5x5cm)

              

      

      
        	
                 
      

              	
                ·

              	
                Gauze
      10x10cm

              

      

      
        	
                 
      

              	
                ·

              	
                Gauze
      4x5”

              

      

      

      Honeycolloid
non-adhesive sheets

      
        	
                 
      

              	
                ·

              	
                2x2”
      (5x5cm) – 31222

              

      

      
        	
                 
      

              	
                ·

              	
                10x10cm

              

      

      
        	
                 
      

              	
                ·

              	
                4x5”
      – 31245)

              

      

      

      Honeycolloid
adhesive sheets

      
        	
                 
      

              	
                ·

              	
                2x2”
      (5x5cm) – 31422

              

      

      
        	
                 
      

              	
                ·

              	
                10x10cm

              

      

      
        	
                 
      

              	
                ·

              	
                4x5”
      – 31445

              

      

      

      100%
Honey in tubes

      
        	
                 
      

              	
                ·

              	
                10g

              

      

      
        	
                 
      

              	
                ·

              	
                20g

              

      

      
        	
                 
      

              	
                ·

              	
                25g

              

      

      
        	
                 
      

              	
                ·

              	
                50g

              

      

      
        	
                 
      

              	
                ·

              	
                1oz
      (28.35g) – 31501

              

      

      
        	
                 
      

              	
                ·

              	
                1.5oz
      (42.52g) - 31515

              

      

      
        	
                 
      

              	
                ·

              	
                3oz
      (85.05g) -31530

              

      

      

      Medihoney
Gel (honey with gelling agents) in tubes

      
        	
                 
      

              	
                ·

              	
                10g

              

      

      
        	
                 
      

              	
                ·

              	
                20g

              

      

      
        	
                 
      

              	
                ·

              	
                25g

              

      

      
        	
                 
      

              	
                ·

              	
                50g

              

      

      
        	
                 
      

              	
                ·

              	
                1oz
      (28.35g) – 31501

              

      

      
        	
                 
      

              	
                ·

              	
                1.5oz
      (42.52g)

              

      

      
        	
                 
      

              	
                ·

              	
                3.0oz
      (85.05g)

              

      

      
        
           

          
            

          

        

        
          
            	
                    exhibit
      10.01 licence agmt with redactions

                  	
                    Licence
      Agreement

                  	
                    
                      38

                    

                  

          

        

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Hydrogel-based
honey Adhesive and/or non-adhesive dressings

      
        	
                 
      

              	
                ·

              	
                2x2”
      (5x5cm)

              

      

      
        	
                 
      

              	
                ·

              	
                10x10cm

              

      

      
        	
                 
      

              	
                ·

              	
                4x5”

              

      

      

      Derma
Cream in tubes

      
        	
                 
      

              	
                ·

              	
                15g

              

      

      
        	
                 
      

              	
                ·

              	
                20g

              

      

      
        	
                 
      

              	
                ·

              	
                50g

              

      

      
        	
                 
      

              	
                ·

              	
                1oz
      (28.35g) – 31501

              

      

      
        	
                 
      

              	
                ·

              	
                1.5oz
      (42.52g)

              

      

      
        	
                 
      

              	
                ·

              	
                3.0oz
      (85.05g)

              

      

      

      Barrier
Cream in tubes

      
        	
                 
      

              	
                ·

              	
                15g

              

      

      
        	
                 
      

              	
                ·

              	
                20g

              

      

      
        	
                 
      

              	
                ·

              	
                50g

              

      

      
        	
                 
      

              	
                ·

              	
                1oz
      (28.35g) – 31501

              

      

      
        	
                 
      

              	
                ·

              	
                1.5oz
      (42.52g)

              

      

      
        	
                 
      

              	
                ·

              	
                3.0oz
      (85.05g)

              

      

      

      Sticking
plasters

      
        	
                 
      

              	
                ·

              	
                Multiple
      sizes of sticking plasters that include Medical
  Honey.

              

      

       

      Hydrogrel

      
        	
                 
      

              	
                ·

              	
                3.8cm,
      Sterile 1’s, 10/box

              

      

      
        	
                 
      

              	
                ·

              	
                7cm
      x 7cm, Sterile 1’s, 10/box

              

      

      
        	
                 
      

              	
                ·

              	
                11cm x 11cm, Sterile 1’s,
      10/box

              

      

      
        	
                 
      

              	
                ·

              	
                15.2cm x 22.9cm, Sterile 1’s,
      10/box

              

      

      
        	
                 
      

              	
                ·

              	
                7cm x 7cm, w/adhesive border,
      Sterile 1’s, 10/box

              

      

      
        	
                 
      

              	
                ·

              	
                11cm x 11cm, w/adhesive border,
      Sterile 1’s, 10/box

              

      

      
         

        
          

        

      

      
        
          	
                  exhibit
      10.01 licence agmt with redactions

                	
                  Licence
      Agreement

                	
                  
                    39

                  

                

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
4

       

      MEDICAL
HONEY SPECIFICATIONS

       

      The
specifications that Medical Honey must comply with in terms of content, quality
and essential features are those specifications set out in Comvita’s Product
Specifications numbered 4460A-002, 3980A-001, 4040A-001 and 4124A-001 and
Comvita’s Product Information Sheet for Medical Honey 12+ (Code 743), copies of
which are attached as an exhibit hereto, as may be updated or revised by Comvita
from time to time after consultation with Derma Sciences.

