Document:

Exhibit 10.25

 

Execution Copy

 

ASSET
SALE AGREEMENT

 

THIS ASSET SALE AGREEMENT
(the “Agreement”), is made as of
the 12th day of October, 2005, by and between ULURU, Inc., a Delaware
corporation (“ULURU”), and Access
Pharmaceuticals, Inc., a Delaware corporation (“Access”). ULURU and Access are sometimes individually referred
to herein as the “Party” and
collectively as the “Parties.”

 

BACKGROUND

 

A.            Access has certain right, title and interest in and to
the Takeda License Agreement (as hereinafter defined) and the Purchased Assets
(as hereinafter defined), which includes, without limitation, certain tangible
and intangible property relating to the manufacture, use, sale and distribution
of the Products (as hereinafter defined).

 

B.            ULURU desires to purchase and assume, and Access desires
to sell and assign, the Purchased Assets and the Takeda License Agreement,
respectively, pursuant to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in
consideration of the promises and the mutual covenants, agreements, guarantees
and representations herein contained and intending to be legally bound, ULURU
and Access agree as follows:

 

SECTION 1

DEFINITIONS

 

1.1          Definitions.

 

Where used in this
Agreement the following words or phrases shall have the meanings set forth
below:

 

(a)                                  “Access” shall have the meaning set forth in
the Preamble.

 

(b)           “Access
Trade Dress” means all trade dress relating to the Purchased Assets
other than trade dress or marks relating to Access or its logo.

 

(c)           “Access
Trademarks” means (i) the Access name or any variations thereof
or the names of any Access Affiliates or any variations thereof and (ii) all
Trademarks, other than the Product Trademarks, currently used by Access or its
Affiliates in connection with the manufacture, marketing, sale and distribution
of their respective products.

 

(d)           “Adverse
Experience(s)” means any noxious, pathological or unintended change
in anatomical, physiological or metabolic function as indicated by physical
signs, symptoms and/or laboratory changes occurring in clinical trials,
post-marketing surveillance, or clinical practice during use of the Products,
or published in the medical literature, whether or not considered causally
related to the Products. This includes an exacerbation of a pre-existing

 

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condition, intercurrent
illness, drug interaction, significant worsening of a disease under
investigation or treatment, and significant failure of expected pharmacological
or biological action.

 

(e)           “Affiliate”,
when used to indicate a relationship with any person or entity, means
(i) any corporation, firm, partnership or other entity, whether de jure or
de facto, which directly or indirectly owns, is owned by or is under common
ownership with such person or entity to the extent of at least fifty percent
(50%) of the equity (or such lesser percentage which is the maximum allowed to
be owned by a foreign corporation in a particular jurisdiction) having the
power to vote on or direct the affairs of the entity, or (ii) any person,
firm, partnership, corporation or other entity actually controlled by,
controlling or under common control with such person or entity.

 

(f)            “Agency”
or “Agencies” means any U.S. or
foreign governmental regulatory authority responsible for granting approvals
and clearance for manufacturing, marketing and sale of any Product.

 

(g)           “Agreement”
means this Asset Sale Agreement, together with the Schedules and Exhibits
hereto, and any instrument amending this Agreement in accordance with Section
14.6; and the expression “Section” followed by a number refers to the specified
Section of this Agreement.

 

(h)           “Amlexanox”
means the chemical compound of the formula
2–amino–7–isopropyl–5–oxo–5H–[1]benzopyrano–[2,3–b]–pyridine–3–carboxylic acid
(also known by Takeda Code No.: AA-673).

 

(i)            “Ancillary
Agreements” means any other agreement to be executed by ULURU and/or
Access in connection with this Agreement, including, without limitation, the
Bill of Sale and Assignment Agreement, the Product Patents Assignment, the
Product Trademarks Assignment and the License Agreement.

 

(j)            “Annual
Net Sales” means gross revenues received by ULURU and its Affiliates
on the worldwide sale of the Products in any calendar year, less (i) trade
discounts actually allowed; and (ii) when borne by ULURU or its Affiliates in
connection with the sale, transportation and handling charges; sales, use and
excise taxes; import duties, tariffs or other governmental charges; and credits
for claim or allowances, retroactive price reductions, refunds, returns, and
recalls. There shall not be any imputed gross revenue for samples, free goods
or other marketing programs whereby the Products are given away to induce sales
thereof. For purposes of determining Annual Net Sales, a sale shall be deemed
to have occurred when the sale is invoiced or when the applicable Product is
delivered, whichever occurs first. In the case of the transfer or sale of the
Products by ULURU to an Affiliate, or by ULURU or its Affiliate to their
respective distributor, or subdistributor for sale by such Affiliate,
distributor or subdistributor, Annual Net Sales shall be based upon the greater
of the total invoice price charged by ULURU to such Affiliate, distributor,
subdistributor or the total invoice price charged by such Affiliate,
distributor or subdistributor to its customers. Annual Net Sales for countries
outside the U.S. shall be calculated by converting to U.S. currency using the
exchange

 

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rate in effect on the
last business day of each quarter as published in the Wall Street Journal.
Annual Net Sales shall also include Licensee Net Sales.

 

(k)           “Aphthasol
Product” means a topical oral paste formulation or mucoadhesive film
formulation containing Amlexanox currently approved by the FDA for use in the
treatment of aphthous ulcers.

 

(l)            “Assumed
Liabilities” has the meaning set forth in Section 2.2(a).

 

(m)          “Bill
of Sale and Assignment Agreement” means the bill of sale to be
executed by Access and delivered to ULURU at Closing, substantially in the form
of Exhibit A attached hereto.

 

(n)           “Closing”
and “Closing Date” have the
meaning set forth in Section 13.1.

 

(o)           “Cumulative
Net Sales” means gross revenues received by ULURU and its Affiliates
on the worldwide sale of the Products, less (i) trade discounts actually
allowed; and (ii) when borne by ULURU or its Affiliates in connection with the
sale, transportation and handling charges; sales, use and excise taxes; import
duties, tariffs or other governmental charges; and credits for claim or
allowances, retroactive price reductions, refunds, returns, and recalls. There
shall not be any imputed gross revenue for samples, free goods or other
marketing programs whereby the Products are given away to induce sales thereof.
For purposes of determining Cumulative Net Sales, a sale shall be deemed to
have occurred when the sale is invoiced or when the applicable Product is
delivered, whichever occurs first. In the case of the transfer or sale of the
Products by ULURU to an Affiliate, or by ULURU or its Affiliate to their
respective distributor, or subdistributor for sale by such Affiliate,
distributor or subdistributor, Cumulative Net Sales shall be based upon the
greater of the total invoice price charged by ULURU to such Affiliate,
distributor, subdistributor or the total invoice price charged by such
Affiliate, distributor or subdistributor to its customers. Cumulative Net Sales
for countries outside the U.S. shall be calculated by converting to U.S.
currency using the exchange rate in effect on the last business day of each
quarter as published in the Wall Street Journal. Cumulative Net Sales
shall also include Licensee Net Sales.

 

(p)           “Dental
Product” means [a product developed for use in the oral cavity or
implanted in the oral cavity including implantation in teeth utilizing the
Licensed Technology].

 

(q)           “Encumbrance”
has the meaning set forth in Section 5.3.

 

(r)            “Excluded
Assets” shall mean all assets of Access other than the Purchased
Assets and the Assumed Liabilities and any assets or contracts that by their
terms are not assignable.

 

(s)           “Excluded
Intellectual Property” means (i) Access Trademarks,
(ii) the Access Trade Dress, (iii) the Licensed Technology and
(iv) any Intellectual Property that does not relate to the Products.

 

(t)            “FDA”
means the U.S. Food and Drug Administration.

 

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(u)           “Finished
Goods” means any Product packaged in sample and commercial sizes and
ready for distribution to the ultimate customer.

 

(v)           “Intellectual
Property” means all (i) Patents and U.S. and other registered
designs; (ii) U.S. and other mask works and copyrights in works of
authorship of any type, including, but not limited to, computer software and
industrial designs, registrations and applications for registration thereof;
(iii) Trademarks and trade dress; (iv) trade secrets, know-how and
other confidential or proprietary technical, business and other information,
and all rights thereto in any and all jurisdictions, to limit the use or
disclosure thereof; (v) rights to obtain and file for patents and
registrations thereof; and (vi) rights to sue and recover damages or
obtain injunctive relief for infringement, dilution, misappropriation,
violation or breach thereof.

 

(w)          “Inventory”
means Access’s inventory of Finished Goods, an electronic accounting of which
is set forth on Schedule 1.1(w) attached hereto.

 

(x)            “Liabilities”
means any and all debts, liabilities and obligations, whether accrued or fixed,
absolute or contingent, matured or unmatured, or determined or determinable,
including those arising from any Claim or other action by a third party under
any law, action or governmental order and those arising under any contract,
agreement, arrangement, commitment or undertaking, or otherwise. For the
purposes of this definition “Claim” shall mean any action (including, without
limitation, any proceedings to establish insurance coverage), claim, suit,
arbitration or governmental, administrative, or other proceeding or
investigation or judgment or equitable relief.

 

(y)           “License
Agreement” means that certain License Agreement, substantially in
the form of Exhibit B attached
hereto, entered into by and between Access and ULURU as of the Closing Date,
pursuant to which Access shall grant to ULURU a license to the Licensed
Technology on the terms and conditions set forth therein.

 

(z)            “Licensed
Technology” means Access’s nanoparticle aggregate technology, to
which Access shall grant to ULURU a license pursuant to the License Agreement,
as such technology is further described in the License Agreement.

 

(aa)         “Licensee”
means a licensee of, or other third party otherwise engaged by, ULURU or its
Affiliates for the purpose of selling or distributing any Product.

 

(bb)         “Licensee
Net Sales” means gross revenues received by a Licensee on the sale
of any Product as requested in the applicable license agreements as reported to
Access or ULURU. There shall not be any imputed gross revenue for samples, free
goods or other marketing programs whereby any Product is given away to induce
sales thereof. For purposes of determining Licensee Net Sales, a sale shall be
deemed to have occurred when the sale is invoiced or when a Product is
delivered, whichever occurs first. In the case of the transfer or sale of a Product
by the Licensee to an Affiliate, distributor or subdistributor of the Licensee
for sales by such Affiliate, distributor or subdistributor, Licensee Net Sales
shall be based upon the greater of the total invoice price charged by the
Licensee to such Affiliate, distributor or subdistributor or the total invoice
price charged by such Affiliate, distributor or subdistributor to its
customers. Licensee Net Sales for countries outside the U.S. shall be calculated
by converting to U.S.

 

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currency using the
exchange rate in effect on the last business day of each month as published in
the Wall Street Journal.

 

(cc)         “Manufacturing
Technology” means all technology, trade secrets, research and
development, formulae, know-how, inventions, discoveries, processes,
compositions, test procedures, manufacturing procedures, techniques,
developments, enhancements and modifications, confidential, technical, or
proprietary information and knowledge not generally known to the public,
whether or not patentable, commercially useful, or reducible to writing or
practice that enable Access to make, have made, use, offer for sale, sell and
import any Product that is a Purchased Asset and are owned or controlled by
Access as of the Closing Date; provided that Manufacturing Technology
shall not include any Manufacturing Technology relating to any Excluded Assets.

 

(dd)         “Marketing
Materials” means those marketing materials used by Access solely
with respect to the Products in the U.S. that are in existence as of the
Closing Date, to the extent such materials are within the possession or control
of Access and relate to the Purchased Assets, as set forth on Schedule
1.1(dd).

 

(ee)         “Material
Adverse Effect” means an event, change or occurrence which,
individually or together with any other event, change or occurrence, has a
material adverse effect on the Purchased Assets taken as a whole, but shall not
include (i) any adverse effect due to changes, after the date of this
Agreement, in conditions generally affecting (A) the healthcare industry
or (B) the worldwide, U.S. or European economy as a whole, (ii) any
change or adverse effect caused by, or relating to, the announcement of this
Agreement and the transactions contemplated by this Agreement or (iii) any
adverse effect due to legal or regulatory changes effective after the date of
this Agreement.

 

(ff)           “Mucoadhesive
Product” means an erodible multi-layer strip or patch which adheres
to the teeth or the oral mucosa for the purpose of controlled delivery of an
active ingredient either to the surface of the teeth or oral mucosa or for
release of the active into the oral cavity.

 

(gg)         “NDA”
means a New Drug Application filed with the FDA pursuant to 21 C.F.R., Part
314, and all supplements, amendments, revisions thereto and all correspondence
between Access and FDA relative thereto.

 

(hh)         “Party”
or “Parties” shall have the
meaning set forth in the Preamble.

 

(ii)           “Patents”
means all U.S. and foreign patents, patent applications and statutory invention
registrations (which, for the purposes of this Agreement, shall be deemed to
include provisional applications, invention disclosures, certificates of
invention and applications for certificates of invention), including reissues,
divisions, continuations, continuations-in-part, supplementary protection
certificates, extensions and reexaminations thereof, all inventions disclosed
therein, all rights therein provided by international treaties and conventions,
and all rights to obtain and file for patents and registrations thereto.

 

(jj)           “Premises
Agreement” means that certain 2600 Stemmons Freeway License
Agreement, to be entered into by and between Access and ULURU as of the Closing

 

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Date, substantially in
the form of Exhibit E attached
hereto, pursuant to which ULURU shall sublease from Access certain space at the
premises located at 2600 Stemmons Freeway, Dallas Texas.

 

(kk)         “Products”
means, collectively, the Aphthasol Product, the Mucoadhesive Product and the
ResiDerm Product and any product developed or sold under the License Agreement,
and any improvements or corollaries thereto.

