10. Commitments and Contingencies License Agreement On July 15, 2011, the Company entered into a license agreement with Noble Fiber Technologies, LLC, whereby the Company has the exclusive right and license to manufacture and distribute SilverSeal Hydrogel Wound Dressings and SilverSeal Hydrocolloid Wound Dressings. The license is granted for ten years with an option to be extended for consecutive renewal periods of two years after the initial term. Royalties are to be paid equal to 9.75 % of net sales of licensed products. The agreement calls for minimum royalties to be paid each calendar year as follows: 2015 - $ 500,000 and 2016 - $ 600,000 . Total royalties charged to selling, general and administrative expense for the years ended December 31, 2015 and 2014 were $ 500,000 and $ 400,000 , respectively. $ 497,000 is included in accounts payable as of December 31, 2015 in connection with this agreement. The Company expects to incur the minimum royalty in 2016. Sorbion Distributor Agreement In September 2013, the Company entered into a distributor agreement (the Sorbion Agreement) with Sorbion GmbH &amp; Co KG, pursuant to which the Company became the exclusive distributor of sorbion sachet S, sorbion sana and new products with hydrokinetic fibers as primary dressings in the United States, Canada and Latin America, subject to certain exceptions. The term of the agreement ends on December 31, 2018. Sorbion assigned its rights and obligations of the Sorbion Agreement to BSN Medical, Inc. (BSN), an affiliate of Sorbion, in June 2015. In July 2015, the Company entered into an amendment to the Sorbion Agreement with BSN to provide for pricing in U.S. Dollars instead of Euros. In order to maintain its exclusivity, the Company must purchase minimum amounts of product. The Company has met the minimum purchase amount requirement for the 2015 calendar year of $ 1.1 million. For calendar years 2016 and 2017, the minimum annual purchase amounts noted below will be converted from Euros to U.S. Dollars with the exchang