Document:

Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

This
EMPLOYMENT AGREEMENT (this “Agreement”), effective as of August 7, 2014 (the “Effective Date”),
is made and entered into by and between Trade Street Residential, Inc., a Maryland corporation with its principal place of business
at 19950 West Country Club Drive, Suite 800, Aventura, Florida 33180 (together with its subsidiaries, the “Company”),
and Ryan Hanks, an individual resident of the State of Florida (the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS,
the Company desires to continue the employment of the Executive as the Chief Investment Officer and interim Chief Operating Officer
of the Company, and the Executive desires to continue said employment with the Company, subject to the terms of this Agreement;
and

 

WHEREAS, the Company and
the Executive desire to express the terms and conditions of the Executive’s employment in this Agreement.

 

NOW, THEREFORE,
in consideration of the foregoing recitals, the mutual promises and covenants set forth below and other good and valuable consideration,
receipt of which is hereby acknowledged, the Company and the Executive do hereby agree as follows:

 

1.          Definitions.
For purposes of this Agreement, all initially capitalized words and phrases used herein have the following meanings:

 

“Affiliate” shall mean,
with respect to any individual or entity, any other individual or entity who, directly or indirectly through one or more intermediaries,
controls, is controlled by or is under common control with such individual or entity.

 

“Agreement” shall have
the meaning set forth in the introductory paragraph above.

 

“Base Salary” shall have
the meaning set forth in Section 5.1 hereof.

 

“Board” shall mean the
board of directors of the Company.

 

“Bonus” shall have the
meaning set forth in Section 5.2 hereof.

 

“Cause”
shall mean that the Executive has (a) continually failed to substantially perform, or been grossly negligent in the discharge of,
his duties to the Company (in any case, other than by reason of a Disability, physical or mental illness or analogous condition)
and, in the case of failure to substantially perform, failed to cure such breach within thirty (30) days of receipt from the Company
of notice specifying such non-performance; (b) been convicted of or pled guilty or nolo contendere to a felony or a misdemeanor
with respect to which fraud or dishonesty is a material element; or (c) materially breached any material Company policy or agreement
with the Company and failed to cure such breach within thirty (30) days of receipt from the Company of notice specifying such material
breach.         

 

    	 

    	 

    

 

“Change of
Control” shall mean the first of the following events to occur after the Effective Date:

 

(a)          any
Person or group of Persons together with its Affiliates, but excluding (i) the Company or any of its Subsidiaries, (ii) any employee
benefit plans of the Company or (iii) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company, is or becomes, directly or indirectly, the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act) of securities of the Company representing fifty percent (50%) or more of the
combined voting power of the Company’s then outstanding securities (not including in the securities beneficially owned by
such Person any securities acquired directly from the Company);

 

(b)          the
following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on
the Effective Date, constitute the Board and any new director (other than a director whose initial assumption of office is in connection
with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of
directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders
was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors
on the Effective Date or whose appointment, election or nomination for election was previously so approved or recommended;

 

(c)          the
consummation of a merger or consolidation of the Company or any direct or indirect Subsidiary of the Company with any other corporation
or entity regardless of which entity is the survivor, other than a merger or consolidation which would result in the voting securities
of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or being converted
into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities
of the Company, such surviving entity or any parent thereof outstanding immediately after such merger or consolidation; or

 

(d)          the
stockholders of the Company approve a plan of complete liquidation or winding-up of the Company or there is consummated an agreement
for the sale or disposition by the Company of all or substantially all of the Company’s assets.

 

Notwithstanding the
foregoing, (i) a “Change of Control” shall not be deemed to have occurred by virtue of the consummation of any transaction
or series of integrated transactions immediately following which the holders of the common stock of the Company immediately prior
to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which
owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions, and
(ii) a “Change of Control” shall not occur for purposes of this Agreement as a result of any primary or secondary offering
of Company common stock to the general public through a registration statement filed with the Securities and Exchange Commission.

 

    	 

    	 

    

 

Notwithstanding the
foregoing, to the extent that (i) any payment under this Agreement is payable solely upon or following the occurrence of a Change
of Control (including for the avoidance of doubt, the amounts payable pursuant to Section 8.2) and (ii) such payment is treated
as “deferred compensation” for purposes of Code Section 409A, no event that would not qualify as a “change in
the ownership of the Company,” a “change in the effective control of the Company,” or a “change in the
ownership of a substantial portion of the assets of the Company” as such terms are defined in Section 1.409A-3(i)(5) of the
Treasury Regulations, shall be treated as a “Change of Control” under this Agreement.

 

“COBRA”
means the applicable provisions of Section 4980B of the Code and corresponding provisions of ERISA.

 

“Code” means
the Internal Revenue Code of 1986, as amended.

 

“Company” shall have the meaning
set forth in the introductory paragraph above.

 

“Company Works” shall have the meaning
set forth in Section 10.2(b) hereof.

 

“Competing Entity” shall have the
meaning set forth in Section 10.1 hereof.

 

“Confidential Information” shall
have the meaning set forth in Section 10.2(a) hereof.

 

“Disability”
means a physical or mental condition entitling the Executive to benefits under the applicable long-term disability plan of the
Company or, if no such plan exists, a “permanent and total disability” (within the meaning of Code Section 22(e)(3))
or as determined by the Company in accordance with applicable laws. Notwithstanding the foregoing, to the extent that (a) any payment
under this Agreement is payable solely upon the Executive’s Disability and (b) such payment is treated as “deferred
compensation” for purposes of Code Section 409A, Disability shall have the meaning provided in Code Section 409A and Section
1.409A-3(i)(4) of the Treasury Regulations.

 

“Effective Date”
shall have the meaning set forth in the introductory paragraph above.

 

“Exchange Act” shall mean
the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Executive” shall have the meaning
set forth in the introductory paragraph above.

 

    	 

    	 

    

 

“Good Reason”
means (a) a material diminution in the Executive’s title, duties or responsibilities (provided, however, that a requirement
to utilize skills in addition to those utilized in the Executive’s current position shall not in and of itself be considered
a “material diminution” as contemplated by this clause (a), but a material reduction in the corporate functions directly
reporting to the Executive shall be considered a material diminution for purposes of this clause (a)); (b) a reduction of ten percent
(10%) or more in the Executive’s annual Base Salary; (c) a reduction of ten percent (10%) or more in the Executive’s
annual target bonus opportunity (including the failure to pay any bonus earned for any year in which a Change of Control of the
Company occurs pursuant to the terms of any applicable plan or arrangement in effect prior to such Change of Control); (d) the
relocation of the Executive’s principal place of employment to a location more than thirty (30) miles from the Executive’s
principal place of employment, except for required travel on the Company’s business to an extent substantially consistent
with the Executive’s historical business travel obligations; (e) a material breach of this Agreement by Company that, if
not a monetary breach, is not cured within thirty (30) days’ written notice of such breach by Executive to Company; or (f)
failure by the Company to have in effect a directors’ and officers’ liability insurance policy covering Executive in
those capacities, as required pursuant to Section 12 hereof. Notwithstanding anything to the contrary herein or elsewhere,
(x) cessation of the Executive’s position as interim Chief Operating Officer of the Company, and the related diminution in
the Executive’s title, duties or responsibilities (including any reduction in the corporate functions directly reporting
to the Executive), and/or any reductions in the Executive’s Base Salary and/or target bonus opportunity to levels at least
equal to the levels in effect before the Executive commenced the interim position that result from the cessation of the Executive’s
position as interim Chief Operating Officer of the Company and (y) if the Company appoints Executive as the permanent Chief Operating
Officer of the Company, cessation of the Executive’s position as the Chief Investment Officer of the Company, and the related
diminution in the Executive’s title, duties or responsibilities (including any reduction in the corporate functions directly
reporting to the Executive), and/or any reductions in the Executive’s Base Salary and/or target bonus opportunity to levels
at least equal to the levels in effect before the Executive commenced the interim position that result from the cessation of the
Executive’s position as the Chief Investment Officer of the Company, in each case shall not be taken into account in determining
whether a Good Reason event has occurred for purposes of this Agreement. The Executive’s continued employment shall not constitute
consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder. The Executive
shall not have the right to terminate his employment for Good Reason unless the Executive provides written notice to the Company
of the existence of grounds for termination for Good Reason, including a description of such grounds, within ninety (90) days following
the initial occurrence of the event constituting Good Reason and the Company shall have failed to remedy such act or omission within
thirty (30) days following its receipt of such notice. If the Executive does not provide such written notice of grounds for termination
for Good Reason within ninety (90) days after the initial occurrence of the event constituting Good Reason, the Executive will
be deemed to have waived the right to terminate for Good Reason with respect to such grounds.

 

“Incentive
Plan” means the Company’s 2013 Long Term Incentive Plan, as amended from time to time.

 

“Initial Term”
shall have the meaning set forth in Section 3 hereof.

 

“Person”
shall mean a “person” as defined in Section 3(a)(9) of the Exchange Act, as modified and used in Sections
13(d) and 14(d) thereof, except that such term shall not include (a) the Company (or any Subsidiary thereof), (b) a
trustee or other fiduciary holding securities under an employee benefit plan of the Company, (c) an underwriter temporarily holding
securities pursuant to an offering of such securities, or (d) a corporation owned, directly or indirectly, by the stockholders
of the Company in substantially the same proportions as their ownership of stock of the Company.

 

    	 

    	 

    

 

“Renewal Term”
shall have the meaning set forth in Section 3 hereof.

 

“Restrictive Covenant” shall have
the meaning set forth in Section 10.1 hereof.

 

“Separation Conditions” shall have
the meaning set forth in Section 7.6 hereof.

 

“Subsidiary”
means a corporation, partnership or other entity of which a majority of the voting interests of such corporation, partnership or
other entity are at the time owned directly or indirectly through one or more intermediaries or Subsidiaries, or both, by the Company.

 

“Term” shall
have the meaning set forth in Section 3 hereof.

 

“Third Party Information” shall
have the meaning set forth in Section 10.2(c) hereof.

 

“Works” shall have the meaning set
forth in Section 10.2(b) hereof.

 

2.             Employment.
The Company hereby agrees to employ the Executive and the Executive hereby accepts and agrees to employment with the Company, upon
the terms and subject to the conditions set forth herein. The Executive shall serve as Chief Investment Officer and interim Chief
Operating Officer of the Company and such other office or offices to which the Executive may be appointed or elected by the Board.
Subject to the direction and supervision of the Board, the Executive shall perform such duties as are customarily associated with
the offices of Chief Investment Officer and, for so long as Executive is serving in such position, Chief Operating Officer of the
Company and such other offices to which the Executive may be appointed or elected by the Board and such additional duties as the
Board may determine. The Executive will report to the Board. During the Term (as defined below), the Executive shall (i) devote
substantially all of his business time and attention to the performance of the Executive’s duties hereunder and will not
engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the
performance of such duties either directly or indirectly without the prior written consent of the Board; (ii) devote the Executive’s
best efforts, skill and energies to promote and advance the business and interests of the Company; and (iii) fully perform the
Executive’s obligations under this Agreement. The foregoing does not preclude the Executive from being involved in civic
or charitable endeavors or from serving on the board of directors of, and receiving director fees from, companies that are not
in competition with the Company, so long as such activities do not adversely affect the Executive’s performance hereunder.
Notwithstanding the foregoing, the Company and the Executive acknowledge and agree that the Executive’s position of interim
Chief Operating Officer of the Company is intended to be a temporary position and the Executive shall no longer serve in such position
once the Company appoints a permanent Chief Operating Officer of the Company; provided, however, that if the Company appoints Executive
as the permanent Chief Operating Officer of the Company, this Agreement shall continue to govern the Executive’s employment
after such appointment.

 

    	 

    	 

    

 

3.             Term.
Subject to the provisions of termination as hereinafter provided, the initial term of this Agreement shall begin on the date hereof
and shall terminate on the third (3rd) anniversary of the date hereof (the “Initial Term”); provided,
however that unless the Company or the Executive provides notice of non-renewal pursuant to Section 4, the term of this
Agreement shall automatically be extended for additional one (1) year periods on the same terms and conditions as set forth herein
(individually and collectively, the “Renewal Term”) on the last day of the Initial Term and each Renewal Term;
provided, further, that if a Change in Control occurs during the Initial Term or any Renewal Term, such Initial Term or Renewal
Term, as the case may be, shall not expire before the one (1) year anniversary of the Change in Control, unless expressly agreed
to in writing by the Executive. The Initial Term and the Renewal Term are sometimes referred to collectively herein as the “Term.”

 

4.             Notice
of Non-Renewal. If the Company or the Executive elects not to extend the Term, the electing party shall do so by notifying
the other party in writing not less than sixty (60) days prior to the expiration of the Initial Term or the applicable Renewal
Term.

 

5.            Compensation.

 

5.1           Base
Salary. Until termination of the Executive’s employment with the Company pursuant to this Agreement, the Company shall
pay the Executive a base salary (the “Base Salary”) of $300,000 per annum, which shall be payable to the Executive
in regular installments in accordance with the Company’s general payroll policies and practices. The Executive’s compensation
will be reviewed periodically by the Board, or a committee or subcommittee thereof to which compensation matters have been delegated,
and after taking into consideration both the performance of the Company and the personal performance of the Executive, the Board,
or any such committee or subcommittee, in its sole discretion, may increase the Executive’s compensation to any amount it
may deem appropriate.

 

5.2           Bonus.
In the event either the Company or the Executive, or both, respectively achieve certain financial performance and personal performance
targets of the Company (as established by the Board, or a committee or subcommittee thereof to which compensation matters have
been delegated) pursuant to a cash compensation incentive plan or similar plan or arrangement established by the Company, the Company
may pay to the Executive an annual cash bonus during the Term (the “Bonus”). The Bonus, if any, shall be paid
to the Executive between January 1 and March 15 of the year following the year in which the services which gave rise to the Bonus
were performed. The Board (or applicable committee or subcommittee) may review and revise the terms of the cash compensation incentive
plan or similar plan referenced above at any time, after taking into consideration both the performance of the Company and the
personal performance of the Executive, among other factors, and may, in its sole discretion, amend the cash compensation incentive
or similar plan or arrangement in any manner it may deem appropriate; provided, however, that any such amendment to the plan or
arrangement shall not affect the Executive’s right to participate in such amended plan or plans.

 

    	 

    	 

    

 

5.3           Benefits.
The Executive shall be entitled to three (3) weeks of paid vacation annually. In addition, the Executive shall be entitled to participate
in all compensation or employee benefit plans or programs and receive all benefits and perquisites for which any salaried employees
are eligible under any existing or future plan or program established by the Company for salaried employees. The Executive will
participate to the extent permissible under the terms and provisions of such plans or programs in accordance with program provisions.
These may include group hospitalization, health, dental care, life or other insurance, tax qualified pension, savings, thrift and
profit sharing plans, termination pay programs, sick leave plans, travel or accident insurance, disability insurance, and equity-based
incentive plans. Nothing in this Agreement shall preclude the Company from amending or terminating any of the plans or programs
applicable to salaried or senior executives as long as such amendment or termination is applicable to all similarly situated salaried
employees or senior executives. Except as otherwise set forth herein, the Executive shall not be eligible to participate in any
other termination pay or severance program established by the Company.

 

5.4           Expenses
Incurred in Performance of Duties. The Company shall pay or promptly reimburse the Executive for all reasonable travel and
other business expenses incurred by the Executive in the performance of the Executive’s duties under this Agreement in accordance
with the Company’s policies in effect from time to time with respect to business expenses. Notwithstanding any other provision
of this Agreement, the Executive shall be reimbursed for all such expenses no later than the last day of the month succeeding the
month in which the Executive submits the required documentation for such expense reimbursement to the Company.

 

5.5           Withholdings.
All compensation payable hereunder shall be subject to withholding for federal income taxes, FICA and all other applicable federal,
state and local withholding requirements.

 

6.             Termination
of Employment and Term. The Executive’s employment may be terminated by reason of any of the following events:

 

6.1           Mutual
written agreement between the Executive and the Company at any time;

 

6.2           The
Executive’s death;

 

6.3           The
Executive’s Disability;

 

6.4           By
the Company with or without Cause; and

 

6.5           By
the Executive with or without Good Reason.

 

Upon any termination
of Executive’s employment, the Term shall automatically terminate; provided, however, that (a) the Company’s obligations,
if any, under Section 7 and the Executive’s obligation under Section 7.6 (to the extent such obligations arose
as a result of the termination of the Executive’s employment during the Term), (b) the Company’s obligations under
Section 8 (to the extent such obligations arose as a result of, or prior to, the termination of the Executive’s employment)
and (c) Sections 9 through 22, shall survive until all obligations thereunder have been satisfied or until such provisions
are no longer relevant.

