Document:

Exhibit 10.3

 

Execution Version

PURCHASE AGREEMENT

 

This PURCHASE AGREEMENT (this “Agreement”),
dated as of June 30, 2016, is entered into by and between BSN medical, Inc., a Delaware corporation (“BSN”)
and Alliqua BioMedical, Inc., a Delaware corporation (“Alliqua”). Each of BSN and Alliqua is individually
referenced herein as a “Party” and collectively as “Parties.”

 

RECITALS

 

WHEREAS, BSN and Alliqua are parties to that
certain Distributor Agreement between Sorbion GmbH & Co KG and Alliqua, dated on or around September 20, 2013 and attached
hereto as Annex A (as amended pursuant to that certain First Amendment to Distributor Agreement as of July 31, 2015,
attached hereto as Annex B, collectively, the “Distributor Agreement”, and assigned to BSN pursuant
to that certain Assignment of Distributor Agreement dated June 16, 2015, attached hereto as Annex C); and

 

WHEREAS, BSN and Alliqua have determined that
it is in the best interests of each of the Parties to enter into this Agreement.

 

NOW, THEREFORE, in consideration of the Recitals
and the mutual representations, warranties, covenants, agreements and conditions contained herein, and for other good and valid
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby
agree as follows:

 

		1.	DEFINITIONS

 

		1.1	Certain
                                         Definitions. Unless separately defined herein, capitalized terms used in this
                                         Agreement have the meanings specified to such terms in this Section 1.1. Capitalized
                                         terms used herein and not otherwise defined shall have the meaning ascribed to such terms
                                         in the Distributor Agreement.

 

		(a)	“Affiliate”
                                         of any specified Person means any Person directly or indirectly controlling or controlled
                                         by or under direct or indirect common control with such specified Person. For purposes
                                         of this definition, “control” (including, with correlative meanings, the
                                         terms “controlling,” “controlled by” and “under common
                                         control with”), as used with respect to any Person, shall mean the possession,
                                         directly or indirectly, of the power to direct or cause the direction of the management
                                         or policies of such Person, whether through the ownership of voting securities, by agreement
                                         or otherwise. 

 

		(b)	“Ancillary Document”
                                         means any agreement, certificate, instrument
                                         or other document to be delivered pursuant to or in connection with this Agreement.

 

		(c)	“Business”
                                         means business of Alliqua solely as it relates
                                         to the Products.

 

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		(d)	“Change
                                         of Control Transaction” means the occurrence
                                         after the date hereof of any of (a) an acquisition after the date hereof by an individual
                                         or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated
                                         under the Securities Exchange Act of 1934, as amended) of effective control (whether
                                         through legal or beneficial ownership of capital stock of the Company, by contract or
                                         otherwise) of in excess of 50% of the voting securities of Alliqua, (b) Alliqua merges
                                         into or consolidates with any other Person, or any Person merges into or consolidates
                                         with Alliqua and, after giving effect to such transaction, the stockholders of Alliqua
                                         immediately prior to such transaction own less than 50% of the aggregate voting power
                                         of Alliqua or the successor entity of such transaction, (c) Alliqua sells or transfers
                                         all or substantially all of its assets to another Person and the stockholders of Alliqua
                                         immediately prior to such transaction own less than 50% of the aggregate voting power
                                         of the acquiring entity immediately after the transaction, or (d) Alliqua, directly or
                                         indirectly, in one or more related transactions consummates a stock or share purchase
                                         agreement or other business combination (including, without limitation, a reorganization,
                                         recapitalization, spin-off or scheme of arrangement) with another Person whereby such
                                         other Person acquires more than 50% of the outstanding shares of common stock of Alliqua
                                         (not including any shares of common stock of Alliqua held by the other Person or other
                                         Persons making or party to, or associated or affiliated with the other Persons making
                                         or party to, such stock or share purchase agreement or other business combination).

 

		(e)	“Confidentiality Agreements”
                                         means, collectively, that certain Confidentiality Agreement between the Parties dated
                                         as of January 3, 2016 and that certain Confidentiality Agreement between the Parties
                                         dated as of January 18, 2016.

 

		(f)	“Expenses”
                                         means all fees, costs and expenses (including all other fees, costs and expenses of any
                                         legal counsel, investment bankers, accountants, brokers or other representatives, consultants,
                                         advisors, appraisal fees, costs and expenses) in connection with the preparation, negotiation,
                                         execution and delivery of this Agreement and any other document, the performance of the
                                         Parties’ respective obligations hereunder and thereunder, and the consummation
                                         of the transactions contemplated hereby and thereby.

 

		(g)	“FDA Law and Regulation”
                                         means the federal Food, Drug and Cosmetic Act (the FD&C Act), 21 U.S.C. §§
                                         301 et seq., as amended, and all applicable regulations promulgated by the United States
                                         Food and Drug Administration (“FDA”), including but not limited to
                                         the recordkeeping provisions of the FDA’s Medical Device Reporting requirements
                                         as set forth in 21 C.F.R. Part 803, as applicable.

 

		(h)	“Governmental
                                         Authority” means any government, agency, governmental department, commission,
                                         board, bureau, court, arbitration panel or instrumentality of the United States of America
                                         or any state or other political subdivision thereof (whether now or hereafter constituted
                                         and/or existing) and any entity exercising executive, legislative, judicial, regulatory
                                         or administrative functions of or pertaining to government.

 

		(i)	“Intellectual Property”
                                         means all patents, patent applications, trademarks, trademark applications, service
                                         marks, service mark applications, certification marks, trade dress, trade names, identifying
                                         symbols, designs, product names, company names, slogans, logos or insignia, whether registered
                                         or unregistered, and all common law rights, applications and registrations therefor,
                                         and all goodwill associated therewith, copyright registrations and applications, trade
                                         secrets, domain names and domain name registrations, licenses (software or otherwise),
                                         information, processes and proprietary or intellectual property rights, the subject matter
                                         of any of the foregoing, tangible embodiments of any of the foregoing, licenses in, to
                                         and under any of the foregoing.

 

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		(j)	“Law” means
                                         any federal, state, local, municipal, foreign, international, multinational law or any
                                         constitution, statute, treaty, code, ordinance, principle of common law or other law
                                         (including any rule, regulation, plan, injunction, judgment, order, decree, ruling or
                                         charge thereunder or related thereto). All references to Law shall be deemed to include
                                         any amendments thereto, and any successor law, unless the context requires otherwise.

 

		(k)	“Legal Requirement(s)”
                                         means all federal, state, foreign and local laws, statutes, codes, rules, regulations,
                                         ordinances, Orders and the like of any Governmental Authority, including common law.

 

		(l)	“Liability” means
                                         any liability or indebtedness of any kind, character or description (whether known or
                                         unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued
                                         or unaccrued, whether disputed or undisputed, whether secured or unsecured, whether joint
                                         or several, whether vested or unvested, whether liquidated or unliquidated, whether due
                                         or to become due, or whether executory, determined, determinable, or otherwise).

 

		(m)	“Lien” means
                                         any charge, claim, equitable interest, community or other material property interest,
                                         security interest, conditional sale agreement, mortgage, indenture, deed of trust, security
                                         agreement, pledge, hypothecation, option, restriction, encroachment, easement, servitude,
                                         right of first refusal, condition or other lien, encumbrance or defect of title of any
                                         kind or nature.

 

		(n)	“Order” means
                                         any decision, injunction, judgment, order, decree, ruling, or verdict of any nature of,
                                         entered or issued by any Governmental Authority.

 

		(o)	“Other Agreements”
                                         means each contract or agreement (including, but not limited to the Distributor Agreement,
                                         but specifically excluding this Agreement, Transition Services Agreement, and the Confidentiality
                                         Agreements), written or oral, including without limitation any implied contract or any
                                         other agreement based on a course of conduct or dealing between the Parties (or in each
                                         case, their predecessors or, in the case of BSN, between Alliqua and Sorbion), as well
                                         as any other contract between the Parties that would purport to limit, in any way, the
                                         ability of BSN to freely solicit, engage, or employ any individual affiliated with Alliqua,
                                         whether as an employee, agent, contractor, or representative.

 

		(p)	“Permits” means
                                         all permits, licenses, franchises, orders, registrations, certificates, variances, contractual
                                         rights, consents, and other authorizations or approvals, and any applications for the
                                         same, related to the Business.

 

		(q)	“Person” means
                                         an individual, a corporation, a partnership, a limited liability company, an association,
                                         a joint venture, a governmental or other authority, a trust or any other entity or organization
                                         including a corporate or unincorporated body (whether or not having a separate legal
                                         personality).

 

		(r)	“Relevant Records”
                                         means, in respect of the parties to whom Products have historically been sold by
                                         Alliqua, collectively,

 

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		(i)	(a)
                                         Customer data, including a listing of all direct and indirect customers, including distributors,
                                         hospitals, wound-care clinics, and practitioner office lists, together with (b) historical
                                         sales information starting on January 1, 2015 and ending on May 31, 2016, together
                                         with a certificate from the chief financial officer of Alliqua in the form attached hereto
                                         as Exhibit B;

		(ii)	Targeted
                                         customer data, including a listing of all targeted customers with current product evaluations;

		(iii)	Price
                                         lists, including (a) “list price” to direct customers (include price tiers
                                         and basis for such tiers (e.g., volume discounts)); (b) any “special pricing”
                                         to any direct customers and basis thereof; (c) contracted pricing with group purchasing
                                         organizations, independent dealer networks and other similar organizations;

		(iv)	Name
                                         of Key Opinion Leader historically used by or on behalf of Alliqua in respect of the
                                         Products; and

		(v)	All
                                         marketing literature, case-studies, and/or any clinical data that Alliqua has produced
                                         or caused to be produced;

in each case,
in such detail as is reasonably requested by BSN.

 

		(s)	“Restricted Period”
                                         means the period commencing on the date hereof and ending on the earlier of (i) December
                                         31, 2018, (ii) one hundred fifty (150) days following the date hereof if a Change of
                                         Control Transaction is consummated no later than sixty (60) days following the date hereof,
                                         or (iii) ninety (90) days following the effective date of any Change of Control Transaction
                                         if such Change of Control Transaction is consummated later than sixty (60) days following
                                         the date hereof.

 

		(t)	“Rights” means
                                         any and all rights Alliqua may have to, under or pursuant to the Distributor Agreement,
                                         including but not limited to distribution rights, exclusivity rights, Intellectual Property
                                         rights, and/or marketing rights.

 

		(u)	“Tax”
                                         or “Taxes”
                                         means means all federal, state, local or foreign income, gross receipts, license, employment,
                                         payroll, withholding, Social Security (or similar), unemployment, severance, premium,
                                         disability, excise, value added, accumulated earnings, windfall profit, net worth, alternative
                                         or add-on minimum, estimated, sales, use, transfer, registration, real property, stamp,
                                         environmental (including taxes under Code §59A), personal property, use and occupancy,
                                         business and occupation, maritime, mercantile, tariff, custom, duty, capital stock, franchise,
                                         gift or estate and all other taxes, fees, assessments, levies, tariffs, charges or duties
                                         of any kind, character, nature or description, including any interest, penalties or additions
                                         thereto.

 

		(v)	“Unsold Products”
                                         means the unsold inventory of Products sold
                                         by BSN to Alliqua in existence as of the Closing; provided, however, that
                                         the minimum outstanding shelf life of all such Products shall be at least 12 (twelve)
                                         months.

 

		1.2	Other
                                         Definitional Provisions and Construction. The terms “hereof,” “herein”
                                         and “hereunder” and terms of similar import shall refer to this Agreement
                                         as a whole and not to any particular provision of this Agreement. Article, Section, clause,
                                         subsection, Exhibit and Schedule references contained in this Agreement are references
                                         to Articles, Sections, clauses, subsections, Exhibits and Schedules in or attached to
                                         this Agreement, unless otherwise specified. Each defined term used in this Agreement
                                         has a comparable meaning when used in its plural or singular form. Each gender-specific
                                         term used in this Agreement has a comparable meaning whether used in a masculine, feminine
                                         or gender-neutral form. The word “or” is used in the inclusive sense of “and/or”.
                                         Whenever the terms “include” or “including” are used in this
                                         Agreement (whether or not such terms are followed by the phrase “but not limited
                                         to” or “without limitation” or words of similar effect) in connection
                                         with a listing of items within a particular classification, that listing shall be interpreted
                                         to be illustrative only and shall not be interpreted as a limitation on, or an exclusive
                                         listing of, the items within that classification. The recitals set forth in the beginning
                                         of this Agreement (including, the defined terms set forth therein) are hereby incorporated
                                         by reference into this Agreement and made a part hereof as if set forth in their entirety.
                                         Whenever any amount is stated in this Agreement in “Dollars” or by reference
                                         to the “$” symbol, such amount shall be United States dollars.

 

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		2.	THE
                                         TRANSACTION

 

		2.1	Sale
                                         and Purchase of Rights and Unsold Products. At the Closing Date, and upon all
                                         of the terms and subject to all of the conditions set forth in this Agreement, Alliqua
                                         shall sell, transfer, assign, convey, and deliver to BSN, and BSN shall purchase and
                                         accept from Alliqua, free and clear of all Liens, the Rights and Unsold Products.

 

		2.2	Excluded
                                         Assets. Other than the Rights, the remaining assets of Alliqua shall be retained
                                         by Alliqua.

 

		2.3	Retained
                                         Liabilities. For avoidance of doubt, BSN shall not assume, and Alliqua will pay,
                                         defend, discharge, and perform, as and when due, and otherwise retain and remain solely
                                         responsible for:

 

		(a)	any and all Liabilities of Alliqua,
                                         including any Taxes in respect of the amounts received by Alliqua pursuant to the terms
                                         hereof;

		(b)	any Liability of any Person,
                                         directly or indirectly related to, accruing or arising out of, caused by or resulting
                                         from the operation or conduct of the Business on or prior to the Closing Date, whether
                                         or not recorded on the books and records of any Person (including but not limited to
                                         any trade or other accounts payable of Alliqua payable to third parties that remain outstanding
                                         as of the Closing Date);

		(c)	any and all Liabilities in respect
                                         of the Rights and Unsold Products, arising out of or as a result of the Distributor Agreement,
                                         as of the Closing Date; and

		(d)	any Liability that is the result
                                         of a violation of any Legal Requirement by Alliqua.

 

		2.4	Purchase
                                         Price and Closing Payments.

 

		(a)	In consideration for the sale
                                         of the Rights and Unsold Products to BSN by Alliqua, BSN shall pay the following amounts
                                         in the manner set forth below:

 

		(i)	$3,500,000 (Three Million Five
                                         Hundred Thousand United States Dollars) at the Closing Date for purchase of all Rights
                                         and termination of all Other Agreements (the “Rights Payment”); and

		(ii)	Up to an additional $900,000
                                         (Nine Hundred Thousand United States Dollars) (the “Product Payment”)
                                         in accordance with Section 2.9 hereof.

 

		(b)	The Rights Payment, and if applicable,
                                         the Product Payment, shall be paid by wire transfer of immediately available funds into
                                         the following bank account:

 

			PNC BankBank Account Holder -
                                         Alliqua BioMedical, Inc.

Routing Number
- ********* 

Account Number
- **********

 

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		2.5	Closing.
                                         The closing of the sale and purchase of the Rights and the Unsold Products (the “Closing”)
                                         shall take place concurrently with the execution and delivery of this Agreement, scheduled
                                         for 9:00 a.m. Eastern U.S. time, or at such other date as mutually agreed upon by the
                                         Parties (such date, the “Closing Date”). All transactions that are
                                         to take place on the Closing Date at Closing shall be considered to have taken place
                                         simultaneously, and no delivery or payment shall be considered to have been made until
                                         all the transactions have been completed. Title to, ownership of, control over and risk
                                         of loss of the Rights shall pass to BSN effective as of 9:01 a.m. Eastern U.S. time on
                                         the Closing Date unless provided otherwise herein. All monetary amounts payable pursuant
                                         to this Agreement shall be paid by wire transfer or delivery of other immediately available
                                         United States funds, as directed by the Party receiving payment.

 

		2.6	Deliveries
                                         By Alliqua at Closing. On the Closing Date, Alliqua shall deliver the following
                                         to BSN, executed by Alliqua or other parties as applicable:

 

		(a)	A bill of sale and assignment
                                         in the form of Exhibit A; and

		(b)	Relevant Records.

 

		2.7	Deliveries
                                         By BSN at Closing. On the Closing Date, upon occurrence of the Closing, BSN shall
                                         execute, pay or deliver to Alliqua (or to other parties as specified by Alliqua) the
                                         Rights Payment.

 

		2.8	Unsold
                                         Products. Provided that the Closing shall have occurred,

 

		(a)	Alliqua shall deliver all remaining
                                         Unsold Products to BSN no later than fifteen (15) days following the Closing Date; provided,
                                         however, that, (i) all such Unsold Products shall be in substantially similar
                                         condition as such Unsold Products were delivered to Alliqua by BSN; (ii) all such Unsold
                                         Products were stored according to manufacturers’ written specifications and continue
                                         to maintain sterility and human medical use; (iii) none of such Unsold Product inventory
                                         shall be obsolete, damaged or defective; and (iv) none of the inventory shall be held
                                         on consignment for others.

		(b)	BSN shall inspect such remaining
                                         Unsold Products being returned within five (5) business days of receipt thereof and,
                                         if any condition exists that BSN believes, in good faith, may be a breach of Section
                                         2.8(a) above, BSN shall notify Alliqua as soon as practicable and the parties shall work,
                                         in good faith, to resolve such matter.

		(c)	Upon receipt of a notice from
                                         BSN in accordance with the preceding paragraph, Alliqua will invoice BSN for remaining
                                         Unsold Product shipments, the price for such Unsold Products being the cost at which
                                         such Unsold Products were sold to Alliqua, and BSN shall, out of the Product Payment,
                                         remit payment to Alliqua in respect of such invoice within forty-five (45) days following
                                         the receipt of such invoice.

		(d)	Alliqua shall pay fifty percent
                                         (50%) of Shipment Costs for any delivery of qualifying Unsold Products that are less
                                         than $50,000; for delivery of qualifying Unsold Products greater than or equal to $50,000,
                                         Alliqua shall pay one hundred (100%) of the Shipment Costs. Alliqua shall be required
                                         to pay Shipment Costs only for the delivery of Unsold Products to facilities within the
                                         United States, and Alliqua shall be entitled to choose the method of shipment for the
                                         Unsold Products; provided that, such method of shipment shall ensure delivery
                                         of any such Unsold Products shipped to BSN by no later than seven (7) days following
                                         shipment thereof.