      
         

        
          

        

      

      
        
          	
                  exhibit
      10.01 licence agmt with redactions

                	
                  Licence
      Agreement

                	
                  
                    40

                  

                

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
5

       

      OTC
PRODUCTS

       

      100%
Honey in tubes (maximum retail sale carton up to 10 units)

      
        	
                 
      

              	
                ·

              	
                25g

              

      

      
        	
                 
      

              	
                ·

              	
                1oz
      (28.35g) – 31501

              

      

      
        	
                 
      

              	
                ·

              	
                1.5oz
      (42.52g) – 31515

              

      

      
        	
                 
      

              	
                ·

              	
                50g

              

      

      
        	
                 
      

              	
                ·

              	
                3oz
      (85.05g) -31530

              

      

      

      Medihoney
Gel (honey with gelling agents) in tubes (maximum retail sale carton up to 10
units)

      
        	
                 
      

              	
                ·

              	
                25g

              

      

      
        	
                 
      

              	
                ·

              	
                1oz
      (28.35g) – 31501

              

      

      
        	
                 
      

              	
                ·

              	
                1.5oz
      (42.52g) – 31515

              

      

      
        	
                 
      

              	
                ·

              	
                50g

              

      

      
        	
                 
      

              	
                ·

              	
                3oz
      (85.05g) -31530

              

      

      

      Derma
Cream in tubes (maximum retail sale carton up to 10 units)

      
        	
                 
      

              	
                ·

              	
                15g

              

      

      
        	
                 
      

              	
                ·

              	
                20g

              

      

      
        	
                 
      

              	
                ·

              	
                1oz
      (28.35g) – 31501

              

      

      
        	
                 
      

              	
                ·

              	
                1.5oz
      (42.52g)

              

      

      
        	
                 
      

              	
                ·

              	
                50g

              

      

      
        	
                 
      

              	
                ·

              	
                3.0oz
      (85.05g)

              

      

      

      Barrier
Cream in tubes (maximum retail sale carton up to 10 units)

      
        	
                 
      

              	
                ·

              	
                15g

              

      

      
        	
                 
      

              	
                ·

              	
                20g

              

      

      
        	
                 
      

              	
                ·

              	
                1oz
      (28.35g) – 31501

              

      

      
        	
                 
      

              	
                ·

              	
                1.5oz
      (42.52g)

              

      

      
        	
                 
      

              	
                ·

              	
                50g

              

      

      
        	
                 
      

              	
                ·

              	
                3.0oz
      (85.05g)

              

      

      

      Sticking
plasters

      
        	
                 
      

              	
                ·

              	
                Multiple
      sizes up to 25cm2
      honeycolloid or similar patch size with maximum retail box size of 99
      “sticking plaster” units

              

      

      
         

        
          

        

      

      
        
          	
                  exhibit
      10.01 licence agmt with redactions

                	
                  Licence
      Agreement

                	
                  
                    41

                  

                

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
6

       

      MINIMUM
ROYALTY

       

      
        
          
            	
                    Calendar Year

                  	 	
                    Minimum Royalty To Pay

                  
	 
      	 	 
      
	
                    2010

                  	 	
                    [*]

                  
	 
      	 	 
      
	
                    2011

                  	 	
                    US$[*]

                  
	 
      	 	 
      
	
                    2012

                  	 	
                    US$[*]

                  
	 
      	 	 
      
	
                    2013

                  	 	
                    US$[*]

                  
	 
      	 	 
      
	
                    2014

                  	 	
                    US$[*]

                  
	 
      	 	 
      
	
                    2015
      and each successive calendar year afterwards

                  	 	
                    The
      minimum royalty will be the higher of:

                     

                    (a)      
      the amount of royalty that Derma Sciences would have paid on [*]% of the
      Net Sales Value actually generated by Derma Sciences in the previous
      calendar year; and

                     

                    (b)      
      US$[*].

                  

          

        

      

       

      For
example, if the Net Sales Value in 2014 was $[*] then the Minimum Royalty for
2015 would be the royalty payable on $[*] Net Sales Value ([*] x $[*] or
$[*]).

       

      [*]
Redacted pursuant to a request for confidential treatment submitted to the
SEC.

      
         

        
          

        

      

      
        
          	
                  exhibit
      10.01 licence agmt with redactions

                	
                  Licence
      Agreement

                	
                  
                    42

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]