 

    	 

    	 

    

 

7.            Company’s Post -Termination Obligations.

 

7.1           Termination
by Mutual Written Agreement. If the Executive’s employment is terminated during the Term by mutual agreement between
the Executive and the Company, then the Company will pay the Executive (i) all accrued, but unpaid, wages based on the Executive’s
then current Base Salary, through the termination date; (ii) any earned but unpaid bonus relating to the year prior to the termination
date; and (iii) all unreimbursed business expenses with respect to which Executive is entitled to reimbursement as provided herein,
provided that, to the extent not previously submitted, a request for reimbursement of business expenses is submitted in accordance
with the Company’s policies within ten (10) business days of the Executive’s termination date. Payment of such amounts
under subparagraphs (i), (ii) and (iii) (with respect to reimbursement requests submitted prior to the termination date) shall
be made by the Company within thirty (30) business days after the Executive’s
termination date; provided that with respect to those reimbursement requests submitted after the termination date, the payment
date will be determined by the Company in its sole discretion, subject to Section 9 hereof. Except as provided in Section
10.2(e) and Section 11 hereof, the Company shall have no other obligations to the Executive under this Agreement; however,
the Executive shall continue to be bound by Section 10 and all other post-termination obligations to which the Executive
is subject, including, but not limited to, the obligations contained in this Agreement that survive the expiration or earlier termination
of this Agreement, as provided herein.

 

7.2           Termination
for Cause or Without Good Reason. If the Executive’s employment is terminated during the Term by the Company for Cause
or by the Executive without Good Reason, then the Company will pay the Executive (i) all accrued, but unpaid, wages based on the
Executive’s then current Base Salary, through the termination date; (ii) any earned but unpaid bonus relating to the year
prior to the termination date; and (iii) all unreimbursed business expenses with respect to which Executive is entitled to reimbursement
as provided herein, provided that, to the extent not previously submitted, a request for reimbursement of business expenses is
submitted in accordance with the Company’s policies within ten (10) business days of the Executive’s termination date.
Payment of such amounts under subparagraphs (i), (ii) and (iii) (with respect to reimbursement requests submitted prior to the
termination date) shall be made by the Company within thirty (30) business days after
the Executive’s termination date; provided that with respect to those reimbursement requests submitted after the termination
date, the payment date will be determined by the Company in its sole discretion, subject to Section 9 hereof. The Company
shall have no other obligations to the Executive under this Agreement; however, the Executive shall continue to be bound by Section
10 and all other post-termination obligations to which the Executive is subject, including, but not limited to, the obligations
contained in this Agreement that survive the expiration or earlier termination of this Agreement, as provided herein.

 

    	 

    	 

    

 

7.3           Termination
for Death or Disability.         If the Executive’s employment is
terminated during the Term due to the Executive’s death or by the Company due to the Executive’s Disability, then the
Company will pay the Executive (or the Executive’s estate and/or beneficiaries, as the case may be) (i) all accrued, but
unpaid, wages based on the Executive’s then current Base Salary, through the termination date; (ii) any earned but unpaid
bonus relating to the year prior to the termination date; (iii) all unreimbursed business expenses with respect to which Executive
is entitled to reimbursement as provided herein, provided that, with respect to reimbursements, to the extent not previously submitted,
a request for reimbursement of business expenses is submitted in accordance with the Company’s policies by the Executive
(or by the Executive’s guardian, the Executive’s estate and/or beneficiaries, as the case may be) within sixty (60)
business days of the Executive’s termination date; and (iv) if the Executive is participating in the Company’s group
medical, vision and dental plan immediately prior to the date of termination, a lump sum payment equal to eighteen (18) times (or
such lesser period that the Executive and/or the Executive’s eligible dependents are entitled to under COBRA) the amount
of monthly employer contribution that the Company made to an issuer (or as otherwise determined on an actuarial basis based upon
the applicable monthly premium for continuation coverage under COBRA) to provide medical, vision and dental insurance to the Executive
and his dependents in the month immediately preceding the date of termination; provided, however, that the Executive or the Executive’s
eligible dependents shall be solely responsible for any non-monetary requirements which must be satisfied or actions that must
be taken in order to obtain such COBRA continuation coverage. Payment of such amounts under subparagraphs (i), (ii), (iii) (with
respect to reimbursement requests submitted prior to the termination date), and (iv) shall be made by the Company to the Executive
(or the Executive’s estate and/or beneficiaries, as the case may be) within thirty (30) business days after
the Executive’s termination date; provided that with respect to those reimbursement requests submitted after the termination
date, the payment date will be determined by the Company in its sole discretion, subject to Section 9 hereof. Additionally,
notwithstanding anything to the contrary in the Incentive Plan or any award agreement, upon the expiration of the Term as a result
of Executive’s Death or Disability, all of Executive’s outstanding unvested equity-based awards (including, but not
limited to, restricted stock and restricted stock units granted pursuant to the Incentive Plan), shall vest and become immediately
exercisable and unrestricted, without any action by the Board or any committee thereof. For the avoidance of doubt, settlement
of any restricted stock units, the vesting of which is accelerated pursuant to this Section 7.3, shall occur upon vesting
pursuant to this Section 7.3, subject to any previous legally binding deferral election or contrary payment date provided
for in the applicable award agreement regarding such units. Except as provided in Section 10.2(e) and Section 11,
the Company shall have no other obligations to the Executive under this Agreement; however, the Executive shall continue to be
bound by Section 10 and all other post-termination obligations to which the Executive is subject, including, but not limited
to, the obligations contained in this Agreement that survive the expiration or earlier termination of this Agreement, as provided
herein.

 

    	 

    	 

    

 

7.4           Termination
without Cause or for Good Reason. If the Executive’s employment is terminated during the Term by the Company without
Cause or by the Executive for Good Reason, then the Company will pay the Executive (i) all accrued, but unpaid, wages based on
the Executive’s then current Base Salary, through the termination date; (ii) all accrued, but unpaid, vacation through the
termination date, based on the Executive’s then current Base Salary; (iii) all unreimbursed business expenses with respect
to which Executive is entitled to reimbursement as provided herein, provided that, with respect to reimbursements, to the extent
not previously submitted, a request for reimbursement of business expenses is submitted in accordance with the Company’s
policies by the Executive within ten (10) business days of the Executive’s termination date; (iv) any earned but unpaid bonus
relating to the year prior to the termination date; and (v) if the Executive is participating in the Company’s group medical,
vision and dental plan immediately prior to the date of termination, a lump sum payment equal to eighteen (18) times (or such lesser
period that the Executive and/or the Executive’s eligible dependents are entitled to under COBRA) the amount of monthly employer
contribution that the Company made to an issuer (or as otherwise determined on an actuarial basis based upon the applicable monthly
premium for continuation coverage under COBRA) to provide medical, vision and dental insurance to the Executive and his dependents
in the month immediately preceding the date of termination; provided, however, that the Executive or the Executive’s eligible
dependents shall be solely responsible for any non-monetary requirements which must be satisfied or actions that must be taken
in order to obtain such COBRA continuation coverage. Payment of the above amounts shall be made by the Company within thirty (30)
days of the Executive’s termination date, with the payment date determined by the Company in its sole discretion. In addition,
the Company will pay the Executive separation payments equal, in the aggregate, to one and one-half times (1.5x) the sum of (A)
the Executive’s then current Base Salary, and (B) the Executive’s average Bonus for the two (2) year period prior to
the date of termination of employment (if the termination of employment occurs prior to the date the Executive was eligible to
earn two Bonuses, the average Bonus for the two (2) year period shall be deemed to be the Executive’s target Bonus in the
year of termination).  Payment of the separation payments shall be made in equal installments over a period of eighteen
(18) months from the date of termination, in accordance with the Company’s regular payroll practices; provided, that the
first of such payments shall not be made unless and until the Executive has satisfied the conditions set forth in Section 7.6(i)
and the release required thereby has become irrevocable within sixty (60) days following the date of termination; provided, further,
that if such sixty (60) day period spans two calendar years, and any amounts payable during such sixty (60) day period constitute
“nonqualified deferred compensation” for purposes of Code Section 409A, the first of such payments shall not commence
before the first regular payroll payment date in the latter of the two calendar years. The first installment payment made pursuant
to the preceding sentence shall include all amounts that would have been paid between the date of termination and such first payroll
payment date had they been payable on the applicable payroll date. Additionally, notwithstanding anything to the contrary in the
Incentive Plan or any award agreement, upon the Company’s termination of the Executive employment without Cause or the Executive’s
termination for Good Reason, all of the Executive’s outstanding unvested equity-based awards (including, but not limited
to, restricted stock and restricted stock units granted pursuant to the Incentive Plan), shall vest and become immediately exercisable
and unrestricted, without any action by the Board or any committee thereof; provided, however, that to the extent an award (other
than an option or stock appreciation right) is intended to qualify as performance-based compensation for purposes of Section 162(m)
of the Code, such award shall not vest as a result of the termination of the Employee’s employment and shall, instead, remain
outstanding after such termination and shall be subject to the terms and conditions of the applicable award agreement and plan
document (other than conditions related to continued employment). For the avoidance of doubt, settlement of any restricted stock
units, the vesting of which is accelerated pursuant to this Section 7.4, shall occur upon vesting pursuant to this Section
7.4, subject to any previous legally binding deferral election or contrary payment date provided for in the applicable award
agreement regarding such units. Except as set forth in this Section 7.4, Section 10.2(e) and Section 11, the
Company shall have no other obligations to the Executive under this Agreement; however, the Executive shall continue to be bound
by Section 10 and all other post-termination obligations to which the Executive is subject, including, but not limited to,
the obligations contained in this Agreement that survive the expiration or earlier termination of this Agreement, as provided herein.

 

    	 

    	 

    

 

7.5           Termination
upon Non-Renewal by the Company. If the Executive’s employment is terminated due to the Company’s election not
to extend the Term pursuant to Section 4 hereof and the Executive is willing and able, at the time of such non-renewal, to continue
providing services on the terms and conditions set forth herein, then the Company will pay the Executive (i) all accrued, but unpaid,
wages based on the Executive’s then current Base Salary, through the termination date; (ii) all accrued, but unpaid, vacation
through the termination date, based on the Executive’s then current Base Salary; (iii) all unreimbursed business expenses
with respect to which Executive is entitled to reimbursement as provided herein, provided that, to the extent not previously submitted,
a request for reimbursement of business expenses is submitted in accordance with the Company’s policies within ten (10) business
days of the expiration of the Term; (iv) any earned but unpaid bonus relating to the year prior to the termination date; and (v)
if the Executive is participating in the Company’s group medical, vision and dental plan immediately prior to the date of
termination, a lump sum payment equal to eighteen (18) times (or such lesser period that the Executive and/or the Executive’s
eligible dependents are entitled to under COBRA) the amount of monthly employer contribution that the Company made to an issuer
(or as otherwise determined on an actuarial basis based upon the applicable monthly premium for continuation coverage under COBRA)
to provide medical, vision and dental insurance to the Executive and his dependents in the month immediately preceding the date
of termination; provided, however, that the Executive or the Executive’s eligible dependents shall be solely responsible
for any non-monetary requirements which must be satisfied or actions that must be taken in order to obtain such COBRA continuation
coverage. Payment of the above amounts shall be made by the Company within thirty (30) days of the Executive’s termination
date, with the payment date determined by the Company in its sole discretion. In addition, the Company will pay the Executive a
separation payment equal to one times (1x) the Executive’s then current Base Salary. Payment of the separation payments shall
be made in equal installments over a period of twelve (12) months from the date of termination, in accordance with the Company’s
regular payroll practices; provided, that the first of such payments shall not be made unless and until the Executive has satisfied
the conditions set forth in Section 7.6(i) and the release required thereby has become irrevocable within sixty (60) days
following the date of termination; provided, further, that if such sixty (60) day period spans two calendar years, and any amounts
payable during such sixty (60) day period constitute “nonqualified deferred compensation” for purposes of Code Section
409A, the first of such payments shall not commence before the first regular payroll payment date in the latter of the two calendar
years. The first installment payment made pursuant to the preceding sentence shall include all amounts that would have been paid
between the date of termination and such first payroll payment date had they been payable on the applicable payroll date. Additionally,
notwithstanding anything to the contrary in the Incentive Plan or any award agreement, upon the termination of the Executive’s
employment in accordance with this Section 7.5, all of Executive’s outstanding unvested equity-based awards (including,
but not limited to, restricted stock and restricted stock units) granted pursuant to the Incentive Plan, shall vest and become
immediately exercisable and unrestricted, without any action by the Board or any committee thereof; provided, however, that to
the extent an award (other than an option or stock appreciation right) is intended to qualify as performance-based compensation
for purposes of Section 162(m) of the Code, such award shall not vest as a result of the termination of the Executive’s employment
and shall, instead, remain outstanding after such non-renewal and shall be subject to the terms and conditions of the applicable
award agreement and plan document (other than conditions related to continued employment). For the avoidance of doubt, settlement
of any restricted stock units, the vesting of which is accelerated pursuant to this Section 7.5, shall occur upon vesting
pursuant to this Section 7.5, subject to any previous legally binding deferral election or contrary payment date provided
for in the applicable award agreement regarding such units. Except as set forth in this Section 7.5, Section 10.2(e),
and Section 11, the Company shall have no other obligations to the Executive under this Agreement; however, the Executive
shall continue to be bound by Section 10 and all other post-termination obligations to which the Executive is subject, including,
but not limited to, the obligations contained in this Agreement that survive the expiration or earlier termination of this Agreement,
as provided herein.

 

    	 

    	 

    

 

7.6           Separation
Conditions. The Company’s obligation to provide the separation payments set forth in Sections 7.4 and 7.5
above shall be conditioned upon the following (the “Separation Conditions”):

 

(i)          within
sixty (60) days following termination of the Executive’s employment, the Executive’s execution (and the expiration
of any applicable revocation period without revocation by the Executive) of a separation agreement substantially similar to the
form attached hereto as Exhibit A prepared by the Company, which form will include a limited release from liability so that
the Executive will release the Company from any and all liability and claims arising under this Agreement or arising out of the
Executive’s employment by the Company; provided, however, that the Executive shall not be required to release any claim the
Executive may have against the Company in his capacity as a stockholder of the Company or claims for indemnification pursuant to
any indemnification agreement between the Executive and the Company or otherwise existing pursuant to the Company’s organizational
documents or applicable state law; and

 

(ii)         the
Executive’s material compliance with the restrictive covenants (as set forth in Section 10) and all post-termination
obligations, including, but not limited to, the obligations contained in this Agreement.

 

7.7           If
the Executive does not satisfy the requirements set forth in Section 7.6, the Company will not provide any separation payments
to the Executive under Sections 7.4, 7.5 or 8.2, as applicable, and such benefits will be forfeited by the
Executive. The Company’s obligation to make the separation payments set forth in Sections 7.4 or 7.5, as applicable,
shall terminate immediately upon any material breach by the Executive of any post-termination or post-expiration obligations to
which the Executive is subject, which breach, if curable, is not cured within ten (10) days of the Executive being notified of
such breach.

 

7.8           Notwithstanding
anything to the contrary set forth herein, the Company’s obligations to make any payments to the Executive under this Section
7 will not terminate in the event that the Executive gains other employment upon the termination or non-renewal of this Agreement
as long as the Executive has satisfied the conditions set forth in Section 7.6, if applicable, and the Executive is not in breach
of the provisions set forth in Section 10 hereof.

 

    	 

    	 

    

 

8.              Change
of Control.

 

8.1           Notwithstanding
anything to the contrary in the Incentive Plan or any award agreement, upon a Change of Control, all of Executive’s outstanding
unvested equity-based awards (including, but not limited to, restricted stock and restricted stock units) granted pursuant to the
Incentive Plan, shall vest and become immediately exercisable and unrestricted, without any action by the Board or any committee
thereof. For the avoidance of doubt, settlement of any restricted stock units, the vesting of which is accelerated pursuant to
this Section 8.1, shall occur upon vesting pursuant to this Section 8.1, subject to any previous legally binding
deferral election or contrary payment date provided for in the applicable award agreement regarding such units.

 

8.2           Notwithstanding
the provisions of Section 7, if, within one (1) year following a Change of Control, the Company terminates Executive’s
employment without Cause pursuant to Section 6.4, or Executive resigns for Good Reason, then, in lieu of any obligations
under Section 7, the Company will pay Executive the following amounts:

 

(i)          all
accrued, but unpaid, wages through the termination date, based on Executive’s then current Base Salary;

 

(ii)         all
accrued but unused and unpaid vacation

 

(iii)        a
separation payment equal to three times (3x) the sum of (A) Executive’s then current Base Salary, and (B) Executive’s
average Bonus for the two (2) year period prior to the Executive’s termination date (if the Change in Control occurs prior
to the date the Executive was eligible to earn two Bonuses, the average Bonus for the two (2) year period shall be deemed to be
the Executive’s target Bonus in the year of termination);

 

(iv)        a
payment for any earned but unpaid Bonus relating to the prior year;

 

(v)         a
payment for all unreimbursed business expenses with respect to which Executive is entitled to reimbursement as provided herein,
provided that, to the extent not previously submitted, a request for reimbursement of business expenses is submitted in accordance
with the Company’s policies and submitted within ten (10) business days of Executive’s termination date; and

 

(vi)        a
payment in the amount specified in Section 7.4(v).