 

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		2.9	Product
                                         Payment. Subject to the terms of this Section 2.9, BSN shall remit the Product
                                         Payment to Alliqua upon Alliqua’s completion of the obligations as set forth in
                                         Section 2.8 above; provided, that to the extent that BSN and Alliqua are negotiating
                                         in good faith to resolve any matter in accordance with Section 2.8(b) above, then BSN
                                         shall not be required to remit payment in respect of any Unsold Products returned by
                                         Alliqua related to such matter until BSN and Alliqua have reached a mutually satisfactory
                                         resolution of such matter. Subject to the terms of this Section 2.9, BSN shall deliver
                                         the Product Payment to Alliqua within two (2) business days following the satisfaction
                                         of the requirements set forth in the immediately preceding sentence. For the avoidance
                                         of doubt, under no circumstance would the Product Payment exceed $900,000 (Nine Hundred
                                         Thousand United States Dollars).

 

		2.10	Other
                                         Agreements and Obligations. Subject to the occurrence of the Closing, the Parties
                                         hereby cancel, terminate and release, with immediate effect, any and all Other Agreements
                                         between the Parties, and further agree that such Other Agreements shall be of no further
                                         force or effect. All of the obligations, including without limitation any obligation
                                         which expressly survives termination of the Other Agreements in accordance with the terms
                                         of such Other Agreements, of BSN, together with its successors, assigns or Affiliates,
                                         to Alliqua, its successors, assigns or Affiliates are hereby cancelled, terminated and
                                         released; provided, that this Section 2.10 is not intended to, and shall not,
                                         have any effect on the Parties’ obligations to each other arising out of or related
                                         to that certain Transition Services Agreement being entered into by the Parties which
                                         is being entered into as a separate contract for which separate consideration is being
                                         paid or upon the Confidentiality Agreements, which contain rights and obligations that
                                         are separate from this Agreement.

 

		2.11	Complete,
                                         General, and Mutual Release of Claims.

 

		(a)	Subject to the occurrence of
                                         the Closing, each Party hereto, on behalf of itself, and its respective parents, subsidiaries,
                                         predecessors, successors, assigns, and transferees, as well as its respective former
                                         and present directors, officers, managers, shareholders, members, partners, and insurers,
                                         hereby fully and forever releases and discharges the other Party hereto, its respective
                                         parents, subsidiaries, predecessors, successors, assigns, and transferees, as well as
                                         its respective former and present directors, officers, managers, shareholders, members,
                                         employees, investors, partners, insurers, administrators, Affiliates (past and present),
                                         divisions, subsidiaries, attorneys, advisors, representatives, predecessor and successor
                                         entities, and assigns and transferees, from any and all claims, demands, liabilities,
                                         obligations, responsibilities, suits, actions, and causes of actions in law or in equity,
                                         statutory relief, statutory claims, administrative remedies, injunctions, debts, torts,
                                         reports, applications, including but not limited to the Distributor Agreement or any
                                         Other Agreement, but specifically excluding this Agreement and the Transition Services
                                         Agreement and the Confidentiality Agreements (“Claims”). Each Party
                                         hereby represents and warrants that it has not transferred, encumbered, or assigned any
                                         of the Claims to any other Person and it is not presently aware of any Claims against
                                         the other Party that arises out of or is related to fraud or intentional misconduct.
                                         Notwithstanding the foregoing, this Agreement shall not serve to release any Party from
                                         any Claims related to its respective obligations set forth in Sections 8 or 11 of the
                                         Distributor Agreement, each of which shall survive the Closing.

		(b)	Except with respect to the obligations
                                         arising out of this Agreement and the Transition Services Agreement, each Party covenants
                                         that it shall not institute, promote, participate in, assist with, submit, file or permit
                                         to be filed on their behalf any lawsuit, charge, Claim, complaint, grievance or other
                                         proceeding, whether judicial, administrative, arbitration or otherwise arising out of
                                         or in any way relating to its business relationship with the other Party, the Distributor
                                         Agreement (or cancellation and termination thereof), or any Other Agreement, unless compelled
                                         to do so by a court of competent jurisdiction.

 

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		(c)	Each Party covenants that it
                                         has carefully read the terms of this Agreement and all attachments, and it understands
                                         their terms and effects, including the fact that such Party has agreed to RELEASE AND
                                         FOREVER DISCHARGE certain releasees from any legal action or other liability of any type
                                         related in any way to the matters released herein. Each Party has signed this Agreement
                                         voluntarily and knowingly in exchange for the consideration described herein, which such
                                         Party acknowledges is adequate and satisfactory to such Party and which it acknowledges
                                         is in lieu of any other benefits to which it may otherwise be entitled. Each Party fully
                                         understands that if any fact with respect to any matter covered by the releases herein
                                         is found hereafter to be other than or different from the facts now believed to be true,
                                         it accepts and assumes that the releases shall be and remain effective, notwithstanding
                                         such difference in the facts.

 

		3.	REPRESENTATIONS
                                         AND WARRANTIES OF ALLIQUA

 

Alliqua hereby represents and warrants to
BSN as follows:

 

		3.1	Organization
                                         and Good Standing. Alliqua is duly organized, validly existing and in good standing
                                         under the Laws of the state of Delaware. There is no subsidiary or separate entity that
                                         owns any interest in the Distributor Agreement, Rights, or the Unsold Products.

 

		3.2	Authority
                                         and Enforceability. Alliqua has full power and authority to execute, deliver
                                         and perform this Agreement and each Ancillary Document to which Alliqua is a party, and
                                         the execution, delivery and performance of this Agreement by Alliqua has been duly authorized
                                         by all necessary corporate action on the part of Alliqua. This Agreement has been duly
                                         executed and delivered by Alliqua and constitutes the valid and legally binding obligation
                                         of Alliqua, enforceable in accordance with its terms. To Alliqua’s knowledge, Alliqua
                                         is not required to give any notice to, make any filing with or obtain any authorization,
                                         consent or approval of any Person or Governmental Authority in order for Alliqua to consummate
                                         the transactions contemplated hereby.

 

		3.3	Noncontravention.
                                         The transactions contemplated hereunder will not: (a) violate any Law to which Alliqua
                                         is subject; or (b) conflict with, result in a breach of, constitute a default under,
                                         result in the acceleration of, give any Person the right to accelerate, terminate, modify
                                         or cancel, or require any notice under, any agreement, Permit, instrument or other arrangement
                                         to which Alliqua is a party or by which Alliqua is bound or to which any of the assets
                                         or properties of Alliqua are subject.

 

		3.4	Claims;
                                         Legal Compliance.

 

		(a)	Alliqua has, in all material
                                         respects, complied with each applicable Legal Requirement, has obtained all Permits required
                                         to conduct the Business or to maintain the Products, and has complied with each such
                                         Permit.

 

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		(b)	There are no actions, suits,
                                         proceedings, hearings, investigations, charges, complaints, claims or demands of any
                                         kind pending or, to Alliqua’s knowledge, threatened against or affecting any of
                                         the Rights or Unsold Products or any aspect of the Business that would reasonably be
                                         expected to materially and adversely affect the Rights, Unsold Products or any aspect
                                         of the Business ; and there are no injunctions, judgments, orders or decrees of any kind
                                         which are outstanding against or unsatisfied by Alliqua or relating to any of the Rights
                                         or Unsold Products or any aspect of the Business. To Alliqua’s knowledge, Alliqua
                                         has, in all material respects, complied with each applicable Law, has obtained all Permits
                                         required to conduct the Business or to maintain the Rights, and has complied with each
                                         such Permit. Each such Permit is current and has not been revoked, suspended, cancelled
                                         or terminated, nor has notice been given of any threatened revocation, suspension, cancellation
                                         or termination.

		(c)	Each of the Products sold by
                                         Alliqua, while in the care, custody and control of Alliqua is and always has been, as
                                         applicable, stored and distributed and distribution records maintained in a manner intended
                                         to prevent any product from becoming adulterated (as defined in FDA Law and Regulation)
                                         or misbranded (as defined in FDA Law and Regulation). Alliqua has not undertaken a recall,
                                         field correction or removal of any U.S. marketed finished medical device that was the
                                         result of mishandling, or any type of adulteration or misbranding that was caused by
                                         Alliqua. With respect to the Products distributed by Alliqua, Alliqua is in compliance
                                         in all material respects with FDA Law and Regulation.

		(d)	With respect to the Products
                                         or the Business, Alliqua has not received any written notice or communication from the
                                         FDA alleging material non-compliance with applicable provisions of the FDA Law and Regulation.
                                         With respect to the Products or the Business, Alliqua has not entered into any consent
                                         decree or other Order pursuant to any FDA Law and Regulation. To Alliqua’s knowledge,
                                         there has not been any material violation of any FDA Law and Regulation by Alliqua in
                                         its distribution, recordkeeping and reports to the FDA that could reasonably be expected
                                         to require or lead to any investigation, corrective action or enforcement, or regulatory
                                         or administrative action.

		(e)	With respect to the Products
                                         or the Business, no officer, director, employee or, to Alliqua’s knowledge, representative
                                         of Alliqua has: (i) made any untrue statement of material fact or fraudulent statement
                                         to the FDA or any other Governmental Authority; (ii) failed to disclose a material fact
                                         required to be disclosed to the FDA or any other Governmental Authority; (iii) committed
                                         an act, made a statement, or failed to make a statement that would reasonably be expected
                                         to provide the basis for the FDA or any other Governmental Authority to invoke its policy
                                         respecting “Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities,”
                                         as set forth in 56 Fed. Reg. 46191 (September 10, 1991); (iv) solicited or received prohibited
                                         compensation under the Medicare and Medicaid Anti-Kickback Statute, 42 U.S.C. §
                                         1320a-7b(b), or any similar state anti-kickback Law; (v) been convicted of any crime
                                         or engaged in any conduct for which debarment is mandated or permitted by 21 U.S.C. §
                                         335a; or (vi) been convicted of any crime or engaged in any conduct for which such Person
                                         could be excluded from participating in the federal health care programs under Section
                                         1128 of the Social Security Act or any similar applicable Laws.

 

		3.5	Intellectual
                                         Property. Other than the Intellectual Property included within the Rights (all
                                         rights in respect of which arise solely from the Distributor Agreement), there is no
                                         other Intellectual Property owned or used by Alliqua in the Business.

 

		3.6	Subsequent
                                         Transactions. Alliqua disclaims any interest in the subsequent sale of any Products,
                                         and/or Rights; Alliqua acknowledges it has forgone proceeds of these future sales in
                                         return for accepting payment as defined in this Agreement.

 

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		3.7	Tax
                                         Consequences. Alliqua acknowledges and warrants that it has reviewed the Tax
                                         consequences of this Agreement with its own tax advisors and is relying solely on that
                                         advice and not on any representation or statement of BSN. Alliqua acknowledges and agrees
                                         that it is responsible for its own Tax liability as a result of the Agreement.

 

		3.8	Liens.
                                         Alliqua represents, warrants, and covenants that all Rights and Unsold Products, upon
                                         transfer to BSN, will be free and clear of any and all Liens.

 

		3.9	Insolvency.
                                         As of the Closing Date, after giving effect to the transactions contemplated by this
                                         Agreement, Alliqua will not: (a) be insolvent (either because its financial condition
                                         is such that the sum of its debts is greater than the fair market value of its assets
                                         or because the fair saleable value of its assets is less than the amount required to
                                         pay its probable liabilities on its existing debts as they mature); (b) have unreasonably
                                         small capital with which to engage in its business; or (c) have incurred debts beyond
                                         its ability to pay as they become due. The properties of Alliqua (whether real, personal,
                                         common, mixed and whether tangible or intangible) are sufficient for the continued conduct
                                         of Alliqua’s businesses after the Closing Date in substantially the same manner
                                         as conducted immediately prior to the Closing Date.

 

		3.10	Brokers.
                                         There are no brokers or finders known to Alliqua to be involved with the transactions
                                         contemplated hereunder and Alliqua has not made any agreement or taken any other action
                                         which might cause any Person to become entitled to a broker’s or finder’s
                                         fee or commission as a result of the transactions contemplated hereby.

 

		3.11	Anticorruption;
                                         International Transactions. Without limiting the generality of Section 3.4, and
                                         with respect to the Rights, the Products, the Business or the purchased assets:

 

		(a)	None of Alliqua, its controlling
                                         shareholders, directors, officers or employees have, directly or indirectly, in violation
                                         of any applicable Law (including without limitation the Foreign Corrupt Practices Act
                                         of 1977, as amended): (i) made, offered to make, or authorized any contribution, gift,
                                         bribe, rebate, payoff, influence payment, kickback, or other payment to any Person, private
                                         or public, regardless of form, whether in money, property, or services, (1) to obtain
                                         favorable treatment in securing business or to pay for favorable treatment for business
                                         already secured or (2) to obtain special concessions or to pay for special concessions
                                         already obtained; or (ii) established or maintained any fund or other asset that has
                                         not been properly recorded in the books and records of Alliqua.

		(b)	Alliqua is and at all times
                                         has been in compliance with all applicable Law relating to economic sanctions and trade
                                         embargoes. Without limiting the foregoing, Alliqua has not had, directly or indirectly,
                                         a business or financial relationship with or delivered any products or services to any
                                         geographic regions or governments targeted by the sanctions programs administered by
                                         the U.S. Office of Foreign Asset Controls (OFAC) or to any Person, private or public,
                                         appearing on OFAC’s list of Specially Designated Nationals and Blocked Persons.

		(c)	Alliqua is, and at all times
                                         has been, in compliance with all applicable Law relating to export controls. All Products
                                         shipped by Alliqua have been marked, labeled, and transported in accordance with all
                                         applicable Law.

 

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		3.12	Channel
                                         Sales. Since the effective date of the Distributor Agreement, Alliqua (a) has
                                         sold and will sell Products to wholesalers, distributors and other customers only in
                                         the ordinary course of business and in amounts generally consistent with industry practices
                                         past sales by Alliqua to its wholesalers, distributors and other customers during comparable
                                         periods (which, for the avoidance of doubt, takes into account seasonality, cyclicality
                                         and other market conditions), except for one-time discounts that did not have a material
                                         impact on sales revenue for the Products (b) has donated and will donate Product to non-profit
                                         or charitable organizations only in amounts (if any) that are generally consistent with
                                         past Product donations by Alliqua to non-profit and charitable organizations during comparable
                                         periods, and (c) has not engaged, and will not engage, in any practice with the intent
                                         of increasing the levels of inventory of the Products in the distributor or wholesaler
                                         channels, or with other customers outside of the ordinary course of business and in anticipation
                                         of entering into this Agreement or any similar transaction with respect to the Products.

 

		3.13	Full
                                         Disclosure. No representation, warranty, covenant or agreement made by Alliqua
                                         in this Agreement contains or will contain any false or misleading statement of a material
                                         fact, or omits any material fact required to be stated therein or necessary in order
                                         to make the statements therein not false or misleading.

 

		4.	REPRESENTATIONS
                                         AND WARRANTIES OF BSN

 

BSN hereby represents
to Alliqua as follows:

 

		4.1	Organization
                                         and Good Standing. BSN is duly organized, validly existing and in good standing
                                         under the Laws of the state of Delaware.

 

		4.2	Authority
                                         and Enforceability. BSN has full power and authority to execute, deliver and
                                         perform this Agreement and each Ancillary Document to which BSN is a party, and the execution,
                                         delivery and performance of this Agreement by BSN has been duly authorized by all necessary
                                         corporate action on the part of BSN. This Agreement has been duly executed and delivered
                                         by BSN and constitutes the valid and legally binding obligation of BSN, enforceable in
                                         accordance with its terms. BSN is not required to give any notice to, make any filing
                                         with or obtain any authorization, consent or approval of any Person or Governmental Authority
                                         in order for BSN to consummate the transactions contemplated hereby.

 

		4.3	Noncontravention.
                                         The transactions contemplated hereunder will not: (a) violate any Law to which BSN is
                                         subject; or (b) conflict with, result in a breach of, constitute a default under, result
                                         in the acceleration of, give any Person the right to accelerate, terminate, modify or
                                         cancel, or require any notice under, any agreement, Permit, instrument or other arrangement
                                         to which BSN is a party or by which BSN is bound or to which any of the assets or properties
                                         of BSN are subject.

 

		4.4	Insolvency.
                                         As of the Closing Date, after giving effect to the transactions contemplated by this
                                         Agreement, BSN will not: (a) be insolvent (either because its financial condition is
                                         such that the sum of its debts is greater than the fair market value of its assets or
                                         because the fair saleable value of its assets is less than the amount required to pay
                                         its probable liabilities on its existing debts as they mature); (b) have unreasonably
                                         small capital with which to engage in its business; or (c) have incurred debts beyond
                                         its ability to pay as they become due. The properties of BSN (whether real, personal,
                                         common, mixed and whether tangible or intangible) are sufficient for the continued conduct
                                         of BSN’s businesses after the Closing Date in substantially the same manner as
                                         conducted immediately prior to the Closing Date.

 

		4.5	Brokers. There are no brokers or finders known to BSN to be involved
                                                                                           with the transactions contemplated hereunder and BSN has not made any agreement or taken any other action which might cause
                                                                                           any Person to become entitled to a broker’s or finder’s fee or commission as a result of the transactions
                                                                                           contemplated hereby.

 

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		5.	INDEMNIFICATION

 

		5.1	Indemnification
                                         by Alliqua. Alliqua shall indemnify and defend BSN and BSN’s Affiliates,
                                         officers, directors, employees, agents and representatives (collectively, “BSN
                                         Indemnitees”) and hold them harmless from the following and against any and
                                         all losses arising out of, resulting from, relating to, in the nature of or caused by:

 

		(a)	any misrepresentation or breach
                                         of any representation or warranty made by Alliqua in this Agreement or in any Ancillary
                                         Document, or any claim by a third party that, if found to have merit, would constitute
                                         or give rise to such a misrepresentation or breach;

		(b)	any breach of any covenant,
                                         agreement or obligation of Alliqua in this Agreement or in any Ancillary Document, or
                                         any claim by a third party that, if found to have merit, would constitute or give rise
                                         to such a breach;

		(c)	the ownership or operation of
                                         the Rights or the distribution, marketing, promotion and/or sale of Products prior to
                                         the Closing;

		(d)	any breach by Alliqua of its
                                         obligations pursuant to Sections 8 and 11 of the Distributor Agreement; and

		(e)	retained Liabilities set forth
                                         in Section 2.3 hereof.

 

		5.2	Indemnification
                                         by BSN. BSN shall indemnify and defend Alliqua, and Alliqua’s Affiliates,
                                         officers, directors, employees, agents and representatives (collectively, “Alliqua Indemnitees”)
                                         and hold them harmless from and against any and all losses arising out of, resulting
                                         from, relating to, in the nature of or caused by:

 

		(a)	any misrepresentation or breach
                                         of any representation or warranty made by BSN in this Agreement or in any Ancillary Document,
                                         or any claim by a third party that, if found to have merit, would constitute or give
                                         rise to such a misrepresentation or breach;

		(b)	any breach of any covenant,
                                         agreement or obligation of BSN in this Agreement or in any Ancillary Document, or any
                                         claim by a third party that, if found to have merit, would constitute or give rise to
                                         such a breach;

		(c)	the ownership or operation of
                                         the Rights or the distribution, marketing, promotion and/or sale of Products from and
                                         after the Closing;

		(d)	any breach by BSN of its obligations
                                         pursuant to Sections 8 and 11 of the Distributor Agreement.

