Document:

Exhibit 10.32

 

 

 

MASTER VENDOR AGREEMENT (goods for resale)

 

THIS
MASTER VENDOR AGREEMENT (“Agreement”) is effective as of the ___ day of 20__ (“Effective Date”), by and
between PetSmart Home Office, Inc., a Delaware corporation, located at 19601 North 27th Avenue, Phoenix, Arizona 85027 (“PetSmart”)
and Oculus Innovative Sciences, Inc., a California company/corporation, located at 1129 N. McDowell Blvd, Petaluma, CA, and its
affiliates, agents and subcontractors (collectively, “Vendor”).
PetSmart and Vendor are sometimes collectively referred to in this Agreement as the “Parties”' and individually as
a “Party.”

 

WHEREAS,
Vendor is in the business of sourcing and selling Products (as defined below), and PetSmart may desire to purchase Products from
Vendor for sale to consumers from time to time; and

 

WHEREAS,
Vendor is ready willing and able to furnish the Products to PetSmart; and

 

WHEREAS,
PetSmart and Vendor desire to enter into this Agreement to establish the terms and conditions under which PetSmart may place one
or more “Purchase Orders” or “'P.O.” (as defined herein) with Vendor for the procurement of Products.

 

NOW,
THEREFORE, in consideration of the premises, promises and covenants set forth below and other valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.
Terms of Purchase. Vendor shall supply and sell to PetSmart the Products in accordance with (i) this Agreement, (ii)
the P.O., (iii) the P.O. Terms and Conditions set forth on Exhibit B (the “P.O. Terms”), (iv) all Applicable Laws,
and (v) PetSmart' s requirements and standards related to the Products and their production (e.g., social compliance requirements,
supplier code of conduct, quality standards, FDA/FSMA and food related requirements, etc.) as may be communicated by PetSmart
to Vendor from time to time (collectively the “'PetSmart Standards”), which include without limitation the documents
listed on the attached Exhibit A, PetSmart Standards, and the documents available at www.petsmart.com/compliance, or such other
website or portal that is communicate by PetSmart to Vendor from time to time. Vendor acknowledges it has received and reviewed
the current versions of the PetSmart Standards. The terms, conditions and requirements set forth in this Agreement, the P.O.,
the P.O. Terms, the PetSmart Standards, and Applicable Laws are collectively referred to as the "PetSmart Requirements."
Vendor acknowledges that it will be subject to penalties or chargebacks, as specified in the PetSmart Requirements, if it fails
to comply with the PetSmart Requirements. In the event of any inconsistency between this Agreement and the PetSmart Requirements
(other than Applicable Laws), this Agreement shall govern. Any additional or different terms or conditions proposed by Vendor
in any quotation, acknowledgment or other document are hereby deemed to be material alterations of this Agreement and notice of
objection is hereby given, and any such proposed terms or conditions shall be void ab initio.

 

2.
Services. Vendor acknowledges that certain actions and services are inherent and required in supplying and selling
the Products to PetSmart, and Vendor will provide all such services, including without limitation the testing, packaging, maintenance,
warehousing and transportation as necessary to deliver the Products in accordance with the PetSmart Requirements (collectively
referred to as the "Services"). If any of Vendor's employees, agents, representatives or other third parties are present
in any of PetSmart's retail stores, distribution centers, or offices, Vendor shall ensure that such employee, agent, representative
or third party complies with all of PetSmart's scheduling, login, tracking, and similar requirements.

 

 

 

 

    	 	1	 

     

    

 

3.
ORDERS. The term '”Purchase Order” or “P.O.” means a purchase order or purchase form and all
related communications regarding the procurement of Products (e.g., order characteristics such as amount, size, costs, fees, specifications
and country of delivery) provided by PetSmart to Vendor through any means agreed to between PetSmart and Vendor, such as e-mail,
EDI or other electronic exchanges. Each P.O. is subject to certain commercial terms as agreed to in writing by the Parties and
set forth on a "Commercial Terms of Purchase" (an example of which is attached hereto as Exhibit C) or similar document,
which may be amended from time to time by the written agreement of the Parties. PetSmart has no obligation whatsoever to place
any P.0. with Vendor or purchase Products from Vendor. If any forecasts or projections are provided by PetSmart to Vendor or otherwise
discussed between the Parties, they are purely for Vendor’s convenience and shall not be binding on either Party. No proposal
by Vendor shall be accepted or deemed accepted by PetSmart unless and until PetSmart accepts the proposal in a written P.O., which
PetSmart is not obligated to accept. The P.O. shall be deemed placed with Vendor upon being confirmed by PetSmart in writing in
the manner P.O.s are typically communicated between PetSmart and Vendor in their normal course of dealings. The P.O. shall be
deemed accepted by Vendor when approved or otherwise accepted by Vendor, including via email, EDI or other electronic exchange.
PetSmart may amend or cancel a P.O. by written or electronic notice to Vendor. If PetSmart amends or cancels a P.O., Vendor shall
use reasonable endeavors to mitigate any loss it may suffer in connection with such cancellation or amendment, but in compliance
with this Agreement.

 

4.
DELIVERY. Vendor shall deliver the Products purchased under each P.O. by the delivery date set out in the P.O., but
such Products shall not be delivered more than five (5) business days (or such shorter period of time as set forth in the PetSmart
Requirements) in advance of the delivery date without the prior written consent of PetSmart. Vendor shall deliver all Products
covered by a single P.O. in a single delivery unless PetSmart requests delivery in installments, or as otherwise required under
the PetSmart Requirements. PetSmart's acceptance of a delivery containing less than the required quantity shall not relieve Vendor
of its obligation to deliver the balance of the ordered Products.

 

If
the Products are not delivered by Vendor as specified in the P.O. or they are Non-Conforming Products (as defined in Section 5
below), then, without limiting any other right or remedy PetSmart may have, PetSmart may: (i) refuse to take any attempted delivery
of Products under the P.O.; (ii) require Vendor to air freight the Products covered by the P.O. at Vendor’s sole cost and
expense; (iii) obtain substitute products from another vendor and recover from Vendor any costs and expenses reasonably incurred
by PetSmart in obtaining such substitute products, which Vendor shall reimburse within thirty (30) days; and (iv) claim damages
for any other costs, expenses or losses directly or indirectly resulting from Vendor's failure to deliver the Product pursuant
to the P.O. or the PetSmart Requirements.

 

Vendor
shall deliver testing samples of the Products in accordance with PetSmart’s instructions, or the instructions of a third
party designated by PetSmart.

 

5.
ACCEPTANCE AND NON-CONFORMING PRODUCTS. A “Non-Conforming Product” means any Product that (i) fails to
conform with any PetSmart Requirement in any respect whatsoever, including without limitation quantities, styles, sizes, quality,
materials, components, fit, colors, workmanship, stitching (or adhesion or other joinery method), odor, design, product quality
standards or requirements, or any other requirement, term or condition; (ii) fails to pass any third- party test assessing conformity
with the PetSmart Requirements; (iii) fails to conform to the confirmation sample approved by PetSmart; (iv) is not as represented,
warranted, or presented to and approved by PetSmart; (v) is shipped or delivered to PetSmart in violation of Section 4; or (vi)
is the subject of a Recall (as defined in Section 9).

 

PetSmart
may, at Vendor's sole risk and expense, hold or return to Vendor any Non-Confirming Product, and may charge Vendor for the cost
of shipping, unpacking, examining, re-packing, warehousing, reshipping, duties, fees and other internal and external related expenses
(including but not limited to the internal cost of labor) in relation to the Non- Conforming Product. If PetSmart does not offset
such charges against amounts owed to Vendor, Vendor shall pay to PetSmart the entire amount of such charges within ten (10) business
days after being notified by PetSmart as to the amount of such charges. If the Non-Conforming Products are to be returned to Vendor,
Vendor shall take full title and risk of loss for such Non-Conforming Products as designated by PetSmart (and if not designated
by PetSmart then FOB PetSmart’s distribution center or retail store from which Products are being shipped). Vendor shall
not dispose of such Non-Conforming Products other than as permitted under this Agreement or any other directions provided by PetSmart
in writing. Unless the P.O. or Commercial Terms of Purchase specify otherwise, a damage allowance (deduction) of one and one-half
percent (1.5%) for Products classified by PetSmart as “consumables”, two percent (2.0%) for Products classified by
PetSmart as “hard-goods” and two and one-half percent (2.5%) for Products classified by PetSmart as “specialty”
shall be applied to each P.O., and Vendor shall be responsible for reimbursing PetSmart for Products that are unsalable (as determined
by PetSmart) or have a damage rate in excess of these default damage allowance rates.

 

 

 

 

    	 	2	 

     

    

 

For
purposes of establishing Non-Conformity, PetSmart shall not be deemed to have accepted any Products unless and until it has had
a reasonable time after the Products have been made available to it to inspect for Non-Conformity. Such inspection period shall
be extended if, in PetSmart's judgment, the complexity of the Products, the quantity received, or any other circumstances makes
such extension reasonable to afford PetSmart an adequate opportunity to inspect the Products. Any unpacking or handling of the
Products incident to PetSmart's inspection shall not indicate PetSmart's acceptance of the Products. PetSmart's inspection of
the Products shall not relieve Vendor of its obligations hereunder or of any liability for any latent or other defects in the
Products. At PetSmart's discretion, such inspection may include preliminary, final, and/or random inspections. PetSmart reserves
the right to revoke acceptance of the Products whenever it discovers an instance of Non-Conformity, even if the time for inspection
of the Products has passed. In no event will payment of the Product Fee or any other amount by PetSmart to Vendor constitute acceptance
of a Non-Conforming Product.

 

PetSmart
reserves the right to cancel without cost or penalty all or any part of the undelivered portion of a P.O., or to refuse to accept
delivery of the Products if Vendor breaches any of the PetSmart Requirements. PetSmart also reserves the right to cancel without
cost or penalty any P.O. that is delayed as a result of a Force Majeure Event. If PetSmart cancels a P.O. or any portion of a
P.O. for any reason, or returns Products covered by a P.O. to Vendor pursuant to rejection or refusal to accept, Vendor shall
not sell Products that have been labeled, packaged or tagged with PetSmart's or its affiliate’s Intellectual Property without
first obtaining PetSmart's written permission. Vendor shall also comply with any instructions provided by PetSmart regarding the
disposal of such Products. In any event, Vendor shall not sell such Products (including any related packaging) until it removes
or obliterates any mark, tag, Intellectual Property, or label identifying it with PetSmart or its affiliates to PetSmart’s
satisfaction.

 

6. TITLE AND RISK OF LOSS. Except as otherwise specified by PetSmart in the P.O., title and risk of
loss for the Products shall pass to PetSmart as follows:

 

		a.	Products for which PetSmart is the importer of record,
(i) risk of loss shall pass from Vendor to PetSmart F.O.B. vessel port of export, and (ii) title to the Products shall pass from
Vendor to PetSmart upon customs clearance of the Products at the port of entry in the country of final destination (“Customs
Clearance”). For Products that are customs cleared prior to arrival at their port of entry, Customs Clearance shall be deemed
to be the time that such Products are unloaded from the carrying vessel at the port of entry.

 

		b.	Products for which PetSmart is not the importer of record,
title and risk of loss shall transfer to PetSmart Delivered Duty Paid (D.D.P. - Incoterms 2010) to a destination specified in
the P.O. and, if the destination is not specified in the P.O., such destination shall be deemed to be the PetSmart distribution
center or retail store where such Products are to be delivered.

 

		c.	If Vendor is shipping Products directly to consumers (e.g.,
fulfilling website or mobile sales), then title and risk of loss shall not transfer to PetSmart and the same shall be between
Vendor and the consumer.

 

For
certain orders, PetSmart may direct that title to the Products shall pass from Vendor to PetSmart at a specific transfer point
rather than at Customs Clearance, and in such cases PetSmart will specify in the applicable P.O. that the designated Products
shall be delivered “F.O.B. transfer point.” The terms for transfer of title set forth herein shall be irrevocable
in all instances, and in no event will Vendor retain or assert any security interest, lien or other claim in or against the Products
or the title thereto, regardless of whether the invoice for such Products has been paid or not, and whether arising under common
law, statute or under any agreement, financing statement, or other document containing any terms inconsistent with or in addition
to the terms and conditions set forth in this Agreement.

 

7.
PRODUCT FEE. The P.O. shall list the price Vendor is charging PetSmart for the Products (the “Product Fee”).
The Product Fee may be modified by the Parties’ mutual written agreement, but in no event may the Product Fee be increased
after the commercial documents associated with any particular Product have been tendered to the consolidator designated by PetSmart.
Unless otherwise specified in the P.O., the Product Fee will include all costs for packaging, transportation, and all applicable
taxes and other governmental charges (including, without limitation, value-added taxes, customs duties, customs brokerage fees,
and similar charges).

 

 

 

    	 	3	 

     

    

 

Vendor
represents and warrants that (i) the terms of each P.O. will be equal to or more favorable than the terms of purchase between
Vendor and its other customers for similar quantities of like Products and (ii) the Product Fee is not in excess of the price
charged to Vendor’s other customers for similar quantities of like Products. If Vendor sells any product that is identical
or substantially similar either in appearance, functionality or quality to the Products for less than the Product Fee charged
to PetSmart, Vendor shall reduce the Product Fee to match the lower price for so long as the lower price is available and shall
refund PetSmart the difference between the Product Fee and the lower price it charged for such identical or similar products after
Vendor began charging the lower price.

 

8.
TERMS OF PAYMENT. Vendor shall submit invoices to PetSmart as required in the PetSmart Requirements. PetSmart will
pay Vendor according to the terms set forth in the P.O., which will be subject to discounts and other adjustments in accordance
with the PetSmart Requirements or the Commercial Terms of Purchase. If the P.O. does not specify the due date for payment, the
invoice shall be payable within forty (40) days from the later of (i) the date the Products ordered under the P.O. are delivered
to destination set for in the P.O. (and if no destination is set forth in the P.O., PetSmart distribution center or retail store),
or (ii) the date on which PetSmart receives a properly submitted invoice from Vendor.

 

If
PetSmart disputes any portion of an invoice, PetSmart will notify Vendor in writing and if the Parties are not able to resolve
the dispute within ninety (90) days the dispute shall be resolved in accordance with Section 24 below. Vendor must notify PetSmart
of any invoice or payment disputes within thirty (30) days of payment. If Vendor does not notify PetSmart of a dispute within
such thirty (30) days it shall have waived its right to dispute such invoice or payment. Vendor's obligations to supply the Products
shall not be affected by any payment disputes. PetSmart shall be entitled to set off any amounts owed from Vendor to PetSmart
against any amounts owed from PetSmart to under this Agreement or any other agreement between the Parties. Any payments owing
from Vendor to PetSmart that are not timely paid shall be subject to interest at a rate of five percent (5.0%) A.P.R. (or, if
lower, the maximum amount permitted by law).

 

9.
PRODUCT RECALL. PetSmart will have the sole right to negotiate and enter into a settlement(s) with any governmental
agency or official with respect to any potential fine, penalty, issue, or liability related to a Non-Conforming Product or any
allegation that the Product fails to comply with Applicable Laws or industry standards. Vendor may request that any Non-Conforming
Products be returned to Vendor for examination at Vendor's sole cost and expense. Such return by PetSmart will not be deemed a
waiver of any right or remedy that PetSmart may have as a result of or in connection with such Non-Conforming Products. Vendor
shall not sell or otherwise dispose of the any such Non- Conforming Products or parts and components without the written consent
of PetSmart.

 

Vendor
shall immediately give PetSmart written notice of (i) all quality control test results and data for any Product that do not satisfy
the PetSmart Requirements; (ii) any known or suspected deviation in standard manufacturing processes that results in a Non-Conforming
Product; (iii) any Product that fails or is alleged to have failed to comply with any consumer product safety requirement contained
in the specifications, industry standards, or standards promulgated by a governmental agency or Applicable Laws; or (iv) any defect,
issue or design regarding a Product that could create a risk of injury to an individual or animal. If Vendor receives notice of
a recall, harmful ingredients, or defects in the Product, Vendor shall notify PetSmart immediately.

 

Vendor
shall promptly furnish to PetSmart all documentation, information and data regarding the Product necessary or helpful to PetSmart,
as determined in PetSmart’s sole discretion, to aid PetSmart to comply with its legal obligations or to mitigate any safety
hazard posed by a Product.

 

If
PetSmart is required or chooses, in its sole discretion, to recall, give public notice of hazard or defect associated with, withdraw
from its proposed chain of resale, remove from its shelves, return to Vendor, or otherwise dispose of or render unusable (a "Recall")
any Product purchased from Vendor for any reason, and whether or not such Product otherwise complies with the PetSmart Requirements,
Vendor will reimburse PetSmart for all amounts paid or incurred by it in connection with such Recall within thirty (30) Business
Days after receipt of PetSmart's invoice.