 

(ll)           “Product
Intellectual Property” means (i) all Product Patents, (ii)
all Product Trademarks, (iii) the Manufacturing Technology,
(iv) the Product Trade Dress, (v) the Marketing Materials, (vi) the
domain name “www.Aphthasol.biz” and (vii) all other Intellectual Property
primarily related to the Products, but excluding (in all cases) Excluded
Intellectual Property, Excluded Assets and the “Technology and Know How” of
Takeda, as such term is defined in Section 1.6 of the Takeda License Agreement.

 

(mm)       “Product
Patents” means those Patents set forth on Schedule 1.1(ll)
attached hereto.

 

(nn)         “Product
Patents Assignment” means that assignment agreement to be executed
by Access and delivered to ULURU at Closing, substantially in the form of Exhibit C attached hereto.

 

(oo)         “Product
Registrations” means registrations required by applicable Agencies
in the U.S. relating to the manufacture, sale and distribution of the Products
in the U.S. and foreign countries, including, without limitation, NDAs relating
to the Products.

 

(pp)         “Product
Trade Dress” means, collectively, the current trade dress of each of
the Products, including, but not limited to, product packaging associated with
the sale of the Products in the U.S., but excluding the Access Trade Dress.

 

(qq)         “Product
Trademarks” means those Trademarks set forth on Schedule 1.1(pp)
attached hereto.

 

(rr)           “Product
Trademarks Assignment” means the assignment agreement to be executed
by Access and delivered to ULURU at Closing, substantially in the form of Exhibit D attached hereto.

 

(ss)         “Purchase
Price” has the meaning set forth in Section 3.1.

 

(tt)           “Purchased
Assets” has the meaning set forth in Section 2.1(a).

 

(uu)         “ResiDerm
Product” means a topical formulation utilizing the proprietary zinc
technology, exemplified by Zindaclin, a zinc-clindamycin phosphate topical
product.

 

(vv)         “Retained
Liabilities” has the meaning set forth in Section 2.2(b).

 

(ww)       “Scientific
and Regulatory Material” means all technological, scientific,
chemical, biological, pharmacological, toxicological, regulatory and clinical
trial materials and

 

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information primarily
related to the Products and all rights thereto in any and all jurisdictions to
limit the use or disclosure thereof, to the extent such materials are within
the possession or control of Access.

 

(xx)          “Takeda”
means Takeda Chemical Industries, Ltd.

 

(yy)         “Takeda
License Agreement” means the agreement, dated November 12, 1987, by
and between Takeda and Chemex Pharmaceuticals, Inc. (“Chemex”), which is currently known as
Access, a copy of which is attached hereto as Exhibit
F.

 

(zz)          “Tax”
or “Taxes” means any domestic,
foreign, national, regional or local income, gross receipts, payroll,
withholding, license, unemployment, premium, excise, real or personal property,
capital stock, franchise, profits, environmental, unemployment disability, social
security, severance, value added, sales, use, transfer, registration,
alternative or add-on minimum, estimated or any other tax or similar
governmental charge of any kind whatsoever, including interest, penalties, and
additions to tax with respect thereto, whether disputed or not.

 

(aaa)       “Tooth
Whitening Product” means a Mucoadhesive Product formulated with an
active ingredient which adheres to the surface of teeth to enhance the
whiteness of the tooth surface.

 

(bbb)      “Tax
Return” means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

 

(ccc)       “Trademarks”
means all U.S. and other trademarks, trade names, brand names, logotypes,
symbols, service marks, designs, domain names, URLs and tradenames, including
registrations and applications for registrations thereof and all renewals,
modifications and extensions thereof.

 

(ddd)      “Transition
Team” shall have the meaning set forth in Section 8.2.

 

(eee)       “ULURU”
shall have the meaning set forth in the Preamble.

 

(fff)         “U.S.”
means the United States of America, its territories and possessions, including
without limitation the Commonwealth of Puerto Rico and the District of Columbia.

 

In this Agreement, words
importing the singular number shall include the plural and vice versa, words
importing a specific gender shall include the other genders and references to
persons shall include corporations and one or more persons, their heirs,
executors, administrators or assigns as the case may be. References to
“including” shall mean “including but not limited to”.

 

1.2          Currency. All currency amounts
referred to in this Agreement are in U.S. Dollars.

 

7

 

1.3          Headings, Etc. The division of this Agreement into
Sections and the insertion of headings are for convenience of reference only
and shall not affect the interpretation hereof.

 

SECTION 2

PURCHASED ASSETS; LIABILITIES

 

2.1          Assets to Be Sold and Purchased.

 

(a)           Upon
the terms and subject to the conditions of this Agreement, Access agrees to
sell, assign, transfer, convey and deliver to ULURU and ULURU agrees to
purchase from Access, all rights, title and interest of Access and its
Affiliates in and to the following assets, regardless of where such assets are
situated (the “Purchased Assets”),
free and clear of all Encumbrances, except as set forth on Schedule 5.3:

 

(i)            all Product Intellectual Property;

 

(ii)                                  the
Product Registrations, to the extent transferable;

 

(iii)                               the
Inventory;

 

(iv)          the existing lists of all current
trade/wholesale customers (including the address and contact information for
each such customer) for the Products and the pricing of the Products for such
customers; provided, however, that Access shall retain all rights
of access and ownership of such information with respect to sales of Access’s
and Access’s Affiliates’ other products;

 

(v)           copies of Access’s files pertaining
to the Product Registrations and correspondence with the FDA and other
Agencies, in each case such as is in existence and in the possession or control
of Access, as of the Closing Date;

 

(vi)          all Marketing Materials;

 

(vii)         all Scientific and Regulatory Material;

 

(viii)        the equipment, telephone numbers, internet
or domain names or URL’s associated with Access’s development, manufacture or
commercialization of any Product, as set forth on Schedule 2.1(a)(viii);

 

(ix)           all contracts or agreements
associated with the development, manufacture, sale, license or
commercialization of the Products that are by their terms assignable, except as
set forth on Schedule 2.1(a)(ix);

 

(x)            records and files that relate to the
Products manufacturing and manufacturing processes;

 

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(xi)           all communications to and from third
parties relating to the Products or the Product Intellectual Property; and

 

(xii)          all laboratory notebooks specifically
related to the Purchased Assets and copies of pages from notebooks which are
not specifically related to the Purchased Assets which include scientific data
and results related to the Purchased Assets.

 

The Parties expressly
agree and acknowledge that the Purchased Assets shall not include the
Excluded Intellectual Property and the Excluded Assets and the Takeda License
Agreement.

 

(b)           ULURU
acknowledges and agrees that Access, at its own expense, may retain one (1)
copy of all or part of the documentation that it delivers to ULURU in
confidential, restricted ULURU files, for use in the event a dispute arises
between the Parties hereunder, in connection with fulfilling its obligations
under this Agreement or in order to comply with applicable law.

 

2.2          Liabilities. Except as set forth
on Schedule 2.2(1) attached hereto:

 

(a)           ULURU
agrees to assume, be responsible for and pay, perform and discharge, when due
and whenever asserted, all Liabilities (other than the Retained Liabilities)
existing or arising in connection with the Purchased Assets and the Products,
but only to the extent that such Liabilities arise in respect of circumstances
or events occurring on or after the Closing Date (collectively, the “Assumed Liabilities”). In addition, ULURU
shall assume, be responsible for and pay, perform and discharge, when due and
whenever asserted, all costs, expenses, exchanges and rebates related to
customer returns of any of the Products, including, without limitation,
Finished Goods, which occur or arise after the Closing Date. The foregoing
costs, expenses, exchanges and rebates related to customer returns of the
Products shall be included within the definition of Assumed Liabilities. ULURU
shall not assume any Liabilities relating to a breach contract, breach of
warranty, tort, infringement or violation of law by Access, its Affiliates
and/or its or their respective directors, officers, employees and agents
occurring prior to the Closing Date and arising out of any charge, complaint,
action, suit, proceeding, hearing, investigation, claim or demand.

 

(b)           Access
agrees to retain, be responsible for and pay, perform and discharge, when due
and whenever asserted, all Liabilities (other than the Assumed Liabilities)
arising in connection with the Purchased Assets and the Products, but only to
the extent such Liabilities arise in respect of circumstances or events
occurring prior to the Closing Date (collectively, the “Retained Liabilities”). Notwithstanding the
foregoing, Access shall not be responsible for any costs, expenses, exchanges
and rebates relating to customer returns of the Products, including, without
limitation, Finished Goods, occurring after the Closing Date. Access shall not
retain any Liabilities relating to a breach of contract, breach of warranty,
tort, infringement or violation of law by ULURU, its Affiliates and/or its or
their respective directors, officers, employees, agents

 

(1)          Schedule 2.2 to list
deviations from the pre(Access)/post(ULURU)-Closing allocation of Liabilities,
as mutually agreed to by the Parties.

9

 

or Licensees,
occurring as of and after the Closing Date and arising out of any charge,
complaint, action, suit, proceeding, hearing, investigation, claim or demand.

 

(c)           Subject
to the provisions of Section 9 below, ULURU shall be responsible for all
Liabilities whatsoever other than the Retained Liabilities.

 

(d)           Subject
to the provisions of Section 9 below, Access shall be responsible for all
Liabilities whatsoever other than the Assumed Liabilities.

 

2.3          Proration. Access and ULURU agree to prorate as
of the Closing Date any amounts under any license agreement or other agreement
relating to the Products which become due and payable after the Closing Date to
the extent the benefit is attributable to the period prior to the Closing Date.

 

2.4          Ancillary Agreements. Access and ULURU acknowledge that
this Agreement does not act as a conveyance, transfer or assignment of any
property but that all of the Purchased Assets and the Takeda License Agreement
are conveyed, transferred or assigned by way of the Bill of Sale and Assignment
Agreement, the Product Patents Assignment, the Product Trademarks Assignment
and other documents delivered pursuant to the terms of this Agreement.

 

2.5          Takeda License Agreement.

 

(a)           Upon
the terms and subject to the conditions of this Agreement, and notwithstanding
anything to the contrary contained herein, Access agrees to assign, transfer,
convey and deliver to ULURU and ULURU agrees to assume from Access, on the
Closing Date, all rights, Liabilities (other than the Retained Liabilities),
title and interest of Access and its Affiliates in and to the Takeda License
Agreement, free and clear of all Encumbrances, except as set forth in Schedule
5.3.

 

(b)           ULURU
agrees to assume, be responsible for and pay, perform and discharge, when due
and whenever asserted, all Liabilities existing or arising in connection with
the Takeda License Agreement, but only to the extent that such Liabilities
arise in respect of circumstances or events occurring on or after the Closing
Date.

 

(c)           Access agrees to retain, be responsible
for and pay, perform and discharge, when due and whenever asserted, all
Liabilities arising in connection with the Takeda License Agreement, but only
to the extent such Liabilities arise in respect of circumstances or events
occurring prior to the Closing Date.

 

(d)           ULURU shall be solely responsible for
accounting and payment to Takeda, in accordance with Article VIII of the Takeda
License Agreement, of any royalties payable to Takeda under the Takeda License
Agreement on Access’s Net Sales (as defined in the Takeda License Agreement) of
the Aphthasol Product after the Closing Date. ULURU shall deliver to Access a
copy of any statement or royalty report required to be provided to Takeda which
accounts for royalties payable to Takeda on Access’s Net Sales (as defined in
the Takeda License Agreement) of the Aphthasol Product.

 

10

 

2.6          Third Party Consents. Notwithstanding anything herein to
the contrary, the Parties acknowledge and agree that Access will not assign to
ULURU any contract or agreement that by its terms requires, prior to such
assignment, the consent of any other contracting party thereto unless such
consent has been obtained. With respect to each such contract or agreement not
assigned on the Closing Date, after the Closing Date Access shall, at ULURU’s
sole expense, continue to deal with the other contracting party(ies) to such
contract or agreement as the prime contracting party, and ULURU and Access
shall use their best efforts to obtain the consent of all required parties to
the assignment of such contract or agreement. Such contract or agreement shall
be promptly assigned by Access to ULURU after receipt of such consent after the
Closing Date, and upon such assignment shall be deemed a Purchased Asset.
Notwithstanding the absence of any such consent, ULURU shall be entitled to the
benefits and subject to the burdens of any such contract or agreement accruing
after the Closing Date, and ULURU agrees to perform all of the obligations of
Access to be performed under any such contract or agreement after the Closing
Date and to indemnify the Access Indemnified Parties (as defined in Section
9.1) against any Losses (as defined in Section 9.1) as a result of such
performance or any non-performance by ULURU of any such contract or agreement.

 

SECTION 3

PURCHASE PRICE AND OTHER PAYMENTS

 

3.1          Purchase Price. The Purchase Price payable in
consideration for the acquisition of the Purchased Assets shall be Thirteen
Million Four Hundred Thousand Dollars ($13,400,000) (the “Purchase Price”). Such Purchase Price shall
be paid by ULURU to Access as follows:

 

(a)           Eight
Million Seven Hundred Thousand Dollars ($8,700,000) delivered to Access by
ULURU at the Closing; provided that ULURU may deliver on behalf of Access an
aggregate of up to $2,994,766.80 of such amount to Cornell Capital Partners, LP
and Highgate House Funds, Ltd. (plus an additional $504.96 for each day after
October 11, 2005) in order to retire the Secured Debentures of Access due March
30, 2006 held by Cornell Capital Partners, LP and Highgate House Funds, Ltd.;

 

(b)           Three
Million Seven Hundred Thousand Dollars ($3,700,000) delivered to Access by
ULURU on the date that is twelve (12) months after the Closing Date; provided
that Three Hundred Thousand Dollars ($300,000) of such amount shall be
accelerated and paid earlier upon the occurrence of any of :

 

(i)            Notification from the FDA that no PDUFA
fees are payable for the Products for the fiscal year ending September 30,
2006, or

 

(ii)           ULURU entering into an agreement or
understanding (oral or written) with either Takeda or Zambon Group to defer
amounts due and payable by ULURU to such parties under the agreements with such
parties that are Purchased Assets hereunder, or

 

(iii)          The consummation by ULURU on or prior
to January 30, 2006 of the sale by ULURU in a Private Placement or PIPE
offering, in one or

 

11

 

more related
transactions, of securities for an aggregate purchase price of at least Three
Million Dollars ($3,000,000).          For
purposes of clarity this excludes any proceeds related to any sale of
securities under a Standby Equity Distribution Agreement with Cornell Capital
or the initial financing of ULURU.