 

		5.3	Survival.
                                         All representations, warranties, covenants and agreements contained in this Agreement
                                         shall survive Closing (even if the Party seeking indemnity knew or had reason to know
                                         a misrepresentation or breach of warranty at the time of Closing). The indemnification
                                         rights and obligations set forth in this Article 5 shall also apply to direct claims
                                         by the Parties.

 

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		6.	Confidentiality

 

		6.1	Covenant.
                                         Effective as of the Closing Date, Alliqua agrees that it shall not use or disclose to
                                         anyone, except at the request of BSN, as applicable, any confidential information, knowledge
                                         or data directly relating to the Business, including information relating to accounts,
                                         financial dealings, transactions, trade secrets, intangibles, customer lists, pricing
                                         lists, processes, plans and proposals, whether or not marked or otherwise identified
                                         as confidential or secret, that Alliqua has received from BSN or its predecessor during
                                         the term of the Distributor Agreement (the “Confidential Information”).
                                         In the event that Alliqua is requested or required (by oral question or request for information
                                         or documents in any regulatory or legal proceeding or inspection, interrogatories, subpoena,
                                         civil investigative demand or similar process) to disclose any Confidential Information,
                                         Alliqua shall, if permitted and if practicable, notify BSN promptly of the request or
                                         requirement so that BSN may, at its sole expense, seek an appropriate protective order
                                         or waive compliance with the provisions of this Section 6.1. If, in the absence of a
                                         protective order or the receipt of a waiver under this Section 6.1, Alliqua is in its
                                         reasonable belief, required to disclose any Confidential Information to any Governmental
                                         Authority, Alliqua may disclose the Confidential Information to the Governmental Authority;
                                         provided, however, that Alliqua shall use commercially reasonable efforts
                                         to obtain, at the reasonable request and sole expense of BSN, an Order or assurance that
                                         confidential treatment shall be accorded to such portion of the Confidential Information
                                         required to be disclosed as BSN shall designate. The foregoing covenant shall not apply
                                         to (a) any information that has been made public (other than through breach of the provisions
                                         of this Agreement); (b) any information that, prior to disclosure by BSN to Alliqua or
                                         its Affiliates, was already in possession of a receiving party (who is not or was not
                                         known to Alliqua to be under an obligation to maintain its confidentiality) from a source
                                         other than Alliqua or its Affiliates; (c) any disclosure to the extent that it is required
                                         by applicable Law (provided that, if the disclosure is as the result of a legal proceeding
                                         or other similar process described above, the required protective procedures as contemplated
                                         above are followed); (d) any information independently developed by Alliqua or its Affiliates
                                         without any use of Confidential Information.

 

		7.	MISCELLANEOUS

 

		7.1	Amendment
                                         and Waiver. This Agreement may only be amended if such amendment is set forth
                                         in a writing executed by both Parties. No waiver of any provision of this Agreement shall
                                         be binding unless such waiver is in writing and signed by the Party against whom such
                                         waiver is to be enforced. No failure by any Party to insist upon the strict performance
                                         of any covenant, duty, agreement or condition of this Agreement or to exercise any right
                                         or remedy consequent upon a breach thereof shall constitute a waiver of any such breach
                                         or any other covenant, duty, agreement or condition.

 

		7.2	Notices.
                                         All notices, demands and other communications given or delivered under this Agreement
                                         shall be in writing and shall be deemed to have been given when personally delivered,
                                         or sent by electronic means of transmitting written documents (including without limitation
                                         e-mail), or sent to the Parties at the respective addresses indicated herein by certified
                                         U.S. mail, return receipt requested and postage prepaid, or sent by private overnight
                                         mail courier service. Notices, demands and communications sent by electronic means must
                                         also be sent by regular U.S. mail or by private overnight mail courier service in order
                                         for such notice to be effective. Notices, demands and communications to Alliqua or BSN
                                         must, unless another address is specified in writing, be sent to the address indicated
                                         below:

 

	If to BSN:	BSN medical, Inc..

        Attention: Joseph P. Carpinelli, Sr. Vice President of
        Finance – North America

        5825 Carnegie Blvd.

        Charlotte, NC 28209

        Phone: 704.731.1056

        Facsimile: 704.910.8994

        Email: Joseph.Carpinelli@bsnmedical.com

 

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	 	with a copy (which
                           copy shall not constitute notice to BSN) to:

         

        Koley Jessen P.C., L.L.O.

        Attention: Anshu S. K. Pasricha

        1125 S. 103rd St., Suite 800

        Omaha, NE  68124

        Phone: 402.390.9500

        Facsimile: 402.390.9005

        Email: Anshu.Pasricha@koleyjessen.com

         

	 If to Alliqua:	Alliqua Biomedical, Inc.

        Attention: David Johnson

        1010 Stony Hill Road, Suite 200

        Yardley, PA 19067

        Phone: 908.240.3521

        Facsimile: 215.702.8535

        E-mail: djohnson@alliqua.com

         

	 	with a copy (which copy shall not
        constitute notice to Alliqua) to:

         

        Haynes and Boone, LLP

        Attention: Rick A. Werner

        30 Rockefeller Plaza

        New York, NY 10112

        Phone: 212.659.7300

        Facsimile: 212.884.8234

        E-mail: Rick.Werner@haynesboone.com

         

		7.3	Assignment.
                                         This Agreement shall be binding upon, and inure to the benefit of, the Parties and their
                                         respective representatives, successors and permitted assigns. None of the Parties may
                                         assign either this Agreement or any of the rights, interests or obligations hereunder
                                         without the prior written approval of the other Parties, except that either Party shall
                                         have the right to assign this Agreement to an Affiliate or successor-in-interest without
                                         the consent of the other Party.

 

		7.4	Severability.
                                         Whenever possible, each provision of this Agreement shall be interpreted in such a manner
                                         as to be effective and valid under applicable Law, but if any provision of this Agreement
                                         is held to be prohibited by or invalid under applicable Law, such provision shall be
                                         ineffective only to the extent of such prohibition or invalidity, without invalidating
                                         the remainder of such provision or the remaining provisions of this Agreement. In lieu
                                         of such illegal, invalid or unenforceable provision, there shall be added automatically
                                         as a part of this Agreement a provision as similar in terms to such illegal, invalid
                                         and unenforceable provision as may be legal, valid and enforceable.

 

		7.5	No
                                         Strict Construction. The language used in this Agreement shall be deemed to be
                                         the language chosen by the Parties to express their mutual intent. In the event an ambiguity
                                         or question of intent or interpretation arises, this Agreement shall be construed as
                                         if drafted jointly by the Parties, and no presumption or burden of proof shall arise
                                         favoring or disfavoring any Person by virtue of the authorship of any of the provisions
                                         of this Agreement.

 

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		7.6	Captions.
                                         The captions used in this Agreement are for convenience of reference only and do not
                                         constitute a part of this Agreement and shall not be deemed to limit, characterize or
                                         in any way affect the meaning or interpretation of any provision of this Agreement, and
                                         all provisions of this Agreement shall be enforced and construed as if no caption had
                                         been used in this Agreement.

 

		7.7	Entire
                                         Agreement. This Agreement (including the Exhibits and the Schedules) and the
                                         documents referred to herein contain the entire agreement between the Parties relating
                                         to the subject matter hereof and supersede any and all prior understandings, agreements
                                         or representations by or between the Parties, written or oral, which may have related
                                         to the subject matter hereof in any way.

 

		7.8	Governing
                                         Law; Venue; Waiver of Jury Trial. ALL QUESTIONS CONCERNING THE CONSTRUCTION,
                                         VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL
                                         LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT
                                         OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION)
                                         THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE
                                         OF NEW YORK. Each Party hereby irrevocably submits
                                         to the exclusive personal jurisdiction of any state or federal court sitting in the State
                                         of NEW YORK in any action or proceeding arising out of or relating to this Agreement.
                                         TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY
                                         HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT
                                         OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION,
                                         CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING
                                         OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF
                                         OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED
                                         HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY HERETO ACKNOWLEDGES
                                         THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 7.8 CONSTITUTES
                                         A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING AND WILL RELY IN ENTERING INTO THIS
                                         AGREEMENT. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION
                                         7.8 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER
                                         OF ITS RIGHT TO TRIAL BY JURY.

 

		7.9	Parties
                                         in Interest. Nothing in this Agreement, express or implied, is intended to confer
                                         on any Person other than the Parties and their respective successors and permitted assigns
                                         any rights, remedies, obligations or liabilities under or by virtue of this Agreement,
                                         and no Person who is not a party to this Agreement, other than BSN Indemnitees and Alliqua
                                         Indemnitees who shall be third party beneficiaries of, and entitled to enforce, the indemnification
                                         provisions of Article 5, may rely on the terms hereof. No provision of this Agreement
                                         shall give any third parties any right of subrogation or action over or against any Party.

 

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		7.10	Specific
                                         Performance. Each of the Parties acknowledges and agrees that the other Party
                                         may be damaged irreparably in the event that any of the provisions of this Agreement
                                         are not performed in accordance with their specific terms or otherwise are breached.
                                         Accordingly, each of the Parties agrees that the other Party shall be entitled to seek
                                         an injunction or injunctions to prevent breaches of any of the provisions of this Agreement
                                         and to enforce specifically this Agreement and the terms and provisions hereof in any
                                         action instituted in any court of the United States or any other state thereof having
                                         jurisdiction over the Parties in the matter, in addition to any other remedy (including
                                         monetary damages) to which it may be entitled, at law or in equity.

 

		7.11	Other
                                         Contracts. It is the intent of the Parties that this Agreement and the Transition
                                         Services Agreement being entered into by the Parties should not be treated as interrelated
                                         documents but treated as separate contracts for which separate consideration was paid.

 

		7.12	Waiver
                                         of Cal. Civ. Code § 1542. It is a further condition of the consideration
                                         hereof and is the intention of the Parties in executing this Agreement that the same
                                         shall be effective as a bar as to each and every claim, demand and cause of action hereinabove
                                         specified or referred to and, in furtherance of this intention, the Parties hereby expressly
                                         waive any and all rights or benefits conferred by the provisions of Section 1542 of the
                                         California Civil Code. It is the intention of the Parties that this Agreement shall be
                                         given full force and effect according to each and all of its express terms and conditions,
                                         including those unknown and unsuspected claims, demands and causes of actions hereinabove
                                         specified. Each Party hereto expressly understands and acknowledges that Section 1542
                                         of the California Civil Code provides as follows: A GENERAL RELEASE DOES NOT EXTEND TO
                                         CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME
                                         OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT
                                         WITH THE DEBTOR. Each Party hereby waives the foregoing provisions of California Civil
                                         Code §1542. The Parties acknowledge that they may hereafter discover claims or facts
                                         in addition to or different from those which they now know or believe to exist with respect
                                         to the subject matter of this Agreement and which, if known or suspected at the time
                                         of executing this Agreement, may have materially affected this settlement. Nevertheless,
                                         the Parties hereby waive, after final resolution by the court, any right, claim or cause
                                         of action that might arise as a result of different or additional claims or facts. The
                                         Parties acknowledge that they understand the significance and consequence of such release
                                         and such specific waiver of California Civil Code §1542.

 

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		7.13	Noncompete;
                                         Enforceability; Remedies.  Alliqua agrees that during the Restricted Period Alliqua
                                         shall not, directly or indirectly through any entity, as a principal, employee, partner,
                                         owner, member, officer, director, agent, consultant or otherwise, compete with BSN (whether
                                         by manufacturing, designing, distributing or otherwise selling), or assist in or provide
                                         financial resources to any Person or activity which manufactures, designs, distributes
                                         or sells super absorbent wound dressings competitive with the Products in the Territory.
                                         Alliqua shall provide BSN with at least 30 calendar days prior written notice of any
                                         Change of Control Transaction. For the avoidance of doubt, Alliqua and BSN hereby acknowledge
                                         and agree that the restrictions set forth in this Section 7.13 are not intended to, and
                                         shall not, restrict the business activities of any acquirer of Alliqua pertaining to
                                         products other than the Products, provided that (x) such business activities existed
                                         prior to the date of the consummation of the Change of Control Transaction, (y) that
                                         Alliqua is not and was not directly or indirectly involved or engaged in such business
                                         activities in violation of the first sentence of this Section 7.13, and (z) Alliqua does
                                         not provide any information related to the Business to such acquirer that is used to
                                         the detriment of BSN. Alliqua acknowledges and agrees that the covenants and agreements
                                         set forth in this Section 7.13 were a material inducement to BSN to enter into this Agreement
                                         and to perform its obligations hereunder, and that BSN would be irreparably damaged and
                                         would not obtain the benefit of the bargain set forth in this Agreement as specifically
                                         negotiated by the Parties if Alliqua breached the provisions of this Section 7.13. Alliqua
                                         has consulted with legal counsel regarding the covenants set forth in this Section 7.13
                                         and, based on such consultation, has determined and hereby acknowledges that such covenants
                                         are reasonable in terms of duration, scope and area of restrictions and are necessary
                                         to protect the goodwill of Rights and the substantial investment in the Rights made by
                                         BSN hereunder. Alliqua further acknowledges and agrees that: (i) the benefits to Alliqua
                                         of the transactions contemplated by this Agreement are sufficient consideration to support
                                         Alliqua’s agreements set forth in this Section 7.13; and (ii) the agreements
                                         set forth in this Section 7.13 are being entered into in connection with the purchase
                                         of Rights pursuant to this Agreement and not in connection with any other arrangement
                                         between Alliqua and BSN. In the event of any breach of the covenants set forth in this
                                         Section 7.13, Alliqua agrees that the harm to BSN or the Rights will be irreparable and
                                         without adequate remedy at law and therefore that specific performance by way of permanent
                                         and/or temporary injunctive relief with respect thereto will be appropriate in addition
                                         to any other legal rights or remedies available under the applicable Legal Requirements
                                         or under this Agreement, without the necessity of proving the inadequacy of legal damages
                                         or of posting a bond. Furthermore, upon the final determination of any breach of the
                                         covenants set forth in this Section 7.13, the relevant restriction period identified
                                         above shall be extended for a length of time equivalent to the period of breach. In the
                                         event that a court of competent jurisdiction determines in a final, non-appealable judgment,
                                         in an action brought by or on behalf of BSN, that any of the foregoing provisions are
                                         unenforceable as stated, the Parties intend that such restrictions be modified to permit
                                         the maximum enforceable restriction, including on Alliqua’s competition with BSN.

 

		7.14	Expenses.
                                         Except as otherwise expressly provided herein, Alliqua and BSN shall each pay all
                                         of their own Expenses.

 

		7.15	Public
                                         Regulatory Filings. Alliqua will consult with BSN, and provide BSN a reasonable
                                         prior opportunity to review and comment upon any public statements made or caused to
                                         be made by or on behalf of Alliqua or its Affiliates, whether or not required by applicable
                                         Law, that the transactions contemplated hereby have been consummated. Notwithstanding
                                         the foregoing, Alliqua will not be required to consult with BSN with respect to any public
                                         statements as to the completion of the transaction that are consistent (and not inconsistent)
                                         with any statements that have previously been reviewed by BSN.

 

		7.16	Mutual
                                         Non-Disparagement.

 

		(a)	Subject to applicable law, the
                                         Parties shall each refrain from making, and shall cause their respective agents, subsidiaries,
                                         Affiliates, successors, assigns, officers, key employees or directors not to, directly
                                         or indirectly, in any capacity or manner, make, express, transmit, speak, write, verbalize
                                         or otherwise communicate in any way (or cause, further, assist, solicit, encourage, support
                                         or participate in any of the foregoing), any remark, comment, message, information, declaration,
                                         communication or other statement of any kind, whether verbal, in writing, electronically
                                         transferred or otherwise, that might reasonably be construed to be derogatory of (a)
                                         in the case of statements or announcements by Alliqua, BSN or any of its Affiliates or
                                         subsidiaries or any of its or their respective officers or directors or any person who
                                         has served as an officer or director of BSN or any of its Affiliates or subsidiaries,
                                         or (b) in the case of communications by BSN, Alliqua or any of its Affiliates or subsidiaries
                                         or any of its or their respective officers or directors or any person who has served
                                         as an officer or director of Alliqua or any of its Affiliates or subsidiaries. The foregoing
                                         shall not restrict the ability of any Person to (ii) comply with any subpoena or other
                                         legal process or respond to a request for information from any governmental authority
                                         with jurisdiction over the party from whom information is sought or (ii) to comply with
                                         any applicable Law.

 

    17

     

    

 

		(b)	The limitations set forth in
                                         Section 7.16(a) shall not prevent any Party from responding to any public statement made
                                         by the other Party of the nature described in Sections 7.16(a) and 7.16(b) if such statement
                                         by the other Party was made in breach of this Agreement.

 

		7.17	Further
                                         Assurances. In case at any time after the Closing any further action is necessary
                                         or desirable to carry out the purposes of this Agreement and any Ancillary Document,
                                         each of the Parties shall take further action (including the execution and delivery of
                                         further instruments and documents) as any other Party reasonably may request, all at
                                         the sole cost and expense of the requesting Party (unless the requesting Party is entitled
                                         to indemnification therefor under Article 5, in which case the provisions of Article
                                         5 shall apply).

 

		7.18	Counterparts;
                                         Exchange by Electronic Transmission. This Agreement may be executed in one or
                                         more counterparts, each of which shall be deemed an original, but which together shall
                                         constitute one and the same instrument. The Parties may execute this Agreement, any Ancillary
                                         Documents and all other agreements, and other documents contemplated hereby and thereby
                                         and exchange on the Closing Date counterparts of such documents by means of facsimile
                                         transmission or electronic mail and the Parties agree that the receipt of such executed
                                         counterparts shall be binding on such Parties and shall be construed as originals. After
                                         the Closing the Parties shall promptly exchange original versions of this Agreement,
                                         any Ancillary Documents and all other agreements, and other documents contemplated hereby
                                         and thereby that were executed and exchanged by facsimile transmission or electronic
                                         mail pursuant to this section, but failure to do so shall not affect the binding
                                         nature of the same.

 

[Remainder of This
Page Left Blank Intentionally; Signature Page Follows]

 

    18

     

    

 

IN WITNESS WHEREOF,
the Parties have executed this Purchase Agreement as of the date first written above.

 

	 	BSN MEDICAL, INC.
	 	 	 
	 	By:	/s/ Joseph
    Carpinelli
	 	Name:	Joseph
    Carpinelli
	 	Its:	SVP Finance,
    North America
	 	 	 
	 	ALLIQUA BIOMEDICAL, INC. 
	 	 	 