 

In
addition to any other right provided in this Agreement or by law, PetSmart may, at its sole discretion, immediately cancel any
or all P.O.s, suspend all deliveries of Products, or terminate this Agreement if: (i) Vendor fails to promptly begin remedying
an alleged non-compliance, risk or defect of the types referred to above; (ii) a governmental agency concludes that any Product
fails to comply with any consumer product safety laws, requirements, rules, specifications, or standards in any jurisdiction where
the Products are sold; or (iii) Vendor fails to promptly and fully cooperate with PetSmart in the investigation of any product
safety hazard or Non-Conforming Product.

 

 

 

    	 	4	 

     

    

 

10.
WARRANTIES AND REPRESENTATIONS. Vendor represents and warrants to PetSmart that the Products, components, parts, designs,
and/or concepts designed, developed or manufactured by Vendor, its employees, agents, and any process for the manufacturing of
the Products, together with packaging, labeling, documentation, transportation, and/or anything else furnished by Vendor, shall:
(i) be free from defects in design, workmanship, materials, and hazards to life, animal, or property; (ii) be merchantable, suitable,
and fit for their intended purposes and conform to any warranty, description, or sample provided to PetSmart; (iii) be in conformance
with the PetSmart Requirements, and any data, drawings, representations, specifications, and documentation relating to the Product;
(iv) do not violate, use or infringe any existing or pending third-party intellectual property rights; (v) do not breach any agreement
between Vendor and any third-party; (vi) be supported by proper evidence and documentation (which shall be supplied to PetSmart
upon request), such as test results, for any efficacy, performance or similar claims made on or about the Product or its packaging
or labeling; and (vii) be in compliance with Applicable Laws.

 

In
addition, Vendor represents and warrants that: (i) this Agreement has been validly executed and delivered and constitutes a legal,
valid, and binding obligation enforceable against Vendor; (ii) the person executing the Agreement on behalf of Vendor has the
requisite capacity and authority to enter into this Agreement; (iii) Vendor has the legal right to sell the Product; (iv) no consent
of any other person, political body, board of directors, or entity is necessary for Vendor to enter into and fully perform this
Agreement; (v) all information, invoices, and documents provided to PetSmart by Vendor are true, complete, and accurate; (vi)
Vendor shall, upon request, promptly provide any and all records and/or documentation, and provide other reasonable assistance
as may be necessary or desirable for purposes of PetSmart’s compliance with Applicable Laws; (vii) Vendor shall perform
its obligations under this Agreement in compliance with all Applicable Laws; (viii) Vendor or its staff, employees, agents, sub-contractors
and/or representatives did not and will not offer, solicit, accept or provide any commissions, payments, gifts, advantages, kickbacks,
lavish or extensive entertainment or other things of value, directly or indirectly, to any employees, members of any employee’s
family, or any agent of PetSmart or any governmental authorities where such payments would constitute a bribe or any illegal payment
under Applicable Laws or the PetSmart Requirements; (ix) Vendor will cooperate with PetSmart in any and all governmental agency
or department inquiries or investigations related to the Product, or third-party litigation related to the Product; (x) Vendor
shall ensure that all personnel hired and working for Vendor on this Agreement are authorized to work in the United States; and
(xi) if the Products bear any third-party Intellectual Property Vendor hereby grants and sublicenses to PetSmart all rights necessary
for PetSmart to distribute, market, advertise and sell the Products at retail.

 

The
foregoing warranties are in addition to all warranties implied by law and shall survive delivery, inspection, acceptance, and
payment. All warranties will survive delivery of the Product and will not be deemed waived, terminated, or merged by PetSmart
upon acceptance of or payment for the Product. Vendor is not relying on any warranties, representations, assurances, or inducements
that are not expressly set forth in this Agreement (and PetSmart hereby expressly disclaims the same).

 

“Applicable
Laws” means all United States, state, Canadian, international, provincial, and local laws, enactments, orders, ordinances,
directives, rules, regulations and regulatory requirements, including without limitation those listed below and/or relating to:
(i) the manufacture, packing, packaging, marking, storage, handling and delivery of the Product; (ii) testing specifications for
the Products or warnings with respect to the Product, its labeling, or its contents; (ii) product safety, environment protection,
human health, labor, industry, disposal, restriction and sale of the Product; (iii) the handling, storage, data privacy and security
of personal information; (iv) advertising claims substantiation; (iv) country of origin, import and export laws; and (v) including
without limitation, the Foreign Corrupt Practices Act, the Bribery Act 2010, Anti-Unfair Competition Law of PRC, the Criminal
Law of PRC, the Prevention of Bribery Ordinance (POBO) of Hong Kong, the Federal Trade Commission Act, the Robinson-Patman Act,
the Hazardous Substances Act, the Food, Drug, and Cosmetic Act, The Food Safety Modernization Act, the Consumer Products Safety
Act, the Fair Packaging and Labeling Act, the Toxic Substances Control Act, the Fair Labor Standards Act, the Flammable Fabrics
Act, the Fur Products Labeling Act, the Textile Fiber Labeling Act, the United States Department of Transportation regulations,
the Insecticide, Fungicide and Rodenticide Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the California
Safe Drinking Water and Toxic Enforcement Act of 1986 (commonly referred to as Proposition 65), the Canada Stuffed Article Act,
the United States Environmental Protection Agency regulations, the California Air Resources Board (CARB) regulations and measures,
and OSHA regulations.

 

 

 

 

    	 	5	 

     

    

 

To
the extent Vendor provides any equipment or fixtures in connection with the Products (“Vendor Equipment”) or to
the extent Vendor's delivery, stocking, maintenance, promotion or removal of the Products require Vendor to enter an of
PetSmart's premises, the following additional terms and provisions shall apply: (i) Vendor agrees that the warranties set
forth herein apply to all Vendor Equipment and related Services and the same will be provided in a good and workmanlike
manner; (ii) Vendor shall, at its expense, obtain all licenses and permits and shall pay all inspection fees necessary in
connection with the maintenance or installation of Vendor Equipment and performance of any related Services; (iii) Vendor
agrees that the indemnification and defense provisions set forth in this Agreement shall apply to any claim that any person
or entity may make against PetSmart or any of its subsidiaries or affiliates arising out of or otherwise relating to the
Vendor Equipment or related Services; (iv) the insurance required to be obtained and maintained by Vendor under this
Agreement shall provide coverage with respect to the Vendor Equipment and related Services; and (v) PetSmart has no
obligation to maintain any Vendor Equipment or to provide notice to Vendor of any failure of or damage to any Vendor
Equipment.

 

11.
AUDIT RIGHT. PetSmart shall have the right to inspect and audit the manufacture, quality, transport, handling, and
storage of Products both before and after shipment. PetSmart and/or its agents or representatives may enter Vendor's premises,
factories or facilities during Vendor's customary business hours to inspect, audit and test any Products, Vendor's processes,
and any materials, components, or work-in-progress to be used in the manufacture of any Products, whether such entrance is announced
or unannounced. Vendor shall co-operate with, and provide reasonable assistance to PetSmart or its authorized representative(s)
in the conduct of any such audit and ensure that such persons shall have access to the premises at which the Products are being
manufactured.

 

12.
INTELLECTUAL PROPERTY. “Intellectual Property” means any patents, utility models, rights to inventions,
copyright and neighboring and related rights, trademarks, service marks, business names and domain names, rights in get- up and
trade dress, unique or distinctive elements of the Product or Product designs, goodwill and the right to sue for passing off or
unfair competition, rights in designs, database rights, rights to use, and protect the confidentiality of, Confidential Information,
and all other intellectual property rights, in each case whether registered or unregistered and including all applications and
rights to apply for and be granted, renewals or extensions of, and rights to claim priority from, such rights and all similar
or equivalent rights or forms of protection which subsist or will subsist now or in the future in any part of the world. If the
Products bear any Intellectual Property that are owned or authorized by PetSmart, Vendor shall (a) only affix the Intellectual
Property to the Products strictly in accordance with PetSmart’s instructions, (b) not alter the Intellectual Property in
any way whatsoever, (c) not affix the Intellectual Property or similar marks to any other products made by Vendor, and (d) not
use any Intellectual Property in any manner or in connection with any products or the publication of any materials (including
in connection with any third-party's products, trade mark, trade name, symbol or copyright material) other than in accordance
with this Agreement and the PetSmart Requirements. PetSmart shall at all times own and have exclusive right, title and interest
in and to all of its Confidential Information and Intellectual Property, and PetSmart shall retain the exclusive right to license,
sell, transfer and otherwise use and dispose of the same.

 

Vendor
shall not (a) acquire any interest or claim in any of PetSmart’s Intellectual Property on account of or related to this
Agreement or the manufacture of the Products, or (b) apply for any patent or other Intellectual Property rights right therefore.
Vendor hereby acknowledges that the ownership of all Intellectual Property is and shall at all times remain PetSmart’s sole
property, and that any use thereof or goodwill associated thereto in relation to the Products shall inure to the exclusive benefit
of PetSmart and its affiliates, and that nothing in this Agreement will confer on Vendor any right, title or interest in, to or
under any of PetSmart’s Intellectual Property. Vendor, its employees and agents shall not contest or assist a third-party
in contesting the validity of PetSmart's Intellectual Property worldwide. In the event Vendor at any time obtains or claims any
rights in or to the Intellectual Property, Vendor shall promptly notify PetSmart of such event and immediately transfer such rights
to PetSmart or its affiliates, as directed by PetSmart, and provide all required assistance and documentation related to such
transfer. For such purposes, Vendor hereby appoints PetSmart as its attorney-in-fact for the transfer of such rights.

 

Vendor
agrees that any new invention, enhancement, specification, drawing, formula, improvement, or other data or information of a secret,
proprietary, or confidential nature that is developed or acquired by Vendor or any of its employees or agents in connection with
the manufacture of any Products bearing a PetSmart Intellectual Property or utilizing and PetSmart Intellectual Property shall
be fully and immediately disclosed, and shall belong exclusively to PetSmart. The Parties acknowledge that all work performed
by Vendor for PetSmart or any affiliate related to such Products shall be deemed a “work made for hire.” Vendor hereby
assigns to PetSmart any right, title, and interest in and to all creations and Inventions that Vendor may have without additional
consideration. Vendor agrees to execute and deliver any documents and do all other things (including the giving of testimony)
requested by PetSmart in order to vest more fully in PetSmart or any affiliate all ownership rights in the creations and inventions
(including obtaining patent, copyright or trademark protection therefore in the United States and/or foreign countries).

 

 

 

    	 	6	 

     

    

 

13.
INSURANCE. During the Term and for a period of five (5) years afterwards, Vendor shall maintain in force the following
insurance policies with reputable insurance companies authorized by law to conduct business in the United States and Canada with
the financial rating of at least A-VII status, as rated in the most recent edition of Best's Insurance Reports: (i) a commercial
general liability insurance policy with full limits, achieved either by primary or excess/umbrella insurance, for bodily injury
and property damage for not less than Two Million Dollars ($2,000,000.00 USD) per occurrence, with an aggregate limit of Four
Million Dollars ($4,000,000.00 USD), such policies to include products liability and contractual liability; (ii) automobile liability
insurance policy with limits not less than Three Million Dollars ($3,000,000.00 USD) combined single limit; (iii) workers’
compensation in compliance with local legislation and employer’s liability with a One Million Dollars ($1,000,000.00 USD)
limit per, and (iv) if services are provided under the P.O. or in connection with Products sold under a P.O., a professional liability
or errors and omissions policy with limits not less than Two Million Dollars ($2,000,000 USD) per occurrence and Five Million
Dollars ($5,000,000 USD) aggregate; provided, however, PetSmart retains the right to require Vendor to provide increased levels
of commercial general liability insurance if it provides certain types of Products, such as Products with electronic components,
glass, etc.

 

Vendor’s
insurance policies shall name “PetSmart Home Office, Inc.,” and “PetSmart, Inc.” (including their parents,
subsidiaries, affiliates, officers, directors, employees, agents, and other representatives) as additional insureds. Vendor’s
insurance policy must also include: (i) separation of insureds (otherwise known as a cross-liability clause); (ii) a waiver of
subrogation in the favor of PetSmart, Inc., and PetSmart Home Office, Inc. (including their parents, subsidiaries, affiliates,
officers, directors, employees, agents, and other representatives); and (iii) for general liability policy, cover for PetSmart’s
property that is in the care, custody or control of Vendor.

 

Vendor
shall: (i) not do anything to invalidate any insurance policy or to prejudice PetSmart's entitlement under it; and (ii) notify
PetSmart if any policy is (or will be) cancelled or its terms are (or will be) subject to any material change. On taking out and
on renewing each policy, Vendor shall promptly send a copy of the receipt reflecting payment of the premium to PetSmart. On PetSmart's
written request, Vendor shall, within ten (10) days of said request, provide PetSmart with copies of the insurance policy certificates
and details of the cover provided, in a form and manner acceptable to PetSmart. Vendor's liabilities under this Agreement shall
not be deemed to be released or limited by Vendor taking out the insurance policies referred to in this Section 13.

 

14. INDEMNITY. Vendor
shall defend, indemnify and hold PetSmart (including its parents, subsidiaries, affiliates, officers, directors, employees,
agents, and other representatives) harmless from and against any and all liabilities, costs, expenses, damages and losses
(including, without limitation, any direct, indirect, special, or consequential losses, loss of reputation and all interest,
penalties and legal and other professional costs and expenses, including, without limitation, the cost of internal
resources) suffered or incurred by PetSmart arising out of or in connection with: (i) any breach by Vendor of any
representations or warranties contained in this Agreement; (ii) any actual or alleged defect in any Product (latent or
patent) including without limitation Non-Conforming Products; (iii) breach of any PetSmart Requirement, or any provision of
this Agreement; (iv) violation of any Applicable Laws (including costs, additional expenses, customs duties, or assessments,
fines, citations, penalties, or Vendor's failure to comply with any request by PetSmart for any import or export
documentation); (v) any claim made against PetSmart for actual or alleged infringement of a third-party's Intellectual
Property rights arising out of, or in connection with, the manufacturing, supply, sale or use of the Products; (vi) any claim
made against PetSmart by a third-party arising out of, or in connection with, the manufacturing, sale or supply of the
Products, to the extent that such claim arises out of the breach, negligent performance or failure or delay in performance of
this Agreement by Vendor, its employees, agents or subcontractors; and (vii) any claim made against PetSmart by a third-party
for death, personal injury or damage to property arising out of, or in connection with the Products.

 

15.
LIMITATION OF LIABILITY. Nothing in this Agreement shall limit or exclude Vendor’s liability for: (i) death or
personal injury resulting from negligence; (ii) fraud or fraudulent misrepresentation; (iii) breach of any express or implied
terms of this Agreement; (iv) its indemnification obligations under this Agreement; or (v) the willful default or willful misconduct
of Vendor, its employees, agents or Sub-Contractors. PetSmart shall not be liable to Vendor, whether in contract, tort (including
negligence) or restitution, or for breach of statutory duty or misrepresentation, or otherwise, for any: (i) loss of profit; (ii)
loss of business; or (iii) indirect, special, punitive, or consequential damages suffered by Vendor that arises under or in connection
with this Agreement, and PetSmart's total liability arising under or in connection with this Agreement shall be limited to the
amount of an unpaid invoice in the case of payment disputes, and to amounts covered by PetSmart’s insurance in all other
matters.

 

 

 

 

    	 	7	 

     

    

 

16.
CONFIDENTIALITY AND DATA PROTECTION. Vendor agrees that it shall not at any time during the Term and for a period of
five (5) years thereafter disclose to any person any confidential information not known or available to the public, concerning
the business, affairs, customer, clients or vendors of PetSmart, including information relating to the operations, processes,
plans, pricing, product information, know-how, designs, trade secrets, Intellectual Property, software, market opportunities,
customers, P.O.s, and the PetSmart Requirements (the “Confidential Information”), except as permitted by this Section
16. Confidential Information does not include: (i) publicly available information or materials (obtained through no wrongful act
of the receiving Party), (ii) information already known or independently developed by the receiving Party, or (iii) information
received by receiving Party from a third party who was free to disclose it.