 

8.3           Any
payments and benefits provided to the Executive pursuant to this Section 8.2 shall be provided to the Executive in lieu
of any payments and benefits to which the Executive may be entitled under Section 7.4. Payment of the amounts required by
Section 8.2 shall be made in a lump sum on the first regular payroll payment date within the sixty (60) day period following
the date of the Executive’s termination of employment; provided, that the payment shall not be made unless and until the
Executive has satisfied the conditions set forth in Section 7.6(i) and the release required thereby has become irrevocable
within such sixty (60) day period following the date of termination; provided, further, that if such sixty (60) day period spans
two calendar years, any amounts that constitute “nonqualified deferred compensation” for purposes of Code Section 409A
shall not be made before the first regular payroll payment date in the latter of the two calendar years. Except as provided in
Section 10.2(e) and Section 11 hereof, the separation payments and benefits set forth in this Section 8 shall
constitute full satisfaction of the Company’s obligations under this Agreement, any Company policy or otherwise. Furthermore,
the Company’s obligations to make any payments to the Executive under this Section 8 will not terminate in the event
that the Executive gains other employment upon such termination without Cause or resignation for Good Reason as long as the Executive
has satisfied the conditions set forth in Section 7.6 and the Executive is not in breach of the provisions set forth in
Section 10 hereof.

 

    	 

    	 

    

 

9.            Compliance
with Code Section 409A and Other Applicable Provisions of the Code.

 

9.1           It
is intended that (i) each payment or installment of payments provided under this Agreement is a separate “payment”
for purposes of Code Section 409A, and (ii) that the payments satisfy, to the greatest extent possible, the exemptions from the
application of Code Section 409A, including those provided under Treasury Regulations 1.409A-1(b)(4) (regarding short-term deferrals),
1.409A-1(b)(9)(iii) (regarding the two-times, two (2) year exception) and 1.409A-1(b)(9)(v) (regarding reimbursements and other
separation pay). Notwithstanding anything to the contrary herein, if the Company determines in accordance with its “specified
employee” procedures (i) that on the date of the Executive’s “separation from service” (as such term is
defined under Treasury Regulation 1.409A-1(h)) or at such other time that the Company determines to be relevant, the Executive
is a “specified employee” (as such term is defined under Treasury Regulation 1.409A-1(i)(1)) of the Company, and (ii)
that any payments to be provided to the Executive pursuant to this Agreement are or may become subject to the additional tax under
Code Section 409A(a)(1)(B) or any other taxes or penalties imposed under Code Section 409A if provided at the time otherwise required
under this Agreement, then such payments shall be delayed until the date that is six (6) months after the date of the Executive’s
“separation from service” (as such term is defined under Treasury Regulation 1.409A-1(h)) or, if sooner, the date of
the Executive’s death. Any payments delayed pursuant to this Section 9 shall be made in a lump sum on the first day
of the seventh month following the Executive’s “separation from service” (as such term is defined under Treasury
Regulation 1.409A-1(h)) or, if sooner, the date of the Executive’s death. It is intended that Agreement shall comply with
the provisions of Code Section 409A and the Treasury Regulations relating thereto so as not to subject the Executive to the payment
of additional taxes and interest under Code Section 409A. In furtherance of this intent, this Agreement shall be interpreted, operated,
and administered in a manner consistent with these intentions.

 

9.2           In
addition, to the extent that any reimbursement, fringe benefit or other, similar plan or arrangement in which the Executive participates
during the term of the Executive’s employment under this Agreement or thereafter provides for a “deferral of compensation”
within the meaning of Code Section 409A, such reimbursements or payments shall be made in accordance with Treasury Regulation 1.409A-3(i)(1)(iv),
including: the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect
the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits
may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods
provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement
must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and
(iii) the right to any reimbursement or in-kind benefit is not subject to liquidation or exchange for another benefit.

 

    	 

    	 

    

  

9.3           Notwithstanding
anything herein to the contrary, a termination of the Executive’s employment shall not be deemed to have occurred for purposes
of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment
unless such termination is also a “separation from service” within the meaning of Code Section 409A (and Treasury Regulation
1.409A-1(h)) (which, by definition, includes a separation from any other entity that would be deemed a single employer together
with the Company for this purpose under Code Section 409A (and Treasury Regulation 1.409A-1(h)), and for purposes of any such provision
of this Agreement, references to a “termination,” “termination of employment,” “termination date,”
or similar terms shall mean “separation from service.”

 

9.4           For
the avoidance of doubt, the Company shall pay any amounts that are due under this Agreement following the Executive’s termination
of employment, death, Disability or other event within the periods of time that are specified in this Agreement in accordance with
the Company’s general payroll policies and procedures.

 

9.5           By
accepting this Agreement, the Executive hereby agrees and acknowledges that the Company does not make any representations with
respect to the application of Code Section 409A to any tax, economic or legal consequences of any payments payable to the Executive
hereunder. Further, by the acceptance of this Agreement, the Executive acknowledges that (i) the Executive has obtained independent
tax advice regarding the application of Code Section 409A to the payments due to the Executive hereunder, (ii) the Executive retains
full responsibility for the potential application of Code Section 409A to the tax and legal consequences of payments payable to
the Executive hereunder and (iii) the Company shall not indemnify or otherwise compensate the Executive for any violation of Code
Section 409A that my occur in connection with this Agreement. The parties agree to cooperate in good faith to amend such documents
and to take such actions as may be necessary or appropriate to comply with Code Section 409A.

 

9.6           Notwithstanding
any other provision to the contrary, in no event shall any payment under this Agreement that constitutes “deferred compensation”
for purposes of Code Section 409A and the Treasury Regulations promulgated thereunder be subject to offset by any other amount
unless otherwise permitted by Code Section 409A.

 

    	 

    	 

    

 

10.         Non-Competition,
Non-Solicitation, Confidentiality and Non-Disclosure.

 

10.1         Non-Competition
and Non-Solicitation. The Executive hereby covenants and agrees that during the Executive’s employment and for a period
of one (1) year following the termination of the Executive’s employment by the Company without Cause, by the Executive for
Good Reason, or due to Company’s non-renewal of the Agreement pursuant to Section 4 hereof, the Executive shall not
(i) perform services as an executive officer of a real estate investment trust that competes with the Company (i.e., owns multi-family
apartment at least half of which are located within one hundred miles of apartment communities owned by the Company) in the ownership
and operation of multi-family residential real estate (each, a “Competing Entity”) or (ii) directly or indirectly
solicit any customer or client (which shall not include lawyers, accountants lenders with whom the Company does business) of the
Company (other than on behalf of the Company) with respect to the business described in subsection (i) hereof; or (iii) directly
or indirectly induce or encourage any employee of the Company or affiliated entities to leave the employ of the Company or affiliated
entities. The foregoing covenants and agreements of the Executive are referred to herein as the “Restrictive Covenant.”
The Executive acknowledges that he has carefully read and considered the provisions of the Restrictive Covenant and, having done
so, agrees that the restrictions set forth in this Section 10.1, including without limitation the time period of restriction
set forth above, are fair and reasonable and are reasonably required for the protection of the legitimate business and economic
interests of the Company. The Executive further acknowledges that the Company would not have entered into this Agreement absent
the Executive’s agreement to the foregoing.

 

In the event that, notwithstanding
the foregoing, any of the provisions of this Section 10.1 or any parts hereof shall be held to be invalid or unenforceable,
the remaining provisions or parts hereof shall nevertheless continue to be valid and enforceable as though the invalid or unenforceable
portions or parts had not been included herein. In the event that any provision of this Section 10.1 relating to the time
period, the area of restriction, the scope of activity and/or related aspects shall be declared by a court of competent jurisdiction
to exceed the maximum restrictiveness such court deems reasonable and enforceable, such provision(s) shall be reformed by such
court by limit or reducing it to the minimum extent necessary so as to remain enforceable to the fullest extent deemed reasonable
by such court.

 

Moreover, the Executive’s
obligations under this Section 10.1 shall terminate and be of no further force and effect if the Company shall fail to make
the payments to the Executive required by Section 7 and/or Section 8 of this Agreement after failing to cure such
non-payment within thirty (30) days after receiving written notice from the Executive of such non-payment.

 

Notwithstanding anything
to the contrary in this Agreement, in the event that the Executive commences employment with a Competing Entity, the Company shall,
effective on the date the Executive’s employment with a Competing Entity commences, cease making payments to the Executive
required by Section 7 and/or Section 8 of this Agreement and shall thereafter have no further obligation to make
any payments to the Executive under this Agreement.

 

    	 

    	 

    

 

10.2         Confidential
Information.

 

(a)          Obligation
to Maintain Confidentiality. The Executive acknowledges that the continued success of the Company depends upon the use and
protection of a large body of confidential and proprietary information, including confidential and proprietary information now
existing or to be developed in the future. “Confidential Information” will be defined as all information of
any sort (whether merely remembered or embodied in a tangible or intangible form) that is (i) related to the Company’s prior,
current or potential business and (ii) not generally or publicly known. Therefore, the Executive agrees not to disclose or use
for the Executive’s own account any of such Confidential Information, except as reasonably necessary for the performance
of the Executive’s duties as an employee or director of the Company, without prior written consent of the Board, unless and
to the extent that any Confidential Information (i) becomes generally known to and available for use by the public other than as
a result of the Executive’s improper acts or omissions to act or (ii) is required to be disclosed pursuant to any applicable
law, regulatory action or court order; provided, however, that the Executive must give the Company prompt written notice of any
such legal requirement, disclose no more information than is so required, and cooperate fully with all efforts by the Company (at
the Company’s sole expense) to obtain a protective order or similar confidentiality treatment for such information. Upon
the termination of the Executive’s employment with the Company, the Executive agrees to deliver to the Company, upon request,
all memoranda, notes, plans, records, reports and other documents (including copies thereof and electronic media) relating to the
business of the Company (including, without limitation, all Confidential Information) that the Executive may then possess or have
under the Executive’s control, other than such documents as are generally or publicly known (provided, that such documents
are not known as a result of the Executive’s breach or actions in violation of this Agreement); and at any time thereafter,
if any such materials are brought to the Executive’s attention or the Executive discovers them in the Executive’s possession,
the Executive shall deliver such materials to the Company immediately upon such notice or discovery.

 

(b)          Ownership
of Intellectual Property. If the Executive creates, invents, designs, develops, contributes to or improves any works of authorship,
inventions, materials, documents or other work product or other intellectual property, either alone or in conjunction with third
parties, at any time during the time that the Executive is employed by the Company (“Works”), to the extent
that such Works were created, invented, designed, developed, contributed to, or improved with the use of any Company resources
and/or within the scope of such employment (collectively, the “Company Works”), the Executive shall promptly
and fully disclose such Company Works to the Company. Any copyrightable work falling within the definition of Company Works shall
be deemed a “work made for hire” as such term is defined in 17 U.S.C. § 101. The Executive hereby (i) irrevocably
assigns, transfers and conveys, to the extent permitted by applicable law, all right, title and interest in and to the Company
Works on a worldwide basis (including, without limitation, rights under patent, copyright, trademark, trade secret, unfair competition
and related laws) to the Company or such other entity as the Company shall designate, to the extent ownership of any such rights
does not automatically vest in the Company under applicable law, and (ii) waives any moral rights therein to the fullest extent
permitted under applicable law. The Executive agrees not to use any Company Works for the Executive’s personal benefit, the
benefit of a competitor, or for the benefit of any person or entity other than the Company. The Executive agrees to execute any
further documents and take any further reasonable actions requested by the Company to assist it in validating, effectuating, maintaining,
protecting, enforcing, perfecting, recording, patenting or registering any of its rights hereunder, all at the Company’s
sole expense.

 

    	 

    	 

    

 

(c)          Third
Party Information. The Executive understands that the Company will receive from third parties confidential or proprietary information
(“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality of
such information and to use it only for certain limited purposes. During the time that the Executive is employed by the Company
or serves on the Company’s Board and at all times thereafter, the Executive will hold information which the Executive knows,
or reasonably should know, to be Third Party Information in the strictest confidence and will not disclose to anyone (other than
personnel of the Company who need to know such information in connection with their work for the Company) or use, except in connection
with the Executive’s work for the Company, Third Party Information unless expressly authorized in writing by the Board or
the information (i) becomes generally known to and available for use by the public other than as a result of the Executive’s
improper acts or omissions or (ii) is required to be disclosed pursuant to any applicable law, regulatory action or court order.

 

(d)          Use
of Information of Prior Employers. During the Term, the Executive shall not use or disclose any Confidential Information including
trade secrets, if any, of any former employers or any other person to whom the Executive has an obligation of confidentiality,
and shall not bring onto the premises of the Company any unpublished documents or any property belonging to any former employer
or any other person to whom the Executive has an obligation of confidentiality unless consented to in writing by the former employer
or person. The Executive shall use in the performance of the Executive’s duties only information that is (i) generally known
and used by persons with training and experience comparable to the Executive’s and that is (x) common knowledge in the industry
or (y) is otherwise legally in the public domain, (ii) otherwise provided or developed by the Company or (iii) in the case of materials,
property or information belonging to any former employer or other person to whom the Executive has an obligation of confidentiality,
approved for such use in writing by such former employer or person.

 

(e)          Disparaging
Statements. During the time that the Executive is employed by the Company or serves on the Company’s Board and at all
times thereafter, the Executive shall not disparage the Company or any of its officers, directors, employees, agents or representatives,
or any of such entities’ products or services; provided, that the foregoing shall not prohibit the Executive from making
any general competitive statements or communications about the Company or their businesses in the ordinary course of competition.
During the time that the Executive is employed by the Company or serves on the Company’s Board and at all times thereafter,
the Company agrees that (i) it shall not issue any public statements disparaging the Executive and (ii) it shall take reasonable
steps to ensure that the senior executive officers of the Company shall not disparage the Executive. Notwithstanding the foregoing,
nothing in this Section 10.2(e) shall prevent the Executive or the Company from enforcing any rights under this Agreement
or any other agreement to which the Executive and the Company are party, or otherwise limit such enforcement.

 

10.3                       Enforcement.
The parties hereto agree that money damages would not be an adequate remedy for any breach of Sections 10.1 or 10.2
by the Executive or any breach of Section 10.2(e) by the Company, and any breach of the terms of Sections 10.1 or
10.2 by the Executive or Section 10.2(e) by the Company would result in irreparable injury and damage to the other
party for which such party would have no adequate remedy at law. Therefore, in the event of a breach or threatened breach of Sections
10.1 or 10.2 by the Executive or of Section 10.2(e) by the Company, the Company or its successors or assigns
or the Executive, as applicable, in addition to other rights and remedies existing in their or the Executive’s favor, shall
be entitled to specific performance and/or immediate injunctive or other equitable relief from a court of competent jurisdiction
in order to enforce, or prevent any violations of, the provisions of Sections 10.1 or 10.2 (in the case of a breach
by the Executive) or Section 10.2(e) (in the case of a breach by the Company), without having to prove damages, and to the
payment by the breaching party of all of the other party’s costs and expenses, including reasonable attorneys’ fees
and costs, in addition to any other remedies to which the other party may be entitled at law or in equity. The terms of this Section
shall not prevent either party from pursuing any other available remedies for any breach or threatened breach hereof, including
but not limited to the recovery of damages from the other party.

 

    	 

    	 

    

 

11.         Indemnification.
The Company shall indemnify and hold the Executive harmless to the fullest extent that would be permitted by law (including a payment
of expenses in advance of final disposition of a proceeding) as in effect at the time of the subject act or omission, or by the
charter of the Company as in effect at such time, or by the terms of any indemnification agreement between the Company and the
Executive, whichever affords greatest protection to the Executive, and the Executive shall be entitled to the protection of any
insurance policies the Company may elect to maintain generally for the benefit of its officers or, during the Executive’s
service in such capacity, directors (and to the extent the Company maintains such an insurance policy or policies, in accordance
with its or their terms to the maximum extent of the coverage available for any company officer or director), against all costs,
charges and expenses whatsoever incurred or sustained by the Executive (including but not limited to any judgment entered by a
court of law) at the time such costs, charges and expenses are incurred or sustained, in connection with any action, suit or proceeding,
or threatened action, suit or proceeding, against the Executive, to which the Executive may be made a party by reason of his being
or having been an officer or employee of the Company, or serving as an officer or employee of an Affiliate of the Company, at the
request of the Company, other than any action, suit or proceeding brought against the Executive by or on account of his breach
of the provisions of any employment agreement with a third party that has not been disclosed by the Executive to the Company.