	 	By:	/s/ Brian
    M. Posner
	 	Name:	Brian M.
    Posner
	 	Its:	CFO

 

[Signature Page to Purchase Agreement]

 

     

     

    

 

Annex A

Distributor Agreement

 

    A-1

     

    

 

Distributor Agreement

EXECUTION COPY

between

 

Sorbion GmbH & Co KG,

a company based in Senden, Germany, incorporated
under the laws of the Federal Republic of Germany, registered with the commercial register of the local court of Coesfeld, Germany,
under HRA 6688, represented by its general partner SORBION Verwaltungs GmbH which is represented by its managing director Michael
Stonner and proxy Olaf Ohm, business address: Im Südfeld 11, 48308 Senden, Germany,

 

(hereinafter referred to as "SORBION")

 

and

 

Alliqua Biomedical, Inc.,

a company based in New York, New York, incorporated
under the laws of Florida, business address: 850 Third Avenue, Suite 1801, New York, NY 10022, USA

 

(hereinafter referred to as ,,ALLIQUA")

 

(SORBION and ALLIQUA collectively hereinafter
referred to as “PARTIES" and each as "PARTY")

 

WHEREAS, SORBION is designing, manufacturing
and selling wound care-products for hydro active wound management;

 

WHEREAS, ALLIQUA is a wound management and
drug delivery company and is willing to sell the PRODUCTS of SORBION to third parties within the countries listed in Exhibit
A (hereinafter the "TERRITORY");

 

WHEREAS, SORBION is willing to appoint ALLIQUA
with this distributor agreement (the "AGREEMENT") as its distributor for the sale of some of its products to
third parties residing in the TERRITORY;

 

Now, THEREFORE, IN CONSIDERATION OF THE TERMS
AND CONDITIONS SET FORTH HEREUNDER, THE

PARTIES CONVENE AND AGREE AS FOLLOWS:

 

    	 	1	 

     

    

 

section 1

Appointment as distributor,
legal position of the distributor

 

		(1)	SORBION
                                         hereby appoints ALLIQUA as its distributor for the sale of the products listed in Exhibit
                                         B (including Annex 1, Annex 2 and Annex 3 to Exhibit 8) and - subject
                                         to para (2) below - all product line extensions of any of the foregoing (hereinafter
                                         referred to as "PRODUCTS") within the TERRITORY. ALLIQUA accepts such
                                         appointments. The specifications of the PRODUCTS are described in Exhibit B
                                         (Annex 1, Annex 2 and Annex 3). SORBION represents
                                         and warrants that the grant of rights to ALLIQUA under this AGREEMENT does not conflict
                                         with any agreement that SORBION has with any third party.

 

		(a)	ALLIQUA's
                                         rights to distribute the PRODUCTS listed in Exhibit B, Annex 1 and -subject
                                         to para (2) below - all product line extensions of any of the foregoing (collectively,
                                         the "ANNEX 1 PRODUCTS") shall be exclusive (even as to SORBION) in the
                                         TERRITORY; provided, however, that notwithstanding such exclusivity, a
                                         certain third party distributor of SORBION, Systagenix Wound Management ("SYSTAGENIX"),
                                         shall have the right to distribute the ANNEX 1 PRODUCTS in the TERRITORY on a private-label
                                         basis under SYSTAGENIX's brand pursuant to an agreement between SYSTAGENIX and SORBION
                                         that exists as of the date of this AGREEMENT. If SYSTAGENIX's right to distribute the
                                         ANNEX 1 PRODUCTS in the TERRITORY expires or is terminated, then ALLIQUA's rights to
                                         distribute the ANNEX 1 PRODUCTS shall automatically become exclusive in all respects.

 

		(b)	As
                                         of the date of this AGREEMENT, ALLIQUA's rights to distribute the PRODUCTS listed in
                                         Exhibit B. Annex 2 and - subject to para (2) below - all product line extensions
                                         of any of the foregoing (collectively, the "ANNEX 2 PRODUCTS") shall
                                         be exclusive (even as to SORBION) in the TERRITORY; provided, however,
                                         that notwithstanding such exclusivity, a certain third party distributor of SORBION,
                                         Carolon Company ("CAROLON"), shall have the right to distribute the
                                         ANNEX 2 PRODUCTS in the TERRITORY (in addition to ALLIQUA's right to distribute the ANNEX
                                         2 PRODUCTS in the TERRITORY) pursuant to an agreement between CAROLON and SORBION that
                                         exists as of the date of this AGREEMENT. If CAROLON's right to distribute the ANNEX 2
                                         PRODUCTS in the TERRITORY expires or is terminated (or is assigned to ALLIQUA), then
                                         ALLIQUA's rights to distribute the ANNEX 2 PRODUCTS shall automatically become exclusive
                                         in all respects.

 

		(c)	ALLIQUA's
                                         rights to distribute the PRODUCTS listed in Exhibit B, Annex 3 and – subject
                                         to para (2) below - all product line extensions of any of the foregoing (collectively,
                                         the "ANNEX 3 PRODUCTS") shall be exclusive (even as to SORBION) in the
                                         TERRITORY at all times during the term of this AGREEMENT.

 

    	 	2	 

     

    

 

		(2)	The
                                         Parties upon mutual agreement may modify Exhibit B (Annex 1, Annex
                                         2 and Annex 3). For the avoidance of doubt, SORBION has the sole
                                         discretion which product line extension may be distributed in the TERRITORY. Therefore,
                                         if a product line extension is distributed outside the TERRITORY but Sorbion decides
                                         not to distribute this product line extension in the TERRITORY, ALLIQUA may not sell
                                         the respective product line extension in the TERRITORY.

 

		(3)	The
                                         basis of the legal relationship between the PARTIES, in relation to all processes connected
                                         with this AGREEMENT, is exclusively this AGREEMENT as well as the General Terms and Conditions
                                         of Sale and Transfer of SORBION that are attached as Exhibit C, which shall
                                         be applicable to the individual purchase contracts still to be concluded (see below section
                                         2). Conflicting, deviating or additional agreements do not exist, except as attached
                                         as exhibits to this AGREEMENT or except with respect to the design, packaging and labeling
                                         agreement referenced below in section 1(4). SORBION does not acknowledge any general
                                         terms and conditions of ALLIQUA. Even if a purchase contract is performed without reservation
                                         in the knowledge of conflicting or deviating terms and conditions of ALLIQUA, this shall
                                         not constitute a consent of SORBION to their application.

 

		(4)	ALLIQUA
                                         shall buy the PRODUCTS directly from SORBION in its own name and on its own account,
                                         and then shall sell them under the respective trademark (e. g. "SORBION", "SORBION
                                         sachet", "SORBION sachet S" or "SORBION sana") with the design,
                                         packaging and labeling as agreed by the PARTIES (such agreement not to be unreasonably
                                         withheld or delayed), to third parties domiciling within the TERRITORY in its own name
                                         and on its own account. ALLIQUA is free in determining its selling prices.

 

		(5)	Nothing
                                         in this AGREEMENT shall constitute the right of ALLIQUA to act as an agent of SORBION
                                         to represent SORBION in any way whatsoever. ALLIQUA is not entitled to conclude legal
                                         transaction on behalf of SORBION. For the avoidance of doubt, ALLIQUA is an independent
                                         enterprise and not an employee of SORBION.

 

		(6)	ALLIQUA
                                         is in a position to assess the financial chances and risks of the activity hereby contractually
                                         assumed. SORBION is therefore not responsible for the profitability of the business of
                                         ALLIQUA.

 

		(7)	ALLIQUA
                                         shall not be entitled to engage subcontractors or any third party as its subagent or
                                         the alike with respect to marketing of the PRODUCTS without having obtained SORBION's
                                         prior written approval to do so, such approval not to be unreasonably withheld; provided,
                                         however, that for the avoidance of doubt, SORBION's approval will not be required
                                         for ALLIQUA to: (i) sell PRODUCTS through wholesalers, Group Purchasing Organizations
                                         ("GPOs") and other third parties as are customarily involved in the
                                         distribution and sale of medical device products in the TERRITORY or (ii) use contract
                                         sales organizations or other independent sales representatives in connection with the
                                         marketing of the PRODUCTS.

 

    	 	3	 

     

    

 

		(8)	ALLIQUA
                                         acknowledges SORBION's policy of working with local partners and granting them exclusivity
                                         for certain countries and regions outside the TERRITORY: ALLIQUA agrees not to interfere
                                         with this policy. ALLIQUA is not allowed to actively initiate, support and accomplish
                                         soliciting any sales of the PRODUCTS outside the TERRITORY. ALLIQUA shall limit its efforts
                                         to advertise and solicit sales of the PRODUCTS to activities executed within the TERRITORY,
                                         unless customers from outside the TERRITORY have solicited for quotations and/or deliveries
                                         without prior inducement by ALLIQUA (passive distribution). ALLIQUA will not ship or
                                         sell any customer outside the TERRITORY without the expressed written approval of SORBION.
                                         Sale and distribution in the European Union, Switzerland, Turkey and Australia explicitly
                                         is reserved to SORBION and its other distributors. ALLIQUA will inform its customers
                                         that the PRODUCTS are for sale in the TERRITORY only. Should ALLIQUA determine that PRODUCTS
                                         are being sold outside the TERRITORY by a customer from within the TERRITORY, ALLIQUA
                                         will notify SORBION so that appropriate action may be taken.

 

section 2

Purchase, sale and
delivery of PRODUCTS, prices

 

 

		(1)	ALLIQUA
                                         will undertake commercially reasonable efforts to enhance the sale of the PRODUCTS. ALLIQUA
                                         will undertake commercially reasonable efforts to achieve a regular flow of orders and
                                         take-offs of the PRODUCTS during each calendar year. ALLIQUA is obliged to protect the
                                         interests and reputation of SORBION and not to do anything which would endanger the reputation,
                                         market position or creditworthiness of SORBION or otherwise damage SORBION. ALLIQUA undertakes
                                         to discuss with SORBION at regular intervals the objectives and strategies for the sale
                                         of PRODUCTS in the TERRITORY.

 

		(2)	SORBION
                                         sells the PRODUCTS on the basis of its General Terms and Conditions of Sale and Transfer
                                         attached as Exhibit C and which can be amended from time to time upon the
                                         mutual, written agreement of the PARTIES. The provisions of this AGREEMENT shall have
                                         in case of contradiction priority over the General Terms and Conditions of Sale and Transfer.
                                         For the avoidance of doubt, and without limiting the foregoing, the PARTIES agree that
                                         the following provisions set forth in the General Terms and Conditions of Sale and Transfer
                                         shall have no effect, as such provisions address matters that are covered in the main
                                         body of this AGREEMENT: Section 11(1), Section Ill, Section IV(1). For the avoidance
                                         of doubt, the sale of PRODUCTS are on basis of Section XIII of the General Terms and
                                         Conditions of Sale and Transfer.

 

    	 	4	 

     

    

  

		(3)	Except
                                         as provided below as well as in Section 2(3) and Section 2(5) below, SORBION will accept
                                         all Product orders that are issued by ALLIQUA and that are consistent with the valid
                                         price list (see para. (6) below). However, the individual purchase contract shall come
                                         into effect only on acceptance of the order of ALLIQUA by SORBION. SORBION shall send
                                         an order confirmation. SORBION is entitled to stop accepting orders for the PRODUCTS,
                                         only to the extent SORBION decides to do so generally for all markets worldwide, after
                                         informing ALLIQUA in writing with a notice period of six months. Orders of ALLIQUA accepted
                                         by SORBION before the end of such notice period shall remain unaffected. Further, SORBION
                                         may decide to not to accept orders if the respective Products are - pursuant SORBION's
                                         sole discretion - not marketable or defective or if there is the risk or suspicion that
                                         the respective Products do not comply with the requirements set out in Section 4(1) below.

 

		(4)	SORBION
                                         will deliver PRODUCTS to ALLIQUA by the delivery date set forth on ALLIQUA's order, provided
                                         that such delivery date is no sooner than 30 days after the date of such order.

 

		(5)	Events
                                         of force majeure hindering the Parties in fulfilling their contractual obligations in
                                         part or in total, shall exempt and free the relevant Party from its obligation to fulfill
                                         this contract until the events of force majeure do not exist anymore. The following shall
                                         be regarded as events of force majeure: fire, natural disaster, war, revolution, riots,
                                         acts of terrorism, shortage of raw materials, strike, lockouts, disturbances in seller's
                                         business or business of suppliers, acts of government or authority. The other Party may
                                         terminate the contract if the event of force majeure lasts for more than six months or
                                         if the party terminating the contract can reasonably demonstrate that it would be unreasonable
                                         for the party to continuously be bound by the contract.

 

		(6)	SORBION
                                         is free to determine its prices and conditions. At least 30 days before the beginning
                                         of each calendar year starting with 2015, SORBION shall send ALLIQUA the valid price
                                         list which shall remain in effect for the duration of such calendar year. The currently
                                         valid price list which shall remain in effect for calendar years 2013 and 2014 is attached
                                         to this AGREEMENT as Exhibit D. The prices according to Exhibit D
                                         are ex works and have to be paid within 30 days after date of invoice with 3%
                                         deduction or 45 days after date of invoice without deduction. SORBION will invoice ALLIQUA
                                         for each PRODUCT order upon shipment of the PRODUCTS covered by the order to ALLIQUA.
                                         For the avoidance of doubt, prices do not include any import taxes, sales taxes, duty
                                         or other governmental fees which have to be paid by ALLIQUA. Notwithstanding anything
                                         to the contrary: (i) Sorbion will pay for fifty percent (50%) of Shipment Costs (as defined
                                         below) with respect to PRODUCT orders that are for less than 50.000,00 € and (ii)
                                         Sorbion will pay for one hundred percent (100%) of Shipment Costs with respect to PRODUCT
                                         orders that are equal or above 50.000,00 €. "Shipment Costs" means
                                         the following costs associated with an order of PRODUCTS: (i) shipping costs (via a mutually
                                         agreed upon means of shipping), (ii) other logistics costs, including customs clearance
                                         costs and (iii) import taxes, sales taxes, duties and other governmental fees.

 

    	 	5	 

     

    

  

		(7)	In
                                         cases of late payment for PRODUCTS that conform to the requirements of this AGREEMENT,
                                         SORBION is entitled to claim interest in the amount of 8 % p. a. Further claims for damages
                                         remain unaffected.

 

section 3 Exclusivity

 

		(1)	ALLIQUA
                                         shall act as SORBION's exclusive distributor for the PRODUCTS within the TERRITORY for
                                         the term of this AGREEMENT (subject to the limited exceptions provided for in Sections
                                         1(1)(a) and {b) and also subject to ppara. (3) and (4) below). As long as exclusivity
                                         is granted to ALLIQUA, SORBION will not itself sell any PRODUCTS into the TERRITORY or
                                         appoint any third party to sell PRODUCTS into the TERRITORY (other than the existing
                                         appointments of SYSTAGENIX and CAROLON as distributors of ANNEX 1 PRODUCTS and ANNEX
                                         2 PRODUCTS, respectively, as provided in Sections 1(1)(a) and (b)) without ALLIQUA's
                                         approval. In addition, SORBION agrees that it will use its best efforts to insure that
                                         the PRODUCTS are not sold from another territory into the TERRITORY.

 

		(2)	The
                                         exclusivity granted to ALLIQUA under this AGREEMENT is conditioned on ALLIQUA purchasing
                                         from SORBION, during calendar year 2014 and each calendar year thereafter during the
                                         term of this AGREEMENT, PRODUCTS for an aggregate purchase price that equals or exceeds
                                         the minimum purchase amount that is set forth for such calendar year on Exhibit
                                         E (the "MINIMUM ANNUAL PURCHASE AMOUNT"). If ALLIQUA fails to
                                         make PRODUCT purchases for payments that, in the aggregate, equal or exceed the MINIMUM
                                         ANNUAL PURCHASE AMOUNT for a given calendar year, then ALLIQUA may, at its sole discretion,
                                         cure such failure by paying SORBION, within 45 days after the end of such calendar year,
                                         an amount equal to such MINIMUM ANNUAL PURCHASE AMOUNT minus the aggregate payments made
                                         by ALLIQUA for PRODUCT purchases for such year. SORBION's sole and exclusive remedy for
                                         any failure by ALLIQUA to pay the MINIMUM ANNUAL PURCHASE AMOUNT for a given calendar
                                         year shall be as set forth below in Section 3(3), Section 3(4) and Section 3(5).

 

		(3)	If
                                         ALLIQUA fails to pay the applicable MINIMUM ANNUAL PURCHASE AMOUNT for a given calendar
                                         year in accordance with para. (2) above, SORBION is entitled to terminate the exclusivity
                                         right of ALLIQUA immediately and convert ALLIQUA's rights under this AGREEMENT to non-exclusive
                                         rights. In addition, if ALLIQUA fails to pay the MINIMUM ANNUAL PURCHASE AMOUNT in accordance
                                         with para. (2) above for two subsequent calendar years, SORBION shall have the right
                                         to terminate this AGREEMENT in its entirety upon ninety (90) days prior, written notice
                                         to ALLIQUA.

 

    	 	6	 

     

    

 

		(4)	Notwithstanding
                                         anything to the contrary, ALLIQUA shall not be required to purchase the MINIMUM ANNUAL
                                         PURCHASE AMOUNT in order to retain the exclusivity granted to ALLIQUA under this AGREEMENT,
                                         and SORBION shall have no termination right under Section 3(3) above, if SORBION fails
                                         to supply PRODUCTS to ALLIQUA that meet the requirements of this AGREEMENT, whether on
                                         account of an Event of Force Majeure, on account of SORBION no longer accepting orders
                                         pursuant to Section 2(3) with regard to any PRODUCT or a cessation of sales pursuant
                                         to Section 4(6) with regard to any PRODUCT, or otherwise. Further, ALLIQUA shall not
                                         be required to purchase the MINIMUM ANNUAL PURCHASE AMOUNT regarding the calendar year
                                         2014 in order to retain the exclusivity granted to ALLIQUA under this AGREEMENT, and
                                         SORBION shall have no termination right under Section 3(3) above, if ALLIQUA acquires
                                         CAROLON's rights to distribute the ANNEX 2 PRODUCTS in the TERRITORY.

 

		(5)	Further,
                                         any material breach of this AGREEMENT by ALLIQUA will entitle SORBION to terminate the
                                         exclusivity by providing ALLIQUA with thirty (30) days prior, written notice of such
                                         termination; provided, however, that such exclusivity will not terminate
                                         if ALLIQUA cures such breach by the end of such thirty (30) day period. This shall not
                                         affect any other rights or remedies of SORBION arising from such failure, especially
                                         the right to terminate the whole AGREEMENT in accordance with section 10.