 

Each
Party may disclose the other Party's Confidential Information (i) to its employees, officers, agents, consultants or subcontractors
("Representatives") who need to know such information for the purposes of carrying out the Party's obligations under
this Agreement, provided that the disclosing Party takes all reasonable steps to ensure that its Representatives comply with the
confidentiality obligations contained herein, and the disclosing Party shall be responsible for its Representatives' compliance
with the confidentiality obligations set out in this section, and (ii) as may be required by law, a court of competent jurisdiction
or any governmental or regulatory authority or by a recognized stock exchange having authority over it or a substantial part of
its assets.

 

Vendor
shall establish and maintain data security procedures and other safeguards against the destruction, corruption, loss or alteration
of PetSmart’s Confidential Information, and to prevent access, intrusion, alteration or other interference by any unauthorized
third parties of the same, that are no less rigorous than (i) those maintained by Vendor for its own information or the information
of its customers of a similar nature, or, if more rigorous, and (ii) accepted industry practices, and that are in compliance with
all Applicable Laws. If PetSmart, in its sole discretion, requests or requires Vendor to access any electronic database or online
portal system owned and/or operated by PetSmart, Vendor hereby agrees it shall submit to, and successfully complete PetSmart’s
screening and/or testing requirements regarding the protection of online or electronic data.

 

17.
CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM. Vendor acknowledges that United States Customs and Border Protection has
established an initiative called the Customs Trade Partnership Against Terrorism (C-TPAT), and PetSmart participates in C-TPAT.
Vendor hereby agrees to use its best efforts to support PetSmart's support of C-TPAT, and agrees to (i) fully comply with any
reasonable request of PetSmart to ensure that all Products sold to PetSmart are as safe from terroristic acts as possible; (ii)
comply with all United States Customs and Border Protection Agency security recommendations; (iii) use commercially reasonable
efforts to become a certified and validated member of C-TPAT, if available to Vendor; (iv) immediately notify PetSmart if Vendor
becomes suspicious or aware of any attempt, potential attempt, or commission of any act of terrorism with respect to the Products;
and (v) promptly notify PetSmart of any breach or suspected breach in the security and safeguard of the Products while within
Vendor's custody or control, or in the event it otherwise has information regarding any suspected or known breach of security
pertaining to the Products. Further, upon request of PetSmart, Vendor will promptly provide written certification that it is compliant
with C-TPAT. If Vendor at any time becomes aware that it is not compliant with C-TPAT, it will immediately notify PetSmart.

 

If
Vendor will be physically present at any of PetSmart's facility or has access to PetSmart's systems, it will conduct a background
check on each such employee or subcontractor that includes a criminal background check covering the past seven (7) years for all
locations in which the individual has resided (both at the state/provincial and country/federal level), job history and employment
verification. Vendor will only place or allow access to those individuals who have no criminal convictions and whose background
checks otherwise comport with information provided by the individual.

 

Vendor
warrants and represents, on behalf of itself and its affiliates, that it is not acting, directly or indirectly, for or on behalf
of any individual or entity that: (i) appears on the Specially Designated Nationals and Blocked Person List, as maintained by
the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury, or (ii) is otherwise subject to OFAC sanctions.

 

 

 

 

    	 	8	 

     

    

 

18.
TERM AND TERMINATION. This Agreement shall commence on the Effective Date and continue for a period of one (1) year
thereafter (the “Initial Term”) and will automatically renew for successive one (1) year periods (each a “Renewal
Term”) unless a Party provides at least ninety (90) days notice prior to the end of the Initial Term or Renewal Term of
its desire to terminate this Agreement. The Initial Term and Renewal are referred to as the “Term.” Without affecting
any other right or remedy available to it, PetSmart may terminate this Agreement and any P.O. for undelivered Products (whether
manufactured or not) with immediate effect by giving written notice to Vendor if:

 

		a.	Vendor commits a material breach of any term of this Agreement
or the PetSmart Requirements, including without limitation the misuse of PetSmart’s Intellectual Property;

		b.	Vendor commits a non-material breach of this Agreement
or the PetSmart Requirements that is not capable of being remedied or, if such breach is capable of being remedied, fails to remedy
the breach within a period of thirty (30) days after being notified in writing of it existence;

		c.	Vendor repeatedly breaches any of the terms of this Agreement
or the PetSmart Requirements;

		d.	Vendor suspends, or threatens to suspend, payment of its
debts or is unable to pay its debts as they fall due or admits inability to pay its debts or is deemed unable to pay its debts;

		e.	Vendor ceases or threatens to cease to carry on business,
enters into administration or liquidation, or files for winding up or bankruptcy; or

		f.	any Force Majeure Event prevents Vendor from performing
its obligations under this Agreement for any continuous period of ninety (90) days.

 

Upon
termination or expiry of this Agreement, each Party shall promptly: (i) return to the other Party all equipment, materials and
property belonging to the other Party; (ii) return to the other Party all documents and materials (and any copies) containing
the other Party's Confidential Information; and (iii) on request, certify in writing to the other Party that it has complied with
the requirements of this Section. Upon termination of this Agreement, PetSmart shall have the right in its sole discretion to
terminate any P.O. or portion thereof that has not been delivered to PetSmart or its designated representative set forth in the
applicable P.O., regardless of the production status of such Products and whether Vendor procured materials for the manufacture
of such Products. The terms and conditions of this Agreement shall continue in full force and effect until all P.O.s have been
fulfilled by Vendor or cancelled by PetSmart. Vendor shall, in good faith, undertake reasonable measures to mitigate the costs
of termination. Vendor shall provide such assistance to PetSmart as PetSmart may reasonably request in writing in connection with
the transition of production of the Products and related matters.

 

Notwithstanding
the termination or expiration of this Agreement, certain sections are intended to survive termination and expiration, including
without limitation the following sections, and remain in full force and effect until barred by Applicable Law: Section 9 (Product
Recall), 10 (Warranties and Representations), Section 11 (Audit Rights), Section 12 (Intellectual Property), Section 13 (Insurance),
Section 14 (Indemnity), Section 15 (Limitation of Liability), Section 16 (Confidentiality and Data Protection), Section 18 (Term
and Termination), Section 23 (Governing Law and Venue), and Section 24 (Dispute Resolution).

 

Termination
of this Agreement shall not affect any rights, remedies, obligations or liabilities of the Parties that have accrued up to the
date of termination or expiry, including the right to claim damages in respect of any breach of the Agreement which existed at
or before the date of termination.

 

19.
NO AGENCY. The Parties are independent contractors, and nothing in this Agreement (nor the performance of any of the
provisions hereof) will create any partnership, joint venture, agency, franchise, sales representative, or employment relationship
between them. Neither Party is the agent or legal representative of the other and neither Party will have the power to obligate
or bind the other Party. Personnel supplied by each Party will work exclusively for that Party, and will not, for any purpose,
be considered employees or agents of the other Party. Each Party assumes full responsibility for the acts of personnel supplied
by it while performing services hereunder and is solely responsible for their supervision, direction and control, compensation,
benefits, and taxes. Vendor agrees to conduct itself in a manner that shall support and positively enhance PetSmart's goodwill,
image, reputation, and contribute to a positive impact overall in the specialty pet retail market.

 

 

 

    	 	9	 

     

    

 

20.
FORCE MAJEURE. For purpose of this Agreement, a "Force Majeure Event" means any circumstance not within a
Party's reasonable control including, without limitation: (i) acts of God, such as flood, drought, earthquake or other natural
disaster; (ii) terrorist attack, civil war, war, armed conflict, imposition of sanctions, or embargo; and (iii) strikes or lockouts
(other than those involving the employees of the Party affected by such event, or its agents, subcontractors or employees). If
a Party is prevented from or delayed in performing any of its obligations under this Agreement due to a Force Majeure Event ("Affected
Party"), the Affected Party shall, as soon as reasonably practicable after the start of the Force Majeure Event but no later
than five (5) Business Days from its start, notify the other Party in writing of the Force Majeure Event, the date on which it
started, its likely or potential duration, and the effect of the Force Majeure Event on its ability to perform any of its obligations
under the Agreement. The Affected Party shall use all reasonable endeavors to mitigate the effect of the Force Majeure Event.

 

21.
WAIVER. A waiver of any right or remedy under this Agreement or by law is only effective if given in writing and shall
not be deemed a waiver of any subsequent breach or default. A failure or delay by a Party to exercise any right or remedy provided
under this Agreement or by law shall not constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict
any further exercise of that or any other right or remedy. No single or partial exercise of any right or remedy provided under
this Agreement or by law shall prevent or restrict the further exercise of that or any other right or remedy.

 

22.
NOTICES. Any notice or request given under this Agreement shall be in writing addressed to the other Party at (i) for
Vendor, at the address listed on the first page of this Agreement and (ii) for PetSmart Attn: General Counsel, 19601 N. 27th Avenue,
Phoenix, Arizona U.S.A. 85027. Any notice shall be deemed to have been received (i) if sent by certified or registered mail, postage
prepaid, return receipt requested, the fifth (5th) business day after posting; (ii) if sent by a major US or international document
courier, the second (2nd) business day after posting or at the delivery time recorded by the courier service, whichever is later;
or (iii) if sent by electronic mail or by a facsimile machine, the next business day after receipt of confirmation following transmission.

 

23.
GOVERNING LAW AND VENUE. This Agreement will be governed and construed in accordance with the laws of the State of
Arizona as such laws apply to contracts between Arizona residents performed entirely within Arizona without giving effect to principles
of conflicts of laws. Vendor hereby agrees that any action or proceeding arising out of or related to this Agreement shall be
brought solely in a court of competent jurisdiction in Maricopa County, State of Arizona. Vendor hereby irrevocably consents to
the jurisdiction of any such court in Marciopa County, State of Arizona. The Parties hereby specifically exclude the application
of the United Nations Convention on Contracts for the International Sale.

 

24.
DISPUTE RESOLUTION. PetSmart and Vendor shall work together to amicably resolve any dispute, controversy or claim,
whether based on contract, tort or otherwise, arising out of or relating to this Agreement or the relationship of the Parties,
including without limitation, any dispute as to the existence, validity, construction, interpretation, negotiation, performance,
breach, termination or enforceability of this Agreement (each a ''Dispute"). If the Parties cannot agree to a resolution
to the Dispute within thirty (30) days after one Party notifies the other Party of the Dispute, it shall be settled through final
and binding arbitration to be conducted in Phoenix, Arizona (USA) in accordance with the rules of the American Arbitration Association.
The arbitration shall be conducted and finally settled by three arbitrators, with each Party selecting one arbitrator and the
two arbitrators selected by the Parties selecting a third arbitrator. Judgment upon the award rendered by the arbitrator may be
entered in any court having jurisdiction over the matter or the Parties. All costs, attorney and other professional fees, and
expenses relating to the arbitration will be allocated among the Parties in accordance with the determination made by the arbitrator.

 

Nothing
in this Section prevents either Party from seeking preliminary or interim injunctive relief or measures from any court of competent
jurisdiction, and any such request will not be incompatible with the agreement to arbitrate under this Section or a waiver of
the right to arbitrate. The arbitral tribunal will have the authority and power to grant interim measures, including injunctive
relief, whether in the form of an award or in another form. In addition to the rights and remedies provided in this Agreement,
each Party has all of the rights and remedies available to it under the Uniform Commercial Code as adopted in the State of Arizona.
The exercise of any right or remedy provided for in this Agreement will be without prejudice to the right of PetSmart to exercise
any other right or remedy provided in this Agreement or at law or in equity.

 

 

 

    	 	10	 

     

    

 

25. OTHER MATTERS. This Agreement
constitutes the entire agreement between the Parties in relation to its subject matter. It replaces and extinguishes all prior
agreements, draft agreements, arrangements, collateral warranties, statements, assurances, representations and undertakings of
any nature made by or on behalf of the Parties, whether oral or written, in relation to the subject matter hereof. No variation
or amendment of this Agreement shall be effective unless it is in writing and signed by both Parties. Except as expressly provided
in this Agreement, a person who is not a party to this Agreement shall not have any rights to enforce any term of this Agreement.
This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall constitute a duplicate
original, but all the counterparts shall together constitute the one agreement. Vendor shall not assign or transfer any of its
rights or obligations under this Agreement without the prior written consent of PetSmart. PetSmart may assign or transfer any or
all of its rights and obligations under this Agreement to any of its affiliates.

 

If
any provision of this Agreement is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent
necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision
shall be deemed deleted. Any modification to or deletion of a provision or part-provision under this section shall not affect
the validity and enforceability of the rest of this Agreement. At its own expense, each Party shall, and shall use all reasonable
endeavors to procure that any necessary third-party shall, promptly execute and deliver such documents and perform such acts as
may reasonably be required for the purpose of giving full effect to this Agreement. If required by Applicable Law or requested
by PetSmart, Vendor shall complete and submit to PetSmart IRS form W-9 (or other IRS forms that may be required from time to time).

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement through their duly authorized representatives as of the date stated
at the beginning of it:

 

	PetSmart Home Office, Inc.	 	Vendor’s Legal Name: Oculus Innovative Science, Inc.
	 	 	 
	By: _____________________________	 	By: /s/ Dan McFadden                                 
	Its: _____________________________	 	Its: VP of Animal Wellness
	Print Name: ______________________	 	Print Name: Dan McFadden
	Date: ___________________________	 	Date: Nov. 4, 2016
	 	 	 
	 	 	Address: 1129 N. McDowell Blvd.
	 	 	Petaluma, CA 94954
	 	 	 

 

 

 

 

 

 

    	 	11	 

     

    

 

EXHIBIT A

PETSMART STANDARDS

 

PetSmart Supplier Code of Conduct

 

PetSmart Summary Supplier Code of Conduct

 

PetSmart Vendor Performance Standards

 

PetSmart Product Integrity Manual

 

PetSmart Restricted Substances List

 

PetSmart Social Responsibility Manual

 

PetSmart Defect Classification List

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	12	 

     

    

 

EXHIBIT B

P.O. TERMS AND CONDITIONS

 

1. Definitions.
“Agreement” means a written agreement, if any, signed by PetSmart and Vendor regarding the purchase of Products.
“Business Terms” means the Agreement and the PO, collectively and individually, as the context requires. “PetSmart”
means PetSmart, Inc. or its affiliates or wholly owned subsidiaries. “PetSmart Documents” means the Business Terms
and any related policies or documentation that PetSmart provides Vendor from time to time or that is available to Vendor on PetSmart’s
website. “PO” means a purchase order for Products, which includes these Terms and Conditions for Purchase Orders and
any schedules attached to such PO. “Product(s)” means the goods or services, collectively and individually, as the
context requires, provided by Vendor under a PO, together with related packaging, labeling, documentation, transportation and anything
else furnished by Vendor with respect to such goods, and any and all deliverables provided by Vendor under a PO with respect to
such services. “Vendor” means the person or entity to which the PO has been issued, and its related entities, affiliates,
agents, representatives and subcontractors.

 

2. Agreement
for Purchase of Products. All purchases of Products by PetSmart will be governed by the Business Terms. In the event of
a conflict between the PO and an Agreement, the Agreement will control. (For clarity, if the PO does not conflict with the Agreement
but does contain additional or more specific terms or provisions than the Agreement, such additional or more specific terms and
provisions will continue to apply to Vendor.) If the parties have not executed an Agreement, the PO will control. The Business
Terms constitute the complete and final written agreement between PetSmart and Vendor with respect to the Products and supersede
all other agreements and understandings between the parties regarding the Products. No waiver, modification, or amendment of the
Business Terms will be valid unless in writing and signed by authorized representatives of both parties, subject to Section 9.
All terms of any purchase order or similar document provided by Vendor, including, but not limited to, any pre- printed terms thereon
or any terms that appear on or are accessible through Vendor’s websites or apps, that are inconsistent, add to, or conflict
with the Business Terms, will be null and void and of no legal force or effect. In addition, neither acceptance by nor delivery
to PetSmart of all or part of the Products ordered, nor payment therefor, will constitute acceptance by PetSmart of any such different
or additional terms and conditions that may be contained in Vendor’s acknowledgment, acceptance, confirmation, invoice, or
other writing, regardless of whether Vendor's acceptance of the PO is conditioned upon PetSmart's assent to such terms and conditions.
Any written indication of acceptance of the Business Terms, commencement of any work or the performance or shipment of conforming
or non-conforming Products under a PO will constitute acceptance by Vendor of the PO and all the Business Terms.

 

3. No Purchase
Requirement. Except as may be set forth in the description of Products purchased on the PO, PetSmart does not commit or
guaranty the purchase of any Products from Vendor, including any minimum quantity or volume.