 

12.         Directors’
and Officers’ Insurance.  The Company agrees, during the Term, to use good faith efforts to obtain and maintain
a directors’ and officers’ liability insurance policy with coverage reasonably recommended by an independent liability
insurance consultant.

 

13.         Notices.
Any notice required or desired to be given under this Agreement shall be in writing and shall be delivered personally or mailed
by registered mail, return receipt requested, or delivered by overnight courier service and shall be deemed to have been given
on the date of its delivery, if delivered, and on the third (3rd) full business day following the date of the mailing, if mailed,
to each of the parties thereto at the following respective addresses or such other address as may be specified in any notice delivered
or mailed as above provided:

 

(i)          If
to the Executive, to:

 

[Address on file with the Company]

 

    	 

    	 

    

 

(ii)         If
to the Company, to:

 

Trade Street Residential, Inc.

19950 West Country Club Drive, Suite 800 Aventura,
Florida 33180

Attention: Director, Human Resources

 

14.         Waiver
of Breach. The waiver by either party of any provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach by the other party. No waiver of any provision of this Agreement shall be implied from any course of dealing
between the parties hereto or from any failure by either party hereto to assert any rights hereunder on any occasion or series
of occasions.

 

15.         Assignment.
The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors
and permitted assigns of the Company. The Company may not assign this Agreement without consent of the Executive, except in connection
with a Change of Control. The Executive acknowledges that the services to be rendered by him are unique and personal, and the Executive
may not assign any of his rights or delegate any of his duties or obligations under this Agreement.

 

16.         Entire
Agreement; Amendment. This Agreement contains the entire agreement of the parties relating to the subject matter herein and
supersedes in full and in all respects any prior oral or written agreement, arrangement or understanding between the parties with
respect to Executive’s employment with the Company. This Agreement may not be amended or changed orally but only by an agreement
in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought.

 

17.         Controlling
Law. All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be governed by, and construed in accordance with, the laws of the State of Florida, without giving effect to any choice of law
or conflict of law rules or provisions (whether of the State of Florida or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Florida.

 

18.         Jurisdiction
and Venue. This Agreement will be deemed performable by all parties in, and venue will exclusively be in the state or federal
courts located in the State of Florida. The Executive and the Company hereby consent to the personal jurisdiction of these courts
and waive any objections that such venue is objectionable or improper.

 

19.         Waiver
of Jury Trial.   AS   A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH
OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY
WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS
CONTEMPLATED HEREBY. The losing party in any lawsuit or proceeding relating to or arising in any way from this Agreement or the
matters contemplated hereby shall pay the reasonable attorneys’ fees and costs of the prevailing party in such lawsuit or
proceeding.

 

    	 

    	 

    

 

20.         Severability.
If any provision of this Agreement or the application of any such provision to any party or circumstances will be determined by
any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement or the application
of such provision to such person or circumstances other than those to which it is so determined to be invalid and unenforceable,
will not be affected thereby, and each provision hereof will be validated and will be enforced to the fullest extent permitted
by law.

 

21.         Headings.
The sections, subjects and headings in this Agreement are inserted for convenience only and shall not affect in any way the meaning
or interpretation of this Agreement.

 

[Signature Page to Follow]

 

    	 

    	 

    

 

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

 

	 	EXECUTIVE:
	 	 	 
	 	By:	/s/ Ryan Hanks
	 	 	Ryan Hanks
	 	 
	 	TRADE STREET RESIDENTIAL, INC.:
	 	 	 
	 	By:	/s/ Richard Ross
	 	 	Richard Ross
	 	Title:	Chief Executive Officer

 

    	 

    	 

    

 

EXHIBIT A

 

FORM OF SEPARATION AGREEMENT AND RELEASE

 

This Separation Agreement
and Release (“Agreement”) is made and entered into by and between Ryan Hanks (“Employee”)
and Trade Street Residential, Inc., including its affiliates, parent corporations, subsidiaries, officers, directors, shareholders,
employees, managers, members, partners, consultants, attorneys, and agents (“Company”). For purposes
hereof, Employee and Company shall be collectively referred to herein as the "Parties," and individually,
as a "Party."

 

WHEREAS, Company has
employed Employee as its [POSITION] in accordance with that certain Employment Agreement dated [         ], by and between the
Company and the Employee (“Employment Agreement”); and

 

WHEREAS, the term of
Employee's employment under the Employment Agreement has been terminated in accordance with the Employment Agreement, and in return
for the consideration to be provided by Company to Employee in accordance with and subject to the terms and conditions set forth
in the Employment Agreement, Employee has agreed to provide the release set forth herein to the Company.

 

NOW, THEREFORE, in consideration
of the mutual covenants set forth herein, and other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Employee and Company, hereby intending to be legally bound, agree as follows:

 

1.          Recitals.
The recitals set forth above are true and correct and are incorporated herein by reference.

 

2.          Separation
Date. Employee’s separation from Company shall be effective at the close of business on [            ,
20 ] (the “Separation Date”).Employee warrants and represents that he has returned, or will promptly
hereafter return, to Company all property of Company in his possession, custody, or control, including, but not limited to, files
(paper and electronic) and other documents, client records, working papers, reports, computers and other hardware or software,
access cards, office keys, and all other Company property of any nature.

 

    	 

    	 

    

 

3.          Release.

 

(a)          In
consideration of the compensation and other benefits to be provided by the Company to Employee after the Separation Date in accordance
with the terms set forth in the Employment Agreement, Employee, for himself and his heirs, executors, administrators, personal
representatives and assigns, hereby irrevocably and unconditionally forever releases and discharges Company, its past and present
shareholders, officers, directors, partners, managers, members, consultants, attorneys, agents, employees, subsidiaries, parent
corporations, affiliated or related entities and its or their past and present shareholders, officers, directors, agents, employees
and all of the successors, assigns, and legal representatives of the foregoing (collectively, “Releasees”)
of and from, any matter or thing occurring in whole or in part through the date hereof, any and all rights, claims, grievances,
arbitrations or causes of action (“Claims”) which Employee has asserted, could assert or which could
be asserted on his behalf (1) arising from Executive’s relationship to, employment with or service as an employee, officer,
director, or manager of the Company or its subsidiaries and affiliates prior to the date of execution and delivery of this Agreement,
including his separation from such employment; provided, however, that the Executive does not release any claim that the Executive
may have against the Company in his capacity as a stockholder of the Company or claims for indemnification pursuant to any indemnification
agreement between the Executive and the Company or otherwise existing pursuant to the Company’s organizational documents
or applicable state law or (2) arising under the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”),
the Family and Medical Leave Act of 1993, the Employee Retirement Income Security Act of 1974, Title VII of the Civil Rights Act
of 1964, the Rehabilitation Act of 1973, the Equal Pay Act, the Lilly Ledbetter Fair Pay Act of 2009, the Civil Rights Act of 1866,
the Civil Rights Act of 1991, the Americans with Disabilities Act of 1990, the ADA Amendments Act of 2008, the Genetic Information
Nondiscrimination Act, the Florida Human Rights Act of 1977, the Florida Civil Rights Act of 1992, Section 760.50 of the Florida
Statutes, the Miami-Dade County Code, and the wage and discrimination laws of the United States or any State of the United States
or any other country and their subdivisions, including any state or local law, ordinance, regulation or rule, all of the foregoing
as heretofore or hereafter amended, or any court decree, heretofore or hereafter promulgated. To the extent permitted by law, Employee
also waives any and all rights under the laws of any jurisdiction in the United States that would limit the foregoing release and
waiver of which he had knowledge as of the date hereof. Employee recognizes that, among other things, he is releasing Company of
and from any and all claims he might have against it for retaliation of any kind, pain and suffering, emotional distress, and for
discrimination based on age, gender, national origin, race, religion, disability, sexual orientation, or veteran status. Notwithstanding
any other provision of this Agreement to the contrary, this Agreement does not encompass, and Employee does not release, waive
or discharge, the obligations of the Company (a) to make the payments and provide the awards and benefits required by the
Employment Agreement, including without limitation, any equity based awards (including restricted stock and restricted stock units)
or (b) under any indemnification or similar agreement with Employee.

 

(b)          The
Company, on behalf of itself and its affiliates and each of their respective officers, directors, partners, shareholders, employees,
and agents, hereby releases and forever discharges Employee from any and all claims whatsoever up to the date hereof that it had,
may have had, now have or may have for or by reason of any claim arising out of or attributable to Employee’s employment
or the termination of your employment with the Company, or pursuant to any, United States federal, state, or local law or regulation.
Company agrees to indemnify and hold Employee harmless from and against any claim, grievance, loss, damage, liability, cost or
expense, including without limitation, reasonable attorneys’ fees by reason of Company’s breach of this Agreement,
representations, warranties, and covenants made under this Agreement.

 

(c)          Employee
warrants and represents that he has not heretofore assigned or transferred to any person or entity any of the matters released
hereunder, nor has he filed any grievance, charge or complaints against Company with any governmental or administrative agency
or court. Employee agrees to indemnify and hold the Releasees harmless from and against any claim, grievance, loss, damage, liability,
cost or expense, including without limitation, reasonable attorneys’ fees by reason of Employee's breach of this Agreement,
representations, warranties, and covenants made under this Agreement.

 

    	 

    	 

    

 

(d)          Employee
acknowledges that this Agreement is an important legal document and that Employee has been requested to sign this document as
part of his separation from Company. Employee acknowledges, therefore, that: (i) Employee has read this Agreement in its entirety,
(ii) Employee is competent to execute this Agreement, (iii) Employee has executed this Agreement knowingly and voluntarily and
without reliance upon any statement or representation of any Releasee or its representatives, (iv) Employee has been advised to,
and has had ample opportunity if so desired, to discuss this Agreement with his own attorney for assistance and advice concerning
this Agreement, (v) the terms of this Agreement have been negotiated, (vi) Employee understands the terms of this Agreement and
their legal effects, and (vii) Employee understands that the terms of this Agreement are enforceable. Employee further covenants,
warrants, and represents that he has entered into this Agreement freely and voluntarily.

 

(e)          Employee
acknowledges that Company has given him the opportunity to consider this Agreement for twenty-one (21) days before executing it.
In the event that Employee has executed this Agreement within less than twenty-one (21) days of the date of its delivery to him,
Employee acknowledges that such decision was entirely voluntary and that he had the opportunity to consider this Agreement for
the entire twenty-one (21) day period.

 

(f)          This
entire Agreement and any obligations of the Company under Sections 7.4 and 7.5 of the Employment Agreement shall be null and void
and shall be automatically withdrawn unless Employee executes and returns this Agreement to Company no later than twenty-one (21)
days after the effective date of termination.

 

(g)          Employee
further acknowledges that for a period of seven (7) days following the full execution of this Agreement, he may revoke this Agreement,
thus this Agreement shall not become effective or enforceable, nor shall Company have any obligations hereunder, until after the
seven (7) day revocation period has expired. Employee may revoke this Agreement only by delivering a written statement of revocation
to Company, attention [          ]. If Company does not receive Employee’s
written statement of revocation by the end of the seven (7) day revocation period, then this Agreement will become legally enforceable
and Employee may not thereafter revoke.

 

4.          No
Admission. The Parties agree that this Agreement does not constitute an admission by the Company of any: (a) violation
of any statute, law, regulation, order or other applicable authority; (b) breach of contract, actual or implied; or (c) commission
of any tort.

 

5.          Non-Disparagement.
Executive agrees not to disparage the Company or any of its officers, directors, employees, agents or representatives, or any of
such entities’ products or services; provided, that the foregoing shall not prohibit the Executive from making any general
competitive statements or communications about the Company or their businesses in the ordinary course of competition. Further,
Executive agrees and understands that any violation of this provision will void this Agreement and Executive will be required to
return or repay any and all considered received under this Agreement to the Company.

 

    	 

    	 

    

 

6.          Confidentiality.
The Parties hereto agree to keep the existence and terms of this Agreement confidential, except as required to be disclosed by
the regulations of the Securities and Exchange Commission. Executive specifically agrees not to discuss the existence or terms
of this Agreement with any third party except for his spouse, legal counsel and financial and legal advisors.

 

7.          Binding
Effect. All terms and provisions of this Agreement, whether so expressed or not, shall be binding upon, inure to the
benefit of, and be enforceable by the Parties and their respective administrators, executors, other legal representatives,
heirs, successors and permitted assigns.

 

8.          Enforcement
Costs. If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute,
breach, default or misrepresentation in connection with any provisions of this Agreement, the successful or prevailing Party or
Parties shall be entitled to recover reasonable attorneys' fees and expenses, court costs and all expenses even if not taxable
as court costs (including, but not limited to, all attorneys' fees and expenses incident to any appeals), incurred in that action
or proceeding, in addition to any other relief to which such Party or Parties may be entitled.

 

9.          Entire
Agreement. This Agreement represents the entire understanding and Agreement between the Parties with respect to the
subject matter discussed in this Agreement, and supersedes all other negotiations, understandings and representations (if
any) made by and between such Parties with respect to such subject matter. In the event that any provision in this Agreement
is determined to be legally invalid or unenforceable by any court of competent jurisdiction and cannot be modified to be
enforceable, the affected provision shall be stricken from the Agreement, and the remaining terms of the Agreement and its
enforceability shall remain unaffected thereby.

 

10.         Counterparts.
This Agreement may be executed in one or more counterparts, and counterparts may be exchanged by electronic transmission (including
by email), each of which will be deemed an original, but all of which together constitute one and the same instrument.

 

11.         Opportunity
for Independent Representation. Employee hereby acknowledges and agrees that he has been given the opportunity, if so
desired, to seek independent counsel for review and advice in connection with his rights, remedies and obligations under this
Agreement.

 

12.         Governing
Venue and Submission to Jurisdiction. This Agreement shall be governed by the laws of the State of Florida. Any suit,
action or other legal proceeding arising out of, or relating to, this Agreement shall be brought in a court of competent
jurisdiction located in Miami-Dade County, Florida having subject matter jurisdiction thereof and both Parties agree to
submit to the jurisdiction of such forum.

 

13.         Notices.
All notices, demands, requests and replies required or permitted by this Agreement shall be in writing and shall be deemed given
when delivered in person or on the third (3rd) business day following the date of mailing if sent by first-class mail,
postage prepaid, return receipt requested, addressed as follows:

 

    	 

    	 

    

 

	(a)	if to the Company:	Trade Street Residential, Inc.
	 	 	 
	 	 	Attention: [                 ]
	 	 	19950 W. Country Club Drive Suite 800
	 	 	Aventura, FL 33180
	 	 	 
	(b)	if to the Employee:	 
	 	 	 
	 	 	 

 

PLEASE READ CAREFULLY. THIS
DOCUMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

[Signature Page Follows]

 

    	 

    	 

    

 

[Signature Page to Separation Agreement
and Release]

 

The undersigned, Employee,
hereby represents that he has executed this Agreement for the purposes and the consideration expressed herein, and that he has
carefully read this Agreement, has had adequate time and opportunity to consider and understand its meaning and effect, and, if
he so desired, discussed it with any person of his choice, including his attorney, and that he has voluntarily executed it as such.

 

	EMPLOYEE	 	TRADE STREET RESIDENTIAL, INC.
	 	 	 	 	 
	By: 	 	 	By:	 
	Ryan Hanks	 	 	 
	 	 	 	Print Name:	 
	 	 	 	 	 
	 	 	 	Title:	 
	 	 	 	 	 
	Date:	 	 	Date:Exhibit 10.4

 

THE COMPANY HAS REQUESTED AN ORDER FROM
THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN OMITTED
FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT WITH “*****”.

 

 

 

 

 

 

 

 

 

 

 

SUPPLY AGREEMENT

 

BY AND BETWEEN

 

ANTHROGENESIS
CORPORATION

 

AND

 

ALLIQUA, INC.