 

section 4

Agreement of Quality
Assurance

 

		(1)	SORBION
                                         declares conformity with the essential requirements as stated in Annex I of the European
                                         medical device directive 93/42/EEC and confirms to maintain a complete quality management
                                         system as required by Annex II of 93/42/EEC. SORBION represents, warrants and covenants
                                         that the PRODUCTS at all times shall be: (i) labeled internationally, including English
                                         language and English language instructions for use, and in compliance with all applicable
                                         laws and regulations in the TERRITORY and (ii) the PRODUCTS at all times shall meet all
                                         applicable laws and regulations pertaining to the sale of the PRODUCTS in the TERRITORY.
                                         If legal provisions or authority directives in the TERRITORY require a change in the
                                         PRODUCTS ALLIQUA is obliged to inform SORBION.

 

		(2)	ALLIQUA
                                         is obliged to ensure that its marketing practices with respect to the PRODUCTS complies
                                         with local or other laws. ALLIQUA is liable for any damages, financial or of any other
                                         kind, which are caused by failure to meet the foregoing requirement.

 

    	 	7	 

     

    

 

		(3)	ALLIQUA
                                         will comply with all statutory and/or official regulations, laws, instructions, decisions
                                         and/or statutes which affect ALLIQUA and its enterprise as well as the possibility of
                                         the sale of the PRODUCTS in the TERRITORY. ALLIQUA will pay all taxes, license fees,
                                         permit fees or registration fees and other costs and charges incurred by ALLIQUA connected
                                         with the establishment and/or the operation of ALLIQUA's business as well as the sale
                                         of the PRODUCTS, insofar as such exist.

 

		(4)	SORBION
                                         will be responsible, at its expense, for (i) obtaining and maintaining any required regulatory
                                         approvals and clearances with respect to the PRODUCTS in the TERRITORY, (ii) responding
                                         to requests from regulatory authorities in the TERRITORY with respect to the PRODUCTS,
                                         (iii) reporting any adverse events with respect to the PRODUCTS to applicable regulatory
                                         authorities in accordance with applicable laws and regulations, (iv) conducting any clinical
                                         studies with respect to the PRODUCTS and (v) obtaining reimbursement approvals for the
                                         PRODUCTS in the TERRITORY.

 

		(5)	ALLIQUA
                                         will promptly report to SORBION any adverse events of which ALLIQUA becomes aware with
                                         regard to the PRODUCTS. ALLIQUA will conduct its distribution activities (including but
                                         not restricted to the keeping of distribution records, complaint handling, and problem
                                         reporting to SORBION and recall procedures) in accordance with applicable laws and regulations
                                         in the TERRITORY. ALLIQUA will provide for adequate insurance with regard to its distribution
                                         activities. ALLIQUA undertakes reasonable efforts to market the SORBION brand in the
                                         TERRITORY.

 

		(6)	SORBION
                                         has the right to instruct ALLIQUA to immediately cease sales of the PRODUCTS in the event
                                         such sales would violate any applicable law, or would expose SORBION to product defect
                                         liability in the event of non-conformity. Such right of SORBION is in addition to its
                                         rights under section 2(3) of this AGREEMENT.

 

		(7)	All marketing materials
                                         such as brochures, internet marketing and any kind of advertising must be in conformity
                                         of the PRODUCT's respective instructions for use and have to be agreed upon with SORBION
                                         before launch. SORBION will not unreasonably withhold its approval of any such marketing
                                         materials. Changes in the PRODUCTS, the packaging and design are only allowed with prior
                                         written consent of SORBION. SORBION may provide for marketing, branding, corporate identity-
                                         and compliance-schemes and materials, which ALLIQUA must use commercially reasonable
                                         efforts to comply with and use. ALLIQUA must inform SORBION if ALLIQUA becomes aware
                                         of that such schemes and materials violate or interfere with applicable law in the TERRITORY,
                                         in which event the PARTIES will adjust such schemes and/or materials to accomplish the
                                         directive of SORBION at the best.

 

    	 	8	 

     

    

 

		(8)	ALLIQUA
                                         will provide user support for local customers and be responsible for post-market surveillance
                                         in the TERRITORY (provided that SORBION shall be responsible for any reporting obligations
                                         to applicable regulatory authorities). ALLIQUA will establish procedures for complaint
                                         handling and will inform SORBION without undue delay of any problems relating to the
                                         PRODUCTS.

  

		(9)	ALLIQUA
                                         will introduce and maintain a system for keeping distribution records, which enables
                                         ALLIQUA to perform a product recall, if such recall should become necessary. ALLIQUA
                                         will establish procedures to perform such a recall procedure. The distribution records
                                         will be kept for five years after the PRODUCTS "use-by"-date, even if the exclusivity
                                         and/ or the AGREEMENT have expired. In the event that a recall of the PRODUCTS becomes
                                         necessary, SORBION will provide to ALLIQUA instructions on recall procedures which shall
                                         be followed by ALLIQUA to the extent commercially reasonable. Costs of any recalls shall
                                         be borne by SORBION, unless recall necessity is solely as a result of ALLIQUA's negligence.

 

		(10)	ALLIQUA
                                         will follow the applicable regulations for marketing medical devices and the applicable
                                         regulations on fair competition and fair dealing. Even if there are no local restrictions
                                         in the TERRITORY, ALLIQUA will not use fraudulent or misleading advertising or marketing.

 

section 5

Use of trademarks
and intellectual property

 

		(1)	SORBION
                                         grants to ALLIQUA the right to use the trademarks SORBION, SORBION Sachet S, SORBION
                                         Sana for the sale and distribution of the PRODUCTS delivered by SORBION to customers
                                         in the TERRITORY and for marketing activities in the TERRITORY under the terms and for
                                         the duration of this AGREEMENT as long as it is clearly indicated that the Product is
                                         manufactured by SORBION and imported and distributed by ALLIQUA.

 

		(2)	ALLIQUA
                                         will market, sell and deliver the PRODUCTS as provided by SORBION only under the SORBION
                                         SORBION Sachet S, SORBION Sana trademark and Logo with the original package and directions
                                         for use. SORBION will add a reference identifying ALLIQUA as responsible importer /vendor
                                         and/or local contact. The design requires the prior written consent of both PARTIES.

 

		(3)	ALLIQUA
                                         agrees not to use any name or trademark similar to, confusingly or deceptively similar
                                         with the trademarks of SORBION and to assist SORBION, at SORBION's request and expense,
                                         in taking all reasonable steps to defend or to protect its trademarks relating to the
                                         PRODUCTS in the TERRITORY.

 

    	 	9	 

     

    

 

		(4)	From
                                         the marketing, sale, distribution, or other use of the PRODUCTS, ALLIQUA generally does
                                         not derive any right regarding the trademark, Logo, symbols or part thereof of SORBION.
                                         If local law grants any such rights to ALLIQUA, ALLIQUA is obliged and guarantees to
                                         return the right to SORBION immediately after the end of exclusivity and/or the AGREEMENT
                                         without costs to SORBION.

 

		(5)	ALLIQUA
                                         undertakes to use intellectual property (i.e. trademarks, patents, know-how, copyright)
                                         belonging to SORBION only in the manner and to the extent expressly permitted by this
                                         AGREEMENT or in writing by SORBION. ALLIQUA will provide all possible co-operation and
                                         assistance, at SORBION's request and expense, in SORBION's efforts to protect its intellectual
                                         property in the TERRITORY.

 

section 6

Sales Forecast / Market Analysis

 

 

		(1)	ALLI
                                         QUA shall provide SORBION with a first market analysis for 2014 on or before 30.11.2013.

 

		(2)	In
                                         each quarter ALLIQUA shall provide SORBION with a marketing- and activity-report, relating
                                         to its own activities and the general market development with respect to the PRODUCTS.

 

		(3)	Not
                                         later than thirty (30) days prior to first day of each calendar quarter during the term
                                         of this AGREEMENT, ALLIQUA shall also provide to SORBION: (i) its non-binding written
                                         forecast of ALLIQUA's good faith written estimate of expected requirements for PRODUCTS
                                         during the following 12 months, and (ii) its binding written forecast of ALLIQUA's requirements
                                         for PRODUCTS, during such calendar quarter {for example, the forecast for the first calendar
                                         quarter of each year shall be provided not later than 30 days prior to the first day
                                         of the first calendar quarter of such year). Each such binding forecast shall be broken
                                         down on a month-by-month basis for the applicable calendar quarter.

 

		(4)	SORBION
                                         shall provide ALLIQUA with any information regarding SORBION's sales activity outside
                                         the TERRITORY, including for new products and special marketing activities, except regarding
                                         confidential information as determined by SORBION.

 

section 7 

Warranty and liability

 

		(1)	ALLIQUA
                                         shall examine the PRODUCTS promptly after collection/delivery of the PRODUCTS for any
                                         damage that is obvious from a visual inspection ("Obvious Defects"). Obvious
                                         defects shall be notified to SORBION in writing immediately, in any event not later than
                                         seven days after receipt. Defects that are not Obvious Defects have to be notified promptly
                                         after discovery. If SORBION is not notified in time, all claims are excluded.

 

    	 	10	 

     

    

 

		(2)	If
                                         the delivered PRODUCTS are not conforming to the specifications agreed between the PARTIES
                                         or the other requirements of this AGREEMENT (hereinafter referred to as "DEFECTIVE
                                         PRODUCTS" or "DEFECT") SORBION at its choice will either
                                         render substitutive delivery or repair, promptly and at no additional cost to ALLIQUADEFECTIVE
                                         PRODUCTS shall, on demand of SORBION and at its costs, be returned or be demolished.
                                         If SORBION fails to fill the order at issue with PRODUCTS that are not DEFECTIVE PRODUCTS
                                         within 30 days after ALLIQUA’s original requested delivery date, then ALLIQUA has
                                         the right to rescind the relevant portion of the order upon notice to SORBION, in which
                                         event SORBION will refund to ALLIQUA any amounts previously paid by ALLIQUA with respect
                                         to such order.

 

		(3)	THE
                                         WARRANTY AND LIABILITY OF SORBION IS EXCLUDED, IF THE DEFECT IS BASED ON A USE OUTSIDE
                                         THE TERRITORY, IMPROPER TRANSPORT OR STORAGE BY ALLIQUA, OR BECAUSE ALLIQUA HAS DISREGARDED
                                         WRITTEN INSTRUCTIONS OF SORBION WITH RESPECT TO THE STORAGE OR HANDLING OF PRODUCTS.

 

		(4)	To
                                         the best knowledge of SORBION the use of the trademarks and use or sale of the PRODUCTS
                                         does not infringe any rights of third parties. HOWEVER NO WARRANTY ABOUT THE ABSENCE
                                         OF AN INFRINGEMENT OF THIRD PARTIES' INTELLECTUAL PROPERTY RIGHTS IN THE TERRITORY IS
                                         GIVEN AND ABOUT THE FACT OF THE CONTINUANCE OF THE TRADEMARKS AND THE UNDERLYING INTELLECTUAL
                                         PROPERTY CONCERNI NG THE PRODUCTS.

 

		(5)	SUBJECT
                                         TO SECTION 7 (6) BELOW, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL,
                                         CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES ARISING FROM OR IN CONNECTION WITH
                                         THIS AGREEMENT OR THE PRODUCTS (INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS OR REVENUES
                                         OR BUSINESS) WHETHER ARISING OUT OF WARRANTY, INDEMNITY, CONTRACT, NEGLIGENCE OR OTHER
                                         TORT, OR OTHERWISE.

 

		(6)	Notwithstanding
                                         anything to the contrary, the liability exclusions set forth in section 7 (5) will not
                                         apply to: (i) any damages arising from a PARTY's gross negligence, fraud or willful misconduct
                                         or (ii) the PARTIES' respective indemnity obligations under section 8.

 

    	 	11	 

     

    

 

section 8 

Product liability

 

		(1)	SORBION
                                         shall indemnify, defend and hold ALLI QUA and its affiliates and its and their respective
                                         officers, directors, employees and agents harmless against any claims, actions, lawsuits
                                         and investigations brought by a third party ("THIRD PARTY CLAIMS") and
                                         will pay any settlements, awards, fines and reasonable attorney's fees and expenses and
                                         court costs associated with such THIRD PARTY CLAIMS (collectively, "LOSSES"),
                                         in each case to the extent arising from or relating to any assertion that any Product
                                         contains a defect, such as faulty design, materials or workmanship, unless caused by
                                         ALLIQUA's negligence, fraud or willful misconduct; provided, however, that ALLIQUA provide
                                         proper notice of the potential THIRD PARTY CLAIM in accordance with section 8(2) below,
                                         and provided that SORBION shall have the exclusive right, subject to its own indemnity
                                         insurance agreements, to select counsel and to accept or reject any offers of settlement
                                         with adverse parties. SORBION'S right to select counsel and to have exclusive right to
                                         accept or reject any offers of settlement shall be a precondition for any indemnification.
                                         This clause shall not apply to any THIRD PARTY CLAIM related solely to unauthorized sales
                                         made in contravention of a cessation instruction under section 4(6) of this AGREEMENT.

  

		(2)	ALLIQUA
                                         shall immediately notify SORBION in writing of any notice or claim for which ALLIQUA
                                         seeks indemnity pursuant to section 8(1) and of the commencement of any suit or action
                                         with respect to any such claim, but in no event more than five (5) business days following
                                         the first day ALLIQUA becomes aware of the suit or action; provided, however,
                                         that the failure to give timely notice hereunder will not affect rights to indemnification
                                         hereunder if Alliqua has committed this failure neither deliberately nor carelessly.
                                         ALLIQUA shall permit SORBION to become informed of and to follow any such proceedings.

 

		(3)	ALLIQUA
                                         shall indemnify, defend and hold SORBION and its affiliates and its and their respective
                                         officers, directors, employees and agents harmless against any THIRD PARTY CLAIMS, and
                                         will pay any associated LOSSES, in each case to the extent arising from or relating to
                                         ALLIQUA's negligence, fraud or willful misconduct.

 

		(4)	In
                                         the event one PARTY is liable to indemnify the other hereunder, the indemnity shall include
                                         any and all liability as against third parties, as well as reasonable legal and any other
                                         costs incurred in defending or settling such claims.

 

		(5)	The
                                         provisions of this section 8 shall not be affected by the completion, termination or
                                         cancellation of this AGREEMENT or any part thereof, and shall apply notwithstanding any
                                         other provisions of this AGREEMENT.

 

section 9

Purchase of PRODUCTS;
Competition

 

		(1)	ALLIQUA
                                         shall purchase the PRODUCTS only from SORBION.

 

    	 	12	 

     

    

 

		(2)	ALLIQUA
                                         shall not during the term of the AGREEMENT without the prior written consent of SORBION,
                                         whether directly or indirectly, itself or through third parties, distribute, sell, advertise
                                         or otherwise market any wound dressing containing alginate nor any superabsorbent products
                                         that compete with any of the PRODUCTS.

 

section 10

Duration / Termination of the AGREEMENT

 

 

		(1)	The
                                         initial term of this AGREEMENT begins on the date appearing on the signature page below
                                         and ends on December 31, 2018.

 

		(2)	In
                                         September 2014, the PARTIES will agree on Minimum Annual Purchase Amount to be met in
                                         2018. If these Minimum Annual Purchase Amount is met, the Distributor AGREEMENT shall
                                         be renewed automatically for another year after the initial term. If the PARTIES cannot
                                         agree on the Minimum Annual Purchase Amount for 2018 until 31 September 2014 or until
                                         a mutually agreed extension date, the AGREEMENT will end automatically on December 31,
                                         2018. Likewise, the PARTIES will agree within September 2015, September 2016, September
                                         2017 and - as the case may be - September 2018 on Minimum Annual Purchase Amounts to
                                         be met in 2019, 2020, 2021 and 2022, and if the Minimum Annual Purchase Amount for any
                                         such year is met, then the AGREEMENT will be renewed automatically, each time for another
                                         year. Therefore, if the agreed Minimum Annual Purchase Amounts are met by ALLIQUA each
                                         year, the total duration of AGREEMENT will be extended until December 31, 2023. The PARTIES
                                         will negotiate on any further extension mutually.

 

		(3)	ALLIQUA
                                         may terminate this AGREEMENT at any time upon six (6) months prior, written notice to
                                         SORBION.

 

		(4)	Each
                                         PARTY's right to terminate this AGREEMENT for good cause remains unaffected. Good cause
                                         for termination by Sorbion shall be limited to the following:

 

		•	a
                                         change in the ownership of ALLIQUA unless interference with the legitimate interests
                                         of SORBION is not thereby to be anticipated;

		•	a
                                         material breach of obligations out of sales contracts concluded in the framework of this
                                         AGREEMENT (above all, the failure to settle outstanding purchase-price receivables),
                                         which breach is not cured within sixty (60) days after receiving written notice of such
                                         breach from SORBION;

		•	ALLIQUA's
                                         material breach of any of its obligations under this AGREEMENT, which breach is not cured
                                         within sixty (60) days after receiving written notice of such breach from SORBION;

		•	in
                                         case ALLIQUA at any time challenges any intellectual property of SORBION;

 

    	 	13	 

     

    

 

		•	ALLIQUA's
                                         application for opening of insolvency proceedings as well as the refusal to open insolvency
                                         proceedings for lack of assets, or any similar proceeding; or

		•	full
                                         closure of business (other than on account of any PRODUCT or market issues or for other
                                         reasons outside of ALLIQUA's reasonable control), with an actual or anticipated duration
                                         of more than ninety (90) days.

 

		(5)	The
                                         termination requires written form. It may be sent by fax, first-class mail or email using
                                         the notice address in Section 12 below.

 

		(6)	The
                                         termination and ending of this AGREEMENT shall not affect the purchase contracts concluded
                                         in the course of its performance. In the event of any termination, SORBION will continue
                                         to supply ALLIQUA so that the latter can perform the transactions entered into with third
                                         parties in the normal course of business prior to expiry of the AGREEMENT.

 

		(7)	Documents
                                         provided to ALLIQUA may no longer be used from the ending of the AGREEMENT and are to
                                         be returned, unless consumed as intended.

 

		(8)	The
                                         use of intellectual property rights and designations in the sense of this AGREEMENT shall
                                         be ceased at the ending of the AGREEMENT; provided, however, that ALLIQUA shall be entitled
                                         to market and sell any PRODUCTS that are in inventory or on order as of the effective
                                         date of any expiration or termination of this AGREEMENT for a period of six (6) months after the
                                         effective date of such expiration or termination.

 

		(9)	ALLIQUA
                                         will, at the ending of the AGREEMENT, cooperate in smoothly transferring the customer
                                         relations.

 

		(10)	Termination
                                         of this AGREEMENT shall not give rise to a right of either PARTY hereto for compensation
                                         of any losses or damages incurred by the termination of this AGREEMENT only, which shall
                                         not affect either PARTY's rights or remedies for any other reason, including any reason
                                         to terminate this AGREEMENT. ALLIQUA especially shall have no claim against SORBION for
                                         compensation for loss of distribution rights, loss of goodwill or any similar loss.