 

4. Delivery and
Force Majeure; Inspection; Title and Risk of Loss. Vendor will deliver the Product in accordance with the PetSmart Documents.
For Products for which PetSmart is the importer of record, (i) risk of loss shall pass from Vendor to PetSmart F.O.B. vessel port
of export, and (ii) title to the Products shall pass from Vendor to PetSmart upon customs clearance of the Products at the port
of entry in the country of final destination (“Customs Clearance”). For Product for which PetSmart is not the importer
of record, title and risk of loss shall transfer to PetSmart Delivered Duty Paid (D.D.P. - Incoterms 2010) to a destination specified
in the P.O. and, if the destination is not specified in the P.O., such destination shall be deemed to be the PetSmart distribution
centre or retail store where such Products are to be delivered. Notwithstanding the foregoing, PetSmart may at its own option take
delivery of all or any part of the Products at Vendor’s facility. Time of delivery or performance is of the essence, and
PetSmart’s stated delivery or performance date cannot be extended for any reason, including delays in manufacture or shipment
that Vendor cannot control. Vendor will not, however, be liable for any non-performance or delay in performance caused solely by
a strike, lockout, riot, war, insurrection, act of God or public enemy, if Vendor immediately notifies PetSmart of the event and
gives PetSmart a detailed description of the non-performance or delay that will be caused by such event. PetSmart will then have
the right to terminate the Business Terms, without liability to Vendor. PetSmart will have the right to inspect the Product upon
receipt, notwithstanding any payments or acceptance of previously shipped Products, and will, within a reasonable time, notify
Vendor of any claim relating to condition, quality, shortages, non-conformance or grade of the Product. PetSmart’s inspection
or failure to inspect the Product will not relieve Vendor of any claim related thereto. Unless otherwise agreed in writing, title
and risk of loss of all Products will pass to PetSmart only upon delivery to the specified destination. Vendor will reimburse PetSmart
for any costs, damage or expense incurred by PetSmart arising or relating from the sale by PetSmart of any Product that does not
conform to Vendor’s warranties and the PetSmart Documents.

 

 

 

 

    	 	13	 

     

    

 

5. Price and Payments. Unless
otherwise expressly stated in the Business Terms, the price specified in the PO includes (i) all taxes and duties of any kind that
Vendor is required to pay with respect to the Products (including applicable customs duties), and (ii) all charges for packaging,
transportation, storage and insurance. Vendor will submit an invoice to PetSmart for Products delivered to PetSmart upon delivery
or otherwise in accordance with the PetSmart Documents. Such invoice will reference the applicable PO. Vendor warrants that the
prices set forth in the PO are not higher than the lowest prices charged by Vendor to any other customer for the Products. Except
as provided in an applicable PO, PetSmart will not be required to pay any late charge, interest, finance charge or similar charge.
PetSmart's payment of the purchase price does not indicate its acceptance of the Products. Unless otherwise agreed to in writing
by PetSmart payment terms, including discount periods, will be 40 days from the latest of (i) the scheduled date for delivery or
performance; (ii) the actual date of performance or delivery of conforming Products; and (iii) the date of Vendor's invoice. Vendor
waives all invoices not delivered to PetSmart within 180 days of such date. Unless the P.O. specifies otherwise, a damage allowance
(deduction) of two percent (2.0%) for Products classified by PetSmart as “hard-goods,” two and one-half percent (2.5%)
for Products classified by PetSmart as “specialty,” and one and one-half percent (1.5%) for Products classified by
PetSmart as “Consumables” shall be applied to each P.O.

 

6. Excess, Installment, and Early
Deliveries. If Vendor delivers more Products than PetSmart ordered, then, unless PetSmart agrees otherwise in writing,
PetSmart will not have to pay for the excess. Unless PetSmart agrees otherwise in writing, Vendor will deliver all of the Products
in a single delivery and not in installments. PetSmart's acceptance of a delivery containing less than the required quantity of
Products will not relieve Vendor of its obligation to deliver the balance of the ordered Products at the price and on the other
terms specified in the PO. If Vendor delivers the Products before the scheduled delivery date, PetSmart may, at Vendor’s
expense and risk, either store them or return them to Vendor. PetSmart’s acceptance of an early delivery will not change
the payment terms.

 

7. Representations and Warranties
about Vendor. Vendor represents and warrants to PetSmart that (i) Vendor has all necessary experience, personnel, qualifications,
expertise, authority, licenses and permits to enable it to perform its obligations under the Business Terms, (ii) the Business
Terms are the valid and binding obligations of Vendor, enforceable against Vendor in accordance with their terms, (iii) Vendor
is a solvent, going concern, and (iv) Vendor has not offered or given, will not offer or give, and will not solicit or accept,
any gratuity or thing of value to or from any PetSmart employee, agent or representative.

 

8. Representations and Warranties
about the Products. Vendor represents and warrants that the Products will: (a) comply with all applicable federal, state,
provincial and local laws, rules and regulations or judicial or administrative orders, judgments or decrees governing the Products,
including without limitation, their manufacture, packaging, pricing, labeling, sale, use, transportation, importation or exportation,
including, without limitation, California’s Proposition 65 and other similar laws, rules, regulations, standards, orders
and directives, and the Fair Labor Standards Act of 1938 and the Occupational Safety and Health Act of 1970, as amended; (b) be
free from defects in design, workmanship, materials and hazards to life, animal or property; (c) conform to any warranty, description,
sample, data, drawing, representation, specification or documentation provided to PetSmart or set forth in the PetSmart Documents;
(d) be suitable and fit for their intended purpose; (e) not infringe or encroach upon any other party’s personal, contractual
or property rights, including without limitation, patents, trademarks, trade names, copyrights, rights of privacy, trade secrets
and/or other intellectual property rights. Further, Vendor represents and warrants that it is not subject to or bound by any agreement
that will or may be violated by the provision of the Products as provided in the applicable PO. In addition to the representations
and warranties herein, Vendor assigns to PetSmart any manufacturer’s indemnities and warranties (both express and implied).
Upon PetSmart’s request, Vendor will give PetSmart certificates of compliance with applicable laws, rules, regulations, standards,
orders or directives. Vendor’s warranties extend to future performance under a PO with respect to the Products and will survive
inspection, tests, acceptance, and payment. Vendor will adhere to PetSmart’s Supplier Code of Conduct in connection with
Product delivery or performance under a PO, which Supplier Code of Conduct is available at www.petsmart.com/compliance.

 

9. Changes. Notwithstanding
Section 2 herein, PetSmart may at any time, by written notice to Vendor, change the PO as to (i) designs or drawings of, or specifications
for, the Products, (ii) time or place of delivery or performance, (iii) method of packing or shipment, or (iv) the quantity or
extent of the Products. If this causes a change in Vendor's cost or time of performance, PetSmart will consider an equitable adjustment
in the price or time for delivery or performance, or both, if Vendor gives PetSmart a written request justifying an adjustment
within 20 days after PetSmart notifies Vendor of the change. If an adjustment is not agreed upon, PetSmart may withdraw the change
to the PO or Vendor may decline to provide the Products subject to the change.

 

 

 

    	 	14	 

     

    

 

10. PetSmart’s Rights.
Without limiting other rights and remedies available to it, PetSmart may, at its option, (i) return nonconforming Products to Vendor,
at Vendor’s risk and expense, and require Vendor either to give PetSmart full credit against the price, or promptly to repair
or replace the Products at Vendor's risk and expense; (ii) retain the Products and set off losses against any amount due Vendor;
or (iii) repair or replace the Products and charge Vendor with the expense. In addition to PetSmart's rights set out in the Business
Terms, PetSmart has all of the other rights and remedies that the law gives to buyers, including the right to recover incidental
and consequential damages resulting from any breach by Vendor. PetSmart will not lose any right just because it does not exercise
it. PetSmart will have the full statutory period of limitations to bring any action arising out of PetSmart's agreement with Vendor.
A reasonable time for PetSmart to notify Vendor of any breach is not less than two years from when PetSmart discovers the breach.

 

11. Work on Premises.
If the PO includes the performance of services or delivery or installation of Products by Vendor, and involves operations by
Vendor’s employees or subcontractors on PetSmart’s premises or the premises of a PetSmart customer, Vendor will:
(i) at all times enforce strict discipline and maintain good order among all persons engaged in the activity on such premises
and will cause Vendor’s employees and subcontractors to comply with all fire prevention and safety rules and
regulations in force at the premises and required by law; (ii) keep such premises free from accumulation of waste materials
and rubbish caused by its employees or subcontractors and upon completion promptly remove all of Vendor's equipment and
surplus materials; and (iii) reimburse PetSmart for all reasonable costs and expenses incurred by PetSmart for repairs
completed by PetSmart or its designee if Vendor damages any equipment or property of PetSmart or its customer, or causes any
damage to any portion of PetSmart’s or its customers’ premises, either during or resulting from the delivery or
performance of the Products by Vendor. Under no circumstances will Vendor conduct or permit any hazardous activity or
handling any hazardous materials at PetSmart’s or its customers’ premises without first coordinating the details
of such activity or handling with PetSmart.

 

12. Services. If the PO includes
the performance of services, (i) Vendor is an independent contractor, and neither Vendor nor any of Vendor's employees or agents
will be considered agents or employees of PetSmart; and (ii) Vendor will furnish, at Vendor’s expense, all labor, materials,
equipment, transportation, facilities and other items necessary to perform such services. Vendor represents and warrants that any
of its employees or agents (including subcontractors) deployed in performing any such services will at all times be lawfully engaged
under applicable US immigration laws and regulations.

 

13. Ownership of Work. For
purposes of this Agreement, “Works” shall mean any and all original creations, designs, materials, product developments,
artwork, graphic designs, sketches, programs, code, software, specifications, drafts, advice, ideas, suggestions and any other
pertinent data, including any derivatives thereof, in whatever form or media, prepared, made, expressed, developed, solely or jointly
with others, in connection with Vendor’s services performed for PetSmart. Vendor and its licensors will retain ownership
of all works developed or acquired by Vendor prior to the Effective Date or developed independently of any agreement with PetSmart,
together with all related Intellectual Property Rights (“Vendors’ Works”), and no right or license, implied or
otherwise, is granted to PetSmart with respect to any of Vendor’s Works, provided however, Vendor grants PetSmart a license
to any and all Vendors’ Works embedded in or required for PetSmart’s full use and enjoyment of the Products. Vendor
agrees that all Works shall be solely owned by PetSmart. Vendor agrees that the aforementioned Works are works made for hire, under
the federal Copyright Act of 1976, as amended, and all intellectual property rights shall vest in and be owned by PetSmart. Vendor
irrevocably and exclusively assigns all rights, title and interest in the Works to PetSmart. Vendor hereby gives, transfers and
assigns to PetSmart all right, title and interest, together with the goodwill, if any, associated therewith, in the Works not otherwise
owned by PetSmart (as a work for hire or otherwise), effective as of the moment such Works are created, including all rights in
the nature of patent, trademark, trade secret, or other intellectual property or proprietary rights and all rights of Vendor under
copyright, whether such Works were generated solely by Vendor, or jointly with PetSmart. Vendor agrees to execute and deliver such
additional documents and take such additional reasonable actions as PetSmart deems necessary to perfect or evidence PetSmart’s
ownership of the Works or to enable PetSmart to record this Agreement and/or secure rights of trademark, copyright and/or letters
patent in its name.

 

14. Customs-Trade Partnership Against
Terrorism. PetSmart participates in the US Customs-Trade Partnership Against Terrorism (C-TPAT) and is committed to engaging
providers, vendors and consultants who have policies and procedures ensuring supply chain security. PetSmart requires that all
its providers, vendors and consultants make reasonable efforts to have a security program that is in accordance with C-TPAT’s
minimum security requirements.

 

 

 

    	 	15	 

     

    

 

15. Indemnity. Vendor will
indemnify, defend and hold harmless PetSmart, its directors, officers, employees, shareholders, agents, subsidiaries, affiliates
and representatives (“Indemnitees”) from and against any and all threatened or actual claims, losses, liabilities,
damages, costs or expenses (including attorneys’ and experts, fees and costs through all appeals) of any nature whatsoever
and whether arising prior to, or after the commencement or termination of the Business Terms (“Losses”), arising out
of or related to: (a) the Products, including, but not limited to, their manufacturing, packaging, pricing, labeling, sale or
use, or any infringement by the Products of third-party intellectual property rights; (b) Vendor’s breach of any provision
of any of the PetSmart Documents; (c) any claim or threatened claim for personal injury, death or property damage or loss of any
nature whatsoever arising from or related to any Product; (d) Vendor’s violation of any applicable laws or regulations;
or (e) any breach by Vendor of any of its obligations or warranties in favor of PetSmart. Vendor will defend, at its sole cost
and expense, the Indemnitees in any action or proceeding arising out of any such Losses by counsel reasonably acceptable to Indemnitees
and will promptly pay all costs and expenses arising in connection with such defense including attorneys’ fees and expert
witnesses’ fees through all appeals.

 

16. Insurance. Vendor will
maintain, at its sole cost and expense, during the term of the Business Terms and for at least five years thereafter (or if no
such term is specified for at least three years after the date of the PO), the following types and amounts of insurance, with insurers
with an A.M. Best rating of at least A- (Excellent), FSC VII, and authorized to conduct business in the United States and Canada:

		(a)	a commercial general liability insurance policy with full
limits, achieved either by primary or excess/umbrella insurance, for bodily injury and property damage for not less than Two Million
Dollars ($2,000,000.00 USD) per occurrence, with an aggregate limit of Four Million Dollars ($4,000,000.00 USD), such policies
to include products liability and contractual liability;

		(b)	an automobile liability policy with limits not less than
$3,000,000 combined single limit;

		(c)	workers’ compensation insurance in the benefit amounts
required by applicable law and an employer’s liability policy with limits not less than $1,000,000 per accident or occurrence;
and

		(d)	if services are provided under the PO or in connection
with goods sold under a PO, a professional liability or errors and omissions policy with limits not less than $2,000,000 per occurrence
and $5,000,000 aggregate.

Notwithstanding the
foregoing, PetSmart may require Vendor to acquire additional or different insurance types or coverage amounts to the extent commercially
reasonable in order to protect both PetSmart and Vendor from any and all claims and liabilities arising from or related to the
PO and the goods or services provided under a PO. Such polices shall be issued by insurers that are reasonably satisfactory to
PetSmart. Vendor’s policies will provide a waiver of subrogation in favor of PetSmart. Upon PetSmart’s written request,
Vendor will name PetSmart as an additional insured on the policies on a primary and noncontributory basis. Vendor’s policies
will provide a waiver of subrogation in favor of PetSmart. Within 10 days after such request, Vendor will provide PetSmart with
certificates of insurance for the policies required hereunder and send such certificates to certificates@petsmart.com. The insurance
coverage provided for herein will not act to limit Vendor's liability under the Business Terms.

 

17. Confidentiality. As a
result of its dealings with PetSmart, Vendor may have access to PetSmart’s Confidential Information. “Confidential
Information” is non-public information that, by its nature, ought to be treated as proprietary and confidential or that a
reasonable person would conclude is confidential, which is disclosed by PetSmart, or its subcontractors or agents, to Vendor, orally,
electronically or in tangible form. Vendor will not, without the written consent of PetSmart, its successors or assignees, disclose
any Confidential Information to any person, firm, corporation, or other entity for any purpose whatsoever or use such information
for any purpose not provided for in the PetSmart Documents, for a period of two years after it is disclosed. If there is a breach
of this Section (either actual or threatened) by Vendor, PetSmart's remedies at law will be inadequate. Therefore PetSmart will
have the right of specific performance or injunctive relief, or both, in addition to any and all other remedies and rights at law
or in equity, and PetSmart's rights and remedies will be cumulative.

 

18. Publicity/Use of PetSmart Name.
Vendor will acquire no right to use, and will not use, the name “PetSmart” (either alone or in conjunction with or
as part of any other word or name) or any other name, mark, logo, design, product designations or other intellectual property of
PetSmart or any of its related, affiliated or subsidiary companies: (i) in any advertising, publicity or promotion; (ii) to express
or to imply any endorsement by PetSmart of Vendor’s products, services or business; or (iii) in any other manner whatsoever
(whether or not similar to uses prohibited by [i] and [ii] above) without PetSmart’s express prior written consent, which
may be withheld in its sole discretion. The terms of this paragraph will survive the expiration or termination of the Business
Terms.

 

 

 

    	 	16	 

     

    

 

19. Remedies; Set-Off. In
addition to the rights and remedies provided in the Business Terms, each party has all of the rights and remedies available to
it under the Uniform Commercial Code as adopted in the State of Arizona; provided, however, that Vendor waives against PetSmart
all rights to claim or collect punitive or exemplary, indirect, incidental, special or consequential damages, lost profits or loss
of opportunity damages. The exercise of any rights or remedy provided for in the Business Terms will be without prejudice to the
right of PetSmart to exercise any other right or remedy provided in the Business Terms or at law or in equity. All payments to
be made by PetSmart to Vendor pursuant to the Business Terms are subject to set-off, deduction or offset by PetSmart of all sums
due and owing PetSmart by Vendor.