 

 

 

April 10, 2014

 

 

 

 

 

 

 

 

 

  

    	 

    	 

    

 

TABLE OF CONTENTS

 

PAGE

 

	ARTICLE 1  DEFINITIONS	1
	 	 
	ARTICLE 2  SUPPLY OF MANUFACTURED PRODUCTS	2
	 	 
	2.1   Sale and Purchase of Manufactured Products	2
	2.2   Forecasts; Firm Orders	4
	2.3   Shipment and Delivery	4
	2.4   Alliqua Right to Manufacture	4
	 	 
	ARTICLE 3  REGULATORY AND QUALITY MATTERS	5
	 	 
	3.1   Regulatory Responsibility	5
	3.2   Change Control	5
	3.3   Records	5
	3.4   Testing	6
	3.5   Regulatory Inquiries	6
	3.6   Notice of Regulatory Inspections	6
	3.7   Quality Agreement	6
	3.8   Quality Audits	7
	3.9   Intentionally Omitted	7
	3.10   Cooperation	7
	3.11   Recalls	8
	3.12   Complaints	8
	3.13   Warning Letters	9
	3.14   Inquiries from Health Care Professionals	9
	3.15   Debarment	9
	3.16   Additional Covenants of Alliqua	9
	 	 
	ARTICLE 4  PRICE AND PAYMENT TERMS	9
	 	 
	4.1   Purchase Price	9
	4.2   Taxes	10
	4.3   Freight and Insurance	10
	4.4   Payments	10
	4.5   Interest Charges	10
	4.6   Pricing	10
	 	 
	ARTICLE 5  INSPECTION OF MANUFACTURED PRODUCTS	10
	 	 
	5.1   Inspection by Alliqua	10
	5.2   Disputes Over Manufactured Products	11
	5.3   Replacement of Manufactured Products That Are Not Acceptable Manufactured Products	11
	5.4   Exclusive Remedy	11

 

    	i

    	 

    

 

	ARTICLE
    6  REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS	11
	 	 
	6.1   Mutual
    Representations and Warranties	11
	6.2   Additional
    CCT Representations and Warranties	12
	6.3   Alliqua
    Compliance with Applicable Law	12
	 	 
	ARTICLE
    7  INDEMNIFICATION AND INSURANCE	13
	 	 
	7.1   CCT
    Indemnification	13
	7.2   Alliqua
    Indemnification	13
	7.3   Indemnification
    Procedures	13
	7.4   Limitation
    of Liability	13
	7.5   Insurance	14
	 	 
	ARTICLE
    8  CONFIDENTIAL INFORMATION	14
	 	 
	8.1   Confidentiality	14
	8.2   Authorized
    Disclosure	15
	8.3   Return
    of Confidential Information	15
	8.4   Publicity;
    Terms of the Agreement; Confidential Treatment	15
	8.5   Technical
    Publication	16
	8.6   Equitable
    Relief	17
	 	 
	ARTICLE
    9  TERM AND TERMINATION	17
	 	 
	9.1   Term	17
	9.2   Termination	17
	9.3   Effects
    of Termination	18
	 	 
	ARTICLE
    10  GENERAL PROVISIONS	19
	 	 
	10.1   Entire
    Agreement; Amendment	19
	10.2   Force
    Majeure	19
	10.3   Notices	19
	10.4   No
    Strict Construction; Headings	20
	10.5   Assignment	20
	10.6   Performance
    by Affiliates	21
	10.7   Further
    Actions	21
	10.8   Severability	21
	10.9   No
    Waiver	21
	10.10   Independent
    Contractors	21
	10.11   Governing
    Law	22
	10.12   Counterparts	22

 

    	ii

    	 

    

  

THE COMPANY HAS REQUESTED AN ORDER FROM THE SECURITIES AND
EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED,
GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS EXHIBIT,
AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT WITH “*****”.

 

SUPPLY AGREEMENT

 

THIS SUPPLY AGREEMENT
(this “Agreement”) dated as of April 10, 2014 (the “Effective Date”), by and between Anthrogenesis
Corporation, a Delaware corporation doing business as Celgene Cellular Therapeutics (“CCT”), and Alliqua, Inc.,
a Florida corporation (“Alliqua”). Alliqua and CCT may each be referred to as a “Party” or
collectively be referred to as the “Parties”.

 

PREAMBLE

 

A.CCT and Alliqua
entered into a License, Marketing and Development Agreement dated November 14, 2013 (the “License Agreement”),
under which CCT granted certain rights to Alliqua to market and sell the Licensed Products (as defined therein); and

 

B.CCT and Alliqua
entered into a Supply Agreement dated November 14, 2013 (the “Biovance Supply Agreement”) for the supply of
Biovance® and agreed to enter into a supply agreement with respect to ECM products on substantially the same terms as the Biovance
Supply Agreement, except that the purchase price shall be as set forth in Schedule 2.5 to the Biovance Supply Agreement.

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, CCT and Alliqua agree as follows:

ARTICLE
1

DEFINITIONS

 

All capitalized terms
used but not defined herein shall have the meaning ascribed to such term in the License Agreement. In addition to the terms defined
in the License Agreement and elsewhere in this Agreement, the following terms have the meanings indicated:

 

“Acceptable
Manufactured Products” has the meaning set forth in Section 5.1.

 

“Act”
means the Federal Food, Drug, and Cosmetic Act, as amended, and the rules, regulations, guidelines and requirements of the FDA
as may be in effect from time to time.

 

“Alliqua Indemnified
Parties” has the meaning set forth in Section 7.1.

 

“Calendar
Year” means each successive period of twelve (12) calendar months commencing on January 1.

 

“CCT Indemnified
Parties” has the meaning set forth in Section 7.2.

 

“CCT Recall
Event” has the meaning set forth in Section 3.11.

 

    	 

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

“CFR”
has the meaning set forth in Section 3.1.

 

“cGMPs”
means current Good Manufacturing Practices as described in Part 820 of Title 21 of the U.S. Code of Federal Regulations.

 

“ECM”
means CCT’s extracellular matrix products derived from the human placenta.

 

“FDA”
means the United States Food and Drug Administration or any successor agency performing a similar function.

 

“Firm Order”
means a written irrevocable firm purchase order for Manufactured Products, which order shall include a delivery schedule specifying
the required delivery date and quantity for each Manufactured Product stock keeping unit ordered and the location to which shipment
of Manufactured Products is to be delivered.

 

“Forecast”
has the meaning set forth in Schedule 2.2, subsection (a)(ii).

 

“Long Range
Forecast” has the meaning set forth in Schedule 2.2, subsection (a)(i).

 

“Losses”
has the meaning set forth in Section 7.1.

 

“Manufactured
Product” means ECMs that have received Regulatory Clearance and/or Approval.

 

“Permitted
Subcontractor” has the meaning set forth in Section 2.1(d).

 

“Product Samples”
has the meaning set forth in Section 3.4.

 

“Purchase
Price” has the meaning set forth in Section 4.1.

 

“Quality Agreement”
has the meaning set forth in Section 3.7.

 

“Required
Manufacturing Changes” has the meaning set forth in Section 3.2.

 

“Term”
has the meaning set forth in Section 9.1.

 

“Third Party
Claims” has the meaning set forth in Section 7.1.

 

 

ARTICLE
2

SUPPLY OF MANUFACTURED PRODUCTS

 

2.1Sale
and Purchase of Manufactured Products.

 

(a)Subject to the
terms and on the conditions set forth in this Agreement, as soon as reasonably practicable after the date that CCT obtains Regulatory
Clearance and/or Approval in the United States for an ECM, CCT shall supply and sell to Alliqua, and Alliqua shall purchase from
CCT, Alliqua’s entire requirements of Manufactured Products, in finished form and final packaging, for exploitation in the
Territory under the License Agreement. The form and packaging of any Manufactured Products shall be in accordance with such specifications
for such Manufactured Product (the “Specifications”) that are hereafter agreed to by the Parties. As soon as
reasonably practicable after the Effective Date, the Parties shall endeavor in good faith to agree in writing upon the Specifications.
For purposes of the immediately preceding sentence, neither Party may propose specifications that (i) would conflict with the specifications
comprising a part of CCT’s application for Regulatory Clearance and/or Approval of such Manufactured Product, or (ii) would
materially increase the documented cost of manufacturing finished form of Manufactured Product and/or the documented cost of final
packaging of such Manufactured Product. Following the date that CCT obtains Regulatory Clearance and/or Approval in the United
States for an ECM, the Parties will agree to any changes to the Specifications that are necessary in order for the Specifications
for such ECM to not conflict with the applicable Regulatory Clearance and/or Approval.

 

    	-2-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

(b)CCT shall manufacture,
store at its facility, and test all finished Manufactured Products or cause the same to be manufactured, stored at the manufacturing
facility, and tested, in conformity with the applicable Specifications for such Manufactured Product and in compliance with all
applicable Law, including cGMPs, and the terms and conditions of this Agreement and the Quality Agreement. CCT’s responsibility
for finished packaging of the Manufactured Product will include supply to Alliqua of the Manufactured Products in finished packaging
(including (i) sterile pouch inner packaging, with the appropriate labels affixed to such inner packaging (such pouch inner packaging
and labeling as reasonably determined by CCT (following consultation with, and taking into account input from, the JSC) in compliance
with applicable Law and Regulatory Clearance and/or Approval), (ii) outer cartons and outer carton labeling and (iii) package inserts)
all as further detailed in the applicable Specifications, with tracking letters to the extent required under applicable Law . For
the avoidance of doubt, except as provided in Section 2.1(c) below, CCT will not charge Alliqua any amounts for such packaging
that are in addition to the Purchase Price.

 

(c)Alliqua either
will: (i) provide CCT, at Alliqua’s cost, with the outer cartons for the Manufactured Product finished packaging (the “Outer
Cartons”) or (ii) direct CCT to procure the Outer Cartons from a supplier designated by Alliqua. If Alliqua directs CCT
to procure the Outer Cartons, then the per unit cost charged by the Outer Carton supplier will be added to the Purchase Price,
without markup, for each Manufactured Product. In addition, Alliqua, at its cost, will provide CCT with all outer carton labels,
package inserts and, to the extent required, preprinted tracking letters, in each case for CCT to include in the finished Manufactured
Products. Alliqua also shall be responsible for providing CCT with all required artwork to be used in connection therewith.

 

(d)Subject to any
legal requirements under applicable Law, CCT may, at its sole option, engage or use subcontractors and suppliers that it reasonably
believes are qualified to perform some or all of CCT’s obligations under this Agreement (each, a “Permitted Subcontractor”).

 

(e)Without limiting
the foregoing, all Permitted Subcontractors shall be subject to the applicable terms and conditions of this Agreement and the Quality
Agreement and no agreement with any Permitted Subcontractor shall release CCT from any of its obligations under this Agreement
or the Quality Agreement. CCT shall remain responsible for any services performed by such Permitted Subcontractor to the same extent
as if it had performed the obligations itself.

 

    	-3-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

(f)For the purposes
of clarity, nothing in this Agreement shall provide a right of reference to support any filing by Alliqua or an Alliqua Affiliate
with the FDA for any product other than the Manufactured Products or to support any similar filing with another Governmental Authority
in or out of the Territory.

 

2.2Forecasts;
Firm Orders. The Parties shall comply with the provisions of Schedule 2.2 to this
Agreement with respect to the matters set forth therein.

 

2.3Shipment
and Delivery.

 

(a)CCT shall deliver
to Alliqua the Manufactured Products (in finished form and final packaging) ordered pursuant to a Firm Order by the required delivery
dates therefor EXW (Incoterms 2010) CCT’s designated facility in the United States. For purposes of clarity, Alliqua bears
all risk and costs from the time Alliqua or its carrier picks up the Manufactured Products at CCT’s designated facility in
the United States and CCT has no obligation to load the Manufactured Products or clear them for export.

 

(b)CCT shall package
Manufactured Products for shipment in accordance with practices that are customary and reasonable in the industry with respect
to similar products and comply with applicable Law, unless otherwise specified in writing by Alliqua at least ten (10) Business
Days prior to such shipment, in which event CCT shall package Manufactured Products for shipment in accordance with such instructions
and any commercially reasonable, documented actual external costs incurred by CCT (without markup) on account of the shipping packaging
changes requested by Alliqua shall be promptly reimbursed by Alliqua.

 

(c)Prior to shipment,
CCT shall perform release testing for the Manufactured Product pursuant to the Specifications, cGMPs and the Quality Agreement.

 

2.4Alliqua Right
to Manufacture.

 

(a)If CCT terminates
this Agreement pursuant to Section 9.2(a), or Alliqua terminates this Agreement pursuant to Section 9.2(b), (c) or (d), then, for
so long as Alliqua has the right to Commercialize the Manufactured Products in the Territory under the License Agreement, Alliqua
or any person or entity designated by Alliqua (including an Affiliate of Alliqua) may, following notice to CCT, manufacture, store
at its facility, and test Alliqua’s requirements of the Manufactured Products for Commercialization in the Field in the Territory
in accordance with the License Agreement.

 

(b)If Alliqua elects
to manufacture, store, and test Alliqua’s requirements of the Manufactured Products in accordance with Section 2.4(a), CCT
shall cooperate with and assist Alliqua or any person or entity designated by Alliqua (including an Affiliate of Alliqua) in transferring
the processes for manufacturing, storing and testing the Manufactured Product to Alliqua or any person or entity designated by
Alliqua (including an Affiliate of Alliqua).

  

    	-4-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

ARTICLE
3

REGULATORY AND QUALITY MATTERS

 

3.1Regulatory
Responsibility. Subject to the terms of this Agreement and the License Agreement, all matters in the Territory regarding obtaining
and supporting Regulatory Clearance and/or Approval of the Manufactured Products, and manufacturing and testing of the Manufactured
Products in compliance with the applicable Specifications for the Manufactured Product and applicable Law (including cGMPs), shall
be the responsibility of, and shall remain under the control of CCT. Except as set forth in Section 3.2 below, any costs or expenses
required to comply with CCT’s obligations under this Section 3.1 shall be borne by [****]. Each Party shall be registered
with the FDA’s Center for Biologics Evaluation and Research pursuant to 21 Code of Federal Regulations (“CFR”)
Part 1271, as and when their activities with respect to Manufactured Products require such registration. Each Party shall promptly
(within three (3) Business Days) provide the other Party with copies of all communications received from any Regulatory Authority
concerning the Manufactured Products which directly or indirectly affect or relate to the manufacturing, storage, testing, packaging
or labeling thereof, and any filings that directly or indirectly affect or relate to the manufacturing, storage, testing, packaging
or labeling of the Manufactured Products to be made to any such agency for prior review and comment at least five (5) Business
Days prior to such submission. Each Party shall provide notice to the other Party of meetings with any Regulatory Authority, whether
via electronic means, in person, or otherwise, which affect or relate to the manufacturing, storing, testing, packaging or labeling
of the Manufactured Products. CCT will require each Permitted Subcontractor to keep CCT and Alliqua fully and promptly advised
of any inspections, inspectional observations and other communications and interactions between such Permitted Subcontractor and
any Regulatory Authority which may directly or indirectly affect or relate to the manufacturing, storage, testing, packaging or
labeling of any Manufactured Products. In the event of any inconsistency between the provisions of this Section 3.1 and the provisions
of the License Agreement, the provisions of the License Agreement shall control.

 

3.2Change Control.
CCT and Alliqua shall cooperate in timely making any and all changes to the Specifications or manufacturing processes that are
required by applicable Law (collectively, “Required Manufacturing Changes”). The commercially reasonable, documented
costs attributable to the Required Manufacturing Change, including the cost of a reasonable quantity (in light of the Forecasts
submitted by Alliqua) of raw materials, work-in-process, Manufactured Products and packaging materials rendered obsolete as a result
of any such Required Manufacturing Changes, shall be borne [****].

 

3.3Records.
CCT shall, and shall cause its Affiliates and each Permitted Subcontractor to, keep appropriate accounts, notes, data and records
of the work performed under this Agreement in accordance with applicable Law, including cGMPs, and the terms and conditions of
this Agreement and the Quality Agreement. CCT shall provide Alliqua with a copy of a certificate of analysis with each batch of
Manufactured Products delivered to Alliqua, as set forth in the Quality Agreement.

 

    	-5-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

3.4Testing.
CCT shall be solely responsible for (a) taking and maintaining quality control samples of all Manufactured Products delivered to
Alliqua (collectively, the “Product Samples”), and (b) testing Product Samples, in each case, in accordance
with the Quality Agreement. CCT shall promptly provide Alliqua data resulting from testing related to the Product Samples for distribution
in the Territory as such information becomes available, including any discovery of any negative or adverse trending in testing
data.

 

3.5Regulatory
Inquiries. Without limiting any provision of the License Agreement, upon being contacted (and, in the case of CCT, upon any
Permitted Subcontractor being contacted) by any Regulatory Authority for any regulatory purpose pertaining to this Agreement or
to the Manufactured Products, including notice of the initiation of any inquiries, notices or inspection activity by any such agency,
a Party shall immediately notify the other Party and provide the other Party with (a) a reasonable description of any such inquiries
and related documentation, (b) an opportunity to advise and comment with respect thereto and (c) if appropriate, an opportunity
to participate with respect thereto to the extent such matters relate to the Manufactured Products in the Territory.

 

3.6Notice of
Regulatory Inspections. Each Party shall (a) advise the other Party of any requests by any Regulatory Authority (including,
in the case of CCT, any such requests made to a Permitted Subcontractor) for any inspections with respect to the manufacturing,
storing, testing, packaging and/or labeling of Manufactured Products, (b) provide the other Party with copies of any correspondence
related thereto, and, to the extent it (or, in the case of CCT, by a Permitted Subcontractor) becomes aware of the results, observations
or outcome of any inspections or audits of the facilities or operations involved in the manufacture, storage, testing, packaging
and/or labeling of the Manufactured Products conducted by any Regulatory Authority, including providing the other Party an opportunity
to advise and comment with respect to any correspondence to be provided by such Party (or, in the case of CCT, by a Permitted Subcontractor)
to the applicable agency, and (c) notify the other Party of any such information as it relates to the Manufactured Products in
the Territory within three (3) Business Days of obtaining the information.