 

		(11)	The
                                         following provisions will survive any expiration or termination of this AGREEMENT: section
                                         4 ("Agreement of Quality Assurance"), section 7 ('Warranty and liability"),
                                         section 8 ("Product liability"), section 10 ("Duration and Termination
                                         of the AGREEMENT"}, section 11 ("Confidentiality") and section 12 ("Miscellaneous").

 

    	 	14	 

     

    

 

section 11 Confidentiality

 

Each PARTY hereby undertakes:

 

		(a)	at
                                         all times during the continuance of this AGREEMENT and for five (5) years after
                                         its termination not to disclose or divulge the contents of this AGREEMENT to any third
                                         party, whether in whole or in part, without the prior written consent of the other PARTY,
                                         unless (i) the same is required in terms of any statutory or regulatory obligation or
                                         requirement or exchange rules or (ii) on a confidential basis to any prospective financing
                                         source or acquirer and their advisors;

 

		(b)	at
                                         all times during the continuance of this AGREEMENT and for five (5) years after
                                         its termination to maintain confidentiality of information which is marked "confidential"
                                         or "secret" or which might fairly be considered to be of a confidential nature,
                                         supplied by the other PARTY and including, but not limited to, trade secrets, know-how,
                                         procedures, formulas, statistics, marketing and sales plans, costs and pricing concepts
                                         not publicly released by the other PARTY;

 

		(c)	on
                                         the expiry or termination of this AGREEMENT, or upon the request of the other PARTY made
                                         at any time, to deliver immediately to such other PARTY all documents and other materials
                                         in the possession, care, custody and/or control of the first PARTY that bear or incorporate
                                         the confidential information of the other PARTY whether in whole or in part; provided,
                                         however, such first PARTY will not be required to deliver any copies of documents or
                                         other materials necessary for its performance under this AGREEMENT or that are maintained
                                         in such PARTY's backup or archival systems.

 

section 12 Miscellaneous

 

		(1)	Neither
                                         PARTY is entitled to transfer any rights or obligations under this AGREEMENT to third
                                         parties without the other PARTY's prior, written consent. However, notwithstanding the
                                         foregoing (but subject to SORBION's termination right under clause 10(4) to the
                                         extent applicable), either PARTY may, without any requirement to obtain the other PARTY's
                                         consent, transfer and assign its rights and obligations under this AGREEMENT to (i) an
                                         affiliated company of such PARTY or (ii) in connection with any merger, sale of equity
                                         interests, sale of all or substantially all assets or other change of control transaction
                                         relating to such PARTY or such PARTY's line of business to which this AGREEMENT relates.

 

		(2)	This
                                         AGREEMENT shall not be altered or modified, unless in writing and signed by both PARTIES
                                         hereto. The same applies for any modification of this requirement of the written form.
                                         The Exhibits are an integral part of this AGREEMENT.

 

		(3)	NOTICES:
                                         All notices, requests, demands and other communications provided for in this AGREEMENT
                                         shall: (a) be in writing; (b) be sent by hand delivery, first class mail, overnight courier,
                                         email or facsimile transmission and {c) be addressed to the PARTIES hereto as indicated
                                         below unless otherwise specified in writing by any such PARTY.

 

    	 	15	 

     

    

 

If to Sorbion: Olaf Ohm

Im Südfeld 11,

48308 Senden,

Germany o.ohm@sorbion.com

 

If to Alliqua:

 

Brian Posner, Chief Financial Officer

2150 Cabot Blvd West

Langhorne, PA 19047 United States

bposner@alliqua.com

 

		(4)	This
                                         AGREEMENT shall to the greatest extent possible be interpreted in such a manner as to
                                         comply with the applicable laws. However, if any provision hereof is, notwithstandingsuch
                                         interpretation, determined to be or become invalid or unenforceable, or if there is an
                                         omission, the remaining provisions of this AGREEMENT shall remain to be binding upon
                                         the PARTIES. The PARTIES agree to replace any such invalid or unenforceable provision
                                         by a valid and enforceable one which comes as close as possible to the original purpose
                                         and intention of the invalid or unenforceable provision. In the event of an omission,
                                         a provision which corresponds with the intention and purpose of what would have been
                                         agreed between the PARTIES if the matter had been considered at the outset shall be deemed
                                         to have been agreed.

 

		(5)	In
                                         the event of any controversy or claim arising out of or relating to any provision of
                                         this AGREEMENT or the breach thereof, the PARTIES shall try to settle the problem amicably
                                         between themselves. Should they fail to agree, any controversy or claim arising out of
                                         or relating to this contract, or the breach thereof, shall be determined by confidential
                                         arbitration administeredby the American Arbitration Associationin accordance
                                         with its International Arbitration Rules. The number of arbitrators shall be one. The
                                         place of arbitration shall be New York, New York. The language of the arbitration shall
                                         be English. The Parties agree to keep the substance of the arbitration confidential except
                                         to the extent commercially necessary. The Parties agree not to make any public statements,
                                         written or verbal, or cause or encourage others to make any public statements, written
                                         or verbal, that defame, disparage or in any way criticize the personal or business reputation,
                                         practices, or conduct of each other, its employees, directors, and officers. The Parties
                                         acknowledge and agree that this prohibition extends to statements, written or verbal,
                                         made to anyone, including but not limited to, the news media, investors, potential investors,
                                         any board of directors or advisory board or directors, industry analysts, competitors,
                                         strategic partners, vendors, employees (past and present), and clients. The Parties understand
                                         and agree that this Paragraph is a material provision of this Agreement and that any
                                         breach of this Paragraph shall be a material breach of this Agreement, and that each
                                         Party would be irreparably harmed by violation of this provision. For the avoidance of
                                         doubt, any sale of PRODUCTS are on basis of Section XIII of the General Terms and Conditions
                                         of Sale and Transfer and not subject to the sentences stated before.

 

    	 	16	 

     

    

 

		(5)	This
                                         AGREEMENT, and any disputes directly or indirectly arising from or relating to this AGREEMENT,
                                         will be construed and controlled by the laws of the State of New York, U.S.A. (without
                                         reference to the choice of law rules thereof).

 

		(6)	This
                                         AGREEMENT (including the Exhibits attached hereto) constitutes the final, complete and
                                         exclusive agreement of the PARTIES concerning the subject matter hereof, and supersedes
                                         any other communication related hereto.

 

		(7)	This
                                         AGREEMENT may be executed in multiple counterparts (which may be exchanged by facsimile
                                         or via email by .pdf copies), each of which will be deemed an original and all of which
                                         together will constitute one instrument.

 

(signature page follows)

 

    	 	17	 

     

    

 

1.Exhibit
- A Territory

 

		·	United
                                         States of America

 

		·	Canada

 

		·	Latin
                                         America

 

    Exh. A

     

    

  

Exhibit B, Annex 1 Annex 1 Products

 

	Product
    Name	 	VE	 	SAP-Nr.	 	Artikei-Nr.
	sorbion sachet S 10 x 10 cm
    US	 	10	 	10012	 	22143004-10
	sorbion sachet S 20 x 10 cm
    US	 	10	 	10022	 	22143009-10
	sorbion sachet S 20 x 20 cm
    US	 	10	 	20033	 	22143006-10
	sorbion sachet S 30 x 20 cm
    US	 	10	 	20039	 	22143007-10

 

    Exh. B. Annex 1

     

    

 

Exhibit
B, Annex 2 Annex 2 Products

 

	Product Name	 	VE	 	SAP-Nr.	 	Artikei-Nr.
	sorbion sachet S 7,5 x 7,5 cm US	 	10	 	10002	 	22143002-10
	sorbion sachet S 12,5x10 cm US	 	10	 	10046	 	22143018-10
	sorbion sachet S Drainaqe 10 x 10 em US	 	10	 	10048	 	22143008-10
	sorbion sachet multi star ø 8 cm US	 	10	 	10222	 	22143019-10
	sorbion sachet multi star ø 14 cm US	 	10	 	10223	 	22143020-10
	sorbion sachet border 10 x 10 cm	 	10	 	10107	 	22663011-10
	sorbion sachet border 15 x 15 cm US	 	10	 	10189	 	22663004-10
	sorbion sachet border 25 x 15 cm US	 	10	 	10188	 	22663009-10
	sorbion sachet border 25 x 25 cm US	 	10	 	10190 	 	22663006-10

 

    Exh. B. Annex 2

     

    

 

Exhibit
B, Annex 3 Annex 3 Products

 

	Product
    Name	 	VE	 	SAP-Nr.	 	Artikei-Nr.
	sorbion sana gentle
    8,5 x 8,5cm US	 	10	 	10224	 	25523002-10
	sorbion sana gentle
    12 x 12cm US	 	10	 	20225	 	25523004-10
	sorbion sana gentle
    22 x 12cm US	 	10	 	10226	 	25523009-10
	sorbion sana gentle
    22 x 22cm US	 	10	 	10227	 	25523006-1 0
	sorbion sana gentle
    32 x 22cm US	 	10	 	10228	 	25523007-10
	sorbion sana multi
    star iii 11em	 	10	 	10214	 	25143019-10
	sorbion sana multi
    star iii 17 em 	 	10	 	10217
    	 	25143020-10

 

    Exh. B. Annex 3

     

    

 

Exhibit C

 

General Terms and Conditions

 

		I.	General

		1.	These General Terms and Conditions
                                         for the Sale of Goods shall only apply to natural persons or entities, or the partnerships
                                         with legal personality acting in their commercial or self- employed capacity (entrepreneurs)
                                         at the time the contract is concluded and shall exclusively apply.

		2.	Conflicting, deviating or supplementary
                                         terms and conditions laid down by the buyer shall not be recognized unless previously
                                         and expressly approved by the seller in writing. These General Terms and Conditions for
                                         the Sale of Goods shall also apply when the seller supplies the buyer without reservation
                                         after having been informed of conflicting or divergent terms and conditions on the part
                                         of the buyer.

		3.	These conditions shall govern any
                                         and all future contract of sale between the seller and the buyer.

 

		II.	Orders
                                         and Specifications

		1.	The seller's quotations are subject
                                         to change and are non-binding, unless the seller has explicitly designated them as binding.
                                         Any apparent mistakes due to error In any sales literature, quotation, price list, acceptance
                                         of offer, invoice or other document of information issued by the seller shall be subject
                                         to correction without any liability on our part.

		2.	Upon placing an order for the required
                                         goods, the buyer shall make a binding offer to enter into a contract.

		3.	The seller shall be entitled to accept
                                         the offer within five working days either by dispatching an order confirmation or by
                                         dispatching the ordered goods within the same period.

		4.	If the goods are to be manufactured
                                         or any changes have to be made to the goods, the packaging or instructions of use by
                                         the seller in accordance with a specification submitted by the buyer, the buyer shall
                                         indemnify the seller against any loss, damages, costs and expenses which results from
                                         the seller's use of the buyer's specification.

		5.	The seller hereby reserves all proprietary
                                         and intellectual property rights as well as copyrights to any and all illustrations,
                                         calculations, drawing and other documentation. The buyer may only disclose such items
                                         to third parties with the seller's written consent, regardless of whether or not the
                                         seller has designated such items as confidential. The same shall apply to the transmission
                                         of information relating to seller's products which may have been made available to the
                                         buyer.

 

		Ill.	Price
                                         of the Goods

		1.	The price of the goods shall be the
                                         seller's quoted price or, where no price has been quoted; the price listed in the seller's
                                         published price list current at the date of acceptance of the order. Where the goods
                                         are supplied for the export from Germany, the seller's published export price list shall
                                         apply.

		2.	The seller reserves the right, by
                                         giving notice to the buyer at any time before delivery, to adequately Increase or decrease
                                         the price of goods to reflect an increase or decrease in the costs of the products which
                                         is due to any factor beyond seller's control (such as foreign exchange fluctuation, currency
                                         regulation, alteration of duties, significant increase in the costs of materials or other
                                         costs of the manufacture).

		3.	Except as otherwise stated in any
                                         of the seller's quotations or in any price list and agreed in writing, all prices are
                                         given on an ex works basis. If seller agrees to deliver the goods otherwise, the buyer
                                         shall be liable to pay the seller's charges for transportation, packing, duties and insurance.

		4.	The price is exclusive of any applicable
                                         value added tax, which the buyer shall be additionally obliged to pay to the seller.

 

    Exh. C -1

     

    

  

		IV.	Terms of Payment

		1.	The buyer shall pay the price of
                                         the goods within 30 days of receipt of the seller's invoice. Agreed discounts shall only
                                         be accepted if payment reaches seller within the agreed period and no overdue invoices
                                         remain. The amount of discount is not deductible from freight costs but only from the
                                         value of the goods.

		2.	Payment shall be effected by interbank
                                         payment transaction only; no cheque or bill of exchange will be considered as fulfillment
                                         of the payment obligation.

		3.	It may be agreed between the parties
                                         that the buyer has to deliver a letter of credit issued by any bank accepted by the seller.
                                         In this individual case it is assumed that any letter of credit will be issued in accordance
                                         with the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication
                                         No. 500.

		4.	If the buyer fails on make any payment
                                         on the due date then, without prejudice to any other right or remedy available to seller,
                                         seller shall be entitled to suspend further deliveries and/or to charge the buyer interest
                                         on the amount unpaid, at the rate of 8 percentage points per annum above European Central
                                         Bank reference rate from then being valid, until payment in full is made. The buyer shall
                                         be entitled to prove that the delay of payment caused no or little damage only.

		5.	A complaint lodged by the buyer shall
                                         not release him from any duty to effect payment. With the exception of uncontested or
                                         legally enforced claims, the buyer shall not be entitled to withhold payment or offset
                                         such payments against any counterclaims he/she may be enforcing. Incoming payments shall
                                         amortize outstanding debts in the order in which they have occurred. Place of fulfillment
                                         of payment is the main place of business of seller.

 

		V.	Delivery

		1.	Delivery of the goods shall be made
                                         by the buyer collecting the goods at the seller's premises at any time after seller has
                                         notified the buyer that the goods are ready for collection or, If some other place for
                                         delivery is agreed by seller, by delivering the goods to that place.

		2.	Where delivery of the goods is to
                                         be made by seller in bulk, seller reserves the right to deliver up to 3% more or 3% less
                                         than the quantity ordered without any adjustment in the price, and the quantity so delivered
                                         shall be deemed to be in the quantity ordered.

		3.	If a binding time for delivery is
                                         explicitly provided for in the contract, and seller fails to deliver and it responsible
                                         for failing to deliver within such time or any extension thereof granted, the buyer shall
                                         be entitled, on giving to seller within a reasonable time notice in writing, to claim
                                         a reduction of 0,5% per week (up to a maximum of 5%) of the price payable under the contract,
                                         unless it can be reasonable concluded from the circumstances of the particular case that
                                         the buyer has suffered no loss. Further damages are excluded. This exclusion shall not
                                         apply if the business had to be settled on a fixed date or if the delay was caused grossly
                                         negligently or intentionally by seller, seller's agents or representatives or if there
                                         is any further breach of any essential contractual obligation. In this case the provisions
                                         of Section XI shall apply.

		4.	If, except in cases of force majeure,
                                         seller fails within such time.of effecting delivery, the buyer shall be entitled by notice
                                         in writing to seller to fix a deadline after the expiry of which the buyer shall be entitled
                                         to terminate the contract. He may also recover from seller any loss suffered by the buyer
                                         by reason or seller's failure and according to the provisions of§§ 280, 281
                                         German Civil Code.

		5.	If the buyer fails to accept the
                                         delivery on due date, he shall nevertheless make any payment conditional on delivery
                                         as if the goods had been delivered. Seller shall be entitled to compensation of any loss
                                         and/or additional costs occurred and to arrange for the storage of the goods at the risk
                                         and cost of the buyer. If required by the buyer seller shall insure the goods at the
                                         cost of the buyer.

 

    Exh. C -2

     

    

 

		VI.	Transfer of Risks

Risk of damage to or loss of the goods shall
pass to the buyer as follows:

in the case of goods to be delivered otherwise
than the seller's premises,

		•	at the time
                                         of delivery or, if the buyer wrongfully fails to take delivery of the goods, the time
                                         when the seller has tendered delivery of the goods;

		•	in
                                         the case of goods to be delivered at the seller's premises ("ex works, lncoterms
                                         2000) at the time when the seller notifies the buyer that the goods are available for
                                         collection

 

		VII.	Retention
                                         of Title

		1.	Notwithstanding delivery and the
                                         passing of risk in the goods, or any other provision of these conditions, the property
                                         in the goods shall not pass to the buyer until the seller has received payment in full
                                         of the price of the goods and all other goods agreed to be sold by the seller to the
                                         buyer for which payment is then due.

		2.	After termination
                                         of the contract the seller shall have absolute authority to retake, sell or otherwise
                                         deal with or dispose of all or any part of the goods in which title remains vested in
                                         the seller.

		3.	Until such time
                                         as the property in the goods passes to the buyer, the buyer shall hold the goods as the
                                         seller's fiduciary agent, and shall keep the goods properly stored, protected and insured.

		4.	Until that time the buyer shall be
                                         entitled to resell or use the goods In the ordinary course of its business, but shall
                                         account to the seller for the proceeds of sale or otherwise of the goods including insurance
                                         proceeds, and shall keep all such proceeds separate from any moneys or properties of
                                         the buyer and third parties.

		5.	If the goods are processed or reshaped
                                         by the buyer and if processing is done with the goods that seller has no property in,
                                         seller shall become co-owner of the goods. The same shall apply if the seller's goods
                                         are completely reshaped and mixed with other goods.

		6.	If third parties take up steps to
                                         pledge to otherwise dispose of the goods, the buyer shall immediately notify the seller
                                         in order to enable the seller to seek a court injunction in accordance with § 771 of
                                         the German Code of Civil Procedure. If the buyer fails to do so in due time he will be
                                         held liable for any damages caused.

		7.	The seller shall
                                         on demand of the buyer release any part of the collateral if the value of the collateral
                                         held in favour of the seller exceeds the value of the claims being secured. It is to
                                         the seller's decision to release those parts of the collateral suitable for him.

 

		IV.	Storage,
                                         Resale

After acquisition of the goods the buyer is responsible
for the adherence to the respective legal regulations for the storage and use of the goods. The goods shall be resold only in
the unchanged original packaging.

 

		IX.	Force Majeure

		1.	Events
                                         of force majeure hindering the Parties in fulfilling their contractual obligations in
                                         part or in total, shall exempt and free the relevant Party from its obligation to fulfill
                                         this contract until the events of force majeure do not exist anymore.

 

The following shall be regarded as events of
force majeure: fire, natural disaster, war, revolution, riots, acts of terrorism, shortage of raw materials, strike, lockouts,
disturbances in seller's business or business of suppliers, acts of government or authority.