 

(c)           One Million Dollars ($1,000,000) upon
the earliest to occur of:

 

(i)            The U.S. launch of OraDisc A (or its
substantial equivalent); or

 

(ii)           The U.S. launch of OraDisc B (or its
substantial equivalent); or

 

(iii)          The two (2) year anniversary of the
date of this Agreement.

 

3.2          Milestone Payments.

 

(a)           In further consideration for the
transactions contemplated under this Agreement and in addition to the Purchase
Price, ULURU shall pay to Access the following non-refundable milestone
payments in the form and manner described below:

 

(i)            Within five (5) business days after
ULURU commences Phase II clinical testing of any drug Product or pivotal
testing of any device Product, other than a Dental Product, utilizing the
Licensed Technology that is the subject matter of the License Agreement, ULURU
shall pay Access the sum of Three Hundred Seventy Five Thousand Dollars
($375,000);

 

(ii)           Within five (5) business days after
ULURU commences Phase II clinical testing of any drug Product or pivotal
testing of any device Product, other than (A) any Product for which it makes
payment under Section 3.2(a)(i) and/or (B) a Dental Product, utilizing the
Licensed Technology that is the subject matter of the License Agreement, ULURU
shall pay Access the sum of Three Hundred Seventy Five Thousand Dollars
($375,000);

 

(iii)          Within five (5) business days after
ULURU signs a license agreement (with a third party) regarding any Product,
other than a Dental Product, utilizing the Licensed Technology that is the
subject matter of the License Agreement, ULURU shall pay Access the sum of
Three Hundred Seventy Five Thousand Dollars ($375,000);

 

(iv)          Within five (5) business days after
ULURU signs a license agreement (with a third party) regarding any Product,
other than (A) any Product for which it makes payment under Section 3.2(a)(iii)
and/or (B) a Dental Product, utilizing the Licensed Technology that is the
subject matter of the License Agreement, ULURU shall pay Access the sum of
Three Hundred Seventy Five Thousand Dollars ($375,000);

 

(v)           Within five (5) business days after
ULURU signs a license agreement (with a third party) regarding any Product,
other than any Product for which it makes payment under Sections 3.2(a)(iii) or
(iv), utilizing the Product Intellectual Property relating to the Mucoadhesive
Product, ULURU shall pay Access the sum of Three Hundred Seventy Five Thousand
Dollars ($375,000);

 

12

 

(vi)          Within five (5) business days after
ULURU signs a license agreement (with a third party) regarding any Tooth
Whitening Product utilizing the Product Intellectual Property relating to the Mucoadhesive Product,
ULURU shall pay Access the sum of Seven Hundred Fifty Thousand Dollars
($750,000); and

 

(vii)         ULURU shall pay to Access the following
payments based upon the achievement of the following (including, without
limitation, the U.S.) Annual Net Sales or Cumulative Net Sales, as the case may
be, of the Products by ULURU, its Affiliates and its and their respective
Licensees after the Closing Date (including, without limitation, under the
License Agreement):

 

	
  PAYMENT

  	
   

  	
  MILESTONE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  500,000

  	
   

  	
  On achievement of Annual Net Sales of the Products
  of $20,000,000

  	
   

  
	
  $

  	
  1,125,000

  	
   

  	
  On achievement of Annual Net Sales of the Products
  of $40,000,000

  	
   

  
	
  $

  	
  1,500,000

  	
   

  	
  On achievement of Annual Net Sales for any one
  Product of $20,000,000

  	
   

  
	
  $

  	
  750,000

  	
   

  	
  On achievement of Cumulative Net Sales of the
  Products of $50,000,000

  	
   

  
	
  $

  	
  750,000

  	
   

  	
  On achievement of Cumulative Net Sales of the
  Products of $100,000,000

  	
   

  

 

ULURU hereby agrees and
acknowledges that it shall not sell, assign, convey or otherwise transfer the
Purchased Assets or this Agreement without the permitted assignee or transferee
agreeing to be bound by all of the terms of this Agreement, including, without
limitation, the payment obligations of this Section 3.

 

(b)           Within ninety (90) days after the end
of each calendar quarter, commencing with the first full calendar quarter
following the Closing Date, ULURU shall submit to Access a written report
setting forth the Annual Net Sales (to-date) and Cumulative Net Sales of each
of the Products, respectively, for such quarter; provided, however,
that the first such quarterly report shall include only Cumulative Net Sales
for each of the Products from the Closing Date to the end of the first full
calendar quarter following the Closing Date. In the event that a Licensee sells
or distributes any of the Products, the sales report provided to Access by
ULURU or its Affiliates pursuant to this Section 3.2(b) shall also include a
copy of the sales report from such Licensees for such calendar quarter. ULURU
shall permit, and shall cause its Affiliates and its and their respective
Licensees to permit, an independent certified public accounting firm (the “Auditor”) of nationally recognized standing
selected by Access and reasonably acceptable to ULURU, at Access’s expense
(except as set forth below), to have access

 

13

 

upon reasonable notice
during normal business hours to the records of ULURU and/or its Affiliates and
its or their respective Licensees (subject to ULURU’s rights under its license
agreements) as may be reasonably necessary to verify the accuracy of the Annual
Net Sales and Cumulative Net Sales reported by ULURU pursuant to this Section
3.2(b). When, in any quarterly report, one (1) of the Annual Net Sales or
Cumulative Net Sales milestones set forth in Section 3.2(a)(vii) have been
achieved, ULURU shall make the corresponding milestone payment to Access within
ninety (90) days after the end of the calendar quarter in which the milestone
is achieved. In the event that the Auditor, in the course of any review
conducted pursuant this Section 3.2(b), discovers that ULURU underpaid, or
failed to pay, Access of any of the milestone payments due Access under Section
3.2(a)(vii), (i) all expenses incurred by Access in connection with such review
shall be borne entirely by ULURU and (ii) any payment required as a result of
such review shall be immediately paid to Access and shall bear interest from
the date such amount should otherwise have been paid until the date of actual
payment at the rate of ten percent (10%) per annum.

 

3.3          Allocation of Purchase Price. The
Purchase Price and all other amounts constituting consideration hereunder shall
be allocated among the Purchased Assets, and otherwise as the Parties shall
have agreed, in the manner set forth on Exhibit G
attached hereto. Except as otherwise required by applicable law, each of the
Parties agrees to report (and to cause its Affiliates to report) the
transactions contemplated by this Agreement in a manner consistent with the
terms of this Agreement, including the allocation set forth on Exhibit G attached hereto, and agrees not
to take any position inconsistent therewith in any Tax Return, in any refund
claim, in any litigation or otherwise. Any subsequent adjustment to the
Purchase Price shall be reflected in the allocation statement as revised by the
Parties hereunder in a manner consistent with the allocation statement as
originally prepared, except as otherwise required by applicable law. Exhibit G attached hereto shall be amended
by the Parties to reflect any agreed upon changes to the allocation statement.

 

3.4          Transfer Taxes; Withholding Taxes.
All transfer, sales, value added, stamp duty and similar
Taxes payable in connection with the transactions contemplated hereby shall be
borne equally by Access and ULURU. Access shall pay all Taxes payable on any
income or gain resulting from the sale of the Purchased Assets to ULURU.

 

SECTION 4

PAYMENT TERMS

 

4.1          Payment. ULURU
shall pay the Purchase Price, in the installments set forth in
Sections 3.1(a) and (b), and any and all milestone payments, if any, as
set forth in Section 3.2, in cash by wire transfer of immediately available
funds to a bank account or bank accounts to be designated by Access or its
Affiliate.

 

4.2          Post-Closing Adjustments. The
Purchase Price set forth in Section 3.1 shall be subject to adjustment, as
set forth in this Section 4.2, as follows:

 

(a)           In the event any consideration is
payable during the period beginning the Closing Date and ending on the date
that is twelve months thereafter to any person as a condition to the assignment
of the Takeda License Agreement to ULURU, the Purchase Price shall be

 

14

 

reduced, on a
dollar-for-dollar basis, by the amount of such consideration and the payment
payable by ULURU pursuant to Section 3.1(b) shall be reduced, accordingly, on a
dollar-for-dollar basis, up to a maximum of $1,000,000, by the amount of such
consideration and ULURU shall be entitled to deduct the actual amount of such
payment from the amount due Access pursuant to Section 3.1(b). ULURU agrees and
acknowledges that no post-Closing adjustment shall be made under this Section 4.2(a)
after the date that is twelve (12) months after the Closing Date.

 

(b)           In the event that the Parties do not
obtain consent from Takeda to the assignment of the Takeda License Agreement by
Access to ULURU, and ULURU incurs actual damages solely due to the failure to
obtain such assignment, as ULURU’s sole remedy, the Purchase Price shall be
reduced, on a dollar-for-dollar basis, by the amount of such actual damages, up
to a maximum of $1,000,000, and the payment payable by ULURU pursuant to
Section 3.1(b) shall be reduced, accordingly, on a dollar-for-dollar basis, by
the amount of such actual damages and ULURU shall be entitled to deduct the
actual amount of such actual damages from the amount due Access pursuant to
Section 3.1(b).

 

(c)           Subject to the following sentence, in
the event Discus Dental, Inc. (“Discus”)
terminates that certain license and supply agreement, dated April 15, 2005, by
and between Discus and Access (the “Discus
License”), within sixty (60) days of the Closing Date, as ULURU’s
sole remedy, the Purchase Price shall be reduced, on a dollar-for-dollar basis,
by $500,000, and the payment payable by ULURU pursuant to Section 3.1(b) shall
be reduced, accordingly, on a dollar-for-dollar basis, by $500,000 and ULURU
shall be entitled to deduct $500,000 from the amount due Access pursuant to
Section 3.1(b). Notwithstanding the foregoing, in the event that ULURU licenses
the products and technology covered by the Discus License in the United States
within eighteen (18) months of any such termination by Discuss on terms
substantially similar to the Discus License, ULURU shall, within seven (7) days
of receipt by ULURU of any consideration payable to ULURU under such license,
pay to Access $500,000.

 

(d)           In the event that Access fails to
make payments due to Kerry P. Gray under that certain Separation Agreement,
dated as of May 10, 2005, by and between Access and Mr. Gray (the “Separation Agreement”), as ULURU’s and Mr.
Gray’s sole remedy, the Purchase Price shall be reduced, on a dollar-for-dollar
basis, by the amount of any such non-payment, and the payment payable by ULURU
pursuant to Section 3.1(b) shall be reduced, accordingly, on a
dollar-for-dollar basis, by the amount of such non-payment and ULURU shall be
entitled to deduct the amount of such non-payment from the amount due Access
pursuant to Section 3.1(b), such non-payment amount due from Access to be
increased by a penalty of 10% per annum compounded monthly commencing on the
date Access first fails to make a payment due under the Separation Agreement.

 

SECTION 5

REPRESENTATIONS AND WARRANTIES OF ACCESS

 

Except to the extent
modified or disclosed on the Schedules hereto and except to the extent that all
representations and warranties in this Section 5 are modified and supplemented
by the knowledge of ULURU and Kerry P. Gray (and no breach of any
representation or warranty

 

15

 

shall exist to the extent
that ULURU or Kerry P. Gray has knowledge thereof), Access hereby represents
and warrants to ULURU as follows:

 

5.1          Incorporation, Organization and
Qualification of Access. Access is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware, and has the necessary corporate power to own, lease and operate
its property and to carry on its business as now being conducted by it. Access
is duly qualified and licensed to do business as a foreign corporation and is
in good standing in every jurisdiction where the nature of the business
conducted by it makes such qualification necessary, except where the failure to
so qualify or be in good standing does not have a Material Adverse Effect.