 

20. Governing Law/Venue/Jury Trial
Waiver. The PetSmart Documents will be governed and construed in accordance with the laws of the State of Arizona without
regard to principles of conflicts of laws. In any action or proceeding between any of the parties arising out of or relating to
the PetSmart Documents (or any of the transactions contemplated thereby), each of the parties: (a) irrevocably and unconditionally
consents and submits to the exclusive jurisdiction and venue of the state and federal courts located in Maricopa County, Arizona;
and (b) agrees that all claims in respect of such action or proceeding will be exclusively heard by such courts. EACH PARTY
HEREBY WAIVES, IRREVOCABLY AND UNCONDITIONALLY, ANY RIGHT TO TRIAL BY JURY REGARDING ANY SUCH CLAIM.

 

21. Data Security. (a) Vendor
will comply with all applicable laws, regulations, and codes of practice in connection with the collection, processing, use and
storage of data provided by PetSmart or PetSmart affiliates, customers, donors, vendors, or other third parties providing data
to Vendor under the Business Terms (collectively, “PetSmart Data”). Vendor will implement and maintain reasonable physical,
technical and organizational measures and safeguards in order to preserve the security and confidentiality of PetSmart Data against
unlawful or unauthorized destruction, processing, disclosure, processing or access to, or accidental damage or loss of PetSmart
Data. Without limiting the generality of the foregoing, where appropriate, and in accordance with industry standards and best practices,
Vendor will implement and/or use network management and maintenance applications and tools, and fraud prevention, intrusion detection,
and encryption technologies. At a minimum, all PetSmart data will be encrypted while in transit and will be transmitted using a
secure transfer method (e.g. SFTP). PetSmart has the right to request an SSAE 16 SOC 2 service auditor’s report, if applicable,
at any time during performance under a PO or the term of an Agreement.

(b) If Vendor or any third party
assisting Vendor (i) deliberately or inadvertently collects, uses, or discloses PetSmart Data in breach of this Section, or
(ii) discovers, is notified of, or has reasonable awareness that an unauthorized access, acquisition, theft, disclosure or
use of PetSmart Data has occurred or is likely to occur (each such event, an “Information Security Breach”), then
Vendor will immediately notify PetSmart of such Information Security Breach and, at its own expense, investigate, remediate,
and mitigate the effects of the Information Security Breach.

(c) Upon either the written request
of PetSmart, at its discretion, or the expiration or termination of the Business Terms, Vendor will render unreadable or
return to PetSmart, or any third party designated by PetSmart, within fifteen (15) business days, all copies, duplicates,
summaries, abstracts or other representations of any PetSmart Data, without charge to PetSmart. For electronic media,
“render unreadable” could include, but is not limited to, degaussing or using a FIPS compliant military-grade
wipe program, and for hard-copy material “render unreadable” could include, but is not limited to, cross-cut
shredding or incineration.

 

 

 

 

 

 

 

 

    	 	17	 

     

    

 

EXHIBIT C

COMMERCIAL TERMS

 

 

 

 

 

 

    	 	18Exhibit 10.33

 

Execution Copy

 

D I S T R I B U T I O N     A G R E E M E N
T

 

 

between

G. Pohl-Boskamp GmbH & Co. KG

Kieler Strasse 11

25551 Hohenlockstedt

Germany

 

- Hereinafter referred
to as “Pohl-Boskamp”-

 

and

IntraDerm Pharmaceuticals,

A Division of Oculus Innovative
Sciences, Inc.

1129 North McDowell Blvd.

Petaluma, California 94954

United States of America

 

 

- Hereinafter referred
to as “IntraDerm ” –

 

 

- Pohl-Boskamp and IntraDerm referred to as “Party”-

 

 

Preamble

 

 

Subject to the
terms and conditions of this Distribution Agreement (the “Agreement”), Pohl-Boskamp intends to appoint a new
distributor for the Territory as defined in § 3 hereinafter.

IntraDerm is willing to become a distributor
for Pohl-Boskamp, like both Parties have stipulated already in the corresponding Term sheet from 12th November, resp.
2nd December 2015.

 

Now, therefore,
the Parties agree upon the following terms and conditions:

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 1 of 30

     

    

 

§ 1

Object of the
Agreement

 

		1.1	Pohl-Boskamp
                                         hereby appoints IntraDerm, and IntraDerm hereby accepts the appointment, as Pohl-Boskamp ́s
                                         exclusive distributor to import, register, label, promote, market, offer for sale, sell
                                         and otherwise distribute the Products as defined in § 2 in the Territory as defined
                                         in § 3. IntraDerm shall not actively market the Products anywhere elsewhere than
                                         in the Territory.

 

		1.2	IntraDerm
                                         shall seek to secure one or more Marketing Authorisations and/or register new products
                                         in the Territory for use as provided under this Agreement. IntraDerm agrees to buy the
                                         Products which are destined for distribution in the Territory exclusively and directly
                                         from Pohl-Boskamp on the terms and subject to the conditions set forth herein.

 

		1.3	Pohl-Boskamp
                                         shall label and supply and IntraDerm shall import and buy the Products as defined in
                                         § 2 in its own name and for its own account. IntraDerm shall sell such Products
                                         in the Territory, subject to obtaining appropriate Marketing Authorisation. IntraDerm
                                         acknowledges that it has no authority to act for or on behalf of Pohl-Boskamp unless
                                         specifically set forth in this Agreement or certified separately in written form.

 

		1.4	IntraDerm
                                         is not entitled to entrust third parties with any rights or claims deriving from this
                                         Agreement without obtaining the prior written consent of Pohl-Boskamp. An affiliate of
                                         IntraDerm is not regarded as a third party. Affiliate means any corporation or other
                                         business entity controlling, controlled by or under common control with IntraDerm. Control
                                         for this purpose shall mean the direct or indirect ownership of at least fifty percent
                                         of the voting interest in such corporation or entity.

 

		1.5	As an
                                         independent contractor, IntraDerm shall incur all expenses and costs related to the fulfilment
                                         of this Agreement, in particular regarding the registration, marketing, promotion and
                                         distribution of the Product under this Agreement – such as but not limited to –
                                         its office overhead costs, travel expenses, telephone, facsimile, sales promotion and
                                         advertising costs. Pohl-Boskamp shall not be responsible for such expenses unless otherwise
                                         agreed to by the Parties in writing.

 

		1.6	During
                                         the term of this Agreement, Pohl-Boskamp agrees to not distribute the Products, directly
                                         or indirectly, in the Territory either by actively approaching customers directly, by
                                         appointing any third party to distribute the Products in the Territory, or otherwise,
                                         unless otherwise agreed to by Pohl-Boskamp and IntraDerm in writing or otherwise agreed
                                         in this Agreement. Pohl-Boskamp agrees to forward to IntraDerm all inquiries for Products
                                         from the Territory or for delivery in the Territory. Except as expressly provided in
                                         this Agreement, no right, title or interest is granted by Pohl-Boskamp to IntraDerm.

 

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 2 of 30

     

    

 

		1.7	Notwithstanding
                                         the provisions of § 1.1 hereof, in order to maintain the exclusivity granted in
                                         § 1.1 above, IntraDerm shall achieve at least [   ]†%
                                         of the projected sales targets set forth on ANNEX III (the “Annual Minimum Purchase
                                         Requirements”). However, if IntraDerm fails to achieve the Annual Minimum Purchase
                                         Requirement during any calendar year and does not purchase the outstanding quantity of
                                         Products by the end of the following calendar year, Pohl-Boskamp shall have the right
                                         by providing written notice to IntraDerm to convert the exclusive distribution right
                                         granted in § 1.1 into a non-exclusive right and shall have the right itself, through
                                         Affiliates or by appointing one or more third parties, to import, promote, market, offer
                                         for sale or otherwise distribute the Products in the Territory.

 

§
2

 Products

 

The term “Products”
refers to all products (whether finished or bulk) listed in ANNEX I (“Products”) as presently manufactured
and sold by Pohl-Boskamp, or as improved as provided in this § 2. Changes to ANNEX I are subject to a written agreement between
the Parties. Products added to ANNEX I will become “Products” within the meaning of this Agreement and will be covered
by this Agreement.

 

The
Parties recognize that Pohl-Boskamp has an interest in improving its products in order to provide to its customers the most advanced
devices. In the event that, during the term of this Agreement Pohl-Boskamp develops improvements to the Products that are incremental
and do not form the basis of a new product, such improvements will be included in the Products, as long as the change does not
adversely affect the Marketing Authorisation. In the event that, during the term of this Agreement, Pohl-Boskamp develops or has
the right to market, an improvement such as an additional indication and/or a change of the formulation of any Product that is
suitable for the Territory (hereinafter, the “Improvement”), and Pohl-Boskamp intends to exploit the Improvement
in the Territory, for each such Improvement IntraDerm shall have the right of first refusal for a period of [   ]†
days in case Pohl-Boskamp would wish to name a separate
distributor. The Parties agree to negotiate in good faith commercially reasonable terms for distribution by IntraDerm of the new
product that is subject of any such Improvement. For the purpose of this Agreement, any product that has the same active ingredient
as a Product, or is intended for the same or substantially the same purpose or use as any Product listed on or contemplated by
ANNEX I shall be deemed an Improvement.

 

 

† Confidential material redacted and separately filed with the
Commission.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 3 of 30

     

    

 

§
3

 Territory

The “Territory”
is the geographical area listed in ANNEX II.

 

§ 4

Duties of IntraDerm
/ Representations of IntraDerm

 

		4.1	IntraDerm
                                         shall exert commercially diligent efforts to register, promote, market, distribute and
                                         sell the Products in the Territory.

 

		4.2	IntraDerm
                                         shall pay Pohl-Boskamp a royalty within [ ]† days following the end of each calendar
                                         month, based on Net Sales of all Products for which payment was received by IntraDerm
                                         in such previous calendar month, at the rates specified on ANNEX I.

 

		4.3	IntraDerm further undertakes:

 

		a)	to
                                         maintain at all times a sales organisation including, a sufficient number of qualified
                                         personnel (employees or contractors) in the reasonable, good faith determination of IntraDerm,
                                         within the Territory in order to perform its obligations under this Agreement;

 

		b)	to
always have quantities of the Products in stock or confirmed orders sufficient to cover a period of [   ]† months of foreseeable sales to meet the requirements of the market in the Territory;

 

		c)	to
                                         report to Pohl-Boskamp on a monthly basis its total stocks, turn-over figures, unit sales
                                         and sample movements as well as any significant issues that have an impact on the market
                                         for the Product in the Territory, especially with regard to competitive products and
                                         the price structure for Products in the Territory and any changes thereof. Monthly reports
                                         have to reach Pohl-Boskamp by the tenth (10th) day of each following month;

 

		d)	to
                                         take the appropriate advertising and public relation measures as specified in § 9
                                         below;

 

		e)	to
                                         use commercially reasonable efforts to buy from Pohl-Boskamp the Annual Minimum Purchase
                                         Requirements of Products;

 

		f)	to
                                         inform Pohl-Boskamp in writing as soon as possible about any substantial operational
                                         changes in personnel, management, ownership, and legal structure of IntraDerm;

 

 

 

† Confidential material redacted and separately filed with the
Commission.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 4 of 30

     

    

 

 

		g)	to
                                         sell the Products with the labelling agreed to by the Parties in the original packaging
                                         and/or presentation and not to modify the original presentations except in exceptional
                                         cases and then only with the prior written consent of Pohl-Boskamp in writing.

 

		h)	to
                                         provide Pohl-Boskamp within thirty (30) days after receipt by IntraDerm of the initial
                                         Marketing Authorisation Sales Targets (as defined on ANNEX III) for the Products
                                         for each Contract Year (as defined on ANNEX III) during the Initial Term, and
                                         within thirty (30) days prior to the end of Contract Year 5 (as defined on ANNEX III)
                                         and each Contract Year thereafter, to provide Pohl-Boskamp with target sales projections
                                         for the following Contract Year. IntraDerm’s initial Sales Targets are set forth
                                         on ANNEX III. The Parties further agree that the wording of the SebDerm Claim
                                         will have a material impact on the marketability of the Product. IntraDerm shall update
                                         such Sales Targets after it obtains the 510k clearance for the SebDerm Claim (as defined
                                         on ANNEX III), and such Sales Targets and Minimum Purchase Requirements, as modified,
                                         shall be binding on the Parties.

 

		i)	about
                                         the laws and regulations applicable to the Products in the Territory which may affect
                                         Pohl-Boskamp in the fulfilment of its obligations under this Agreement (such as but not
                                         limited to statutory requirements regarding labelling of the Products, etc.).

 

	 	4.4	During
the term of this Agreement IntraDerm is not allowed to

 

		a)	produce,
                                         promote, distribute, sell or market in the Territory – either directly nor indirectly
                                         – products which have the same ingredients and indications as the Products, except
                                         for the products listed under § 5.1; and/or

 

		b)	actively
                                         solicit customers from outside the Territory to establish and/or maintain offices, branches
                                         and/or storage depots for the Products outside the Territory.

 

		4.5	Upon
                                         termination of this Agreement, Pohl-Boskamp is, at the request of IntraDerm, obliged
                                         to buy any remaining stock of the Products from IntraDerm within [   ]†
                                         days after termination. However, upon request of Pohl-Boskamp,
                                         IntraDerm must resell any remaining stock of the Products to Pohl-Boskamp, or any third
                                         party named by Pohl-Boskamp at the price for which IntraDerm had initially bought the
                                         Products from Pohl-Boskamp. Pohl-Boskamp shall pay the shipping costs of the remaining
                                         stock of the Products.

 

 

 

 

† Confidential material redacted and separately filed with the
Commission.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 5 of 30

     

    

 

		4.6	IntraDerm
                                         represents that it adheres to and employs all applicable European GDP guideline standards
                                         for the wholesale distribution of medicinal products for human use and that it retains
                                         valid certifications and/or licenses to distribute the Products listed in ANNEX I of
                                         this Agreement, other than the Marketing Authorisation. Upon Pohl-Boskamp’s request,
                                         IntraDerm shall provide copies of such certification to Pohl-Boskamp in a timely manner.

 

		4.7	IntraDerm
                                         further represents and warrants to Pohl-Boskamp that: (i) it has the full right, power,
                                         and authority to enter into this Agreement; and (ii) no consent of any third parties
                                         is required for IntraDerm to enter into this Agreement or (except for the Marketing Authorisation)
                                         perform its obligations hereunder.

 

		4.8	IntraDerm
                                         shall indemnify and hold harmless Pohl-Boskamp, its Affiliates and their respective officers,
                                         directors, agents, successors and assigns against all suits, liabilities, losses, claims,
                                         damages, costs and expenses (including reasonable legal fees and costs) incurred by them
                                         resulting from or arising out of: (i) any material breach by IntraDerm of its obligations
                                         under this Agreement, including, without limitation, the obligations of § 9.3; (ii)
                                         any grossly negligent, wilful or unlawful act or omission of IntraDerm; and (iii) any
                                         injury or death of any person, directly arising from damages alleged to arise from the
                                         storage, labelling, sale or distribution of the Products in the Territory.

 

§ 5

Distribution
of Other Products

 

		5.1	At the
                                         time of signing this Agreement, IntraDerm produces, promotes, markets, distributes and/or
                                         sells the following products which are directly competitive with the Products and which
                                         contain the following active ingredient(s):

 

NONE

Without limiting
the generality of the foregoing, a product will be deemed to be directly competitive with a Product if it is intended for the
same, or substantially the same purpose or use as any of the Products.

 

		5.2	Further
                                         exemptions from the regulation in § 4.4 of this Agreement are only admissible if
                                         Pohl-Boskamp gives its consent, in writing, prior to the commencement of the production,
                                         promotion, marketing, distribution and/or sale of products which are competitive to the
                                         Products.

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 6 of 30

     

    

 

§ 6

 Purchase of Products / Obligations
and Representations of Pohl-Boskamp

 

		6.1	IntraDerm
                                         agrees to purchase the Products on the terms and subject to the conditions of Pohl-Boskamp’s
                                         General Terms and Conditions of Trade unless they are modified by this Agreement. Pohl-Boskamp’s
                                         current ‘General Terms and Condition of Trade’ are attached hereto as ANNEX
                                         IV. Pohl-Boskamp has the right to unilaterally change its ‘General Terms and Conditions
                                         of Trade’, provided, however, that any such change shall not modify the terms and
                                         conditions of this Agreement without the prior written consent of IntraDerm. Pohl-Boskamp
                                         will notify IntraDerm of any changes to the General Terms and Conditions of Trade in
                                         writing, and the new ‘General Terms and Conditions of Trade’ will become
                                         effective three (3) months after the initial notification from Pohl-Boskamp. In case
                                         any provision of this Agreement conflicts with or provides obligations in addition to
                                         any of the provisions of the ‘General Terms and Conditions of Trade,’ the
                                         provisions of this Agreement shall control.