 

		2.	The
                                         other Party may terminate the contract if the event of force majeure lasts for more than
                                         six months or if the party terminating the contract can reasonably demonstrate that it
                                         would be unreasonable for the party to continuously be bound by the contract.

 

		X.	Warranties

		1.	The
                                         buyer shall examine the goods immediately after delivery and in doing so check every
                                         delivery in any respect. Any claim by the buyer which is based on any defect in the quality
                                         or condition of the goods or their failure to correspond with the specifications shall
                                         be notified to the seller within reasonable time, but not later than 7 working days from
                                         the date of delivery.

		2.	The
                                         seller warrants that all items delivered under this agreement will be free from defects
                                         in material and workmanship, conform to applicable specifications, and, to the extent
                                         that detailed designs have not been furnished by the buyer, will be free from design
                                         defects and suitable for the normal use.

 

    Exh. C -3

     

    

 

		3.	The
                                         seller shall not be liable for the goods being fit for a particular purpose unless otherwise
                                         agreed upon, to which the buyer intends to put them. The seller if not liable for the
                                         goods being suitable for the export to and the use in other countries than agreed by
                                         the parties.

		4.	The
                                         above warranty is limited as follows:

		•	the
                                         seller shall not be liable in respect of any defect in the goods arising from any design
                                         or specification supplied by the buyer;

		•	the
                                         above warranty does not extend to parts, materials or equipment manufactured by or on
                                         behalf of the buyer unless such warranty is given by the manufacturer to the seller.

		5.	This
                                         warranty does not cover defects in the goods or damages which are due to improper instruction
                                         or use (e.g. repeated use of goods; use of the goods in other countries than the agreed
                                         territory), combination with other products or maintenance misuse, disregard of instruction,
                                         neglect or any cause other than ordinary commercial application.

		6.	Where
                                         any valid claim in respect of any goods which is based on any defect in the quality or
                                         condition of the goods or their failure to meet specifications is notified to the seller
                                         in accordance with this Conditions, the seller shall be entitled at the seller's sole
                                         decision to either replace the goods free of charge or repair the goods. Expenses incurred
                                         in remedying the defects, most notably transportation, labour costs and costs of materials
                                         shall be born by seller provided that such costs do not increase as a result of the goods
                                         being transported to a destination other than the place of fulfillment. It the seller
                                         is neither ready nor able to either repair or replace the goods after two attempts the
                                         buyer shall be entitled at the buyer's sole decision to claim for a reduction of price
                                         or the cancellation of the contract.

		7.	Claims
                                         relating to defects shall become statute-barred within one year of the goods being delivered.
                                         The statutory limitation periods shall apply in cases where seller can be charged with
                                         malice or intent or damages to life, limb or health. The limitation period in the cases
                                         of delivery regress according to §§ 478, 479 German Civil Code remains unaffected.

 

		XI.	Liability

		1.	In
                                         accordance with the statutory provisions, the seller shall bear unlimited liability for
                                         damage to life, limb and health based on a negligent or intentional breach of duty on
                                         part of the seller, on the part of seller's legal representatives or seller's vicarious
                                         agents, and for damage subject to liability pursuant to the German Product liability
                                         Act ("Produkthaftungsgesetz") and/ or mandatory foreign product liability laws
                                         in countries the goods were agreed to be used in.

		2.	Seller
                                         shall be liable to the extent provided for by law for damage which is not covered by
                                         Clause 1 and which is based on an Intentional or grossly negligent breach of duty or
                                         malice on seller's part as well as that of our legal representatives or our vicarious
                                         agents. In that event, however, seller's liability shall be limited to the foreseeable
                                         typically arising damage unless seller, seller's legal representatives or vicarious agents
                                         have acted intentionally.

		3.	To
                                         the extent that seller has issued a guarantee on quality and/or durability with respect
                                         to the goods or parts thereof, seller shall also be liable in the context of that guarantee.
                                         However, seller shall only be liable for damage based on the absence of the guaranteed
                                         quality or durability, but which does not directly injure the goods themselves, if the
                                         risk of such damage is clearly covered by the quality and durability warranty.

		4.	Seller
                                         shall also be liable for damage caused by ordinary negligence, if such negligence relates
                                         to the breach of contractual obligations the observance of which is of particular significance
                                         to the achievement of the contract purpose (essential obligations). However, seller shall
                                         only be liable if the damage is typically associated with the contract, and is predictable.

		5.	All
                                         other forms of liability shall be excluded, regardless of the legal nature of the claim
                                         asserted.

 

		2.	XII. Miscellaneous

 

		3.	The
                                         seller reserves the tight to improve or modify any of the products without prior notice,
                                         provided that such improvement or modification shall not affect the function of the product.

 

    Exh. C -4

     

    

 

		4.	This
                                         agreement shall not be assigned or transferred by buyer except with the written consent
                                         of the seller.

 

		XIII.	Choice
                                         of law; Place of Jurisdiction

 

		1.	This
                                         Agreement shall be governed by German Law, including the UN-Convention on the International
                                         Sale of Goods (CISG) but excluding the provisions of German International Private Law
                                         that might come to the application of foreign law.

		2.	Place
                                         of jurisdiction shall be seller's principle place of business, Germany. The seller has
                                         the right to bring a claim before a court at the buyer's principal place of business.

 

    Exh. C -5

     

    

 

Exhibit
D Price list

 

	Product
    Name	 	VE	 	SAP-Nr.	 	Article-Nr.	 	price
    in €
	sorbion sachet
    S 7,5 x 7,5
    cm US	 	10	 	10002	 	22143002-10€	 	13,10
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    S 10 x
    10 cm
    US	 	10	 	10012	 	22143004-10€	 	15,38
	 	 	 	 	 	 		 	 
	sorbion sachet
    S 12,5x10cm US	 	10	 	10046	 	22143018-10€	 	20,50
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    S 20 x
    10 cm
    US	 	10	 	10022	 	22143009-10€	 	33,20
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    S 20 x 20
    cm US	 	10	 	10033	 	22143006-10€	 	48,60
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    S 30 x
    20 cm US	 	10	 	10039	 	22143007-10€	 	71,00
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    S Drainage 10
    x 10 cm US	 	10	 	10048	 	22143008-10€	 	15,38
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    multi star 0
    8 cm US	 	10	 	10222	 	22143019-10€	 	14,50
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    multi star 0
    14 cm US	 	10	 	10223	 	22143020-10€	 	20,50
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    border 10
    x 1o
    cm	 	10	 	10107	 	22663011-10€	 	16,95
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    border 15 x
    15 cm US	 	10	 	10189	 	22663004-10€	 	17,38
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    border 25 x
    15 cm US	 	10	 	10188	 	22663009-10€	 	36,20
	 	 	 	 	 	 	 	 	 
	sorbion sachet
    border 25 x 25
    cm US	 	10	 	10190	 	22663006-10€	 	49,60
	 	 	 	 	 	 	 	 	 
	sorbion sana
    gentle 8,5 x
    8,5cm US	 	10	 	10224	 	25523002-10€	 	14,50
	 	 	 	 	 	 	 	 	 
	sorbion sana
    gentle 12 x
    12cm US	 	10	 	20225	 	25523004-10€	 	23,50
	 	 	 	 	 	 	 	 	 
	sorbion sana
    gentle 22 x
    12cm US	 	10	 	10226	 	25523009-10€	 	36,20
	 	 	 	 	 	 	 	 	 
	sorbion sana
    gentle 22 x
    22cm US	 	10	 	10227	 	25523006-10€	 	49,60
	 	 	 	 	 	 	 	 	 
	sorbion sana
    gentle 32 x
    22cm US	 	10	 	10228	 	25523007-10€	 	79,00
	 	 	 	 	 	 	 	 	 
	sorbion sana
    multi star 0
    11 cm	 	10	 	10214	 	25143019-10€	 	24,50
	 	 	 	 	 	 	 	 	 
	sorbion sana
    multi star 0
    17 cm	 	10	 	10217	 	25143020-10€	 	30,50

 

Order rebate = 10% off, if order = 30.000,00
€, order rebate = 15% off, if order 50,000€

Shipment Costs to be handled in accordance with
Clause2(6) of the Agreement.

 

    Exh. D-1

     

    

 

Exhibit E

 

Minimum Annual
Purchase Amount 

 

	2014	 	 	2015	 	 	2016	 	 	2017	 
	 	500.000,00	 	 	 	1.000.000,00	 	 	 	2.500.000,00	 	 	 	4.000.000,00	 

 

    Exh. E-1

     

    

 

	Senden, 23 September
    2013 	 	New York,
     20th September 2013 
	Sorbion	 	Alliqua

  

	  /s/ Michael
    Stonner	 	/s/ David I. Johnson
    
	Michael Stonner 	 	David I. Johnson
	managing director	 	C.E.O.

 

	/s/ Olaf Ohm	 
	Olaf Ohm	 
	proxy	 

 

     

     

    

 

Annex B

Amendment to Distributor
Agreement

 

    B-1

     

    

 

6.FIRST
AMENDMENT TO DISTRIBUTOR AGREEMENT

 

 

THIS FIRST AMENDMENT TO DISTRIBUTOR AGREEMENT
(the "First Amendment") is made effective as of the Effective Date as defined herein between ALLIQUABIOMEDICAL,INC.,
a Delaware corporation "Alliqua"), and BSN MEDICAL, INC., a Delaware corporation ("BSN").

 

BACKGROUND:

 

		A.	Alliqua and Sorbion GmbH &
                                         Co KG ("Sorbion") have entered into that certain Distributor
                                         Agreement in September, 2013 (the "Original Agreement") pursuant to
                                         which Alliqua will sell certain products in the Territory (as defined therein).

 

		B.	Sorbion assigned its rights and obligations
                                         under the Original Agreement to its affiliate BSN pursuant to an Assignment of Distributor
                                         Agreement dated June 16, 2015.

 

		C.	The parties wish to amend the Original
                                         Agreement to provide for pricing, invoicing and payment in U.S. Dollars ("USD")
                                         instead of Euros and to make related conforming changes in the Original Agreement.

 

		D.	All capitalized terms which are
                                         not defined herein have the meanings given to such terms in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual
promises contained herein, the parties agree as follows:

 

		1.	Pricing. The prices set forth
                                         on Exhibit D of the Original Agreement, as such prices may have been amended or replaced
                                         pursuant to the terms of the Original Agreement, shall be converted from Euros to USD
                                         in accordance with the closing Exchange Rate (as defined below) on the Effective Date.
                                         BSN will deliver a revised price schedule to Alliqua promptly after the Effective Date.
                                         All subsequent price lists, invoicing, and payments shall be determined and communicated
                                         pursuant to Section 2(6) of the Original Agreement, and the price list provided for therein
                                         shall be in USD.

 

     1

     

    

 

		2.	Minimum Annual Purchase Amount. The
                                         Minimum Annual Purchase Amount for calendar year 2015 as set fo1th on Exhibit E of the
                                         Original Agreement shall be conve1ted from Euros to USO in accordance with the Exchange
                                         Rate on the Effective Date, rounded to the nearest $1,000 (one thousand dollars). For
                                         calendar years 2016 and 2017, the Minimum annual Purchase Amount for such year set forth
                                         on Exhibit E of the Original Agreement shall be converted from Euros to USD in accordance
                                         with the Exchange Rate in effect on the last day of the preceding year (i.e., December
                                         31, 2015 and December 31, 2016, respectively) , rounded to the nearest $1,000 (one thousand
                                         dollars); provided, however, that the Exchange Rate on such day shall not be more than
                                         five percent (5%) greater or five percent (5%) less than the Exchange Rate used for the
                                         most recent previous determination date for the Minimum Annual Purchase Amount pursuant
                                         to this First Amendment. If such Exchange Rate is more than five percent (5%) greater
                                         or five percent (5%) less than the Exchange Rate used for the most recent previous determination
                                         date for the Minimum Annual Purchase Amount pursuant to this First Amendment, it shall
                                         be rounded up or rounded down (as appropriate) so that it is no more than five percent
                                         (5%) greater or five percent (5%) less. All future Minimum Annual Purchase Amounts set
                                         in accordance with Section 10(2) of the Original Agreement shall be in USD. For the avoidance
                                         of doubt, the parties acknowledge and agree that parties are in discussions to amend
                                         and restate the Original Agreement, and accordingly, among other terms, the Minimum Annual
                                         Purchase Amount for the calendar years 2016 and 2017 may also be revised in connection
                                         with such amendment and restatement.

 

		3.	Shipping
                                         Costs. Section 2(6) of the Original Agreement is amended by replacing the term "50,000
                                         €" (fifty thousand euros) wherever it appears with the amount dete1mined by
                                         converting 50,000 (fifty thousand) Euros to USD at the Exchange Rate on the Effective
                                         Date, rounded to the nearest $1,000 (one thousand dollars).

 

		4.	Order
                                         Rebate. Exhibit D of the Original Agreement is amended by replacing the term "50,000
                                         €" (fifty thousand euros)where it appears as to the order rebate with the amount
                                         determined by converting 50,000 (fifty thousand) Euros to USD at the Exchange Rate on
                                         the Effective Date, rounded to the nearest $1,000 (one thousand dollars), and the term
                                         "30,000€" (thirty thousand euros) where it appears as to the order rebate
                                         with the amount determined by converting 30,000 Euros (thirty thousand euros) to USD
                                         at the Exchange Rate on the Effective Date, rounded to the nearest $1 ,000 (one thousand
                                         dollars) .

 

		5.	Definitions:
                                         For purposes of this First Amendment:

 

		(a)	The
                                         "Exchange Rate" for any day is the closing spot rate quoted by Reuters
                                         for such day (or the next succeeding business day if no rate is quoted for such day).
                                         If Euro-USD spot rates are no longer quoted by Reuters or become unavailable for any
                                         reason , the patties shall choose a recognized comparable quoted Euro-USD spot exchange
                                         rate.

 

		(b)	The
                                         "Effective Date" is Jul y 31, 2015.

 

		6.	Original
                                         Agreement; Further Assurances.
                                         Except as specifically amended by this Amendment, the Original Agreement remains in full
                                         force and effect.

 

     2

     

    

 

Section 11 (Confidentiality) and Section 12 (Miscellaneous)
of the Original Agreement, as may have been amended in accordance with the Original Agreement, shall apply mutatis mutandis
to this First Amendment. The patties shall execute such further documents and do any such further things as may be necessary
to implement and carry out the intent of this First Amendment.

 

IN
WITNESS  WHEREOF,  the
parties have executed 
this First Amendment  to Distributor
Agreement as of
the Effective Date
set forth above.

 

	ALLIQUA   BIOMEDICAL,    INC.	 
	 	 	 
	By:	/s/ Brian M. Posner	 
	Name: Brian M. Posner	 
	Title: CFO 	 

 

	7.	BSN
                                         MEDICAL, INC.

 

	By:	/s/ Joseph Carpinelli	 
	Name: Joseph Carpinelli	 
	Title: VP Finance - NA	 

 

     3

     

    

 

8.         Annex C

Assignment of Distributor
Agreement

 

    C-1

     

    

  

ASSIGNMENT OF DISTRIBUTOR AGREEMENT

 

THIS ASSIGNMENT OF DISTRIBUTOR AGREEMENT
(this "Assignment") is effective as of June 18th, 2015 (the "Assignment Effective· Date") by and
between Sorbion GmbH (legal successor to Sorbion GmbH & Co. KG) ("Assignor") and BSN medical, Inc.
("Assignee") (each, a "Party" and collectively, the "Parties").

 

WITNESSETH :

 

WHEREAS, Assignor and Alliqua Biomedical,
Inc. ("Alliqua") entered into that certain Distributor Agreement (the "Agreement") dated as of September 23,
2013, pursuant to which Assignor granted Alliqua the exclusive right to sell ce1tain products within the United States of America,
Canada and Latin America;

 

WHEREAS, Assignor, pursuant to an internal
reorganization, conve1ted from a limited partnership ,to a limited liability company under the laws of the Federal Republic of
Germany in March 2015, and as such all of the rights, privileges, powers, debts, liabilities and duties, including those incurred
contractually by the converting entity, remain vested in the limited liability company to which such limited partnership has conve1ted;

 

WHEREAS, pursuant to Section 12(1)(i) of the
Agreement, Assignor desires to ·assign to Assignee, an affiliated company of Assignor, all of its rights, duties and obligations
under the Agreement; and

 

WHEREAS, Assignee desires to accept such assignment
of rights, duties and obligations under the Agreement.

 

NOW, THEREFORE, in consideration of the foregoing
premises and the mutual covenants and agreements of the Parties as set forth below, and intending to be legally bound, the Parties
agree as follows:

 

		1.	Assignment
                                         and Assumption .

 

l.l. Assignor irrevocably (a) assigns to
Assignee all of its rights under the Agreement and (b) delegates to Assignee all of its duties and obligations under the
Agreement as of and following the Assignment Effective Date.

 

1.2. Assignee unconditionally accepts all
of Assignor's rights, duties and obligations in, to and under the Agreement, and assumes and agrees to be bound by, fulfill, perform
and discharge all of the liabilities, obligations, duties and covenants under or arising out of the Agreement as of and following
the Assignment Effective Date.

 

		2.	Miscellaneous.

 

2. 1. This Assignment will be construed and
interpreted in accordance with the laws of the State of New York without regard to conflict of law principles.

 

2.2. This Assignment may be executed in any
number of counterparts (by fax, pdf or other electronic signatures), each of which shall be deemed to be an original but all of
which shall constitute one and the same instrument.

 

[Signature page follows]

 

     

     

    

 

IN WITNESS WHEREOF, the Patties have caused their
duly authorized representatives to execute this Assignment as of the Assignment Effective Date.

 

	Sorbion GmbH	 	BSN medical, Inc.
	 	 	 	 
	By:	/s/ Erik Korte
    	 	By:	/s/
    Joseph Carpinelli
	Name: Erik
    Korte	 	Name: Joseph
    Carpinelli
	Title:  Authorized
     Representative	 	Title:  Vice
    President, Finance -North
    America

 

	By:	/s/ Emil Billbaeck	 
	Name:  Emil Billbaeck	 
	Title: Authorized Representative	 

 

     

     

    

 

Exhibit A

GENERAL BILL OF SALE AND ASSIGNMENT

 

This General Bill of Sale
and Assignment (this “Bill of Sale”), dated as of [June 21, 2016], is executed and delivered
by Alliqua Biomedical, Inc., a Delaware corporation (“Seller”) to BSN medical, Inc., a Delaware corporation
(“Purchaser”).

 

NOW, THEREFORE, Seller,
for the consideration described and provided for in that certain Purchase Agreement, dated as of the date hereof, by and between
Purchaser and Seller (the “Purchase Agreement”), the receipt and sufficiency of which is hereby acknowledged,
does hereby sell, assign, transfer, convey and deliver unto Purchaser, free and clear of all Liens, subject in all respects to
the terms and provisions of the Purchase Agreement, all of the purchased assets.