 

5.2          Authorization and Validity of
Agreement. Access has the corporate power and legal
authority to execute and deliver this Agreement and the Ancillary Agreements
and to carry out its obligations hereunder and thereunder. The execution and
delivery of this Agreement and the Ancillary Agreements and the performance of
Access’s obligations hereunder and thereunder have been duly and validly
authorized by all necessary corporate action by Access, and no other corporate
proceedings on the part of Access are necessary to authorize such execution,
delivery and performance. This Agreement has been, and the other agreements to be
executed by Access in connection with this Agreement will be, duly and validly
executed by Access and constitute or will constitute, as the case may be, the
valid and binding obligations of Access enforceable against Access in
accordance with its or their terms, subject to bankruptcy, insolvency or
similar laws of general application affecting the enforcement of rights of
creditors, and subject to equitable principles limiting rights to specific
performance or other equitable remedies, and subject to the effect of federal
and state securities laws on the enforceability of indemnification provisions
relating to liabilities arising under such laws. Execution of this Agreement,
the Ancillary Agreements and any other agreements to be executed by Access in
connection with this Agreement and consummation of the transactions
contemplated hereby and thereby will not (a) result in the violation of or
conflict with any of the terms and provisions of the articles of incorporation
or by-laws of Access, (b) result in a violation or breach of, or constitute
(with or without due notice or lapse of time or both) a default (or give rise
to any right of termination, modification, cancellation or acceleration or loss
of material benefits) under, any of the terms, conditions or provisions of any
note, bond, mortgage, indenture, contract, agreement, permit, license, lease,
purchase order, sales order, arrangement or other commitment or obligation to
which Access is a party or may be subject or which is included in the Purchased
Assets or (c) violate any order, writ, injunction, decree, statute, treaty,
rule or regulation applicable to Access or the Purchased Assets, except, in the
case of clauses (b) and (c), as would not have a Material Adverse Effect; provided,
however, the Parties acknowledge that to the extent that any contract or
agreement (including, without limitation, the Takeda License Agreement) is not
assignable, as set forth on Schedule 5.2, it shall be governed by
Section 2.5, and such non-assignability shall not be deemed a breach of this
Agreement.(2)

 

5.3          Title to Purchased Assets. Except
as set forth on Schedule 5.3, Access is the owner of, and/or is the
lawful holder of all rights to, the Purchased Assets with good, valid and

 

(2)          Schedule 5.2 to indicate
certain contracts that may not be assignable and that any assignment of same
could give rise to a right of a party to terminate or sue for damages.

 

16

 

marketable title thereto,
free and clear of any mortgage, lien, charge, security interest, pledge,
restriction on transferability, option, adverse claim or other encumbrance on
title whatsoever (collectively, “Encumbrances”),
and at the Closing, Access will transfer to ULURU good, valid and marketable
title thereto, free and clear of all Encumbrances.

 

5.4          Compliance With Law.
Access has conducted and is currently conducting the manufacturing, processing,
packaging, labeling, marketing and sale of the Products in the U.S. in
compliance with all applicable laws, rules, regulations and court or
administrative orders and processes. Except as would not have a Material
Adverse Effect, Access has not received any written notice of violation of any
applicable law, regulation or requirement relating to the Products or the Purchased
Assets within the past three (3) years.

 

5.5          Litigation. Except
as would not have a Material Adverse Effect, (a) there are no actions, suits,
proceedings, investigations, arbitration proceedings or other proceedings
pending or, to the best knowledge of Access, threatened against or affecting,
in whole or in part, the Purchased Assets or the Products by or before any
federal, state, municipal or other governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, or by or before any
arbitrator, and (b) there is not currently outstanding against Access any
judgment, decree, injunction, rule, settlement, order or award of any court,
governmental department, commission, board, bureau, agency, instrumentality,
domestic or foreign, or arbitrator that relate, in whole or in part, to the
Purchased Assets or the Products or would question or challenge the validity of
this Agreement.

 

5.6          Intellectual Property Rights. Except
as set forth on Schedule 5.6:

 

(a)           (i) Access is the sole owner,
free and clear of any Encumbrance, except as set forth in Schedule 5.3,
of all right, title and interest in the Product Intellectual Property and
(ii) Access has the right to use the Product Intellectual Property in the
manufacture, sale and distribution of the Products.

 

(b)           All of the Product Patents and
Product Trademarks (i) have been duly registered or filed with the appropriate
government authorities or registries, and (ii) to the best knowledge of Access
are currently in force as to all applicable jurisdictions.

 

(c)           To the knowledge of Access, no third
party is infringing or misappropriating any of the Product Intellectual
Property.

 

(d)           To the knowledge of Access none of
the Product Intellectual Property infringes or conflicts with any Intellectual
Property right of a third party and there are, and have been, no claims
asserted in writing against Access alleging that Access’s development,
manufacture and sale of Products infringes or misappropriates any Intellectual
Property of any other person, corporation, limited liability company,
partnership, other business entity.

 

(e)           Access has not granted any license or
sublicense with respect to the Product Intellectual Property.

 

17

 

(f)            Access has delivered to ULURU
correct and complete copies of all patents, registrations, applications,
licenses and agreements relating to the Product Intellectual Property.

 

5.7          Inventory. The
Inventory has been stored in compliance with all applicable federal and state
laws, has not been adulterated and has otherwise been maintained according to
the requirements of federal and state law. The Inventory is merchantable and
fit for the purpose for which it was manufactured, is not defective and shall
have a remaining shelf life of at least eighteen (18) months from the Closing
Date.

 

5.8          Government Approvals. Except
as set forth on Schedule 5.8, no government authorization, consent,
approval, license, exemption of or filing or registration with any court or
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, under any applicable laws, rules or regulations currently
in effect, is or will be necessary for, or in connection with, the offer and
sale of the Purchased Assets, the execution and delivery by Access of this
Agreement, the Ancillary Agreements and any other agreement or instrument
executed in connection herewith, the consummation of the transactions
contemplated hereby or thereby, or the performance by Access of its obligations
under this Agreement, the Ancillary Agreements and any other agreements.

 

5.9          Purchased Assets. Except
for the Excluded Assets and as otherwise stated herein or as would not cause a
Material Adverse Effect, the Purchased Assets include all property, rights,
assets, information, files and materials necessary for ULURU to develop,
manufacture, sell and distribute the Products in a manner substantially similar
to Access’s practices as of the Closing Date.

 

5.10        Brokers. Access
has not employed any investment banker, broker, finder or intermediary in
connection with the transactions contemplated hereby who might be entitled to a
fee or commission upon the execution of this Agreement or the consummation of
such transactions.

 

5.11        Disclosure. The
representations and warranties contained in this Section 5 do not contain any
untrue statement of fact or omit to state a fact necessary in order to make the
statements and information contained in this Section 5 not misleading (other
than those facts of which ULURU or Kerry P. Gray has knowledge).

 

5.12        No Implied Representations. WITH
REGARD TO ANY STATEMENT CONTAINED IN THIS SECTION 5 OR ANY OTHER PROVISION OF
THIS AGREEMENT OR ANY ANCILLARY AGREEMENT ULURU AND ACCESS ACKNOWLEDGE AND
AGREE THAT NEITHER ACCESS NOR ANY OF ITS AFFILIATES, AGENTS, EMPLOYEES OR
REPRESENTATIVES IS MAKING OR IMPLYING, WHETHER CONTAINED IN OR REFERRED TO IN
THE DUE DILIGENCE AND EVALUATION MATERIALS THAT HAVE BEEN OR SHALL HEREAFTER BE
PROVIDED TO ULURU OR ANY OF ITS AFFILIATES, AGENTS OR REPRESENTATIVES, ANY
REPRESENTATION OR WARRANTY WHATSOEVER BEYOND THOSE EXPRESSLY GIVEN BY ACCESS IN
THIS AGREEMENT OR ANY ANCILLARY AGREEMENT,

 

18

 

INCLUDING BUT NOT LIMITED
TO, ANY IMPLIED WARRANTY OR REPRESENTATION AS TO THE VALUE, CONDITION,
MERCHANTABILITY OR SUITABILITY AS TO ANY OF THE PURCHASED ASSETS.

 

SECTION 6

COVENANTS OF ACCESS

 

6.1          Assistance with ULURU Regulatory
Filings. Access shall use commercially reasonable efforts
to assist ULURU in its preparation and filing with the FDA or any other Agency
of filings required to be filed by ULURU for the manufacture, marketing and
distribution of the Products. It is understood and agreed that ULURU, as the
owner of the Product Registrations, shall have the responsibility for all
regulatory filings after the Closing Date. All costs and fees associated with
such regulatory filings shall be borne by ULURU.

 

6.2          Litigation. From
the date hereof until the date six (6) years after the Closing, Access shall notify
ULURU promptly upon receipt of any communication or legal process which
commences or threatens litigation which might materially and adversely affect
the value of any of the Purchased Assets.

 

6.3          Notice of Developments.
For a period of one (1) year after the Closing Date, Access will give written
notice to ULURU of all material developments of which it has actual knowledge
affecting the Purchased Assets.

 

6.4          Proprietary Information. From
and after the Closing Date, each Party shall not disclose or make use of, and
shall use its best efforts to cause all of its Affiliates not to disclose or
make use of, any knowledge, information or documents of a confidential nature
or not generally known to the public with respect to the other Party or its
respective businesses (including the financial information, technical
information or data relating to the other Party’s products and names of
customers of the other Party), except to the extent that such knowledge,
information or documents shall have become public knowledge other than through
improper disclosure by the other Party or an Affiliate. Each Party shall
enforce, for the benefit of the other Party, all confidentiality, invention
assignments and similar agreements between such Party and any other party relating
to the Purchased Assets.

 

6.5          Hired Employees’ Options, Bonuses
and Restricted Stock. Within seven (7) days of the
Closing, Access shall (a) pay to each Hired Employee (as defined in Section
8.8) by wire transfer of immediately available funds or by certified check an
amount equal to the bonus payment due and payable by Access to each such Hired
Employee, as set forth opposite the name of such Hired Employee on Schedule
6.5, (b) deliver to each Hired Employee written confirmation that all
unvested options to purchase shares of Access common stock held as of the
Closing Date by such Hired Employee terminated as of the Closing Date and that
such Hired Employee may exercise during the twelve (12) month period following
the Closing Date any vested options to purchase shares of Access common stock
held as of the Closing Date by such Hired Employee, in each case as set forth
opposite the name of such Hired Employee on Schedule 6.5, and (c)
deliver to each Hired Employee written confirmation that the unvested shares of
Access restricted common stock currently held by such Hired Employee, as set
forth opposite the name of such Hired Employee on Schedule 6.5, vested
in full as of and upon the

 

19

 

Closing, and provided
that within seven (7) days of the Closing Date a stock certificate is issued
for the common stock for each Hired Employee in an amount as set forth opposite
the name of such Hired Employee on Schedule 6.5.

 

SECTION 7

REPRESENTATIONS AND WARRANTIES OF ULURU

 

ULURU hereby represents
and warrants to Access as follows:

 

7.1          Incorporation, Organization and
Qualification of ULURU. ULURU is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware, and has the necessary corporate power to own, lease and operate
its property and to carry on its business as now being conducted by it. ULURU
is duly qualified and licensed to do business as a foreign corporation and is
in good standing in every jurisdiction where the nature of the business
conducted by it makes qualification necessary, except where the failure to so
qualify or be in good standing would not prevent or materially delay the
consummation of the transactions contemplated hereby.

 

7.2          Corporate Action. ULURU
has the corporate power and legal authority to execute and deliver this
Agreement and the Ancillary Agreements and to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and the
Ancillary Agreements and the performance of ULURU’s obligations hereunder and
thereunder have been duly and validly authorized by all necessary corporate
action, and no other corporate proceedings on the part of ULURU are necessary
to authorize such execution, delivery and performance. This Agreement has been,
and any other agreements executed in connection herewith have been, duly and
validly executed by ULURU, and constitute the valid and binding obligations of
ULURU, enforceable against ULURU in accordance with its or their terms, subject
to bankruptcy, insolvency or similar laws of general application affecting the
enforcement of rights of creditors, and subject to equitable principles
limiting rights to specific performance or other equitable remedies, and
subject to the effect of federal and state securities laws on the
enforceability of indemnification provisions relating to liabilities arising
under such laws. Execution of this Agreement, the Ancillary Agreements and any
other agreements executed by ULURU in connection with this Agreement and
consummation of the transactions contemplated hereby and thereby will not
(a) result in the violation of or conflict with any of the terms and
provisions of the articles of incorporation or by-laws of ULURU, (b) result in
a violation or breach of, or constitute (with or without due notice or lapse of
time or both) a default (or give rise to any right of termination,
modification, cancellation or
acceleration or loss of material benefits) under, any of the terms, conditions
or provisions of any note, bond, mortgage, indenture, contract, agreement,
permit, license, lease, purchase order, sales order, arrangement or other
commitment or obligation to which ULURU is a party or may be subject to or (c)
violate any order, writ, injunction, decree, statute, treaty consummation of
such transactions, rule or regulation applicable to ULURU except, in the case
of clauses (b) and (c), as would not prevent or materially delay the
consummation of the transactions contemplated hereby.

 

7.3          Governmental Approvals. No
government authorization, consent, approval, license, exemption of or filing or
registration with any court or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, under any applicable

 

20

 

laws, rules or
regulations currently in effect, is or will be necessary for, or in connection
with, the purchase of the Purchased Assets, the execution and delivery by ULURU
of this Agreement, the Ancillary Agreements and any other agreement or
instrument executed in connection herewith, the consummation of the
transactions contemplated hereby or thereby, or for the performance by it of
its obligations under this Agreement, the Ancillary Agreements and any other
agreements.

 

7.4          Compliance With Law. ULURU
has conducted and is currently conducting its business in compliance with all
applicable laws, rules, regulations and court or administrative orders and
processes. Except as would not have a Material Adverse Effect, ULURU has not
received any written notice of violation of any applicable law, regulation or
requirement relating to its business within the past five (5) years.

 

7.5          Litigation. Except
as would not have a Material Adverse Effect, there are no actions, suits, proceedings,
investigations, arbitration proceedings or other proceedings pending or, to the
best knowledge of ULURU, threatened against or affecting, in whole or in part,
ULURU’s business by or before any federal, state, municipal or other
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, or by or before any arbitrator and, to the best knowledge
of ULURU, there is not currently outstanding against ULURU any judgment,
decree, injunction, rule, settlement, order or award of any court, governmental
department, commission, board, bureau, agency, instrumentality, domestic or
foreign, or arbitrator that would question or challenge the validity of this
Agreement.

 

7.6          Brokers. ULURU
has not employed any investment banker, broker, finder or intermediary in
connection with the transactions contemplated hereby who might be entitled to a
fee or commission upon the execution of this Agreement or the consummation of
such transactions.