 

		6.2	IntraDerm
                                         shall submit written purchase orders to Pohl-Boskamp for the Products. Each purchase
                                         order shall include (i) the Product ordered; (ii) quantity, (iii) relevant price, as
                                         set forth on ANNEX I, (iv) requested delivery date, and (v) shipping instructions and
                                         shipping address. Any preprinted terms and conditions on either IntraDerm’s purchase
                                         order or Pohl-Boskamp’s order acknowledgement and/or invoice that are inconsistent
                                         with the terms and conditions of this Agreement shall have no force or effect, and the
                                         terms of this Agreement shall govern.

 

		6.3	The
                                         purchase price for the Products are listed in ANNEX I. Pohl-Boskamp shall have the right
                                         to increase the purchase price for Products one time each year beginning on the one-
                                         year anniversary of the First Commercial Sale; provided, however, that no purchase price
                                         increase shall exceed [   ]†%
                                         of the purchase price effectively immediately prior to the increase. 

 

		6.4	The delivery
                                         terms for the Products are listed in ANNEX I

 

		6.5	Under
                                         this Agreement, Pohl-Boskamp will exert best efforts to carry out IntraDerm’s orders
                                         carefully and punctually. The scope of the orders and the delivery date are only binding
                                         for Pohl-Boskamp upon written confirmation by Pohl-Boskamp. Should Pohl-Boskamp not be
                                         able to execute a confirmed order in time, it will notify IntraDerm immediately. Pohl-Boskamp
                                         shall pack all Products in accordance with Pohl-Boskamp’s standard packing procedure,
                                         cGMP(s) and any other applicable laws, regulations and ordinances.

 

		6.6	Pohl-Boskamp
                                         shall label the Products using the Product Trademark specified on Annex I and under a
                                         labelling using IntraDerm / OCULUS branding, which labelling is mutually acceptable to
                                         Pohl-Boskamp and IntraDerm and compliant with the requirements of the Marketing Authorisation
                                         and Health Authorities.

 

 

 

† Confidential material redacted and separately filed with the
Commission.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 7 of 30

     

    

 

 

		6.7	Pohl-Boskamp
                                         shall invoice IntraDerm upon shipment of each purchase order to IntraDerm. IntraDerm
                                         shall pay all amounts due to Pohl-Boskamp by wire transfer, and payment shall be made
                                         within thirty (30) days from the date of the relevant invoice.

 

		6.8	IntraDerm
                                         determines its sales price for the Products within the Territory at its own discretion.
                                         Pohl-Boskamp, however, will give a non-binding recommendation on the sales price for
                                         the Products which will be discussed with IntraDerm. IntraDerm undertakes to notify Pohl-Boskamp
                                         of its sales prices and to provide Pohl-Boskamp with a corresponding price list if its
                                         sales prices are changed.

 

		6.9	Any
                                         claim of IntraDerm concerning Pohl-Boskamp’s deliveries of the Products shall be
                                         considered by Pohl-Boskamp only if Pohl-Boskamp receives such claim by registered mail,
                                         facsimile with confirmed letter or courier service within thirty (30) days after IntraDerm
                                         received the Products or within thirty (30) days after discovery of any hidden defects
                                         of the Products.

 

		6.10	Based
                                         on the sales forecast figures provided by IntraDerm as stipulated in § 4.2 h, Pohl-Boskamp
                                         warrants to have packaging material in stock.

 

		6.11	Pohl-Boskamp
                                         represents and warrants to IntraDerm that: (i) it is the owner of the Intellectual Property
                                         and that it has the right to grant the licenses and rights granted to IntraDerm pursuant
                                         to this Agreement; (ii) it has the full right, power, and authority to enter into this
                                         Agreement and there is nothing that will prevent it from performing its obligations under
                                         this Agreement; (iii) no consent of any third party is required for Pohl-Boskamp to enter
                                         into this Agreement or perform its obligations hereunder; (iv) the Products will, under
                                         normal use and conditions, substantially conform to the applicable Product specifications
                                         for a period in conformity with the applicable Product label claims regarding shelf-life
                                         and that the Product has been manufactured in accordance and compliance with current
                                         Good Manufacturing Practices and all applicable laws and regulations; (v) the Products
                                         supplied to IntraDerm shall at all times conform to the specifications set forth in the
                                         Marketing Authorisation; (vi) use of the Intellectual Property as delivered to IntraDerm
                                         does not infringe any patent, trademark, copyright or other intellectual property rights
                                         of any third party or misappropriate any trade secret or other proprietary right of any
                                         third party; (vii) it is not a party to any outstanding assignments, licenses, encumbrances,
                                         or other obligations that preclude or are inconsistent with this Agreement, specifically
                                         including, but not limited to, any geographic or market segment restrictions on the distribution
                                         of the Products and the Intellectual Property incorporated therein; (viii) no claims
                                         or suits are pending or threatened against Pohl-Boskamp or any other party with respect
                                         to all or part of the Intellectual Property.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 8 of 30

     

    

 

		6.12	Pohl-Boskamp
                                         shall indemnify and hold harmless IntraDerm, its Affiliates and their respective officers,
                                         directors, agents, successors and assigns against all suits, liabilities, losses, claims,
                                         damages, costs and expenses (including reasonable legal fees and costs) incurred by them
                                         resulting from or arising out of: (i) any negligence in the manufacture of the Products;
                                         (ii) any breach by Pohl-Boskamp of its obligations under this Agreement; any grossly
                                         negligent, wilful or unlawful act or omission of Pohl-Boskamp; or (iii) any injury or
                                         death of any person, directly arising from damages alleged to arise from the quality
                                         and manufacture of the products.

 

§ 7

Marketing Authorisation

 

		7.1	For
                                         the term of this Agreement, Pohl-Boskamp grants to IntraDerm the right to utilise Pohl-Boskamp’s
                                         Marketing Authorisations (as defined below) for the Medical Devices in the Territory
                                         for the fulfilment of IntraDerm’s obligations under this Agreement. For purposes
                                         of this Agreement, “Marketing Authorisations” means the health registrations,
                                         as well as any other governmental approvals and/or official sales permissions, licenses
                                         and market authorisation in IntraDerm’s or Pohl-Boskamp’s name, which are
                                         required for the import, labelling, distribution, promotion, marketing, offering for
                                         sale, and sale of the Products in the Territory.

 

		7.2	IntraDerm
                                         agrees to assist Pohl-Boskamp in securing one or more Marketing Authorisations and/or
                                         registering new products in the Territory, including, initially, a Marketing Authorisation
                                         for a Product claim for seborrheic dermatitis, and, thereafter, a Marketing Authorisation
                                         for a Product claim for psoriasis. IntraDerm shall give Pohl-Boskamp advice on the set
                                         of necessary Marketing Authorisation documents as required by the applicable laws in
                                         the Territory, and Pohl-Boskamp shall, for this purpose, provide to IntraDerm, free of
                                         charge, the required documents in English against receipt of such information from IntraDerm.

 

		7.3	No
                                         later than thirty (30) days following the Effective Date of this Agreement, IntraDerm
                                         shall submit to Pohl-Boskamp for approval, which approval shall not be unreasonably withheld
                                         or delayed, a written plan detailing regulatory requirements, including, without limitation
                                         in respect to the content of the Marketing Authority application, dossiers, and estimated
                                         time frames for the regulatory approval and registration for the Product claim for seborrheic
                                         dermatitis in the Territory (“Regulatory Plan”). Pohl-Boskamp shall
                                         notify IntraDerm not later than thirty (30) days of any request for modification or clarification
                                         to the Regulatory Plan after Pohl-Boskamp receives the Regulatory Plan from IntraDerm
                                         and provide IntraDerm with consent to submit the application to the competent governmental
                                         or non governmental entity(ies) in the Territory (“Health Authorities”).
                                         IntraDerm shall take the steps reasonably necessary and use commercially reasonable efforts
                                         to secure and obtain from the Health Authorities, and thereafter to maintain the Marketing
                                         Authorisations for the Product in the name of IntraDerm in accordance with the local
                                         laws and regulations. Pohl-Boskamp will fully cooperate with IntraDerm in securing and
                                         maintaining the Marketing Authorisation for the Products in the Territory. If the Health
                                         Authorities issue a 510K clearance to IntraDerm for a Product claim for seborrheic dermatitis
                                         that in the good faith judgement of IntraDerm, is sufficiently broad to allow IntraDerm
                                         to market the Product in the Territory (the “SebDerm Claim”), IntraDerm
                                         shall seek to obtain a Marketing Authorisation for a Product claim for psoriasis.

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 9 of 30

     

    

 

		7.4	In
                                         addition, IntraDerm undertakes to send a copy of all correspondence with the Health Authorities
                                         in the Territory regarding the Marketing Authorisations for the Medical Devices to Pohl-Boskamp,
                                         such as but not limited to approvals, renewals, changes in national texts (Summary of
                                         Product Characteristics (SmPC), labelling, Patient Information Leaflet (PIL)), requirements
                                         and all correspondence for maintenance procedure to keep the Marketing Authorisation(s)
                                         and defined deadlines by Health Authorities. This also includes the information and changes
                                         concerning officially registered contact persons (e.g. persons responsible for pharmacovigilance
                                         or scientific service), if required by applicable law. IntraDerm commits to promptly
                                         forward all this information to Pohl-Boskamp, so that Pohl-Boskamp is able to cope with
                                         transition periods and deadlines.

 

		7.5	IntraDerm
                                         is obliged to keep itself informed at all times of the national laws concerning the application
                                         for and maintenance
                                         of the marketing authorisation(s) for the Medical Devices in the Territory in particular
                                         regarding the wording on the packaging in a local language as required by local laws
                                         of the Territory. IntraDerm shall promptly inform Pohl-Boskamp of any material change
                                         of the laws which may endanger the validity of the Marketing Authorisations. IntraDerm
                                         shall provide Pohl-Bokamp the relevant requirements and Pohl-Boskamp shall ensure compliance
                                         of the presentation of the Medical Devices, e.g. the packaging and labelling of
                                         the Products (SmPC, labelling, PIL), with the Marketing Authorisation and the legal requirements
                                         that are applicable in the Territory.

 

		7.6	If
                                         any additional documentation such as, but not limited to, a clinical trial or any change
                                         of the Marketing Authorisation is required in order to obtain or maintain the Marketing
                                         Authorisation, IntraDerm shall not undertake any action without the express written consent
                                         of Pohl-Boskamp. Any necessary measures shall be carried out by IntraDerm only upon Pohl-Boskamp’s
                                         approval. Pohl-Boskamp shall provide assistance free of charge. All other details will
                                         be agreed upon between the Parties separately in writing.

 

		7.7	Upon
                                         termination of this Agreement, IntraDerm is obliged to return all documents in connection
                                         with the Marketing Authorisation for such Product to Pohl-Boskamp within 30 days by courier
                                         service at Pohl-Boskamp’s expense, and to refund the Filing Fee to IntraDerm.

 

		7.8	All
                                         formalities and steps required by the competent Health Authorities of the Territory in
                                         relation to the Medical Devices shall be effected by IntraDerm in the name of IntraDerm.

 

		7.9	Subject
                                         to Pohl-Boskamp’s refund of the Filing Fee to IntraDerm, IntraDerm hereby agrees
                                         irrevocably and unconditionally to surrender the Marketing Authorisation and the rights
                                         connected therewith as well as all documents and the dossier to Pohl-Boskamp immediately
                                         and unconditionally when the Agreement terminates.

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 10 of 30

     

    

 

		7.10	IntraDerm
                                         shall pay the filing fee for the Marketing Authorisation. All costs incurred by IntraDerm
                                         in connection with the preparation, filing, maintenance and amendment to the Marketing
                                         Authorisation for Medical Devices, including the filing fees (the “Filing Fee”)
                                         and out-of-pocket-expenses, shall be for the account of IntraDerm. Pohl-Boskamp shall
                                         reimburse IntraDerm for the Filing Fee upon expiration or termination of this Agreement.

 

		7.11	IntraDerm
                                         shall arrange for the translation of all documents to/from the official language spoken
                                         in the Territory which are required for obtaining, maintaining or altering the Marketing
                                         Authorisation for the Medical Devices. IntraDerm affirms that it has no claim against
                                         Pohl-Boskamp for compensation or indemnity based on a fruitless registration attempt
                                         other than for the Filing Fees.

 

		7.12	IntraDerm
                                         is not allowed to use any Marketing Authorisation documentation outside the Territory
                                         and inside the territory for other reasons as stipulated in this Agreement.

 

		7.13	In
                                         the event that, due to unforeseen problems concerning the filing of the initial Marketing
                                         Authorisation (such as but not limited to costs, duration of application process, requests
                                         of Health Authorities, or failure to obtain clearance for a Satisfactory Claim (as defined
                                         below) prior to the one year anniversary of the Effective Date, IntraDerm is entitled
                                         to stop the process of pursuing the Marketing Authorisation for the SebDerm Claim. For
                                         purposes of this Agreement, a “Satisfactory Claim” is a claim that,
                                         in the reasonable judgment of IntraDerm, is sufficiently broad to support successful
                                         commercialization of the Product in the Territory.

 

		7.14	Pohl-Boskamp
                                         and IntraDerm stipulate details concerning pharmacovigilance issues in a Pharmacovigilance
                                         Agreement as ANNEX V of this Agreement.

 

		7.15	Pohl-Boskamp
                                         and IntraDerm shall comply with their respective quality and regulatory responsibilities
                                         as set forth in the Quality Agreement which the Parties will negotiate in good
                                         faith to conform to the Marketing Authorisation after receipt of such Marketing Authorisation.

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 11 of 30

     

    

 

§ 7a

Medical Device
Regulations/Safety

 

		7a.1	Pohl-Boskamp
                                         represents and warrants that those Products listed in ANNEX I that are medical
                                         devices are certified as medical devices pursuant to Council Directive 93/42/EEC, as
                                         modified to date.

 

		7a.2	This
                                         § 7a applies only to Products which are medical devices pursuant to Council Directive
                                         93/42/EEC (“Medical Devices”).

 

		7a.3	For
                                         the term of this Agreement, Pohl-Boskamp grants to IntraDerm the right to utilise in
                                         the Territory Pohl-Boskamp’s product certifications for Medical Devices in accordance
                                         with the stipulations of this Agreement. Pohl-Boskamp undertakes to bear all cost and
                                         expenses associated with any product certification (e.g. declaration of conformity)
                                         in the Territory.

 

		7a.4	IntraDerm
                                         is not allowed to use any certification or any documentation of the Products outside
                                         the Territory.

 

		7a.5	IntraDerm
                                         shall promptly inform, in an appropriate reporting format to be specified in the Pharmacovigilance
                                         Agreement, which the Parties shall negotiate in good faith after receipt of each Regulatory
                                         Authorisation and which shall be attached hereto as ANNEX V, the Safety Officer
                                         for Medical Devices at Pohl-Boskamp by e-mail or fax about any incident and side effect
                                         as shall be defined in ANNEX V observed with the Products in the Territory during
                                         and beyond the Term of this Agreement for as long as IntraDerm is marketing the Products
                                         in the Territory and Pohl-Boskamp and IntraDerm are maintaining business contacts or
                                         until the end of the shelf-life of the Products depending on which deadline lasts longer.
                                         Pohl-Boskamp shall promptly inform IntraDerm by email or fax about any incident and side
                                         effect as shall be defined in ANNEX V observed with the Products outside the Territory
                                         during the Term of this Agreement. Further details shall be stipulated in ANNEX V.

 

		7a.6	IntraDerm
                                         shall be responsible for: (i) the surveillance, receipt, evaluation, and reporting of
                                         the complaints related to the Products in the Territory as well as of reports on incidents
                                         and side effects as defined in applicable laws, ordinance and regulations in the Territory
                                         ANNEX VI (Adverse Events) connected with the Products in the Territory, and (ii)
                                         investigating the relevant customer complaints and reports on adverse effects with Medical
                                         Devices and on other information which is relevant for the safety of the Medical Devices
                                         in the Territory in compliance with applicable laws, ordinances and regulations in the
                                         Territory. After IntraDerm receives the SubDerm Claim from the FDA, and during the remainder
                                         of the Term of this Agreement, IntraDerm shall provide Pohl-Boskamp with any reports
                                         that it files with the governmental or regulatory authorities in the Territory that pertain
                                         to the Products. Pohl-Boskamp shall comply with the postmarket surveillance aspects of
                                         the EU Medical Device Directive described in ANNEX VI (Adverse Events) connected with
                                         the Products in the Territory. Pohl-Boskamp shall be responsible for revising the Medical
                                         Device’s labelling for use in the Territory.