 

3.7Quality Agreement.
Within sixty (60) Business Days after the Effective Date, CCT and Alliqua shall negotiate in good faith the terms of, and enter
into, a reasonable and customary quality agreement (the “Quality Agreement”). The Quality Agreement shall include
provisions with respect to, among other things, release testing, change control procedures with respect to the Specifications and
the manufacturing processes for the Manufactured Products, stability testing, recalls of any Manufactured Products, and record
retention requirements with respect to recalls. In the event of any conflict between the terms of the Quality Agreement and the
terms of this Agreement, the terms of the Quality Agreement shall govern.

 

    	-6-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

3.8Quality Audits.

 

(a)Upon reasonable
advance notice and during reasonable business hours, Alliqua shall have the right to inspect and audit those portions of CCT’s
and its Affiliates’ and its Permitted Subcontractors’ facilities in which the Manufactured Products are manufactured,
stored or tested, to ascertain compliance with cGMPs, applicable Law, and the terms and conditions of this Agreement and the Quality
Agreement; provided, however, that (i) Alliqua’s representatives shall follow all security and facility access procedures
as reasonably required by CCT or its Affiliate or Permitted Subcontractor, as applicable, and (ii) Alliqua may not exercise its
right under this Section 3.8(a) more than once in any twelve (12)-month period (unless such inspection and audit reveals a material
compliance issue, in which event Alliqua shall have the right to conduct a follow-up inspection and audit to verify that such issue
has been remedied). CCT shall use commercially reasonable efforts to promptly resolve, and to cause its Affiliates and its Permitted
Subcontractors to promptly resolve, any quality issues raised by any inspections and audits of their respective facilities.

 

(b)Upon reasonable
advance notice and during reasonable business hours, CCT shall have the right to inspect and audit (i) those portions of Alliqua’s
facilities in which the Manufactured Products are stored, handled or labeled and (ii) if Alliqua elects to manufacture, store,
and test Alliqua’s requirements of the Manufactured Products or designate another person or entity to manufacture, store,
and test Alliqua’s requirements of the Manufactured Products, in accordance with Section 2.4(a), those portions of Alliqua’s
facilities or those of its designated Person, as the case may be, in which the Manufactured Products are manufactured, stored,
handled or labeled, in each case, to ascertain compliance with cGMPs, applicable Law, and the terms and conditions of this Agreement
and the Quality Agreement; provided, however, that (i) CCT’s representatives shall follow all security and facility access
procedures as reasonably required by Alliqua, as applicable, and (ii) CCT may not exercise its right under this Section 3.8(a)
more than once in any twelve (12)-month period (unless such inspection and audit reveals a material compliance issue, in which
event CCT shall have the right to conduct a follow-up inspection and audit to verify that such issue has been remedied). Alliqua
shall use commercially reasonable efforts to promptly resolve any quality issues raised by any inspections and audits of its facilities.

 

(c)Except as otherwise
set forth in this Agreement, each Party shall, at its sole cost and expense, maintain in full force and effect all necessary licenses,
approvals, permits and other authorizations required by applicable Law to carry out its duties and obligations under this Agreement
and the Quality Agreement.

 

3.9Intentionally
Omitted.

 

3.10Cooperation.
The Parties will cooperate in good faith in responding to any Regulatory Authority inquiry or in making any report to the Regulatory
Authority with respect to Manufactured Products. Notwithstanding anything to the contrary in this Agreement (and without limiting
CCT’s obligation under the License Agreement to obtain, support and maintain Regulatory Clearances and/or Approvals), CCT
will have final authority for regulatory decisions and responsibility for all communications with any Regulatory Authority with
respect to obtaining or maintaining Regulatory Approval of the Manufactured Products.

 

    	-7-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

3.11Recalls.
CCT and Alliqua will each notify the other Party promptly if it becomes aware that a Manufactured Product is the subject of a recall
or market withdrawal that is mandated by a Regulatory Authority, and the Parties will reasonably cooperate in the handling and
disposition of such recall or market withdrawal; provided, however, in the event of a disagreement as to any matters related to
any such recall or market withdrawal, other than the determination of who will bear the costs as set forth in the immediately following
sentences, CCT will have the final authority with respect to any product recall or withdrawal relating to Manufactured Products,
including any recall or market withdrawal that is not mandated by a Regulatory Authority. [****] will bear the cost of all recalls
or market withdrawals of Manufactured Products purchased by Alliqua pursuant to this Agreement where such recall or market withdrawal
is the direct result of CCT’s or a Permitted Subcontractor’s [****] Recall Event”). [****] will bear the
cost of all recalls or market withdrawals of Manufactured Products purchased by Alliqua pursuant to this Agreement where such recall
or market withdrawal is the direct result of Alliqua’s [****] Recall Event”). If a recall or market withdrawal
[****], then the costs of such recall or market withdrawal will be [****] will bear the cost of all recalls or market withdrawals
of Manufactured Products purchased by Alliqua pursuant to this Agreement where the recall or market withdrawal is [****]. Alliqua
will maintain records of all sales of Manufactured Product and all customers sufficient to adequately administer a recall or market
withdrawal for the longer of one (1) year after termination or expiration of this Agreement or the period required by applicable
Law. Alliqua will, in all events and regardless of who bears the cost, be responsible for administering the physical aspects of
any recalls or market withdrawals with respect to the Manufactured Products, provided, however, that any reasonable external costs
and expenses incurred by Alliqua relating to the recall or market withdrawal (including, but not limited to reasonable recall destruction
costs) will be allocated between the Parties as set forth above in this Section. Any revenue attributable to Manufactured Products
held or sold by Alliqua (or its designee) that is subject to a recall will be deducted from Net Sales for purposes of the License.
In the event of any recall, if requested by Alliqua, CCT will provide Manufactured Products to Alliqua to replace the recalled
Manufactured Products and, to the extent the recalled Manufactured Products were previously paid for by Alliqua, the cost of such
replacement Manufactured Products shall be allocated between the Parties as set forth above in this Section.

 

3.12Complaints.
Alliqua will collect complaint files for the Manufactured Products in accordance with the provisions of the Quality Agreement.
Manufactured Products complaint reports received by Alliqua will be sent to CCT at [****] within twenty-four (24) hours after receipt
of the complaint by Alliqua. Alliqua and CCT will notify each other of any Manufactured Product complaints made by customers that
will or could require a report of an “adverse reaction” to the FDA pursuant to 21 CFR 1271.350, and will thereafter
reasonably cooperate with each other relative to any investigation or inquiry that may be initiated by FDA with respect thereto.
The complaint handling obligations of the Parties will be detailed further within the Quality Agreement and/or the Safety Data
and Exchange Agreement.

 

    	-8-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

3.13Warning
Letters. In the event that either Party (or, in the case of CCT, any Permitted Subcontractor) receives a warning letter from
the FDA or the equivalent from any other Governmental Authority in connection with the Manufactured Product, such Party will notify
the other Party promptly, and in any event within twenty four (24) hours (to the extent legally permitted) after receiving such
warning letter.

 

3.14Inquiries
from Health Care Professionals. CCT shall provide reasonable assistance to Alliqua in its preparation and filing with appropriate
Regulatory Authorities related to reimbursement and health care insurance filings required for the marketing and distribution of
Manufactured Products in the Territory by Alliqua.

 

3.15Debarment.
Neither Party shall use any employee or consultant (or, in the case of CCT, any Permitted Subcontractor or employees or consultants
thereof) who has been debarred by any Regulatory Authority, or, to such Party's knowledge, is the subject of debarment proceedings
by a Regulatory Authority. Each Party shall notify the other Party promptly upon becoming aware that any of its employees or consultants
(or, in the case of CCT, any Permitted Subcontractor or employees or consultants thereof) has been debarred or is the subject of
debarment proceedings by any Regulatory Authority.

 

3.16Additional
Covenants of Alliqua. Alliqua shall:

 

(a)discharge its
obligations pursuant to this Agreement in accordance with all applicable Laws, including those enforced by the FDA (including compliance
with cGMP);

 

(b)maintain the Manufactured
Products pending sale to its customers in a facility that is properly equipped to store such Manufactured Products in accordance
with the applicable Manufactured Product labeling; and

 

(c)comply
in all respects with Article 3 hereof and the Quality Agreement and the Safety Data and Exchange Agreement.

 

 

 

ARTICLE
4

PRICE AND PAYMENT TERMS

 

4.1Purchase
Price.

 

(a)For all Manufactured
Products ordered pursuant to Firm Orders by Alliqua at any time, Alliqua shall pay CCT a purchase price (“Purchase Price”)
for each conforming quantity of Manufactured Product delivered hereunder in accordance with the terms set forth in Schedule 4.1
to this Agreement.

 

(b)If at any time
during the Term, CCT notifies Alliqua in writing that CCT has incurred an increase in the costs associated with manufacturing the
Manufactured Products, the Parties shall promptly negotiate in good faith an increase in the Purchase Price to account for such
increase in costs; provided, however, that if the Parties fail to reach agreement on any such price increase, the resolution of
such disagreement shall be governed by the provisions of Article 13 of the License Agreement.

 

    	-9-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

4.2Taxes. The
Purchase Price and other amounts payable by Alliqua to CCT pursuant to this Agreement shall not be reduced on account of any taxes
unless required by applicable Law. CCT alone shall be responsible for paying any and all taxes (other than any withholding taxes
required by applicable Law to be paid by Alliqua) levied on account of, or measured in whole or in part by reference to, any payments
it receives from Alliqua.

 

4.3Freight and
Insurance. In addition to the Purchase Price, for the purposes of clarity, Alliqua shall pay all actual freight and insurance
expenses incurred by Alliqua in connection with the sale and shipment of the Manufactured Products.

 

4.4Payments.

 

(a)Upon each delivery
of Manufactured Products, CCT shall promptly submit an invoice to Alliqua. All invoices and payments for Manufactured Products
shall be in United States dollars. Alliqua shall pay each invoice (except for any amounts disputed by Alliqua in good faith) within
thirty (30) days after receipt thereof.

 

(b)If an inconsistency
between any invoice, purchase order, purchase order release, confirmation, acceptance or similar document and this Agreement exists,
the terms of this Agreement shall control.

 

(c)Payment due to
CCT shall be paid in United States dollars by wire transfer to an account designated in writing by CCT.

 

4.5Interest
Charges. If CCT does not receive payment of any sum due to it on or before the due date, simple interest shall thereafter accrue
on the sum due until the date of payment at the rate of [****] per month or, if less, the maximum rate allowable by applicable
Law.

 

4.6Pricing.
All resale prices of Manufactured Products shall be reviewed by the JSC and Alliqua shall consider in good faith any comments of
the JSC. For purposes of clarity, Alliqua shall have final discretion with respect to resale prices of the Manufactured Products
during the Term, including resale price increases and decreases and the timing thereof.

 

 

ARTICLE
5

INSPECTION OF MANUFACTURED PRODUCTS

 

5.1Inspection
by Alliqua. Alliqua may inspect and analyze the Manufactured Products delivered to Alliqua for purposes of determining whether
the Manufactured Products meet the applicable Specifications at the time of delivery thereof (such Manufactured Product, “Acceptable
Manufactured Products”). Alliqua shall notify CCT in writing within thirty (30) days
after the date of delivery to Alliqua (or within thirty (30) days after discovery that any Manufactured
Product is not Acceptable Manufactured Products for reasons that could not reasonably have been detected by Alliqua’s customary
inspection on delivery) of any Manufactured Product or portion thereof which Alliqua is returning because it is not an Acceptable
Manufactured Product, including documentation of the reasons therefor. If CCT does not receive such notice within such thirty (30)-day
period, the shipped Manufactured Products will be deemed accepted as Acceptable Manufactured Products.

 

    	-10-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

5.2Disputes
Over Manufactured Products. CCT shall have a reasonable opportunity not to exceed thirty (30) days from the date of receipt
of the notice described in Section 5.1 to inspect and/or test such Manufactured Product that Alliqua claims is not an Acceptable
Manufactured Product. If CCT, after good faith consultation with Alliqua, disputes any determination by Alliqua that a Manufactured
Product is not an Acceptable Manufactured Product, then representative samples of such Manufactured Product shall be forwarded
to an independent Third Party laboratory jointly selected by CCT and Alliqua, in their reasonable discretion, for analysis, which
analysis shall be performed in compliance with industry standards and applicable Law. The findings of such Third Party laboratory
regarding whether the Manufactured Product was an Acceptable Manufactured Product shall be binding upon the Parties. The cost of
such analysis by such Third Party laboratory shall be borne by the Party whose analysis was not substantiated by the findings of
such Third Party laboratory.

 

5.3Replacement
of Manufactured Products That Are Not Acceptable Manufactured Products. CCT shall, at Alliqua’s option, either replace
any Manufactured Product order or portion thereof which is not an Acceptable Manufactured Product as soon as reasonably practicable
at CCT’s cost and expense, including shipping costs, or promptly refund to Alliqua the payments made for such returned Manufactured
Products (including Alliqua’s shipping costs). At the sole option of CCT, said Manufactured Products may be returned to CCT,
at CCT’s expense including shipping costs, or destroyed in an environmentally acceptable manner, in accordance with applicable
Law, at CCT’s expense. CCT will not, however, replace any Manufactured Product which fails or ceases to conform to the Specifications
or which is unsalable, in each case, as a result of improper storage, transport or other mishandling or other event after the Manufactured
Product has been delivered to Alliqua, Alliqua’s designated courier or other Alliqua designee.

 

5.4Exclusive
Remedy. The sole and exclusive remedy available to Alliqua in connection with Manufactured Products that are not Acceptable
Manufactured Products shall be replacement of such Manufactured Product by CCT in accordance with Section 5.3 above. Notwithstanding
the immediately preceding sentence, Manufactured Products that are not Acceptable Manufactured Products shall be deemed not to
have been delivered for purposes of Section 9.2(b).

 

 

ARTICLE
6

REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS

 

6.1Mutual Representations
and Warranties. Each Party represents and warrants to the other Party as of the Effective Date as follows:

 

    	-11-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

(a)It is a corporation
duly organized, validly existing and in good standing under the laws of the State of its incorporation, with the requisite legal
authority to own and use its properties and assets and to carry on its business as currently conducted.

 

(b)It has the requisite
corporate authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out
its obligations hereunder. The execution and delivery of this Agreement by it and the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate action on its part and no further consent or action is required by it, by
its Board of Directors or by its stockholders.

 

(c)This Agreement
has been duly executed by it and is the valid and binding obligation of the Company enforceable against it in accordance with its
terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.

 

6.2Additional
CCT Representations and Warranties.  CCT represents and warrants to Alliqua that at the time each Manufactured Product is delivered
to Alliqua such Manufactured Product: (a) will meet the Specifications therefor; (b) will have been manufactured, stored and handled
at CCT’s facility, and tested in accordance with the applicable Law, Regulatory Clearances and/or Approvals, Specifications
and cGMPs; (c) will not be (i) adulterated, or (ii) manufactured, stored or handled at CCT’s facility, or tested in a manner
that violates the Act, or any other applicable Law; (d) will pass to Alliqua free and clear of any security interest, lien or other
encumbrances and (e) will have a remaining shelf life of no less than the Minimum Shelf Life (as defined below). Promptly following
Regulatory Clearance and/or Approval, the Parties will discuss in good faith at the JSC and agree in writing on a commercially
reasonable minimum remaining shelf life that the Manufactured Products will have upon delivery to Alliqua (the “Minimum
Shelf Life”).

 

6.3Alliqua Compliance
with Applicable Law. Alliqua shall at all times: (a) handle, warehouse, store, label, package, market, sell, distribute and
otherwise dispose of the Manufactured Products in the Territory in compliance with all applicable Law, Regulatory Clearances and/or
Approvals, Specifications and cGMPs; and (b) except for any Regulatory Clearances and/or Approvals that CCT is responsible for
maintaining, maintain all applicable licenses, registrations and permits necessary to take control of, market, sell and distribute
such Manufactured Products in the Territory. Alliqua will not market any Manufactured Product in any manner which is inconsistent
with its labeling or with applicable Law, or otherwise make any false or misleading representations to customers or others regarding
the Manufactured Product.