 

7.7          Disclosure. The
representations and warranties contained in this Section 7 do not contain any
untrue statement of fact or omit to state a fact necessary in order to make the
statements and information contained in this Section 7 not misleading.

 

SECTION 8

MUTUAL COVENANTS

 

8.1          Transfer of Registrations, Etc.
The Parties shall cooperate to effectuate the consummation of
the transactions contemplated by this Agreement and the transfer of the
Purchased Assets and the Takeda License Agreement in accordance with Section 2
hereof. The Parties agree to use their commercially reasonable efforts, before
and after the Closing, to take any other actions required by the FDA or any
other Agency to effect the transfer of the Purchased Assets, including notices
to the FDA and other Agencies regarding the transfer from Access to ULURU of
the Product Registrations and to obtain any required third party consents
necessary to consummate the transactions contemplated by this Agreement.

 

8.2          Transition Team. Access
and ULURU shall establish a transition team (the “Transition Team”), which shall be comprised of the persons set
forth on Schedule 8.2 attached hereto and which shall have the
responsibilities set forth in this Section 8.2. For a period of not

 

21

 

longer than one hundred
eighty (180) days, the Transition Team shall (a) coordinate the joint efforts
of Access and ULURU, consistent with the terms and conditions of this
Agreement; (b) effect the transfer of the Purchased Assets in accordance with
Section 2.1 and Section 10.1(k); (c) obtain any required consents, licenses,
permits, waivers, approvals, authorizations or orders; (d) make any required
filings or submissions; (e) effect a smooth transition from Access to ULURU
with respect to the manufacture and sale of the Products in the U.S.; and (f)
take any other commercially reasonable actions necessary for the consummation
of the transactions contemplated by this Agreement.

 

8.3          Certain Tax and Financial Statement
Matters. ULURU and Access, and each Party’s respective
Affiliates, shall cooperate, to the extent reasonably requested by the other
Party, in connection with the preparation and filing of any Tax Return, audit,
litigation, information statement, proceeding or similar items with respect to
Taxes and to furnish the other Party with a copy of such item in draft form
within a reasonable time before its due date, as well as a copy of such item as
filed. In addition Access, and its Affiliates, shall cooperate, to the extent
reasonably requested by ULURU, in connection with the preparation, audit and
filing of any financial statements related to the Purchased Assets, including
the preparation, audit and filing of any financial statements required to be
included in any registration statement filed by ULURU with the Securities and
Exchange Commission.

 

8.4          Adverse Experience Reports. On
or prior to the Closing Date, Access shall provide ULURU with all information
relating to the investigation and reporting of Adverse Experiences regarding
the Products since three (3) years prior to the Closing Date and all
information which is relevant to the safe use of the Products as of the Closing
Date, in each case to the extent received by, or in the possession of, Access,
and will confer with ULURU on Adverse Experience history related to the
Products. After the Closing Date, Access and its Affiliates shall promptly
submit to ULURU all such Adverse Experience information or customer complaints
brought to the attention of Access or its Affiliates in respect of the
Products, as well as any material events and matters concerning or affecting
the safety or efficacy of the Products. Such information or customer complaints
shall be forwarded to ULURU, Attention: 
Kerry P. Gray. Beginning on the Closing Date, ULURU shall have all responsibility
for required reporting of Adverse Experiences for the Products.

 

8.5          Response to Medical Inquiries and
Products Complaints. Upon Closing, ULURU shall assume all
responsibility for responding to any medical inquiries or complaints about the
Products. Access shall promptly refer all such inquiries and complaints that it
receives to ULURU for response to such inquiries or complaints.

 

8.6          Customer Receipts. In
the event that Access or any of its Affiliates receive payment after the
Closing Date on invoices relating to sales of the Products by ULURU or any of
its Affiliates after the Closing Date, Access will promptly notify ULURU of
such receipt and will promptly remit, or will cause such Affiliate to promptly
remit such payment to ULURU. In the event that ULURU or any of its Affiliates
receive payment after the Closing Date on invoices or any other payments
relating to the Products with respect to the period prior to the Closing Date,
ULURU will promptly notify Access of such receipt and will promptly remit, or
will cause such Affiliate to promptly remit such payment to Access.

 

22

 

8.7          Sharing of Data. Access
shall have the right for a period of seven years following the Closing Date to
have reasonable access to such books, records and accounts, including financial
and tax information, correspondence, production records, employment records and
other records that are transferred to ULURU pursuant to the terms of this
Agreement for the limited purposes of concluding its involvement in the
business conducted by Access prior to the Closing Date and for complying with
its obligations under applicable securities, tax, environmental, employment or
other laws and regulations. ULURU shall have the right for a period of seven
years following the Closing Date to have reasonable access to those books,
records and accounts, including financial and accounting records (including the
work papers of Access’s independent accountants), tax records, correspondence,
production records, employment records and other records that are retained by
Access pursuant to the terms of this Agreement to the extent that any of the
foregoing is needed by ULURU for the purpose of conducting the business of
Access after the Closing and complying with its obligations under applicable
securities, tax, environmental, employment or other laws and regulations.
Neither ULURU nor Access shall destroy any such books, records or accounts
retained by it without first providing the other Party with the opportunity to
obtain or copy such books, records, or accounts at such other Party’s expense.

 

8.8          Hired Employees. As
of the Closing, ULURU shall offer employment to the employees of Access set
forth on Schedule 8.8, at substantially the same level of compensation
and benefits as provided by Access immediately prior to the Closing, to
continue working in connection with the development of the Product Intellectual
Property, provided that Access makes no representation as to whether any such
employees will accept employment by ULURU and it shall not be a breach of this
Agreement by Access if any such employee does not accept employment by ULURU
(all such hired employees, the “Hired
Employees”); provided, however, that nothing contained
in this Section 8.8 shall require that ULURU continue to employ any Hired
Employee after the Closing Date or restrict ULURU’s ability to change the level
of compensation and benefits provided to any Hired Employee after the Closing
Date. ULURU shall be responsible for all compensation expenses relating to the
Hired Employees, to the extent accrued or payable after the Closing Date,
including, without limitation, severance (including any severance or
displacement pay, if any, due for any Hired Employee subsequently terminated by
ULURU, with any such obligations to be determined by the terms of the severance
or displacement pay arrangements maintained by Access and ULURU, respectively),
benefits, vacation, sick time and all such other expenses. During the period
from the Closing Date through December 31, 2005, Access shall continue to pay
all compensation expenses due the Hired Employees, provided that ULURU shall
reimburse Access for all such payments made to the Hired Employees within one
(1) day upon notice from Access of its making any such payment. Beginning
January 1, 2006, ULURU shall pay all such compensation expenses due the Hired
Employees and Access shall have no obligation to make any payments in
connection therewith.

 

SECTION 9

INDEMNIFICATION

 

9.1          Indemnification by Access. Access
shall indemnify and hold ULURU, its Affiliates and their respective employees,
officers and directors (collectively, the “ULURU
Indemnified Parties”) harmless from and against any and all losses,
damages, liabilities, obligations, claims, costs and expenses (including
reasonable attorneys’ fees) (each, a “Loss”
and

 

23

 

collectively, the “Losses”) sustained, suffered or incurred by
such ULURU Indemnified Parties and relating to, directly or indirectly:  (a) the breach of any representation or
warranty of Access contained herein (without regard to materiality qualifiers
provided in such representations or warranties other than the references to
Material Adverse Effect) (other than any breach in existence or caused by
events or facts of which ULURU or Kerry Gray has knowledge); (b) the breach of
any covenant or agreement of Access contained herein; or (c) any claim or cause
of action arising from the Retained Liabilities, except that Access shall have
no obligation to indemnify ULURU for any Losses that arise from or relate to
the Takeda License Agreement or the performance or nonperformance of such
agreement or under Section 4.2 (except as set forth in Section 4.2).

 

9.2          Indemnification by ULURU. ULURU
shall indemnify and hold Access, its Affiliates and their respective employees,
officers and directors (collectively, the “Access
Indemnified Parties”) harmless from and against any and all Losses
sustained, suffered or incurred by such Access Indemnified Parties and relating
to, directly or indirectly:  (a) the
breach of any representation or warranty of ULURU contained herein, (without
regard to materiality qualifiers provided in such representations or
warranties); (b) the breach of any covenant or agreement of ULURU contained
herein; (c) any Losses that arise from or relate to the Takeda License
Agreement or the performance or non-performance of such agreement; or (d) any
claim or cause of action arising from the Assumed Liabilities.

 

9.3          Notification of Claims.

 

(a)           If any Access Indemnified Party or
ULURU Indemnified Party receives notice of any event, circumstance, demand or
claim that may give rise to a Loss for which such Party is or may be entitled
to indemnification under this Agreement (each such party, an “Indemnified Party”), such Indemnified Party
shall promptly notify the Party required to provide such indemnification (the “Indemnifying Party”) in writing of the
existence of such potential Loss and of the amount at issue. The failure to
provide such notice will not affect any rights hereunder except to the extent
the Indemnifying Party is materially prejudiced thereby.

 

(b)           If the event or circumstance giving
rise to a Loss involves any third party claim, the Indemnifying Party shall
have the right to direct, through counsel of its own choosing, which counsel
shall be reasonably satisfactory to the Indemnified Party, the defense or
settlement of any claim or proceeding the subject of indemnification hereunder
at its own expense. If the Indemnifying Party elects to assume the defense of
any such claim or proceeding, the Indemnified Party may participate in such
defense, but in such case the expenses of the Indemnified Party shall be paid
by the Indemnified Party. The Indemnified Party shall provide the Indemnifying
Party with access to its records and personnel relating to any such claim,
assertion, event or proceeding during normal business hours and shall otherwise
cooperate with the Indemnifying Party in the defense or settlement thereof, and
the Indemnifying Party shall reimburse the Indemnified Party for all its
reasonable out-of-pocket expenses in connection therewith. If the Indemnifying
Party elects to direct the defense of any such claim or proceeding, the
Indemnified Party shall not pay, or permit to be paid, any part of any claim or
demand arising from such asserted loss unless the Indemnifying Party consents
in writing to such payment or unless the Indemnifying Party withdraws from the
defense of such asserted loss or unless a final

 

24

 

judgment from which no
appeal may be taken by or on behalf of the Indemnifying Party is entered
against the Indemnified Party for such loss. No settlement in respect of any
third party claim may be effected by the Indemnifying Party without the
Indemnified Party’s prior written consent, unless the settlement involves a
full and unconditional release of the Indemnified Party. If the Indemnifying
Party shall fail to undertake in a timely manner the defense of any third party
claim or it is reasonably determined by outside counsel mutually selected by
the Indemnified Party and the Indemnifying Party that representation by the
Indemnifying Party’s counsel of both the Indemnifying Party and the Indemnified
Party may present a conflict of interest, the Indemnified Party shall have the
right to undertake the defense or settlement thereof at the Indemnifying
Party’s expense. If the Indemnified Party assumes the defense of any such claim
or proceeding pursuant to this Section 9.3 and proposes to settle such claim or
proceeding prior to a final judgment thereon or to forgo any appeal with
respect thereto, then the Indemnified Party shall give the Indemnifying Party
timely written notice and the Indemnifying Party shall have the right to
participate in the settlement or assume or reassume the defense of such claim
or proceeding.

 

SECTION 10

CLOSING AND POST-CLOSING DELIVERIES

 

10.1        Documents/Items to Be Delivered by
Access at Closing. At the Closing, Access shall deliver,
or cause to be delivered, to ULURU the following:

 

(a)           Any instruments of conveyance, assignment and transfer, in
form and substance satisfactory to ULURU and Access, as shall be appropriate to
convey, transfer and assign to, and vest in ULURU, good title to the Purchased
Assets free and clear of all Encumbrances, except as set forth on Schedule
5.3;

 

(b)           executed Product Patents Assignment;

 

(c)           executed Product Trademarks Assignment;

 

(d)           executed Bill of Sale and Assignment Agreement;

 

(e)           reports of Adverse Experience, as provided in Section 8.4;

 

(f)            a certificate dated as of the Closing Date and executed
by a principal executive or financial officer of Access certifying the
satisfaction of the conditions specified in Section 11.1;

 

(g)           a certificate dated as of the Closing Date and executed by
the secretary or an assistant secretary of Access, certifying:

 

(i)            attached thereto is a complete and correct copy of
resolutions adopted by the board of directors of Access authorizing the
execution, delivery and performance of this Agreement and the Ancillary
Agreements executed in connection herewith by Access and the transfer of the
Purchased Assets and the Assumed Liabilities to ULURU hereunder, and that such
resolutions, approvals and consents have not been amended or modified in any
respect and remain in full force and effect as of the date thereof; and

 

25

 

(ii)           that the person named in the foregoing officer’s
certificate delivered pursuant to Section 10.1(f) has been duly elected,
qualified and is an acting officer of Access and that set forth therein is a
genuine signature or true facsimile thereof of such officer.

 

(h)           the Purchased Assets, to the extent deliverable at
Closing, in accordance with the procedures set forth in Section 2.1. If the
Purchased Assets cannot be delivered at Closing, they shall be delivered by
Access as soon as practicable after the Closing, in accordance with the
procedures set forth in Section 2.1;

 

(i)            an electronic recording of the Inventory existing as of
the Closing Date;

 

(j)            executed Premises Agreement;

 

(k)           executed License Agreement; and

 

(l)            such other documents, instruments and certificates as
Access and ULURU may mutually agree upon.