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 12 of 30

     

    

 

		7a.7	Pohl-Boskamp
                                         is obliged and hereby covenants to fulfil all necessary measures to allow IntraDerm to
                                         comply with all local obligations for reporting adverse events or other aspects regarding
                                         the Medical Devices in the Territory. IntraDerm will keep Pohl-Boskamp informed and updated
                                         on all reporting that has been made by IntraDerm in the Territory.

 

		7a.8	If,
                                         in case of a severe product defect or adverse event - a recall is considered, the Parties
                                         will consult one another whereas Pohl-Boskamp retains the right to finally decide on
                                         a potential voluntary recall or withdrawal. To the extent that (i) any Health Authority
                                         issues an order or directive that a Product be recalled or withdrawn in the Territory,
                                         or (ii) a court of competent jurisdiction orders a recall or withdrawal of a Product
                                         in the Territory, the Parties shall recall or withdraw such Product as provided in this
                                         § 7a. Pohl-Boskamp will assist IntraDerm in conducting the recall in the Territory.
                                         To that end, IntraDerm is obliged to keep itself acquainted with the national laws concerning
                                         a recall of Medical Devices in the Territory (such as but not limited to time limits,
                                         forms, notice to competent authorities, wholesalers, pharmacies, logistic partners).

 

		7a.9	All
                                         out of pocket expenses (including costs of refunded sales) for the execution of any recall
                                         or withdrawal of such Product (“Recall Costs”) pursuant to this §
                                         7a shall be shared equally between the Parties; provided, that in the case of
                                         any voluntary recall or withdrawal determined by IntraDerm pursuant to subclause (ii)
                                         of § 7a.8, Pohl-Boskamp shall initially bear the entire expense of such recall or
                                         withdrawal; provided further that, in each case, responsibility of the Recall
                                         Costs shall be subject to the final allocation between the Parties as set out in paragraphs
                                         (i) and (ii) below. In the event that it is finally determined, or agreed between the
                                         Parties, that such recall or withdrawal is caused by:

		(i)	breach
                                         of Pohl-Boskamp’s representations, warranties and covenants set forth in this Agreement,
                                         or the gross negligence or wilful misconduct of Pohl-Boskamp or those acting under the
                                         authority of Pohl-Boskamp, or the failure of Pohl-Boskamp or those acting under the authority
                                         of Pohl-Boskamp to comply with applicable laws, Pohl-Boskamp shall be responsible for
                                         Recall Costs; and

		(ii)	failure
                                         of IntraDerm to properly handle, store, transport, or distribute or use Product, as applicable,
                                         supplied by Pohl-Boskamp, or the gross negligence or wilful misconduct of IntraDerm or
                                         those acting under the authority of IntraDerm, or the failure of IntraDerm or those acting
                                         under the authority of IntraDerm to comply with applicable laws, IntraDerm shall be responsible
                                         for Recall Costs; and

In
all other cases, fifty percent (50%) of the Recall Costs shall be borne by Pohl-Boskamp and fifty percent (50)% of the Recall
Costs shall be borne by IntraDerm.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 13 of 30

     

    

 

§ 8

Scientific
Use of Products

 

		8.1	If IntraDerm
                                         learns that a Product is used for scientific studies in the Territory which are or might
                                         be intended for publication, IntraDerm undertakes to get in touch and, to the extent
                                         reasonably practicable, and keep in touch with the respective scientists and to seek
                                         to coordinate the study with Pohl-Boskamp, especially in the stages of protocol planning
                                         and of formulating the study results before the actual publication. This duty extends
                                         to all scientific studies in which the Products are involved, i.e. regardless of whether
                                         Products may be involved alone or in conjunction with other drugs or placebos.

 

		8.2	IntraDerm
                                         undertakes not to commence, initiate or, to the extent reasonably practicable, allow
                                         scientific studies involving the Products without obtaining Pohl-Boskamp’s written
                                         authorization. IntraDerm shall promptly report to Pohl-Boskamp any scientific studies
                                         which are or may be conducted already, whether they are unauthorized or not, once IntraDerm
                                         gains knowledge of such studies.

 

§
9

 Advertisement/Publicity

 

		9.1	Pohl-Boskamp
                                         agrees to provide – free of charge - to IntraDerm examples of marketing materials
                                         for the Products, specifically electronic drafts hereof, and reports on scientific tests
                                         of the Products as far as they are reasonably available.

 

		9.2	IntraDerm
                                         undertakes to advertise the Products, in particular but not limited to: through visits
                                         to medical specialists, advertising in applicable medical journals and public media using
                                         leaflets, and the internet. IntraDerm shall keep available at all times a sufficient
                                         number of qualified personnel in order to visit medical specialists. Upon request, IntraDerm
                                         shall send Pohl-Boskamp copies of all advertising materials.

 

		9.3	IntraDerm
                                         undertakes to comply with all legal requirements concerning advertisement/publicity for
                                         the Products in the Territory. IntraDerm is solely liable for any violation of those
                                         legal requirements, any error or omission in the advertisements unless any such error
                                         or omission is attributable to an act or omission of Pohl-Boskamp.

 

		9.4	Any
                                         and all expenses for any advertising and/or publicity activities in the Territory are
                                         borne by IntraDerm.

 

		9.5	If
                                         IntraDerm decides it would like to build a product specific website, this undertaking
                                         shall be stipulated in a separate written agreement mutually acceptable to the Parties.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 14 of 30

     

    

 

§ 10

Proprietary
Rights

 

		10.1	“Intellectual
                                                                                                     Property” means all of the following relating to the Products: (i) all patents
                                                                                                     and design patents of Pohl-Boskamp, (ii) all trademarks (including the trademark for
                                                                                                     the product name “LOYON” registered with the U.S. Patent and Trademark Office
                                                                                                     (the “Trademark”)), service marks, trade dress, logos, slogans, trade
                                                                                                     names, and internet domain names of Pohl-Boskamp covering or used in connection with
                                                                                                     the Products, including any goodwill associated therewith, and all applications, registrations,
                                                                                                     and renewals in connection therewith, (iii) all copyrightable works, all copyrights,
                                                                                                     and all applications, registrations, and renewals in connection therewith, (iv) all trade
                                                                                                     secrets and confidential business information (including ideas, inventions, research
                                                                                                     and development, know-how, improvements, formulas, compositions, manufacturing and production
                                                                                                     processes, standard operating procedures and techniques, technical data, designs, drawings,
                                                                                                     specifications, customer and supplier lists, pricing and cost information, and business
                                                                                                     and marketing plans and proposals), and (v) all advertising and promotional materials.
                                                                                                     “Patents” mean those patents and patent applications covering the
                                                                                                     Products and any and all reissues, renewals, re-examinations, extensions, substitutions,
                                                                                                     confirmations, registrations, revalidations, additions, continuations, continuations-in-part
                                                                                                     or divisions of or to any of the aforesaid patents or patent applications, including,
                                                                                                     without limitation, that certain Patent Application [   ]† filed
                                                                                                     with the U.S. Patent and Trademark Office, which application is pending.

		10.2	Pohl-Boskamp
                                         hereby grants to IntraDerm a non-exclusive, non-transferable, and royalty-free right
                                         and license to use the Intellectual Property in connection with the importation, offer
                                         for sale, sale and other distribution, promotion and marketing of the Products pursuant
                                         to this Agreement. Except for the license granted in this Agreement, this Agreement does
                                         not confer upon IntraDerm, and IntraDerm will not claim, any proprietary right, title,
                                         interest or other rights in any Intellectual Property in the Products or Intellectual
                                         Property otherwise owned or controlled by Pohl-Boskamp. IntraDerm may use Pohl-Boskamp’s
                                         Intellectual Property only to the extent it is authorized by this Agreement. Upon termination
                                         of this Agreement such authorization ceases. IntraDerm acknowledges that all Intellectual
                                         Property existing in connection with the Products or arising or resulting from this Agreement
                                         (other than the customer lists, pricing information, business and marketing plans and
                                         proposals and advertising generated by IntraDerm, to which IntraDerm shall retain sole
                                         title) are and will be the sole property of Pohl-Boskamp. Except as provided in the immediately
                                         preceding sentence, IntraDerm hereby assigns to Pohl-Boskamp, without further consideration,
                                         its entire right, title and interest in each Intellectual Property arising or resulting
                                         from this Agreement. IntraDerm must not apply to register in its own name any proprietary
                                         right covering the Products.

 

 

 

† Confidential material redacted and separately filed with the
Commission.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 15 of 30

     

    

 

		10.3	Pohl-Boskamp
                                         will prosecute infringements, maintain, and enforce its Intellectual Property. IntraDerm
                                         undertakes to assist Pohl-Boskamp, at the expense of Pohl-Boskamp, as far as Intellectual
                                         Property in the Territory is concerned.

		10.4	If
                                         either Party learns that a third party claims the Products are infringing any intellectual
                                         property rights owned by a third party in the Territory, such Party will promptly inform
                                         the other Party of such allegations and provide the other Party with any available evidence
                                         of such allegations. Pohl-Boskamp shall have the first right to defend its interests
                                         and, in doing so, shall confer with IntraDerm and consider the actions that will be most
                                         beneficial to both Parties. In the event that Pohl-Boskamp does not defend against allegations
                                         of infringement, the provisions relating to Minimum Purchase Requirements and payment
                                         of Royalties will be suspended until such allegations have been settled, resolved or
                                         dismissed.

		10.5	In
                                         the event that IntraDerm learns that Pohl-Boskamp’s Intellectual Property is infringed
                                         in the Territory (e.g. counterfeit Product or trademarks that are imitated or
                                         illegally used by a third person), IntraDerm will promptly inform Pohl-Boskamp. IntraDerm
                                         agrees to cooperate with Pohl-Boskamp and to take commercially reasonable steps to protect
                                         the Intellectual Property of Pohl-Boskamp at Pohl-Boskamp’s expense if requested
                                         by Pohl-Boskamp in writing.

§
11

 Confidentiality

 

		11.1	All
                                         data, literature, information, know-how reports provided by one Party to the other Party,
                                         directly or indirectly, hereunder, that bears a written designation of as “confidential”,
                                         “proprietary” or other similar designation, or which the receiving Party
                                         should reasonably conclude is confidential or proprietary under the circumstances, is
                                         considered “Confidential Information”; provided, however, that the
                                         following shall not be considered confidential information: (i) information in the public
                                         domain at the time of transmittal; (ii) information that becomes a part of the public
                                         domain after its transmittal through no fault of the receiving Party; (iii) information
                                         that is subsequently disclosed to the receiving Party by a third party that has the right
                                         to make such disclosure; and (iv) information that the receiving Party can show through
                                         its books and records was independently developed by the receiving Party without the
                                         aid, application or use of the other Party’s confidential information. Each Party
                                         undertakes to keep secret all data, literature, information and know-how regarding the
                                         Products, especially concerning their formulations and the know-how of the manufacturing
                                         process. The receiving Party is not allowed to make use of any such data, literature,
                                         information and know-how itself nor to make it available nor to reveal or transfer such
                                         data, literature, information and know-how to third parties, except in connection with
                                         obtaining and maintaining the Marketing Authorisation. In the event that the receiving
                                         Party becomes legally compelled (by deposition, interrogatory, subpoena or similar process)
                                         to disclose any of the Confidential Information, the receiving Party shall provide the
                                         disclosing Party with prompt written notice of such requirement prior to such disclosure
                                         to allow the disclosing Party to seek a protective order or other remedy. In the event
                                         that a protective order or other remedy is not obtained, or that disclosing Party waives
                                         compliance with the provisions hereof, the receiving Party agrees to furnish only that
                                         portion of the Confidential Information that the receiving Party reasonably believes
                                         is legally required to be furnished.

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 16 of 30

     

    

 

		11.2	The
                                         receiving Party has to return all data, literature, information and know-how in its possession
                                         which was made available to it within the framework of this Agreement to the disclosing
                                         Party within 30 days after this Agreement is terminated; provided, however, the
                                         receiving Party is entitled to retain one copy of the Confidential Information for archival
                                         purposes, which it shall maintain in confidence and not disclose to non-Affiliate third
                                         parties. In case that IntraDerm receives such documents from third parties – especially
                                         from the Health Authorities – after the 30-day-period, it has to forward them to
                                         Pohl-Boskamp or a person appointed by Pohl-Boskamp immediately after receipt of such
                                         document.

 

		11.3	Each Party remains bound by the confidentiality
                                                                                                                   obligation beyond the term of this Agreement for a period of [   ]† years
                                                                                                                   following the expiration of termination of this Agreement.

 

		11.4	If
                                         the Parties should decide to enter into discussions/ negotiations regarding a possible
                                         collaboration for further products which are not yet part of this Agreement, the Parties
                                         shall keep secret any transferred information related to these products as well, and
                                         agrees that §11 of the Agreement will apply to such aforementioned discussions/
                                         negotiations as well.

 

		11.5	The
                                         Confidentiality Agreement signed by the Parties on June 18, 2015 (the “Confidentiality
                                         Agreement”), remains in full force and effect and by this reference is incorporated
                                         herein.

 

§
12

Term
of the Agreement/Termination

 

		12.1	This
                                         Agreement is valid from the date of the last signature the “Effective Date”)
                                         and shall continue (i) for a period of five (5) years after the Parties obtain a Marketing
                                         Authorisation (the “Initial Term”). The Initial Term of this Agreement
                                         will be extended automatically for two five (5) year periods (each, an “Extension
                                         Period”) unless it is cancelled with a six (6) month written notice by one
                                         of the contractual Parties prior to the end of the Initial Term or the initial Extension
                                         Period. The “Term” of this Agreement shall refer to the Initial Term
                                         and the Renewal Period unless and until this Agreement is terminated as provided herein.

 

		12.2	The
                                         notice of termination has to be in writing. It has to be delivered to the other Party
                                         by courier service.

 

 

 

† Confidential material redacted and separately filed with the
Commission.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 17 of 30

     

    

 

		12.3	If
                                         either Party materially defaults in the performance of any material provision of this
                                         Agreement, the non-defaulting Party may give written notice to the defaulting Party that
                                         if the default is not cured within thirty (30) days of such notice, the non-defaulting
                                         Party may terminate the Agreement. If the non-defaulting Party gives such notice and
                                         the default is not cured during the thirty (30) day period, this Agreement shall
                                         automatically terminate at the end of such period without further action by the non-defaulting
                                         Party, which shall be the effective date of termination.

 

		12.4	This
                                         Agreement may be terminated by either Party upon written notice to the other Party (i)
                                         upon the institution by or against the other Party of insolvency, receivership, liquidation,
                                         moratorium, bankruptcy or similar proceedings or any other proceedings for the settlement
                                         of Distributor's debts, or (ii) upon Distributor's making an assignment or compromise
                                         for the benefit of creditors or a similar proceeding.

 

		12.5	This
                                         Agreement may be terminated by IntraDerm upon written notice to Pohl-Boskamp if the Marketing
                                         Authorisation with a Satisfactory Claim is not obtained by the one-year anniversary of
                                         the Effective Date.

 

		12.6	This
                                         Agreement may be terminated by Pohl-Boskamp effective either upon written notice to IntraDerm
                                         or up to three months after written notice to IntraDerm received by IntraDerm no later
                                         than 30 days after the occurrence of a triggering event specified in this §12.6
                                         (a) or (b): (a) in the event that a majority of IntraDerm’s Senior Management in
                                         any three-month period is replaced; or (b) if an entity that markets one or more products
                                         that are directly competitive with the Product resulting in revenues to the entity that
                                         are at least equal to the revenues generated by the Product in the United States directly
                                         or indirectly acquires control of IntraDerm. For purposes of this §12.6: (x) “Senior
                                         Management” means those executive officers who possess the power to direct or cause
                                         the direction of the management and policies of IntraDerm, which, as of the Execution
                                         Date, are [   ]†,
                                         [   ]† and [    ]†; (y) a product will be deemed to be “directly competitive”
                                         with a Product if it is intended for the same, or substantially the same, purpose or
                                         use as any Product; and (z) “control” means the possession of power to direct
                                         or cause the direction of management and the policies of IntraDerm, whether through the
                                         ownership of voting securities, by contract or otherwise.