 

This Bill of Sale and
the covenants and agreements herein contained shall be binding upon and inure to the benefit of the parties to the Purchase Agreement
and their respective successors and permitted assigns. All representations, warranties, covenants, agreements and indemnities
contained in the Purchase Agreement shall survive the execution and delivery of this Bill of Sale and shall continue in full force
and effect as provided in the Purchase Agreement.

 

All capitalized terms
not otherwise defined in this Bill of Sale, shall have the meanings ascribed to them in the Purchase Agreement, and the terms
of construction set forth in Section 1.2 of the Purchase Agreement, shall apply to this Bill of Sale.

Seller may execute and
deliver this Bill of Sale by means of facsimile transmission or electronic mail and the parties agree that the receipt of such
executed Bill of Sale shall be binding on Seller and shall be construed as an original. After the Closing, Seller shall promptly
deliver to Purchaser an original version of this Bill of Sale that was executed and exchanged by facsimile transmission or electronic
mail, but failure to do so shall not affect the binding nature of the same.

 

	 	ALLIQUA BIOMEDICAL, INC. 
	 	 	 
	 	By:	/s/ Brian M. Posner
	 	Name:	Brian M. Posner
	 	Its:	CFO

 

    A-1Exhibit 10.4

 

Execution Version

 

TRANSITION SERVICES AGREEMENT

 

This TRANSITION SERVICES
AGREEMENT (this “Agreement”) is made and entered into as of June 30, 2016 (the “Effective Date”),
between Alliqua BioMedical, Inc., a Delaware corporation (“Alliqua”), and BSN medical, Inc., a Delaware corporation
(“BSN”). Capitalized terms referenced but not otherwise defined herein shall have the respective meanings ascribed
thereto in that certain Distributor Agreement between Sorbion GmbH & Co KG and Alliqua, dated on or around September 20, 2013
(as amended pursuant to that certain First Amendment to Distributor Agreement as of July 31, 2015, collectively, the “Distributor
Agreement”, and assigned to BSN pursuant to that certain Assignment of Distributor Agreement dated June 16, 2015).

 

RECITALS

 

		A.	Pursuant to that certain Purchase Agreement between BSN
and Alliqua, dated as of the date hereof (the “Purchase Agreement”), and subject to the terms and conditions
contained therein, BSN has agreed to purchase from Alliqua, and Alliqua has agreed to sell to BSN, any and all rights Alliqua
may have to, under or pursuant to the Distributor Agreement.

 

 

		B.	The parties desire to enter into this Agreement to define
certain transition-related services to be provided by Alliqua to assist BSN with certain services including handover of Alliqua’s
distribution operations relating to Products (the “Business”) during a transition period beginning on the Effective
Date, in accordance with the terms and conditions of this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual covenants and undertakings contained in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, BSN and Alliqua hereby agree as follows:

 

ARTICLE I

SERVICES

 

Section 1.1           Alliqua’s
Transition Service Obligations.

 

(a)          Services.
Alliqua shall use commercially reasonable efforts to perform the services described on Exhibit A (the “Services”)
during the Term (as defined hereinafter). Alliqua shall commence delivery of the Services immediately following the closing.

 

(b)          Terms
of Service. For each of the Services, the parties hereto have set forth on Exhibit A a description of the Service and
certain related obligations.

 

(c)          Discontinuation
or Reduction of Services. During the Term, BSN may instruct Alliqua to discontinue providing any of the Services or otherwise
reduce its level of effort with respect to any of the Services.

 

     

     

    

 

Section 1.2           Standard
of Performance; Resources.

 

(a)          Standard
of Performance. Alliqua shall provide the Services in good faith, using the same degree of skill and care and in substantially
the same manner as is customary in the industry and the same degree of skill and care and in substantially the same manner as Alliqua
use in performing the Services for themselves.

 

(b)          Personnel
and Resources. Alliqua shall devote such personnel as are reasonably necessary to perform the Services in accordance with the
terms of this Agreement. Alliqua shall retain the right to hire and fire any of its personnel and to establish all duties and work
assignments, business procedures and protocols governing their conduct.

 

(c)          Cooperation.
Parties agree to cooperate in good faith in connection with performance of the Services. Such cooperation includes (i) responding
promptly to requests for consents or other communications, (ii) not acting or failing to act in any way that could materially adversely
affect the provision of the Services, and (iii) providing reasonable access to documentation, information and other materials that
are necessary to provide the Services.

 

Section 1.3           Services
Not Provided. No Services provided under this Agreement shall be construed as accounting, legal, or tax advice or create any
fiduciary obligations.

 

Section 1.4           
Alliqua’s Further Assurances. During the Term, Alliqua covenants to act in good faith so as to facilitate the handover
of the Business from Alliqua to BSN and not otherwise harm the Business, including but not limited to taking such actions as follows:

 

(a)          continue
to promote the distribution and sale of Products in accordance with its customary business practices until advised by BSN, in writing,
with at least five (5) business days’ notice, that such promotion will no longer be necessary, and BSN will take over such
activities with effect from the end of the notice period;

 

(b)          keep
full and proper accounts and records showing all inquiries, quotations, transactions, and proceedings relating to the Products
and if BSN proves that it has a legitimate concern which reasonably requires access to such accounts and records (including, without
limitation, in relation to a product recall or a regulatory authority investigation or any other bona fide regulatory or legal
issue), allow BSN, on commercially reasonable notice during business hours, to inspect such accounts and records during the Term;

 

(c)          not
engage in any unfair, misleading or deceptive practices in performing its responsibilities hereunder;

 

(d)          not
make any warranties or other representations regarding the quality or manufacture of the Products that are in addition to, or different
than, the warranties and representations provided by BSN.

 

Section 1.5           BSN’s
Covenants. During the Term, BSN shall provide Alliqua with information on the advertising and promotion carried out by BSN
and supply Alliqua with any promotional and advertising material reasonably requested by Alliqua in order to make marketing of
the Products uniform.

 

    	 	2	 

     

    

 

Section 1.6           Intellectual
Property Rights.

 

(a)          License
and Revocation. During the Term, BSN grants to Alliqua a non-exclusive, non-sub-licensable, non-transferable license to use
the trademarks provided in the Distributor Agreement for the promotion, advertisement and sale of the Products subject to this
Agreement. Upon completion of the Term, this license and any other intellectual property rights hereby granted to Alliqua shall
be immediately revoked and terminated without any further action on either BSN or Alliqua or any other party.

 

(b)          Reputation.
Alliqua shall not do, or omit to do, anything in its use of the trademarks that could adversely affect their validity, value, or
reputation.

 

(c)          Control
of Actions. In respect of any matter that falls within this Section 1.6, BSN shall, in its absolute discretion, decide
what action to take (if any) with respect to such matter and shall have sole control over any action that it deems necessary, and
shall be entitled to all damages and other sums that may be paid or awarded as a result of that action.

 

(d)          Registration
Restriction. Alliqua represents and warrants that it has not not obtained or registered, and covenants that it shall not obtain
or try to obtain or register, for itself or any third party anywhere in the world, any trademarks, domain names, Twitter handles,
Facebook pages, Instagram accounts, or other social media accounts, trade names, or intellectual property which could be confused
with or interfere with the Rights purchased by BSN pursuant to the Purchase Agreement.

 

Section 1.7           Compensation.
As compensation for the satisfactory completion to the Services in accordance with the terms hereof, BSN agrees to pay to Alliqua
a fixed fee of $100,000 (One Hundred Thousand United States Dollars) upon completion of the Term.  

 

Section 1.8           Taxes.
Parties acknowledge and warrant that they have reviewed the tax consequences of this Agreement with their own tax advisors and
are relying solely on that advice and not on any representation or statement of the other party. Each party acknowledges and agrees
that it is responsible for its own tax liability as a result of the Agreement.

 

Section 1.9           Service
Coordinator. Each party will nominate in writing a representative to act as the primary contact with respect to the provision
of the Services (each such person, a “Service Coordinator”). The initial Service Coordinators are set forth
in Exhibit B attached hereto. The parties shall notify each other promptly in writing of any change to their respective
Service Coordinator, setting forth the name of the replacement and stating that the replacement Service Coordinator is authorized
to act for such party in accordance with this Section 1.9. The Service Coordinators shall have the authority to manage the
services contemplated under this Agreement.

 

    	 	3	 

     

    

 

Section 1.10         No
Agency; Independent Contractor Status. Nothing in this Agreement shall constitute or be deemed to constitute a joint venture
between the parties hereto or constitute or be deemed to constitute any party the agent or employee of the other party for any
purpose whatsoever and neither party shall have authority or power to bind the other or contract in the name of, or create a liability
against, the other in any way for any purpose. Each party hereto acknowledges and agrees that the other party is an independent
contractor in the performance of each and every part of this Agreement and nothing herein shall be construed to be inconsistent
with this status.

 

Section 1.11         Dispute
Resolution. In the event of any dispute, controversy or claim arising out of or relating to this Agreement, or the breach,
termination or validity thereof, including any claim by a party hereto that the other party has breached the terms hereof (each,
a “Dispute”), the Service Coordinators shall meet (by telephone or in person) no later than three (3) business
days after receipt of notice by either party of a request for resolution of a Dispute. The Service Coordinators will meet (by telephone
or in person) during the next ten (10) business days and attempt to resolve the Dispute. In the event that the Service Coordinators
are unable to resolve the Dispute pursuant to this Section 1.11, the parties may pursue their rights as set forth in Section
4.2.

 

ARTICLE II

TERM; TERMINATION

 

Section 2.1           Term.
The term of this Agreement shall commence on the Effective Date and terminate on the earlier of (i) ninety days from the Effective
Date and (ii) the first date as of which BSN, pursuant to Section 1.1(c), has instructed Alliqua to discontinue all Services,
unless sooner terminated as provided herein (the “Term”).

 

Section 2.2           Termination.
This Agreement may be terminated:

 

(a)          by
the mutual written consent of BSN and Alliqua;

 

(b)          by
Alliqua if BSN commits a material breach of this Agreement and fails to cure such breach within ten (10) business days of receiving
written notice of such breach from Alliqua;

 

(c)          by
BSN, upon written notice to Alliqua;

 

(d)          by
either BSN or Alliqua in the event of the institution by the other party of voluntary proceedings in bankruptcy or under insolvency
laws; or

 

(e)          by
either BSN or Alliqua in the event of the involuntary initiation of bankruptcy or insolvency proceedings against the other party
or for the dissolution or reorganization or for a receivership of such other party, which is not dismissed within thirty (30) days
after the filing thereof.

 

    	 	4	 

     

    

 

Section 2.3           Effect
of Termination. Upon the termination of this Agreement or any Service, no party shall have any rights or obligations thereunder;
provided, however, that Section 1.11, this Section 2.3 and Articles III and Article IV
shall survive such termination.

 

ARTICLE III

LIMITATION OF LIABILITY

 

Section 3.1           Limitation
of Liability. EXCEPT FOR FRAUD OR WILLFUL MISCONDUCT, NEITHER PARTY SHALL HAVE ANY OBLIGATION OR LIABILITY TO THE OTHER WITH
RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT FOR ANY PUNITIVE, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, WHETHER FORESEEABLE
OR NOT.

 

ARTICLE IV

GENERAL

 

Section 4.1           Governing
Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York applicable to agreements
made within such State, without regard to the conflicts of law principles that would require the application of any other law.

 

Section 4.2           Jurisdiction;
Service of Process. Any action or proceeding arising out of or relating to this Agreement or any transaction contemplated hereby
may be brought in any state or federal court sitting in the State of New York, and each of the parties irrevocably submits to the
exclusive jurisdiction of each such court in any such action or proceeding, waives any objection it may now or hereafter have to
venue or to convenience of forum, agrees that all claims in respect of the action or proceeding shall be heard and determined only
in any such court and agrees not to bring any action or proceeding arising out of or relating to this Agreement or any transaction
contemplated hereby in any other court. The parties agree that any party may file a copy of this paragraph with any court as written
evidence of the knowing, voluntary and bargained-for agreement among the parties irrevocably to waive any objections to venue or
to convenience of forum. Process in any action or proceeding referred to in the first sentence of this Section 4.2 may be
served on any party anywhere in the world. To the extent that service of process by mail is permitted by law, each party irrevocably
consents to the service of process in any such litigation in such courts by the mailing of such process by registered or certified
mail, postage prepaid, to such party at its address for notices provided herein.

 

Section 4.3           Waiver
of Jury Trial. THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT,
TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE
KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY ACTION OR PROCEEDING
WHATSOEVER BETWEEN OR AMONG THEM RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY SHALL INSTEAD BE TRIED IN A
COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

    	 	5	 

     

    

 

Section 4.4           Notices.
All notices, demands or other communications required or permitted to be given hereunder shall be in writing and shall be deemed
to have been given when personally delivered, or sent by electronic means of transmitting written documents (including without
limitation e-mail), or sent to the parties at the respective addresses indicated herein by certified U.S. mail, return receipt
requested and postage prepaid, or sent by private overnight mail courier service. Notices, demands and communications sent by electronic
means must also be sent by regular U.S. mail or by private overnight mail courier service in order for such notice to be effective.
Notices, demands and communications to Alliqua or BSN must, unless another address is specified in writing be sent to the address
indicated below:

 

	If to BSN:	
        BSN medical, Inc.

        Attention: Joseph P. Carpinelli,

        Sr. Vice President of Finance
        – North America

        5825 Carnegie Blvd.

        Charlotte, NC 28209

        Phone: 704.731.1056

        Facsimile: 704.910.8994

        Email: Joseph.Carpinelli@bsnmedical.com

         

	 	
        with a copy (which copy shall not constitute
        notice to BSN) to:

         

        Koley Jessen P.C., L.L.O.

        Attention: Anshu S. K. Pasricha

        1125 S. 103rd St., Suite 800

        Omaha, NE  68124

        Phone: 402.390.9500

        Facsimile: 402.390.9005

        Email: Anshu.Pasricha@koleyjessen.com

         

	 If to Alliqua:	
        Alliqua Biomedical, Inc.

        Attention: David Johnson

        1010 Stony Hill Road, Suite 200

        Yardley, PA 19067

        Phone: 908.240.3521

        Facsimile: 215.702.8535

        E-mail: djohnson@alliqua.com

 

    	 	6	 

     

    

 

	 	
        with a copy (which copy shall not constitute notice to Alliqua)
        to:

         

        Haynes and Boone, LLP

        Attention: Rick A. Werner

        30 Rockefeller Plaza

        New York, NY 10112

        Phone: 212.659.7300

        Facsimile: 212.884.8234

        E-mail: Rick.Werner@haynesboone.com

 

Section 4.5           Assignment.
This Agreement and the rights and obligations hereunder shall not be assignable or transferable by either party without the prior
written consent of the other party. Subject to the preceding sentence, this Agreement will apply to, be binding in all respects
upon and inure to the benefit of the permitted assigns of the parties.

 

Section 4.6           No
Third-Party Beneficiaries. Except as expressly provided herein, this Agreement is for the sole benefit of the parties hereto
and their permitted assigns and nothing herein expressed or implied shall give or be construed to give to any Person, other than
the parties hereto and such permitted assigns, any legal or equitable rights, remedy or claim hereunder.

 

Section 4.7           Amendments.
No amendment to this Agreement shall be effective unless it shall be in writing and signed by the parties hereto.

 

Section 4.8           Severability.
If any provision of this Agreement or the application of any such provision to any Person or circumstance shall be held invalid,
illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision hereof and all other conditions and provisions of this Agreement shall nevertheless remain in full
force and effect so long as the essential economic or legal substance of the transactions contemplated hereby is not affected.
Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, Alliqua and BSN shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a
mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the
greatest extent possible.

 

Section 4.9           Mutual
Drafting. The parties hereto are sophisticated and have been represented by lawyers who have carefully negotiated the provisions
hereof. As a consequence, the parties do not intend that the presumptions of any laws or rules relating to the interpretation of
contracts against the drafter of any particular clause should be applied to this Agreement and therefore waive their effects.

 

Section 4.10         Counterparts.
This Agreement may be executed in one or more counterparts and by facsimile or other electronic signature, all of which shall be
considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of
the parties and delivered to the other party.

 

    	 	7	 

     

    

 

Section 4.11         Force
Majeure. Neither party hereto shall be liable to the other party hereto for any interruption of the Services or any delays
or failure to perform under this Agreement caused by matters or events that are beyond the reasonable control of such party, including
governmental laws, rules or regulations; fires, floods, acts of God, extremes of weather, earthquakes, tornadoes or similar occurrences
and acts of terrorism or other hostilities. Each party shall promptly notify the other upon learning of the occurrence of any such
event of force majeure. Upon the occurrence of any such event of force majeure, a party’s obligations hereunder shall be
postponed for such time as its performance is suspended or delayed on account thereof. Upon the cessation of the force majeure
event, the parties will use their reasonable efforts to resume performance of their obligations under this Agreement with all reasonable
speed.

 

Section 4.12         Entire
Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof.
Any and all provisions of the Purchase Agreement are in no way superseded by any terms of this Agreement.

 

[Signature Page Follows on Next Page]

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF, the parties hereto,
intending to be legally bound hereby, have duly executed this Agreement on the date first above written.

 

	 	BSN MEDICAL, INC.
	 	 	 
	 	By:	/s/ Joseph Carpinelli
	 	Name:	Joseph Carpinelli
	 	Its:	SVP Finance – North America
	 	 	 
	 	
        ALLIQUA BIOMEDICAL, INC.

         

	 	By:	/s/ Brian M. Posner
	 	Name:	Brian M. Posner
	 	Its:	CFO

 

Transition Services Agreement

Signature Page

 

     

     

    

  

EXHIBIT A 

SERVICES

 

Service Description

 

		1.	Alliqua shall cause its sales representatives and any other
relevant personnel to attend with BSN the handover/transition meetings with applicable customers, including account level hand-off.

 

		2.	Alliqua shall assign to BSN, on a continuing basis during
the Term, any and all contracts with third parties for supplying Products.

 

		3.	Alliqua shall assign to BSN all clinical and promotional
material, including but not limited to papers, case studies, and literature, whether used previously, currently in use, or in
development.

 

		4.	Alliqua shall reasonably cooperate in communicating with
the existing distributors, wholesalers and customers in respect of transition of Business to BSN and shall facilitate, to the
reasonable satisfaction of BSN, the handover of Business.

 

		5.	Alliqua shall respond in good faith to any reasonable request
by BSN for access to any additional services that are necessary for the handover of Business from Alliqua to BSN.

 

     

     

    

  

EXHIBIT B

SERVICE COORDINATORS

 

Alliqua Biomedical, Inc.

 

Name: Marisa Belmar

Phone: 908.963.6887

Email: mbelmar@alliqua.com

 

BSN medical, Inc.

 

Name: Wade Farrow

Phone: 704.551.71.49

Cell Phone : ***.***.****

Email: Wade.Farrow@bsmmedical.com

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