 

10.2        Documents/Items to Be Delivered by ULURU
at Closing. At the Closing, ULURU shall deliver, or cause
to be delivered, to Access the following:

 

(a)           a certificate dated as of the Closing
Date and executed by a principal executive or financial officer of ULURU
certifying the satisfaction of the conditions specified in Section 12.1;

 

(b)           a certificate dated as of the Closing
Date and executed by the secretary or an assistant secretary of ULURU,
certifying:

 

(i)            attached thereto is a complete and correct copy of
resolutions adopted by the board of directors of ULURU authorizing the
execution, delivery and performance of this Agreement and the Ancillary
Agreements executed in connection herewith by ULURU and the transfer of the
Purchased Assets and the Assumed Liabilities to ULURU hereunder, and that such
resolutions, approvals and consents have not been amended or modified in any
respect and remain in full force and effect as of the date thereof (or, in the
alternative, a statement to the effect that no such board of directors approval
is necessary regarding the execution, delivery and performance of this
Agreement and the Ancillary Agreements and the transfer of the Purchased Assets
and the Assumed Liabilities to ULURU); and

 

(ii)           that the person named in the foregoing officer’s
certificate delivered pursuant to Section 10.2(b) has been duly elected,
qualified and is an acting officer of ULURU and that set forth therein is a
genuine signature or true facsimile thereof of such officer.

 

(c)           executed Premises Agreement;

 

(d)           executed License Agreement;

 

(e)           the first installment of the Purchase
Price, as set forth in Sections 3.1(a) and 4.1;

 

26

 

(f)            lien release letters, executed and
delivered by each of Cornell Capital Partners, LP, Highgate House Funds, Ltd.
and Kerry P. Gray, pursuant to which such parties agree to terminate and
release certain security interests in Access’s assets granted by Access to such
parties; and

 

(g)           such other documents, instruments and
certificates as Access and ULURU may mutually agree upon.

 

10.3        Post-Closing Deliveries. Promptly
after receipt at any time after the Closing Date of any consent to assignment
of any contract or agreement constituting a Purchased Asset, Access shall
deliver such consent to ULURU.

 

SECTION 11

ULURU’S CONDITIONS OF CLOSING

 

The sale and purchase of
the Purchased Assets in accordance with the terms of this Agreement are subject
to the following terms and conditions, each of which is included for the
exclusive benefit of ULURU, to be fulfilled or performed at or prior to the
Closing:

 

11.1        Representations and Warranties at
Closing. The representations and warranties of Access to
ULURU contained in this Agreement shall be true and correct as of the Closing
in all material respects with the same force and effect as though such
representations and warranties had been made at such time (without regard to
materiality qualifiers set forth therein), except (a) where failure to be so
true and correct would not prevent or materially delay the consummation of the transactions
contemplated hereby, (b) that those representations and warranties which
address matters only as of a particular date or period of time shall remain
true and correct as of such date or period of time, except where failure to be
so true and correct would not prevent or materially delay the consummation of
the transactions contemplated hereby, and (c) where ULURU or Kerry P. Gray has
knowledge that any such representation or warranty was not so true and correct
on the date hereof or the Closing Date. Access shall deliver to ULURU at the
Closing a certificate by an officer of Access to such effect.

 

11.2        Compliance with Terms and Conditions.
Access shall have performed, or complied with, in all
material respects, all of the terms, covenants and conditions of this Agreement
to be complied with or performed by Access at or before the Closing.

 

11.3        Ancillary Agreements; Other
Agreements. Access shall have executed and delivered the
Product Patents Assignment, the Product Trademarks Assignment, the Bill of Sale
and Assignment Agreement, the License Agreement, and the Premises Agreement.

 

SECTION 12

ACCESS’S CONDITIONS OF CLOSING

 

The sale and purchase of
the Purchased Assets in accordance with the terms of this Agreement is subject
to the following terms and conditions, each of which is included for the
exclusive benefit of Access, to be fulfilled or performed at or prior to the
Closing.

 

27

 

12.1        Representations and Warranties at
Closing. The representations and warranties of ULURU to
Access contained in this Agreement shall be true and correct as of the Closing
in all material respects with the same force and effect as though such
representations and warranties had been made at such time (without regard to
materiality qualifiers set forth therein), except where failure to be so true
and correct would not prevent or materially delay the consummation of the
transactions contemplated hereby, and except that those representations and
warranties which address matters only as of a particular date or period of time
shall remain true and correct as of such date or period of time, except where
failure to be so true and correct would not prevent or materially delay the
consummation of the transactions contemplated hereby. ULURU shall deliver to
Access at the Closing a certificate by an officer of ULURU to such effect.

 

12.2        Compliance with Terms and Conditions.
ULURU shall have performed, or complied with, in all material
respects, all the terms, covenants and conditions of this Agreement to be
complied with or performed by ULURU at or before the Closing.

 

12.3        Ancillary Agreements; Other
Agreements. ULURU shall have executed the License
Agreement and the Premises Agreement.

 

SECTION 13

CLOSING DATE

 

13.1        Closing. Upon the
terms and subject to the conditions of this Agreement, the sale and purchase of
the Purchased Assets shall take place at a closing (the “Closing”) to be held at the offices of
Bingham McCutchen LLP, 150 Federal Street, Boston MA 02110, on such date as Access
and ULURU may mutually agree upon in writing (the day on which the Closing
takes place being the “Closing Date”).

 

SECTION 14

MISCELLANEOUS

 

14.1        Expenses. Except
as otherwise specified in this Agreement, all costs and expenses, including,
without limitation, fees and disbursements of counsel, financial advisors and
accountants, incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the Party incurring such costs and
expenses, whether or not the Closing shall have occurred. Except as provided in
Section 9, in the event of any dispute among the Parties hereto relating to the
subject matter of this Agreement, each Party shall pay its own out-of-pocket
costs and fees and disbursements of counsel.

 

14.2        Further Assurances and Actions. Each
of the Parties hereto, upon the request of the other Party hereto, whether
before or after the Closing and without further consideration, shall, and shall
cause their respective Affiliates to, do, execute, acknowledge and deliver or
cause to be done, executed, acknowledged or delivered all such further acts,
deeds, documents, assignments, transfers, conveyances, powers of attorney and
assurances as may be reasonably necessary to effect complete consummation of
the transactions contemplated by this Agreement.

 

28

 

14.3        Announcements.
No Party shall make a public announcement regarding this Agreement or the
transactions contemplated hereby without the prior written consent of the other
Party; provided that nothing herein shall restrict Access or ULURU from making
any public announcement of the transactions contemplated by this Agreement to
the extent that such announcement is required by law; provided that, prior to
any such disclosure, the disclosing Party shall provide the other Party a
reasonable time to review and comment upon such disclosure. Additionally, ULURU
may disclose this Agreement and the transactions contemplated hereby, to the
extent reasonably necessary, in connection with any registration of one (1) or
more of the Products with any state or Federal agency.

 

14.4        Notices. All
notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given or made (and shall be deemed to have been duly
given or made upon receipt) by delivery in person, by courier service, by
telecopy or by registered or certified mail (postage prepaid, return receipt
requested) to the respective Parties at the following addresses (or at such
other address for a Party as shall be specified in a notice given in accordance
with this Section 14.4):

 

(a)           if to Access, then:

 

Access Pharmaceuticals, Inc.

2600 Stemmons Freeway

Suite 176

Dallas, TX 75207

Telephone :  (214) 905-5100

Telecopy :  (214) 905-5101

Attn:
Chief Executive Officer

 

with a
copy to:

 

Bingham McCutchen LLP

150 Federal Street

Boston, MA 02110

Telephone: (617) 951-8000

Telecopy: (617) 951-8736

Attn: John J. Concannon III, Esq.

 

(b)           if to ULURU, then:

 

ULURU, Inc.

4939 Stonyford Drive

Dallas, TX 75287

Telephone: (972) 250-6383

Telecopy: (972) 250-6383

Attn:       Kerry P. Gray

 

with a
copy to:

 

29

 

McGuireWoods LLP

1345 Avenue of the Americas, 7th Floor

New York, NY 10105

Telephone: (212) 548-2138

Telecopy: (212) 548-2175

Attn: Louis W. Zehil, Esq.

 

14.5        Applicable Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware without giving effect to principles of conflict of laws. Each
Party to this Agreement expressly and irrevocably (a) consents that legal
action or proceeding against it arising out of this Agreement may be brought in
any court of the State of Delaware or in the U.S. District Court for the
District of Delaware, (b) consents and submits to the personal jurisdiction of
any of such courts solely for purposes of such action or proceeding, (c)
consents to the service of any complaint, summons, notice or other process
solely for purposes of such action or proceeding by delivery thereof to him,
her or it by hand or by any other manner provided for in Section 14.4 and (d)
waives any claim or defense solely for purposes of such action or based on any
alleged lack of personal jurisdiction, improper venue or forum non conveniens
or any similar basis. Nothing in this Section shall affect or impair in any
manner or to any extent the right of any Party to commence legal proceedings or
otherwise proceed against any other Party in any jurisdiction or to serve
process in any manner permitted by law.

 

14.6        Entire Agreement; Amendments. This
Agreement, including the Exhibits and Schedules hereto, constitutes the entire
agreement among the Parties hereto with respect to the transactions provided
for herein and as stated herein and in the agreements, instruments and documents
executed and to be executed and delivered in connection herewith, contains all
of the agreements between the Parties hereto. There are no verbal agreements or
understandings between the Parties hereto not reflected in this Agreement. This
Agreement may not be amended or modified in any respect except by written
instrument executed by each of the Parties hereto.

 

14.7        Counterparts. This
Agreement may be executed in two (2) or more counterparts, each of which shall
be deemed to be an original and all of which together, shall constitute the
same Agreement.

 

14.8        No Third Party Beneficiaries. This
Agreement shall be binding upon and inure solely to the benefit of the Parties
hereto and their permitted successors and assigns and nothing herein, express
or implied, is intended to or shall confer upon any person or entity, any legal
or equitable rights, benefits or remedies.

 

14.9        Assignment. Neither
Party may assign its rights or obligations under this Agreement without the
prior written consent of the other Party and any purported assignment in
violation hereof shall be null and void; provided, however, that
either Party may assign its rights and obligations under this Agreement,
without the prior written consent of the other Party, to an Affiliate or to a
successor of the assigning Party’s business by reason of merger, sale of all or
substantially all of its assets or any similar transaction, provided
that such successor agrees in writing to be bound by this Agreement (including,
without limitation, in the case of any such

 

30

 

event involving ULURU,
ULURU’s payment obligations under Section 3). Such consent shall not be
unreasonably withheld or delayed. Any permitted assignee shall assume all
obligations of its assignor under this Agreement (including, without
limitation, in the case of an assignment by ULURU, ULURU’s payment obligations
under Section 3). No assignment shall relieve either Party of its
responsibility for the performance of any obligation that accrued prior to the
effective date of such assignment hereunder. ULURU agrees that in connection
with any merger or sale of all or substantially all of the assets of ULURU such
transaction shall not be consummated unless and until the other party(ies) to
such transaction agree in writing to assume all of the obligations of ULURU
under this Agreement and each agreement contemplated hereby.

 

14.10      Severability. If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any law or public policy, all other terms and provisions
of this Agreement shall nevertheless remain in full force and effect so long as
the economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any Party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being
enforced, the Parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as
possible in an acceptable manner in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest extent
possible.

 

14.11      WAIVER OF JURY TRIAL. EACH
OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN
ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, THE ANCILLARY
AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY OR THE TRANSACTIONS
CONTEMPLATED HEREBY AND FOR ANY COUNTERCLAIM THEREIN.

 

14.12      No Waiver of Remedies. No
delay on the part of ULURU or Access in exercising any right, power or
privilege hereunder shall operate as a waiver thereof, nor shall any waiver on
the part of either ULURU or Access of any right, power or privilege hereunder
nor shall any single or partial exercise of any right, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or privilege hereunder. The waiver of any terms or
conditions of this Agreement shall not be construed as a waiver of any
subsequent breach or a subsequent waiver of the same term or condition, or
waiver of any other term or condition, of this Agreement. The failure of any
Party to assert any of its rights hereunder shall not constitute a waiver of
any of such rights.

 

[The
remainder of this page is left blank intentionally.]

 

31

 

IN WITNESS WHEREOF, this
Agreement has been executed by the Parties hereto as of the date first above
written.

 

 

	
   

  	
  ACCESS
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Rosemary Mazanet

  	
   

  
	
   

  	
   

  	
  Name: Rosemary
  Mazanet

  
	
   

  	
   

  	
  Title: Acting
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ULURU,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Kerry P. Gray

  	
   

  
	
   

  	
   

  	
  Name: Kerry P.
  Gray

  
	
   

  	
   

  	
  Title: President
  & CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/
  Kerry P. Gray

  	
   

  
	
   

  	
  Kerry P. Gray,
  individually solely with

  respect

  
	
   

  	
  to Sections 5,
  8.4, 9.1 and 11.1

  
					

 

[Signature Page to Asset Sale
Agreement]Exhibit 10.26

 

Execution Copy

 

LICENSE AGREEMENT

 

THIS LICENSE
AGREEMENT (this “Agreement”) is made and entered into effective as of October 12,
2005 (the “Effective Date”), by and between Access Pharmaceuticals, Inc.,
a Delaware corporation (“Licensor”)
and ULURU, Inc., a Delaware corporation (“Licensee”).

 

RECITALS:

 

A.                                   Licensor
and Licensee have entered into an Asset Sale Agreement of even date herewith
(the “ASA”) whereby Licensor is selling certain of its assets and
liabilities to Licensee as of the Closing Date (as defined therein).

 

B.                                     Pursuant
to the ASA, Licensor has retained ownership of certain patents and patent
applications, including certain patent applications related to its nanoparticle aggregate
technology (as described in Exhibit A attached hereto, the “Patents”).