 

    	-12-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

ARTICLE
7

INDEMNIFICATION AND INSURANCE

 

7.1CCT Indemnification.
Subject to the procedures set forth in Section 7.3, CCT shall indemnify Alliqua, its Affiliates and its and their respective directors,
officers, employees and agents (the “Alliqua Indemnified Parties”), and defend and save each of them harmless,
from and against any and all claims, lawsuits, losses, damages, liabilities, penalties, costs and expenses (including reasonable
attorneys’ fees and disbursements) (collectively, “Losses”) incurred by any of them in connection with
any and all suits, investigations, claims or demands of Third Parties (collectively, “Third Party Claims”) in
connection with, arising from or occurring as a result of: (a) the breach or inaccuracy of any representation or warranty made
by CCT in this Agreement or the Quality Agreement; (b) the breach by CCT of any of its obligations under this Agreement or the
Quality Agreement; or (c) any manufacturing defect of the Manufactured Products manufactured by CCT or on its behalf; in each case
except for those Losses for which Alliqua has an obligation to indemnify any CCT Indemnified Parties pursuant to Section 7.2 of
the License Agreement.

 

7.2Alliqua Indemnification.
Subject to the procedures set forth in Section 7.3, Alliqua shall indemnify CCT, its Affiliates and its and their respective directors,
officers, employees and agents (the “CCT Indemnified Parties”), and defend and save each of them harmless, from
and against any and all Losses incurred by any of them in connection with any Third Party Claims in connection with, arising from
or occurring as a result of: (a) the breach or inaccuracy of any representation or warranty made by Alliqua in this Agreement or
the Quality Agreement; (b) the use of any and all Promotional Materials; (c) the breach by Alliqua of any of its obligations under
this Agreement or the Quality Agreement; (d) any Manufactured Products manufactured by Alliqua or on its behalf by any Person other
than CCT; or (e) any defect in the design or manufacture of those materials provided by Alliqua to CCT pursuant to Section 2.1(c),
in each case except for those Losses for which CCT has an obligation to indemnify any Alliqua Indemnified Parties pursuant to Section
7.1 or the License Agreement.

 

7.3Indemnification
Procedures. The Party claiming indemnity under this Article 7 (the “Indemnified Party”) shall give written
notice to the Party from whom indemnity is being sought (the “Indemnifying Party”) promptly after learning of
such Claim. The Indemnifying Party shall have the right to assume and conduct the defense of the Claim with counsel of its choice,
and the Indemnified Party may participate in and monitor such defense with counsel of its own choosing at its sole expense. The
Indemnified Party shall provide the Indemnifying Party with reasonable assistance, at the Indemnifying Party's expense, in connection
with the defense of the Claim for which indemnity is being sought. Each Party shall not settle or compromise any Claim without
the prior written consent of the other Party, which consent shall not be unreasonably withheld, delayed or conditioned. If the
Parties cannot agree as to the application of the foregoing Sections 7.1 and 7.2, each may conduct separate defenses of the Claim,
and each Party reserves the right to claim indemnity from the other in accordance with this Article 7 upon the resolution of the
underlying Claim.

 

    	-13-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

7.4Limitation
of Liability. NEITHER PARTY SHALL BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES, INCLUDING
LOST PROFITS, ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT EXCEPT FOR FRAUD OR WILLFUL MISCONDUCT, BREACH OF EITHER
PARTY'S CONFIDENTIALITY OBLIGATIONS, A PARTY'S INDEMNIFICATION OBLIGATIONS, A BREACH OF EACH PARTY'S EXCLUSIVITY OBLIGATIONS OR
A BREACH OF THE LICENSE GRANTS, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT ANY DAMAGES
CLAIMED BY OR PAID TO A THIRD PARTY IN A THIRD PARTY ACTION SHALL NOT BE CONSIDERED SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE,
OR INDIRECT DAMAGES FOR PURPOSES OF THIS AGREEMENT.

 

7.5Insurance.
Each Party shall, at all times during the Term of this Agreement and for five (5) years thereafter, obtain and maintain at its
own expense the following types of insurance, with limits of liability not less than those specified below:

 

(a)Commercial general
liability insurance against claims for bodily injury and property damage which shall include contractual coverage and product liability
coverage, with limits of not less than $[****] per occurrence and in the aggregate. The other Party, its officers, directors, representatives
and agents shall be named as additional insureds.

 

(b)Workers compensation
and employers' liability with limits to comply with the statutory requirements of the state(s) in which the Agreement is to be
performed. The policy shall include employers' liability for not less than $[****] per accident.

 

All policies shall be
issued by insurance companies with an A.M. Best's rating of Class A-:V (or its equivalent) or higher status. Each Party shall deliver
certificates of insurance evidencing coverage to the other Party promptly after the execution of this Agreement and annually thereafter.
All policies provided for herein shall expressly provide that such policies shall not be cancelled, terminated or altered without
at least thirty (30) days prior written notice to the insured Party, and each insuring Party shall immediately notify the insured
Party in the event that a policy provided for herein is cancelled, terminated or altered.

 

 

ARTICLE
8

CONFIDENTIAL INFORMATION

 

8.1Confidentiality.
During the Term and for a period of five (5) years thereafter, each Party
shall maintain all Confidential Information of the other Party in trust and confidence and shall not, without the written consent
of the other Party, disclose any Confidential Information of the other Party to any Third Party or use any Confidential Information
of the other Party for any purpose other than as necessary in connection with the exercise of rights or discharge of obligations
under this Agreement. The confidentiality obligations of this Section 8.1 shall not apply to Confidential Information to the extent
that the receiving Party can establish by competent evidence that such Confidential Information: (a) is publicly known prior or
subsequent to disclosure without breach of confidentiality obligations by such Party or its employees, consultants or agents; (b)
was in such Party’s possession at the time of disclosure without any restrictions on further disclosure; (c) is received
by such receiving Party, without any restrictions on further disclosure, from a Third Party who has the lawful right to disclose
it; or (d) is independently developed by employees or agents of the receiving Party who had no access to the disclosing Party’s
Confidential Information.

 

    	-14-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

8.2Authorized
Disclosure. Nothing herein shall preclude a Party from disclosing
the Confidential Information of the other Party to the extent:

 

(a)such disclosure
is reasonably necessary (i) for the filing or prosecuting of Patents as contemplated by the License Agreement; (ii) to comply with
the requirement of Regulatory Authorities with respect to obtaining and maintaining Regulatory Clearance and/or Approval (or any
pricing and reimbursement approvals) of any Manufactured Product; or (iii) for prosecuting or defending litigations as contemplated
by the License Agreement;

 

(b)such disclosure
is reasonably necessary to its employees, agents, consultants or contractors on a need-to-know basis for the sole purpose of performing
its obligations or exercising its rights under this Agreement; provided that in each case, the disclosees are bound by written
obligations of confidentiality and non-use consistent with those contained in this Agreement;

 

(c)such disclosure
is reasonably necessary to any bona fide potential or actual investor, acquiror, merger partner, or other financial or commercial
partner for the sole purpose of evaluating an actual or potential investment, acquisition or other business relationship; provided
that in each case, the disclosees are bound by written obligations of confidentiality and non-use consistent with those contained
in this Agreement;

 

(d)such disclosure
is reasonably necessary to comply with applicable Laws, including regulations promulgated by applicable security exchanges, a valid
order of a court of competent jurisdiction, administrative subpoena or order.

 

Notwithstanding the foregoing,
in the event a Party is required to make a disclosure of the other Party’s Confidential Information pursuant to any of Sections
8.2(a) through 8.2(d), such Party shall promptly notify the other Party of such required disclosure and shall use reasonable efforts
to obtain, or to assist the other Party in obtaining, a protective order preventing or limiting the required disclosure.

 

8.3Return of
Confidential Information. Promptly after the termination or expiration of this Agreement for any reason, each Party shall return
to the other Party all tangible manifestations of such other Party’s Confidential Information at that time in the possession
of the receiving Party.

 

8.4Publicity;
Terms of the Agreement; Confidential Treatment.

 

(a)The Parties agree
that the terms of this Agreement (including without limitation any exhibits and schedules hereto) shall be considered Confidential
Information of each Party, subject to the special authorized disclosure provisions set forth in Section 8.2 and this Section 8.4.

 

    	-15-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

(b)If either Party
desires to make a public announcement concerning the material terms of this Agreement, such Party shall give reasonable prior advance
notice of the proposed text of such announcement to the other Party for its prior review and approval (except as otherwise provided
herein), such approval not to be unreasonably withheld, conditioned or delayed. A Party commenting on such a proposed press release
shall provide its comments, if any, within three (3) Business Days after receiving the press release for review. In addition, to
the extent required by applicable Laws, including regulations promulgated by applicable security exchanges, each Party shall have
the right to make a press release announcing the achievement of each milestone under this Agreement as it is achieved, and the
achievements of Regulatory Clearances and/or Approvals in the Territory as they occur, subject to the other Party’s consent
as to form and substance of such announcement, which shall not be unreasonably withheld, conditioned or delayed. In relation to
the other Party’s review and approval of such an announcement, such other Party may make specific, reasonable comments on
such proposed press release within the prescribed time for commentary, but shall not withhold its consent to disclosure of the
information that the relevant milestone has been achieved and triggered a payment hereunder. Neither Party shall be required to
seek the permission of the other Party to repeat any information regarding the terms of this Agreement that has already been publicly
disclosed by such Party, or by the other Party, in accordance with this Section 8.4, provided such information remains accurate
as of such time.

 

(c)In addition, the
Parties acknowledge that either or both Parties may be obligated to file under applicable law and regulation a copy of this Agreement
with the USA Securities and Exchange Commission or similar stock exchange authorities or other governmental authorities. Each Party
shall be entitled to make such a required filing; provided, however, that it requests confidential treatment of the commercial
terms and sensitive technical terms hereof and thereof to the extent such confidential treatment is reasonably available to such
Party. In the event of any such filing, each Party shall provide the other Party with a copy of this Agreement marked to show provisions
for which such Party intends to seek confidential treatment and shall reasonably consider and incorporate the other Party’s
comments thereon to the extent consistent with the legal requirements, with respect to the filing Party, governing disclosure of
material agreements and material information that must be publicly filed.

 

8.5Technical
Publication.  Neither Party may publish peer reviewed manuscripts or give other forms of public disclosure such as abstracts
and media presentations (such disclosure collectively, for purposes of this Section 8.5, “publication”), of
results of studies carried out under this Agreement, without the opportunity for prior review by the other Party, except to the
extent required by applicable Laws. A Party seeking publication shall provide the other Party the opportunity to review and comment
on any proposed publication that relates to the Manufactured Product at least thirty (30) days (or at least ten (10) days in the
case of abstracts and media presentations) prior to its intended submission for publication. The other Party shall provide the
Party seeking publication with its comments in writing, if any, within twenty (20) days (or within five (5) days in the case of
abstracts and media presentations) after receipt of such proposed publication. The Party seeking publication shall consider in
good faith any comments thereto provided by the other Party and shall comply with the other Party’s reasonable request to
remove any and all of such other Party’s Confidential Information from the proposed publication. In addition, the Party seeking
publication shall delay the submission for a period up to sixty (60) days in the event that the other Party can demonstrate reasonable
need for such delay in order to accommodate the preparation and filing of a patent application. If the other Party fails to provide
its comments to the Party seeking publication within such twenty (20) day period (or five (5) day period, as the case may be),
such other Party shall be deemed not to have any comments, and the Party seeking publication shall be free to publish in accordance
with this Section 8.5 after the thirty (30) day period (or ten (10) day period, as the case may be) has elapsed. The Party seeking
publication shall provide the other Party a copy of the publication at the time of the submission. Each Party agrees to acknowledge
the contributions of the other Party and its employees in all publications as scientifically appropriate.

 

    	-16-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

8.6Equitable
Relief. Each Party acknowledges that its breach of Article 8 of this Agreement may cause irreparable injury to the other
Party for which monetary damages may not be an adequate remedy. Therefore, each Party shall be entitled to seek injunctive and
other appropriate equitable relief to prevent or curtail any actual or threatened breach of the obligations relating to Confidential
Information set forth in this Article 8 by the other Party. The rights and remedies provided to each Party in this Article 8 are
cumulative and in addition to any other rights and remedies available to such Party at law or in equity.

 

 

 

ARTICLE
9

TERM AND TERMINATION

 

9.1Term.
The term of this Agreement shall commence on the Effective Date and shall continue until this Agreement is terminated pursuant
to this ARTICLE 9 (the “Term”).

 

9.2Termination.
This Agreement may be terminated as follows:

 

(a)By CCT upon six
months’ prior written notice to Alliqua.

 

(b)By Alliqua upon
[****] prior written notice to CCT if, on at least [****] occasions within any twelve (12) month period, CCT fails to deliver at
least [****]% of any Manufactured Products specified in a Firm Order conforming to the provisions of Schedule 2.2, subsection (c)
by the required delivery date specified therein and in conformity with the applicable Specifications.

 

(c)By either Party
immediately upon written notice to the other Party if the other Party materially breaches its obligations under this Agreement
and, after receiving written notice identifying such material breach in reasonable detail, fails to cure such material breach within
sixty (60) days from the date of such notice. If the alleged breaching Party disputes in good faith the existence or materiality
of a breach specified in a notice provided by the other Party in accordance with this Section 9.2(c), and such alleged breaching
Party provides the other Party notice of such dispute within the applicable cure period, then the non-breaching Party shall not
have the right to terminate this Agreement under this Section 9.2(c) unless and until an arbitrator, in accordance with Article
13 of the License Agreement, has determined that the alleged breaching Party has materially breached the Agreement and such breaching
Party fails to cure such breach within the applicable cure period (measured as commencing after the arbitrator’s decision).
It is understood and agreed that during the pendency of such dispute, all of the terms and conditions of this Agreement shall remain
in effect and the Parties shall continue to perform all of their respective obligations hereunder.

 

    	-17-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

(d) To the extent
permitted under applicable Laws, if at any time during the Term of this Agreement, an Event of Bankruptcy (as defined below) relating
to either Party (the “Bankrupt Party”) occurs, the other Party (the “Non-Bankrupt Party”)
shall have, in addition to all other legal and equitable rights and remedies available hereunder, the option to terminate this
Agreement upon sixty (60) days written notice to the Bankrupt Party. It is agreed and understood that if the Non-Bankrupt Party
does not elect to terminate this Agreement upon the occurrence of an Event of Bankruptcy, except as may otherwise be agreed with
the trustee or receiver appointed to manage the affairs of the Bankrupt Party, the Non-Bankrupt Party shall continue to make all
payments required of it under this Agreement as if the Event of Bankruptcy had not occurred, and the Bankrupt Party shall not have
the right to terminate any license granted herein. The term “Event of Bankruptcy” means: (a) filing, in any
court or agency pursuant to any statute or regulation of any state or country, (i) a petition in bankruptcy or insolvency, (ii)
for reorganization or (iii) for the appointment of (or for an arrangement for the appointment of) a receiver or trustee of the
Bankrupt Party or of its assets; (b) with respect to the Bankrupt Party, being served with an involuntary petition filed in any
insolvency proceeding, which such petition is not dismissed within sixty (60) days after the filing thereof; (c) proposing or being
a party to any dissolution or liquidation when insolvent; or (d) making an assignment for the benefit of creditors. Without limitation,
the Bankrupt Party’s rights under this Agreement shall include those rights afforded by 11 USAC. § 365(n) of the United
States Bankruptcy Code (the “Bankruptcy Code”) and any successor thereto. If the bankruptcy trustee of a Bankrupt
Party as a debtor or debtor-in-possession rejects this Agreement under 11 USAC. § 365(o) of the Bankruptcy Code, the Non-Bankrupt
Party may elect to retain its rights licensed from the Bankrupt Party hereunder (and any other supplementary agreements hereto)
for the duration of this Agreement and avail itself of all rights and remedies to the full extent contemplated by this Agreement
and 11 USAC. § 365(n) of the Bankruptcy Code, and any other relevant Laws..

 

(e)This Agreement
shall automatically terminate upon expiration or termination of the License Agreement or the termination of the License Agreement
only with respect to ECMs.

 

9.3Effects of
Termination.

 

(a)Upon termination
of this Agreement for any reason, all submitted Firm Orders for Manufactured Products shall be delivered and paid for in accordance
with Article 2.

 

(b)Termination or
expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of
a Party prior to such termination or expiration.

 

(c)Section 3.11,
this Section 9.3 and Articles 1, 4, 5, 6, 7, 8 and 10 shall survive expiration or termination of this Agreement for any reason;
Schedule 2.2, subsection (h) and Section 2.4 shall survive a termination of this Agreement pursuant to Section 9.2(a) or (b); and,
with respect to Firm Orders submitted and/or filled after termination of this Agreement pursuant to Schedule 2.2, subsection (h),
the provisions of this Agreement otherwise applicable to the Manufactured Products that are the subject of such Firm Orders shall
survive termination of this Agreement.