 

		12.7	Upon
                                         expiration of this Agreement (or termination of this Agreement for whatsoever reason),

(i)
IntraDerm shall take the following actions:

		·	Notify
                                         Health Authorities and, at Pohl-Boskamp’s cost and expense, adopt any and all actions
                                         necessary for the transfer of the Marketing Authorisation for the Products to Pohl-Boskamp;

		·	Cease
                                         using all Pohl-Boskamp Intellectual Property furnished to it by Pohl-Boskamp hereunder
                                         and return it to Pohl-Boskamp pursuant to § 11.2; and

		·	Cease
                                         any marketing and sale activity and discontinue the use of the Trademark; provided, however,
                                         that IntraDerm shall have a reasonable period of time to remove the Trademark from its
                                         website, and IntraDerm shall have no liability for marketing materials that contain Pohl-Boskamp’s
                                         trademarks distributed to third parties prior to the date of termination.

 

 

† Confidential material redacted and separately filed with the
Commission.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 18 of 30

     

    

 

(ii)
Pohl-Boskamp shall take the following actions:

		·	Reimburse
                                         the Filing Fee to IntraDerm;

		·	Repurchase
                                         IntraDerm’s remaining stock of Products pursuant to § 4.4;

		·	Cease
                                         using IntraDerm’s intellectual property and know-how furnished to it by IntraDerm.

 

		12.8	The
                                         termination of this Agreement shall not affect any rights or obligations of the Parties
                                         that have accrued or matured prior thereto. In addition, the following provisions shall
                                         survive the expiration or termination of this Agreement in accordance with their respective
                                         terms: §§ 4.5, 4.8, 6.12, 7.7, 7.9, 7.10, 7.11, 7a.6, 7a.9, 11.1-11.3, 11.5,
                                         12, 14, 15, 18 and 20-22.

 

		12..9	In
                                         the event of an expiration of this Agreement neither Party shall be liable to the other
                                         because of such termination, including but not limited to compensation, reimbursement
                                         or damages on account of the loss of prospective profits or anticipated sales or goodwill,
                                         or on account of any expenditures, inventory, investments, leases or other commitments
                                         including hiring of personnel, in connection with the business of Pohl-Boskamp or IntraDerm.
                                         IntraDerm acknowledges that its profit margins derived on sale of the Products pursuant
                                         to this Agreement have induced IntraDerm to enter into and perform this Agreement and
                                         that such profits constitute good, sufficient and valuable consideration for its duties
                                         and obligations hereunder. The expiration shall not, however, relieve either Party of
                                         obligations incurred prior to the expiration.

 

§ 13

Force Majeure

 

		13.1	The
                                         Parties hereto shall not be liable for any damage if the performance of all or parts
                                         of this Agreement is hindered or prevented by causes beyond the performing Party’s
                                         control and without its fault or negligence, including but not limited to acts of God
                                         or of public enemy, nuclear incidents, acts, laws, orders or regulations of any government
                                         or department or agency thereof acting in either its sovereign or contractual capacity,
                                         fires, floods, epidemics, quarantine restrictions, strikes, work stoppages, slowdowns
                                         or other job actions, freight embargoes, shortages of fuel or other items, delays in
                                         transportation, boycotts, unusually severe weather and riots, insurrections, revolutions,
                                         wars or other civil or military disturbances.

 

		13.2	If
                                         Pohl-Boskamp is not able to deliver pursuant to force majeure as stipulated in §
                                         13 and/or direction by government, IntraDerm shall not be entitled to claim for compensation
                                         in any kind.

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 19 of 30

     

    

 

§ 14

Written Requirements

 

		14.1	This
                                         Agreement and the Annexes attached hereto and the Confidentiality Agreement set forth
                                         in writing all agreements and understandings between Pohl-Boskamp and IntraDerm. Oral
                                         agreements do not exist. All previous agreements or arrangements (if any) between the
                                         Parties, be it in writing or orally, relating to the subject matter hereof are hereby
                                         cancelled and superseded.

 

		14.2	Modifications,
                                         amendments and changes of this Agreement, including this clause, must be in writing.
                                         Pohl-Boskamp’s ‘General Terms and Conditions of Trade’ (ANNEX IV)
                                         apply unless they have been modified by the Parties in this Agreement.

 

§ 15

Notices

 

All notices will
be deemed to have been given when received if sent by personal delivery, registered mail return receipt, reputable express courier
or when receipt of a facsimile has been acknowledged by machine generated receipt, to the following address:

 

	 	If to Pohl-Boskamp:	 G.
Pohl-Boskamp GmbH & Co. KG

Kieler Strasse 1125551 Hohenlockstedt

Germany

Attn: Executive Director

Facsimile:+49 4826 59-376

	 	 	 
	 	If to IntraDerm :	IntraDerm Pharmaceuticals,

a division of Oculus Innovative
Sciences, Inc.

1129 North McDowell Blvd.

Petaluma, California 94954

USA

Attn: Chief Financial Officer

Facsimile: (707) 283-0551

	 	 	 

 

If notice is
personally delivered, the individual accepting such notice, if requested, will sign a duplicate of the notice to confirm receipt
thereof.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 20 of 30

     

    

 

§ 16

Insurance

 

Each Party
shall maintain comprehensive general liability and product liability insurance, covering the obligations of such Party under this
Agreement throughout the Term of this Agreement and as long as the Products sold under this Agreement are marketed or sold in
the Territory. Upon request of either Party, the other Party will provide Pohl-Boskamp with certificate(s) of insurance evidencing
the above and showing the name of the issuing company, the policy number, the effective date, the expiration date and the limits
of liability.

§ 17

Partial Invalidity

 

Should any of
the provisions of this Agreement be or become invalid, the invalidity does not prejudice the validity of the remaining provisions
of this Agreement, and the Agreement shall be enforced in accordance with its terms and its validity shall not in any way be affected
or impaired thereby. In the event that any term or provision of this Agreement is held to be unreasonable, the same shall not
fail, but shall be deemed amended only to the extent necessary to render it reasonable and the Parties agree in writing to be
bound by the amended term or provision.

§ 18

Applicable
Law/

 

		18.1	This
                                         Agreement shall be governed by and construed in accordance with the laws of the Federal
                                         Republic of Germany, regardless of the laws that might otherwise govern under applicable
                                         principles of conflicts of law thereof. The provisions of the U.N. Convention on Contracts
                                         for the International Sale of Goods shall not apply.

 

	 	18.2	 Both Parties
are entitled to take legal action, submitted to the jurisdiction of the courts of Hamburg, Federal Republic of Germany, on their
own discretion.

 

However,
with mutual consent, disputes arising out of or relating to this Agreement shall be submitted to arbitration in London, England
in accordance with the rules of the International Chamber of Commerce or its successor by three arbitrators, one chosen by each
of the Parties, and the third arbitrator being chosen by the two chosen arbitrators. The decision of the arbitrator shall be conclusive
and binding on the Parties to the arbitration. Judgment may be entered on the arbitrator's decision in any court having jurisdiction.
Each Party will take care of its own cost in this arbitration and both Parties will pay half of the arbitration court costs itself.
All information relating to or disclosed by any Party in connection with the arbitration shall be treated by the Parties as confidential
information and no disclosure of such information shall be made by either Party without the prior written consent of the other
Party. The Parties expressly agree that any arbitration shall be conducted, and any and all evidence, pleadings, correspondence,
and other documents relating to the arbitration will be presented, in the English language.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 21 of 30

     

    

 

§ 19

Registration
of the Agreement

 

If required IntraDerm
shall take all the necessary activities and bear all the expenses and costs arising from the registration of this Agreement before
the local authorities, including all necessary translations and provide evidence thereof to Pohl-Boskamp.

 

§ 20

Relationship
of Parties

This Agreement does not, and shall
not be construed to create a relationship of joint venture, partnership or principal and agent between Pohl-Boskamp and IntraDerm.
Neither Party has, or may exercise, any authority, express, implied or apparent, to act on behalf of or as an agent of the the
other Party for any purpose, and neither Party shall take any action which might tend to create an obligation on behalf of the
other Party. Each Party is, and shall at all times remain an independent contractor responsible for all obligations and liabilities
of, and for all loss or damage arising out of its business activities.

 

 

§ 21

Non-Assignment

Neither Party
may assign, delegate or otherwise transfer any of its right or obligation arising under this Agreement whether by agreement, or
otherwise, without the express prior written consent of the other Party; provided, however, that either Party may assign this
Agreement to any person or entity into which the assigning Party has merged or which has otherwise succeeded to all or substantially
all of the business and assets to which this Agreement pertains, by merger, consolidation, reorganization or otherwise if such
successor entity has assumed in writing or by operation of law the assigning Party's obligations under this Agreement. Any purported
assignment, delegation, or transfer in violation of the previous sentence will be null and void. Subject to the foregoing, this
Agreement in its entirety will bind each Party and its successors and permitted assigns.

 

§ 22

Counterparts

The Parties may execute this
Agreement in one or more counterparts, and each fully executed counterpart shall be deemed an original, and when taken together
with other signed counterparts, shall be binding upon and effective as to all Parties hereto. This Agreement in the English language
shall be the controlling text to the extent allowable under applicable law.

 

 

*****

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 22 of 30

     

    

 

 

 

	Hohenlockstedt, April 13, 2016	Petaluma, April 13, 2016
	For and on behalf of	For and on behalf of
	G. Pohl-Boskamp GmbH & Co. KG	IntraDerm Pharmaceuticals,
	 	  a Division of Oculus Innovative Sciences, Inc.
	represented by its general partner	     represented by its President
	Boskamp GmbH	 

 

 

	
         

         

         

        /s/ Thomas Höppner___________________

        Dr. Thomas Höppner
	
         

         

         

        /s/ Robert Miller_____________________

        Robert Miller

	
        Executive Director

         

         

        /s/ André Horst_______________________

        André Horst

        Legal Affairs
	
        Chief Financial Officer

         

         

 

 

Annex I – Products, Prices and Royalties

Annex II – Territory

Annex III – Minimum Purchase Requirements

Annex IV – General Terms and Conditions of Trade

Annex V – Pharmacovigilance Agreement

Annex VI – Adverse Events

 

 

 

 

 

 

 

 

 

 

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 23 of 30

     

    

 

 

ANNEX I

Products, Prices and Royalties

 

 

 

	Product	Size	Price	Medical Device (Yes/No)	
        Medical Product

        (Yes/No)

	Loyon 	[  ]†ml	TBD	Yes	No
	Loyon 	[  ]† ml	US$ [  ]†	Yes	No
	Loyon 	[  ]† ml	US$ [  ]†*	Yes	No
	Loyon 	[  ]† ml (sample)	US$ [  ]†**	Yes	No

*Subject to confirmation about feasibility of Pohl-Boskamp providing
this size in one bottle

 

**Parties agree to revisit the sample program within on year after
First Commercial Sale to assess results and then determine what the year 2 samples volume and price should be. Price of samples
in year 2 shall not exceed US$[  ]†.

 

 

Terms of transportation
and delivery of product is ExWorks Incoterms 2010 at Pohl-Boskamp’s facility in Germany.

All
labelling shall bear Pohl-Boskamp’s Trademark, “Loyon” (the “Trademark”).

		ROYALTIES	

The
Royalty structure is as follows:

Year
1 – [   ]†%

Year
2 – [   ]†%

Year
3 – [   ]†% and remaining at [   ]†% through the balance of the agreement as long as the Product is in Sales Position
1 or 2.

If
the Sales Position changes to a higher position during Contract Year 1 or Contract Year 2, the royalty rate will move to [   ]†%.

If
the Parties have not been able to obtain a psoriasis claim during Contract Year 1 or Contract Year 2, IntraDerm may move the Product
into Sales Position 3 with royalties staying at [   ]†%. If the Sales Position changes to a higher position, the royalty
rate will immediately move to [   ]†%.

If
the Parties have been able to obtain a psoriasis claim during Contract Year 1 or Contract Year 2, and the Sales Position changes
to a higher position than it occupied in the prior year, the royalty rate will move to [   ]†%.

IntraDerm
shall, in good faith, make the sole good faith determination as to the Sales Position of the Product at any time or times.

The
Royalty structure therefore is as follows:

 

	 	Year 1	Year 2	Year 3
	 	 	no psoriasis claim	psoriasis claim
	Sales Position	#1 or #2	≥ #3	#1 or #2	≥ #3	#1 or #2 or #3	≥ #4	#1 or #2	≥ #3
	Royalty	[  ]†%	[  ]†%	[  ]†%	[  ]†%	[  ]†%	[  ]†%	[  ]†%	[  ]†%

 

For Purposes of this
Agreement:

 

 

 

 

† Confidential material redacted and separately filed with the
Commission.

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 24 of 30

     

    

 

 

“Net Sales”
means, the amount of gross sales of applicable Product invoiced by IntraDerm to independent third Parties, and received by IntraDerm,
net of the amount paid by IntraDerm for the Products, less the following deductions: returns (including allowances actually given
for spoiled, damaged, expired, rejected, returned Product sold, return reserves, withdrawals, and recalls), rebates (price reductions,
rebates to social and welfare systems, charge backs, government mandated rebates, and similar types of rebates (e.g., Medicaid)),
volume (quantity) discounts, and/or taxes (value added or sales taxes, government-mandated exceptional taxes and other taxes directly
imposed upon and paid with respect to such sales, excluding any taxes on income); in each case, only to the extent such deductions
are (i) consistently applied in accordance with US GAAP, (ii) actually incurred, (iii) included in the amount of gross sales invoiced
and separately identified on the invoice or other documentation maintained in the ordinary course of business, and (iv) not otherwise
recovered by or reimbursed to IntraDerm. Notwithstanding the foregoing, amounts received by IntraDerm for the sale of Product among
IntraDerm Affiliates for resale shall not be included in the computation of Net Sales; provided if and when such Product is resold
to a non-Affiliate third party, amounts for any such sales shall be included in Net Sales.

 

 

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 25 of 30

     

    

 

 

 

ANNEX II

Territory

 

The United States of America and its territories and possessions,
including Puerto Rico and the District of Columbia.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 26 of 30

     

    

 

ANNEX III

Minimum Purchases

 

IntraDerm and Pohl-Boskamp have discussed the
following Sales Targets. However, the Parties acknowledge and agree that the wording of the SebDerm Claim, which IntraDerm will
pursue, will impact the marketability of the Product in the Territory. Accordingly, the Parties agree that IntraDerm shall modify
the Sales Targets upon receipt of the SebDerm Claim language, and such Sales Targets shall replace the Sales Targets below.

 

 

	 	Total Contract 

Year 1 

Sales Target	
        Contract Year 1*

 Minimum Purchase

        Requirement

	Loyon units	[  ]†	[  ]†
	Loyon Samples	[  ]†	[  ]†

*commences on First Commercial Sale

 

	 	Total Contract 

Year 2 

Sales Target	Contract Year 2 

Minimum Purchase

 Requirement
	Loyon units	[  ]†	[  ]†
	Loyon Samples	[  ]†	[  ]†

 

 

	 	
        Total Contract Year 3

        Sales Target 
	Contract Year 3 

Minimum Purchase

 Requirement
	Loyon units	[  ]†	[  ]†
	Loyon Samples	[  ]†	[  ]†

 

 

For purposes of this Agreement:

 

		·	“Contract Year 1” means the twelve (12) month period
commencing on the First Commercial Sale.

		·	Each successive Contract Year is the twelve (12) month period commencing
on the same number anniversary of the First Commercial Sale.

		·	“First Commercial Sale” shall mean the date on
which the cumulative Net Sales in the Terrritory reaches US $[ ]† following issuance of the Marketing Authorisation with
the SebDerm Claim required to commercialize the Product in the Territory.

		·	Sales Targets set forth above are for discussion purposes only
and are not binding on the Parties. After Health Authority issues the Marketing Authority for the SebDerm Claim, IntraDerm shall
provide Pohl-Boskamp updated Sales Targets for each Contract Year during the Initial Term, and such Sales Targets shall be binding
on the Parties. 

		·	Minimum Purchase Requirement for each Contract
Year is [  ]†%
of the Sales Target for such Contract Year.

 

 

 

 

† Confidential material redacted and separately filed with the
Commission.

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 27 of 30

     

    

 

ANNEX IV

General Terms and Condition of Trade

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 28 of 30

     

    

ANNEX V

Pharmacovigilance Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 29 of 30

     

    

 

ANNEX VI 

Adverse Events

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	CONFIDENTIAL
Distribution Agreement Pohl-Boskamp J. IntraDerm, OCLS, 12/Apr/2016, page 30 of 30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]