 

C.                                     Licensee
desires to obtain from Licensor, and Licensor desires to grant to Licensee, an
exclusive, fully-paid up, worldwide license under the Patent Rights (as defined
below) in the Field of Use described below, on the terms and conditions set
forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual
representations, warranties, covenants and agreements contained herein, the
parties hereto agree as follows:

 

1.                                       Definitions.
Capitalized terms used but not defined herein shall have the meanings set forth
in the ASA.

 

(a)                                  “Affiliate”
when used to indicate a relationship with any person or entity, means (i) any
corporation, firm, partnership or other entity, whether de jure or de facto,
which directly or indirectly owns, is owned by or is under common ownership
with such person or entity to the extent of at least fifty percent (50%) of the
equity (or such lesser percentage which is the maximum allowed to be owned by a
foreign corporation in a particular jurisdiction) having the power to vote on
or direct the affairs of the entity, or (ii) any person, firm,
partnership, corporation or other entity actually controlled by, controlling or
under common control with such person or entity.

 

(b)                                 “Confidential
Information” means any information which is disclosed by Licensee or
Licensor during the term of this Agreement which is or should be reasonably understood by the receiving party to
be confidential or proprietary to the disclosing party, including,
without limitation, any non-public information of Licensee or Licensor, and any
scientific or technical data, know-how or expertise of Licensee or Licensor
that relates to a Licensed Product (whether existing at or after the Effective
Date); provided, however, that “Confidential Information” shall
not include information that (i) was in the receiving party’s possession
or was known to it prior to its receipt from the disclosing party, as evidenced
by the receiving party’s written records; (ii) is or becomes public

 

 

knowledge without the fault of the receiving
party; (iii) is or becomes rightfully available on an unrestricted basis
to the receiving party from a source other than a party owing an obligation of
confidentiality to the disclosing party; or (iv) is independently
developed by employees of the receiving party who have not had direct or
indirect access to the disclosing party’s Confidential Information, as
evidenced by the receiving party’s written record.

 

(c)                                  “FDA” means
the Food and Drug Administration of the U.S. Department of Health and Human
Services.

 

(d)                                 “Field of Use”means
all applications of the Patent Rights excluding subcutaneous or intramuscular
drug delivery implants.

 

(e)                                  “Improvements”
means, individually and collectively, all discoveries, inventions,
know-how, techniques, methodologies, modifications, improvements, designs and
data (whether or not protectable under patent, trade secrecy or similar laws)
relating to additions, developments, enhancements, updates and other changes in
or to the Patent Rights.

 

(f)                                    “Licensed
Product” means any product or device that: (i) is developed, designed,
modified, improved, manufactured, used, imported, sold or offered for sale by
or on behalf of the Licensee or its Affiliates (or its or their sublicensees)
that would, in the absence of this Agreement, infringe a Valid and Enforceable
claim in the Patent Rights; or (ii) incorporates the Patent Rights.

 

(g)                                 “Patent Rights”
means each and all of the following: (i) all right, title and interest of
Licensor and its Affiliates in the Patents, any Valid and Enforceable claim in
any patent issuing from any patent applications, and any Valid and Enforceable
claim in any issued patent, claiming priority to any of the foregoing,
including any reissues, re-examinations, divisionals, continuations and
continuations-in-part, and extensions thereof; and (ii) any corresponding
foreign patents or patent applications related or claiming priority thereto.

 

(h)                                 “Valid and
Enforceable” means, with respect to any patent claim, a claim in any
unexpired patent which has not been held invalid or unenforceable by a decision
of a court or other governmental agency of competent jurisdiction, unappealable
or unappealed within the time period allowed for appeal, or which has not been
admitted to be invalid through reissue, reexamination or disclaimer.

 

2.                                       License.

 

(a)                                  Grant. Licensor
hereby grants to Licensee and its Affiliates an exclusive, worldwide,
nontransferable right and license, with the right to grant sublicenses as set forth
in Section 2(b), under the Patent Rights (including, without limitation,
any Improvements conceived or reduced to practice by an employee, agent, or
consultant of Licensor) to develop, design, modify, improve, make, have made,
use, import, offer to sell and sell the Licensed Products solely in the Field
of Use during the term of this Agreement. Licensee hereby acknowledges that: (i) Licensor
is the sole and exclusive

 

2

 

owner of all right, title and interest in and
to the Patent Rights, and (ii) Licensor retains the right to use the
Patent Rights for its own purposes and to use and grant to others licenses to
use the Patent Rights outside the Field of Use. Except as set forth in this
Agreement, Licensee shall not have any right, title or interest in or to the
Patent Rights. Licensee and its Affiliates shall have no right to manufacture,
use, import, offer to sell or sell Licensed Products outside of the Field of
Use. Licensee will own all rights, title and interest in and to any Improvement
conceived or reduced to practice by an employee, agent, or consultant of
Licensee or its Affiliates.

 

(b)                                 Sublicenses. Licensee
and its Affiliates may grant sublicenses under the Patent Rights without
the prior written consent of the Licensor solely in the Field of Use; provided, however, that (i) such
sublicenses are no less protective of Licensor’s rights as the provisions set
forth in this Agreement, and to the extent applicable, shall include all of the
rights and obligations due to Licensor hereunder; and (ii) Licensee makes
payments to Licensor based upon milestones and sales of Licensed Products by
its Affiliates and such sublicensees in accordance with Section 3, as if
such milestones and sales of Licensed Product were reached and/or made by
Licensee.

 

(c)                                  Patent Marking. Licensee,
its Affiliates and all sublicensees shall mark all Licensed Products in
accordance with the statutes of any country where a patent application has been
filed or a patent issued relating to the Patent Rights. To the extent the
Licensed Product cannot be marked, such marking shall be included in the
literature and/or marketing materials describing the Licensed Product.

 

3.                                       Payments.

 

(a)                                  Milestone Payments.
In consideration of the licenses granted herein, Licensee shall make the
milestone payments to Licensor as set forth in Section 3.2 of the ASA.

 

(b)                                 Notice of
Triggering Events. Licensee shall provide Licensor with prompt written
notice of: (i) the commencement of Phase II clinical testing of any
Licensed Product; (ii) execution of any agreement by and between Licensee
or its Affiliates and any third party with respect to any Patent Rights or a
Licensed Product; and (iii) the first commercial sale of each Licensed
Product (“First Commercial Sale”).

 

(c)                                  Books and Records.
Licensee agrees to keep, and shall cause its Affiliates and sublicensees to
keep, complete and accurate books of account and records covering all
transactions relating to this Agreement, including Annual Net Sales as reported
pursuant to Section 3.2 of the ASA. All such books of account and records
shall be kept available for at least two (2) years after the termination
or expiration of this Agreement.

 

(d)                                 Expenses. Unless
otherwise specifically set forth herein, all fees, costs and expenses incurred
by Licensee in developing, manufacturing, promoting, marketing and selling
Licensed Products or otherwise incurred under this Agreement shall be borne
solely by Licensee.

 

3

 

4.                                       Regulatory
Approval and Commercialization.

 

(a)                                  Regulatory
Approvals. Licensee shall be responsible, at its expense, for filing,
obtaining, and maintaining all necessary authorizations from the FDA and any
comparable foreign regulatory authorities for the marketing and sale of
Licensed Products in the United States and such foreign countries as Licensee,
in its sole discretion, determines. Licensee’s obligations under this Section 4(b) shall
include the preparation and filing of any required submissions and the
establishment and oversight of any required clinical investigations and
clinical follow-up relating to future commercial sale of the Licensed Products.

 

(b)                                 Manufacturing and
Sales. Upon receipt of a substantially equivalent letter from the FDA clearing
the Licensed Product for marketing, Licensee shall be responsible for
manufacturing, marketing and selling such Licensed Product and Licensee shall
use commercially reasonable efforts to market and sell such Licensed Product.

 

5.                                       Licensee’s
Representations and Warranties. Licensee hereby represents and warrants to
Licensor that as of the date hereof:

 

(a)                                  Licensee is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware, and this Agreement has been duly authorized by
all necessary corporate action on the part of Licensee.

 

(b)                                 This Agreement is the
legal, valid and binding obligation of Licensee, enforceable against Licensee
in accordance with its terms.

 

(c)                                  Neither the execution
and delivery of this Agreement nor the compliance with the terms and conditions
hereof will conflict with, result in a breach or violation by Licensee of or
constitute a default under any of the terms, conditions or provisions of any
contract, agreement or other instrument to which Licensee is or may be
bound or affected.

 

(d)                                 Licensee
will comply with all applicable laws in performing its obligations under this
Agreement.

 

6.                                       Licensor’s
Representations and Warranties. Licensor hereby represents and warrants to
Licensee that as of the date hereof:

 

(a)                                  Licensor is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware, and this Agreement has been duly authorized by
all necessary corporate action on the part of Licensor.

 

(b)                                 This Agreement is the
legal, valid and binding obligation of Licensor, enforceable against Licensor
in accordance with its terms.

 

(c)                                  Neither the execution
and delivery of this Agreement nor the compliance with the terms and conditions
hereof will conflict with, result in a breach or violation by

 

4

 

Licensor of or constitute a default under any
of the terms, conditions or provisions of any contract, agreement or other
instrument to which Licensor is or may be bound or affected.

 

(d)                                 Licensor
will comply with all applicable laws in performing its obligations under this
Agreement.

 

EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES
IN SECTIONS 5 AND 6, THE PATENT RIGHTS ARE LICENSED ON AN “AS IS” BASIS, AND NO
PARTY MAKES ANY OTHER EXPRESS OR IMPLIED WARRANTY HEREUNDER, INCLUDING, WITHOUT
LIMITATION, ANY IMPLIED WARRANTY OF TITLE, NON-INFRINGEMENT, OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE, AND EACH HEREBY DISCLAIMS THE SAME.

 

7.                                       Term
and Termination.

 

(a)                                  Term. The term
of this Agreement shall commence on the Effective Date and shall remain in
force, unless terminated earlier in accordance with Section 7(b), until
the last to expire of the Patent Rights.

 

(b)                                 Termination. Notwithstanding
the provisions of Section 7(a), this Agreement may be terminated upon
mutual written agreement of the parties.

 

(c)                                  Rights and
Obligation on Termination. In the event of termination or expiration of
this Agreement for any reason, the parties shall have the following rights and
obligations:

 

(i)                                     Licensee shall
remain responsible for any payment due to Licensor that has accrued prior to
the effective date of termination.

 

(ii)                                  The licenses granted
to Licensee under Sections 2(a) and 2(b) above shall immediately
terminate and be of no further force and effect. Licensor, at its sole
discretion, shall determine whether any or all sublicenses entered into by and
between Licensee and its sublicensees prior to the effective date of
termination of this Agreement shall be canceled or assigned to Licensor.

 

(iii)                               Sections 1, 2(c), 3, 5,
6, 7, 8, 9, 10, 11 and 12 shall survive termination of this Agreement.

 

(iv)                              Subject to its
obligations under Section 3, Licensee, its Affiliates and sublicensees
shall be permitted to sell any inventory of Licensed Product in fully-finished form on
hand at the effective date of termination.

 

(v)                                 Each party will return to the other party or
certify in writing to the other party that it has destroyed all documents and
other tangible items it or its employees or agents have received or created
pursuant to this Agreement pertaining, referring or relating to the
Confidential Information of the other party.

 

5

 

8.                                       Patent
Prosecution and Infringement.

 

(a)                                  Patent Matters.
Licensor shall pay when due all maintenance fees for the Patent Rights in
accordance with applicable laws and regulations. Licensor shall have sole
responsibility for the prosecution of the Patent Rights before the applicable
governing examining authority, except that the Licensee shall have the right to
participate, at its own expense, in the prosecution on any patent claims before
the applicable examining authority that encompass subject matter in the Field
of Use, including, but not limited to, the drafting and submitting to the
examining authority of new patent claims in the Field of Use either in a
pending, continuation or divisional application (“New Patent Claims”) and to
review and approve any submissions to the examining authority by Licensor that
pertain to claims encompassing subject matter in the Field of Use. In the event
Licensee requests that Licensor prosecute any New Patent Claims, Licensor shall
prosecute such New Patent Claims at Licensee’s expense, subject to Licensee’s
right to participate as set forth above. Licensor shall keep Licensee promptly
apprised of all proceedings concerning prosecution of the Patent Rights before
the applicable examining authority and timely provide copies of all
correspondence, filings and actions with such authorities. If Licensor intends
to abandon any of the Patent Rights, it shall so notify Licensee of its intent
at least 30 days prior to such abandonment and shall assign any such rights to
prosecute to Licensee. Following such assignment, Licensee shall have the right
to prosecute such abandoned Patent Rights in its own name at its own expense. Licensee
and Licensor shall cooperate fully with each other to execute all necessary
documentation to enable each party to perform its duties and exercise its
rights under the terms of this Section 8(a).

 

(b)                                 Infringement. (i) When
information comes to the attention of Licensor or Licensee to the effect that
any of the Patent Rights in the Field of Use have been or are threatened to be
infringed or misappropriated by a third party, Licensee, or Licensor, should
Licensee decline to do so (as shall be evidenced by Licensee delivering notice
to Licensor of its election not to take action) (as applicable, the “Prosecuting
Party”), shall have the right, but not the obligation, at its expense, to
take such action as the Prosecuting Party may deem necessary to prosecute
or prevent such infringement or misappropriation, including the right to bring
or defend any suit, action or proceeding involving any such disclosure,
infringement or misappropriation. Licensor or Licensee, as applicable, shall
notify the other party hereto promptly of the receipt of any such information
with respect to third party infringement or misappropriation and of the
commencement of any such suit, action or proceeding related thereto. If the
Prosecuting Party determines that it is necessary or desirable for the other
party hereto to join any such suit, action or proceeding, the other party
hereto shall execute all documents and perform such other acts as may be
reasonably required. The Prosecuting Party will reimburse the other party for
its reasonable expenses incurred in connection with such matters, after the
Prosecuting Party’s reimbursement of its own costs and expenses.