 

 

    	-18-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

ARTICLE
10

GENERAL PROVISIONS

 

10.1Entire Agreement;
Amendment. This Agreement, together with the exhibits and schedules hereto, which are hereby incorporated herein, represents
the entire agreement and understanding between the Parties with respect to its subject matter and supersedes and terminates any
prior and/or contemporaneous discussions, representations or agreements, whether written or oral, of the Parties regarding the
subject matter hereto, and supersedes, as of the Effective Date, all prior and contemporaneous agreements and understandings between
the Parties with respect to the subject matter hereof (including for the Prior CDA). There are no covenants, promises, agreements,
warranties, representations, conditions or understandings, either oral or written, between the Parties other than as are set forth
in this Agreement. Amendments or changes to this Agreement shall be valid and binding only if in writing and signed by duly authorized
representatives of the Parties.

 

10.2Force Majeure.
Both Parties shall be excused from the performance of their obligations under this Agreement to the extent that such performance
is prevented by force majeure and the nonperforming Party promptly provides notice of the prevention to the other Party. Such excuse
shall be continued so long as the condition constituting force majeure continues and the nonperforming Party takes reasonable efforts
to remove the condition. For purposes of this Agreement, force majeure shall mean conditions beyond the control of the Parties,
including an act of God, war, civil commotion, terrorist act, labor strike or lock-out, epidemic, failure or default of public
utilities or common carriers, destruction of production facilities or materials by fire, earthquake, storm or like catastrophe,
and failure of plant or machinery (provided that such failure could not have been prevented by the exercise of skill, diligence,
and prudence that would be reasonably and ordinarily expected from a skilled and experienced person engaged in the same type of
undertaking under the same or similar circumstances). If a force majeure persists for more than ninety (90) days, then the Parties
shall discuss in good faith the modification of the Parties’ obligations under this Agreement in order to mitigate the delays
caused by such force majeure.

 

10.3Notices.
Any notice required or permitted to be given under this Agreement shall be in writing, shall specifically refer to this Agreement,
and shall be addressed to the appropriate Party at the address specified below or such other address as may be specified by such
Party in writing in accordance with this Section 10.3, and shall be deemed to have been given for all purposes (a) when received,
if hand-delivered or sent by confirmed facsimile or a reputable courier service, or (b) five (5) Business Days after mailing, if
mailed by first class certified or registered airmail, postage prepaid, return receipt requested.

 

    	-19-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

	 	If to CCT:  	Anthrogenesis Corporation, d/b/a Celgene Cellular Therapeutics
	 	 	Attn.: Chief Executive Officer
	 	 	33 Technology Drive Warren, NJ  07059-5148  
	 	 	Fax: [****]
	 	 	 
	 	With a copy to (which shall not constitute notice):
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, NY  10036
	 	 	Attn: Robert A. Cantone, Esq.
	 	 	Fax No.: (212) 969-2900
	 	and	 
	 	 	Celgene Corporation
	 	 	86 Morris Avenue
	 	 	Summit, NJ 07901
	 	 	Attention: General Counsel
	 	 	Fax: [****]
	 	 	 
	 	If to Alliqua:  	Alliqua, Inc.
	 	 	2150 Cabot Boulevard West
	 	 	Langhorne, Pennsylvania  19047
	 	 	Attention: Chief Executive Officer
	 	 	Fax No.: [****]
	 	 	 
	 	With a copy to (which shall not constitute notice):
	 	 	 
	 	 	Lowenstein Sandler LLP
	 	 	65 Livingston Avenue
	 	 	Roseland, New Jersey  07068
	 	 	Attention: Michael Lerner, Esq.
	 	 	Fax No.: (973) 597-6395

 

 

10.4No Strict
Construction; Headings. This Agreement has been prepared jointly by the Parties and shall not be strictly construed against
either Party. Ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may
be deemed to have authored the ambiguous provision. The headings of each Article and Section in this Agreement have been inserted
for convenience of reference only and are not intended to limit or expand on the meaning of the language contained in the particular
Article or Section. Except where the context otherwise requires, the use of any gender shall be applicable to all genders, and
the word “or” is used in the inclusive sense (and/or). The term “including” as used herein means including,
without limiting the generality of any description preceding such term.

 

    	-20-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

10.5Assignment.
Neither Party may assign this Agreement without the prior written consent of the other Party, such consent not to be unreasonably
withheld, conditioned or delayed; provided, however, that either Party may assign this Agreement without the consent of the other
Party, effective upon written notice to the other Party thereof, to (i) an Affiliate of such Party, provided that the Party hereunder
who assigns this Agreement agrees in writing to continue to be bound by and subject to the terms and conditions of this Agreement
and (ii) any Person who acquires all or substantially all of such Party’s assets or that is the surviving entity in a merger,
recapitalization, combination or other similar transaction with such assigning Party and who agrees in writing to be bound by and
subject to the terms and conditions of this Agreement. Further, CCT may assign without Alliqua’s consent its rights to payments
received under this Agreement. Any permitted assignment shall be binding on the successors of the assigning Party. Any attempted
or purported assignment in violation of this Section 10.5 shall be null and void.

 

10.6Performance
by Affiliates. Each Party may discharge any obligations and exercise any right hereunder through any of its Affiliates. Each
Party hereby guarantees the performance by its Affiliates of such Party’s obligations under this Agreement, and shall cause
its Affiliates to comply with the provisions of this Agreement in connection with such performance. Any breach by a Party’s
Affiliate of any of such Party’s obligations under this Agreement shall be deemed a breach by such Party, and the other Party
may proceed directly against such Party without any obligation to first proceed against such Party’s Affiliate.

 

10.7Further
Actions. Each Party shall execute, acknowledge and deliver such further instruments, and to do all such other acts, as may
be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

10.8Severability.
If any provision of this Agreement is found by a court of competent jurisdiction to be unenforceable, then such provision shall
be construed, to the extent feasible, so as to render the provision enforceable, and if no feasible interpretation would save such
provision, it shall be severed from the remainder of this Agreement. The remainder of this Agreement shall remain in full force
and effect, unless the severed provision is essential and material to the rights or benefits received by either Party. In such
event, the Parties shall negotiate, in good faith, and substitute a valid and enforceable provision or agreement that most nearly
implements the Parties’ intent in entering into this Agreement.

 

10.9No Waiver.
No provision of this Agreement can be waived except by the express written consent of the Party waiving compliance. Except as specifically
provided for herein, the waiver from time to time by either Party of any of its rights or its failure to exercise any remedy shall
not operate or be construed as a continuing waiver of same or of any other of such Party’s rights or remedies provided in
this Agreement.

 

10.10Independent
Contractors. For all purposes under this Agreement, Alliqua and CCT and their respective Affiliates are independent contractors
with respect to each other, and shall not be deemed to be an employee, agent, partner or legal representative of the other Party.
This Agreement does not grant any Party or its employees, consultants or agents any authority (express or implied) to do any of
the following without the prior express written consent of the other Party: create or assume any obligation; enter into any agreement;
make any representation or warranty; serve or accept legal process on behalf of the other Party; settle any claim by or against
the other Party; or bind or otherwise render the other liable in any way.

 

    	-21-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

10.11Governing
Law. This Agreement shall be governed by the laws of the state of New York, without regard to its choice of law provisions
that would require the application of the laws of a different jurisdiction. The Parties hereby irrevocably submit to the jurisdiction
of the state and federal courts sitting in the County and State of New York for the adjudication of disputes arising out of or
relating to this Agreement.

 

10.12Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together
shall constitute the same legal instrument. Facsimile or PDF execution and delivery of this Agreement by any Party shall constitute
a legal, valid and binding execution and delivery of this Agreement by such Party. The Parties to this document agree that a copy
of the original signature (including an electronic copy) may be used for any and all purposes for which the original signature
may have been used. The Parties agree they will have no rights to challenge the use or authenticity of this document based solely
on the absence of an original signature.

 

 

[Signature page follows.]

 

    	-22-

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

IN WITNESS WHEREOF,
each of the Parties has caused this Agreement to be executed in duplicate, as of the Effective Date, by its duly authorized officer
or representative.

 

	ANTHROGENESIS CORPORATION 	 	ALLIQUA, INC.	 
	 	 	 	 	 	 
	By: 	/s/ Perry Karsen 	 	By:	/s/ David Johnson 	 
	Name:	Perry Karsen 	 	Name:  	David Johnson	 
	Title: 	Chief Executive Officer	 	Title: 	Chief Executive Officer	 

 

 

 

 

 

[Signature Page to Supply Agreement]

 

    	 

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

SCHEDULE 2.2

 

(a)Alliqua shall
submit to CCT as soon as practicable after the Effective Date, and in any event not later than the thirtieth (30th)
day after Regulatory Clearance and/or Approval in the United States of an ECM, and thereafter no later than the fifth (5th) Business
Day of every month during the Term:

 

(i)a three (3) year rolling forecast
(“Long Range Forecast”) organized by Manufactured Product stock keeping unit and by quarterly periods, setting
forth the quantities of each Manufactured Product that Alliqua expects to purchase from CCT during the three (3) years commencing
with the beginning of said month, and

 

(ii)a twelve (12)-month rolling forecast
(“Forecast”) organized by Manufactured Product stock keeping unit and by months, setting forth the quantities
of each Manufactured Product that Alliqua expects to purchase from CCT during the twelve (12)-month period commencing with the
beginning of said month.

 

(b)Alliqua shall
make all Forecasts and Long Range Forecasts in good faith given market and other information available to Alliqua. Each Forecast
shall constitute a binding commitment of Alliqua to purchase at least the percentages of Manufactured Products set forth below
pursuant to Firm Orders issued in accordance with Subsection (c) below, notwithstanding any change in the quantity of a Manufactured
Product specified in a subsequent Forecast. Except as provided in the preceding sentence, each Forecast shall be non-binding on
Alliqua. Each Long Range Forecast shall be non-binding on Alliqua. Alliqua shall be required to submit Firm Orders to purchase
at least that percentage of the quantity of each of the Manufactured Products specified in the Forecast as follows:

 

	Period of the Forecast	Percentage of the aggregate amount of Manufactured Products that Alliqua is required to submit Firm Orders for during such period
	[****]	[****]
	[****]	[****]
	[****]	[****]

 

    	 

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

(c)Alliqua shall
purchase Manufactured Products solely by Firm Orders for such Manufactured Products. For a given month, CCT will accept Firm Orders
for quantities of Manufactured Products, provided such Firm Orders in the aggregate do not exceed [****] of the quantity set forth
in the binding portion of the Forecast most recently submitted for such month; provided, however, that if, with respect to any
month, Alliqua orders any Manufactured Product in excess of [****] of the quantity set forth in the binding portion of the Forecast
most recently submitted for such month, CCT shall make commercially reasonable efforts to supply such excess up to [****] of the
quantity set forth in the binding portion of the Forecast most recently submitted for such month, but shall not be liable for its
failure to do so. Alliqua shall specify a delivery date in each Firm Order that is at least sixty (60) days after the date on which
the Firm Order is submitted to CCT. CCT shall, within five (5) Business Days after CCT receives each Firm Order submitted in accordance
with the preceding two sentences, accept in writing such Firm Order. Subject to any other term or condition of this Agreement,
Alliqua shall be obligated to purchase, and CCT shall be obligated to deliver by the required delivery date set forth therein,
such quantities of each Manufactured Product as are set forth in each Firm Order. If Alliqua requests changes to any Firm Order
previously submitted by Alliqua, including any increases or decreases in quantity of Manufactured Products, required delivery date
or form of Manufactured Product, CCT shall provide Alliqua a good faith estimate of the anticipated costs of complying with such
request. If Alliqua approves such estimated costs in writing, CCT shall use commercially reasonable efforts to comply with such
changes but shall not be liable for its failure to do so. In the event that CCT complies with any such request, Alliqua shall reimburse
CCT for its commercially reasonable, documented costs incurred in complying with such request. Notwithstanding anything to the
contrary in this subsection (c), during the first six months of Manufactured Product deliveries under this Agreement, CCT shall
have the right to reasonably restrict the maximum number of Units (by size) per month of Manufactured Products that CCT shall be
obligated to deliver to such quantities that are agreed upon in writing by the Parties to be reasonably sufficient for the commercial
launch of the Manufactured Product, and during such six month period CCT shall have no obligation to deliver, nor to accept any
portion of a Firm Order requiring it to deliver, more than such maximum number of Units (by size) per month.

 

(d)CCT shall promptly
notify Alliqua in writing if at any time CCT has reason to believe that CCT will not be able to (i) fill a Firm Order for any Manufactured
Product in accordance with the delivery schedule specified therein by Alliqua and pursuant to the terms and conditions of this
Agreement and the Quality Agreement, or (ii) supply Manufactured Products to Alliqua in satisfaction of the most recent Forecast,
which notice in either case shall provide Alliqua with information on the extent of the expected shortfall of supply. Upon such
notice of a supply shortfall, or in any event upon CCT's failure to satisfy, within the delivery time frame specified by Alliqua,
a portion of the Manufactured Products ordered by Alliqua in compliance with this Agreement and the Quality Agreement, Alliqua
and CCT will immediately meet and work together in good faith to identify an appropriate resolution to the supply shortfall. Any
agreed resolution to the supply shortfall will be set forth in a writing executed by both Parties. Compliance by CCT with this
subsection (d) shall not relieve CCT of any other obligation or liability under this Agreement, including any obligation or liability
under subsections (e) or (f) below.

 

(e)If CCT fails to
deliver at least [****] of any Manufactured Products specified in a Firm Order conforming to the provisions of Subsection (c) above
by the required delivery date specified therein and in conformity with the applicable Specifications, Alliqua, at its option, may:

 

    	 

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

(i)cancel all or
any portion of such Firm Order with respect to such Manufactured Products, in which event Alliqua shall have no liability with
respect to the portion of such Firm Order so cancelled; or

 

(ii)accept late
delivery of all or any portion of such Firm Order with respect to such Manufactured Product, in which event the Purchase Price
otherwise payable by Alliqua with respect to all Manufactured Products delivered late and accepted by Alliqua under such Firm Order
shall be reduced by [****].

 

(f)If CCT fails to
deliver at least [****] of any Manufactured Products specified in a Firm Order conforming to the provisions of Subsection (c) above
by the required delivery date specified therein and in conformity with the applicable Specifications, CCT shall pay to Alliqua
any reasonable, documented external expenses incurred by Alliqua resulting from CCT’s breach of its obligation to deliver
the full quantity of any Manufactured Product specified in such Firm Order by the required delivery date specified therein. Notwithstanding
anything to the contrary in this Agreement, delivery by CCT of at least [****] of the quantity ordered will be accepted by Alliqua
in full satisfaction of CCT’s obligation to supply a Firm Order. Should delivered quantities of Manufactured Product be below
[****], CCT will use commercially reasonable efforts to accelerate the subsequent delivery of Manufactured Product, if so requested
by Alliqua. Alliqua will be invoiced for the actual quantities shipped, adjusted as provided in Subsection (e)(ii) above. CCT will
not be responsible for warehousing Manufactured Product for Alliqua. CCT will make available to Alliqua or Alliqua’s designee,
as the case may be, all Manufactured Products upon release.

 

(g)The remedies provided
for in Subsections (e) and (f) above shall be the sole remedies of Alliqua with respect to any single failure by CCT to deliver
less than [****] of any Manufactured Product specified in a Firm Order conforming to the provisions of C 2.2(c) by the required
delivery date specified therein and in conformity with the applicable Specifications; and the remedy provided for in Section 9.2(b)
of the Agreement shall be the sole remedy of Alliqua with respect to the failure of CCT on at least [****] within any [****] period
to deliver at least [****] of any Manufactured Products specified in a Firm Order conforming to the provisions of Schedule 2.2,
subsection (c) by the required delivery date specified therein and in conformity with the applicable Specifications.

 

(h)Notwithstanding
anything to the contrary in the Agreement, following termination of the Agreement pursuant to Sections 9.2(a) or (b), during the
twelve (12) month period commencing on the date notice of termination is given pursuant to either of such Sections (the “Termination
Supply Period”), Alliqua may submit Firm Orders for quantities of Manufactured Products in accordance with subsection
(c) above, except that the Firm Orders for any month during the last nine (9) months of the Termination Supply Period may not exceed
one hundred percent (100%) of the forecasted amount for such nine (9) months in the most recent Forecast provided by Alliqua to
CCT prior to such notice of termination.

 

    	 

    	 

    

 

THE COMPANY HAS REQUESTED
AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN
OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “*****”.

 

SCHEDULE
4.1

ECM
PURCHASE PRICE

 

 

Purchase Price per unit of Manufactured Products, regardless
of dimensions thereof: $[****]

 

Maximum dimension of Manufactured Products at the $[****] Purchase
Price noted above: [****]

 

If Alliqua wishes to have larger sizes of Manufactured Products,
the Purchase Price for such larger sizes will be negotiated in good faith and agreed to by the Parties in writing.

 

Where CCT is procuring Outer Cartons, the Outer Carton cost
will be added to the Purchase Price as provided under Section 2.1(c) of this Agreement.

 

The Parties may discuss at the JSC an amendment to this Agreement
to specify Purchase Prices for each particular SKU of the Manufactured Products. Any such amendment will be in writing and subject
to agreement by both Parties.

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