 

(ii) The Prosecuting Party may collect
for its own use all damages, profits, settlements and awards of whatever nature
recoverable from such suit or in settlement thereof, and shall have the right
to first reimburse itself, out of any such sums recovered in such suit or in settlement
thereof for all costs and expenses, including reasonable

 

6

 

attorneys’ fees, reasonably involved in the
prosecution of such suit. Any funds that shall remain from said recovery shall
then be used to reimburse the cooperating party, if applicable, for its
reasonable expenses, with the remainder to be retained by the Prosecuting
Party.

 

9.                                       Indemnification.

 

(a)                                  Indemnification by
Licensor. Licensor shall indemnify, hold harmless, defend and protect Licensee
and its Affiliates, sublicensees, successors, assigns, employees,
representatives and agents (“Licensee Indemnitees”) from and against any
and all claims, causes of action, costs, expenses, losses, damages and
liabilities (including, without limitation, reasonable attorneys’ fees) (“Losses”)
imposed upon the Licensee Indemnitees by a third party arising out of or
resulting from (i) the breach of Licensor’s representations, warranties or
obligations under this Agreement; or (ii) any negligence or intentional
misconduct by Licensor (or its Affiliates agents, consultants or employees) in
performing its obligations under this Agreement. The foregoing indemnification
action shall not apply in the event and to the extent that a court of competent
jurisdiction determines that such Losses arose as a result of any Licensee
Indemnitees’ negligence, intentional misconduct or breach of this Agreement or
are the subject of Section 9(b).

 

(b)                                 Indemnification by
Licensee. Licensee shall indemnify, hold harmless, defend and protect
Licensor and its Affiliates, successors, assigns, employees, representatives
and agents (“Licensor Indemnitees”), from and against any and all Losses
imposed upon the Licensor Indemnitees by a third party arising out of or
resulting from (i) the breach of Licensee’s representations, warranties or
obligations under this Agreement, (ii) any negligence or intentional
misconduct by Licensee (or its Affiliates agents, consultants or employees) in
performing its obligations under this Agreement; or (iii) any claim
related to the development, design, manufacture, use, import, offer or sale of
the Licensed Products by Licensee. The foregoing indemnification action shall
not apply in the event and to the extent that a court of competent jurisdiction
determines that such Losses arose as a result of any Licensor Indemnitees’
negligence, intentional misconduct or breach of this Agreement or are the
subject of Section 9(a).

 

(c)                                  Procedure. If
a claim by a third party is made against an indemnified party and if the
indemnified party intends to seek indemnity with respect thereto under this Section 9,
such indemnified party shall promptly notify the indemnifying party of such
claim; provided that failure to
give timely notice shall not affect the rights of the indemnified party so long
as the failure to give timely notice does not adversely affect the indemnifying
party’s ability to defend such claim against a third party. The indemnifying
party shall be entitled to assume the defense thereof, with counsel selected by
the indemnifying party. The indemnifying party shall have control of the
defense of any such action, including any appeals and negotiations for the
settlement or compromise thereof and shall have full authority to enter into a
binding settlement or compromise; provided
that the indemnifying party shall not enter into any settlement or compromise
which may adversely affect the indemnified party without the indemnified
party’s consent, which consent shall not be unreasonably withheld. If the
indemnifying party

 

7

 

assumes the defense of such claim, the
indemnifying party shall not be responsible for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof. The indemnified party may participate, at its own cost and
expense, in the defense of any such claim; provided
that the indemnifying party shall control such defense.

 

(d)                                 Cooperation as to
Indemnified Liability. Each indemnified party hereto shall, at the expense
of the indemnifying party, cooperate fully with the indemnifying party with
respect to access to books, records, or other documentation within the
indemnified party’s control, if deemed reasonably necessary or appropriate by
the indemnifying party in the defense of any claim that may give rise to
indemnification hereunder.

 

10.                                 Confidentiality.
(a) Confidential Information. Confidential Information of each
party is the exclusive property of such party. Confidential Information of
either party may be used by the other party only in connection with the
performance of or as authorized by this Agreement. Each party will protect the
confidentiality of Confidential Information of the other party in the same
manner that it protects the confidentiality of its own proprietary and
confidential information, including, without limitation, by entering into
appropriate confidentiality agreements with Affiliates, sublicensees,
employees, independent contractors and subcontractors. Access to and use of
Confidential Information will be restricted to those of Licensor’s and Licensee’s
Affiliates, employees or contractors engaged in a use permitted under this
Agreement and who have been apprised of the confidential nature of such
information. Each party will be responsible for any breaches of this Section 10
by its Affiliates, employees or contractors. Confidential Information may not
be copied or reproduced without the disclosing party’s prior written consent,
except as necessary for use in connection with this Agreement. Upon request of
the other party or termination of this Agreement, each party shall return all
such Confidential Information to the other party.

 

(b) Disclosure
Upon Process. In the event either party receives a subpoena, or other
validly-issued administrative or judicial process, requesting that Confidential
Information of the other party be disclosed, it will promptly notify the other
party of such receipt. The party receiving such request will thereafter be
entitled to comply with such subpoena or other process, only to the extent
required by law.

 

(c) Breach.
If either party learns of any breach of this Section 10, it shall promptly
notify the other party. Breach or threatened breach of this Section 10
could cause irreparable harm to the affected party and such party shall be
entitled, without first exhausting other remedies or procedures, to equitable
relief, including injunctive relief, in addition to all of its other rights and
remedies at law or in equity that may be available to it.

 

11.                                 Limitation of
Liability. EXCEPT FOR: (i) BREACH OF CONFIDENTIALITY OBLIGATIONS UNDER
SECTION 9, (ii) AMOUNTS PAYABLE WITH RESPECT TO THIRD PARTY
INDEMNIFICATION CLAIMS, AND (iii) AMOUNTS PAYABLE WITH RESPECT TO LICENSOR’S
FAILURE TO PROSECUTE AND MAINTAIN

 

8

 

THE PATENT RIGHTS AS PROVIDED HEREIN, NEITHER
PARTY SHALL BE LIABLE TO THE OTHER FOR LOST PROFITS OR FOR ANY INDIRECT,
INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES IN CONNECTION
WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, HOWEVER
CAUSED, UNDER ANY THEORY OF LIABILITY.

 

12.                                 Miscellaneous.

 

(a) Expenses. Except as otherwise specified in this
Agreement, all costs and expenses, including, without limitation, fees and
disbursements of counsel, financial advisors and accountants, incurred in
connection with this Agreement and the transactions contemplated hereby shall
be paid by the party incurring such costs and expenses.

 

(b) Further Assurances and Actions. Each of the parties
hereto, upon the request of the other party hereto, whether before or after the
Effective Date and without further consideration, shall, and shall cause their
respective Affiliates to, do, execute, acknowledge and deliver or cause to be
done, executed, acknowledged or delivered all such further acts, deeds,
documents, assignments, transfers, conveyances, powers of attorney and
assurances as may be reasonably necessary to effect complete consummation
of the transactions contemplated by this Agreement.

 

(c) Announcements. No party shall make a public
announcement regarding the execution of this Agreement without the prior
written consent of the other party; provided
that nothing herein shall restrict Licensor or Licensee from making any public
announcement of the execution of this Agreement to the extent that such
announcement is required by law; provided
that, prior to any such disclosure, the disclosing party shall provide the
other party a reasonable time to review and comment upon such disclosure. Additionally,
Licensee may disclose this Agreement and the transactions contemplated
hereby, to the extent reasonably necessary, in connection with any registration
of one (1) or more of the Licensed Products with any state or Federal
agency. Once the Agreement is executed, the Licensee shall be free to make
public announcements regarding advancements in the development and
commercialization of the technology and other relevant issues deemed
appropriate by the Licensee without any prior consent of the Licensor.

 

(d) Notices. All notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be given or made
(and shall be deemed to have been duly given or made upon receipt) by delivery
in person, by courier service, by telecopy or by registered or certified mail
(postage prepaid, return receipt requested) to the respective parties at the
following addresses (or at such other address for a party as shall be specified
in a notice given in accordance with this Section):

 

if to Licensor, then:

Access Pharmaceuticals, Inc.

2600 Stemmons Freeway

 

9

 

Suite 176

Dallas, TX 75207

Telephone :  (214) 905-5100

Telecopy :  (214) 905-5101

Attn:                    Chief Executive Officer

 

with a copy to:

Bingham McCutchen LLP

150 Federal Street

Boston, MA 02110

Telephone: (617) 951-8000

Telecopy: (617) 951-8736

Attn: John J. Concannon III, Esq.

 

if to Licensee, then:

 

ULURU, Inc.

4939 Stonyford Drive

Dallas, TX 75287

Telephone: (972) 250-6383

Telecopy: (972) 250-6383

Attn:                    Kerry P. Gray

 

with a copy to:

 

McGuireWoods LLP

1345 Avenue of the Americas, 7th
Floor

New York, NY 10105

Telephone: (212) 548-2138

Telecopy: (212) 548-2175

Attn: Louis W. Zehil, Esq.

 

(e) Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without giving
effect to principles of conflict of laws. Each party to this Agreement
expressly and irrevocably (a) consents that legal action or proceeding
against it arising out of this Agreement may be brought in any court of
the State of Delaware or in the U.S. District Court for the District of
Delaware, (b) consents and submits to the personal jurisdiction of any of
such courts solely for purposes of such action or proceeding, (c) consents
to the service of any complaint, summons, notice or other process solely for
purposes of such action or proceeding by delivery thereof to him, her or it by
hand or by any other manner provided for in Section 12(d) and (d) waives
any claim or defense solely for purposes of such action or based on any alleged
lack of personal jurisdiction, improper venue or forum non conveniens or any
similar basis. Nothing in this Section shall affect or impair in any
manner or to any extent the right of any party to commence legal proceedings or

 

10

 

otherwise proceed against any other party in
any jurisdiction or to serve process in any manner permitted by law.

 

(f) Entire Agreement; Amendments. This Agreement and the Asset
Sale Agreement, including the Exhibits hereto and thereto, constitute the
entire agreement among the parties hereto with respect to the transactions
provided for herein and as stated herein and in the agreements, instruments and
documents executed and to be executed and delivered in connection herewith,
contains all of the agreements between the parties hereto. There are no verbal
agreements or understandings between the parties hereto not reflected in this
Agreement. This Agreement may not be amended or modified in any respect
except by written instrument executed by each of the parties hereto.

 

(g) Counterparts. This Agreement may be executed in
two (2) or more counterparts, each of which shall be deemed to be an
original and all of which together, shall constitute the same Agreement.

 

(h) No Third Party Beneficiaries. This Agreement shall be
binding upon and inure solely to the benefit of the parties hereto and their
permitted successors and assigns and nothing herein, express or implied, is
intended to or shall confer upon any person or entity, any legal or equitable
rights, benefits or remedies.

 

(i) Assignment. Neither party may assign its rights or
obligations under this Agreement without the prior written consent of the other
party and any purported assignment in violation hereof shall be null and void; provided that either party may assign
its rights and obligations under this Agreement, without the prior written
consent of the other party, to (i) an Affiliate, or (ii) a successor
of the assigning party’s business or the applicable business unit by reason of
merger, sale of all or substantially all of the assets of the business or
applicable business unit,  provided that such successor to the
business or applicable business unit agrees in writing to be bound by this
Agreement. Such consent shall not be unreasonably withheld or delayed. Any
permitted assignee shall assume all obligations of its assignor under this
Agreement. No assignment shall relieve either party of its responsibility for
the performance of any obligation that accrued prior to the effective date of
such assignment hereunder.

 

(j) Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any law or
public policy, all other terms and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in an acceptable manner
in order that the transactions contemplated hereby are consummated as
originally contemplated to the greatest extent possible.

 

11

 

(k) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY
AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT, THE ANCILLARY AGREEMENTS, INSTRUMENTS AND DOCUMENTS
CONTEMPLATED HEREBY OR THE TRANSACTIONS CONTEMPLATED HEREBY AND FOR ANY
COUNTERCLAIM THEREIN.

 

(l) No Waiver of Remedies. No delay on the part of Licensee
or Licensor in exercising any right, power or privilege hereunder shall operate
as a waiver thereof, nor shall any waiver on the part of either Licensee
or Licensor of any right, power or privilege hereunder nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, power or
privilege hereunder. The waiver of any terms or conditions of this Agreement
shall not be construed as a waiver of any subsequent breach or a subsequent
waiver of the same term or condition, or waiver of any other term or condition,
of this Agreement. The failure of any party to assert any of its rights
hereunder shall not constitute a waiver of any of such rights.

 

(m) Relationship. This
Agreement shall not constitute either party as the legal representative,
partner, joint venturer or agent of the other party hereto, nor shall either
party have the right or authority to assume, create, or incur any liability or
any obligation of any kind, express or implied, against or in the name of or on
behalf of the other party hereto.

 

[The remainder of this page is
intentionally left blank.]

 

12

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the Effective Date.

 

	
   

  	
  ACCESS PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/ Rosemary Mazanet

  	
   

  
	
   

  	
   

  	
  Name: Rosemary Mazanet

  
	
   

  	
   

  	
  Title: Acting CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ULURU, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/ Kerry P. Gray

  	
   

  
	
   

  	
   

  	
  Name: Kerry P. Gray

  
	
   

  	
   

  	
  Title: President & CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]