Document:

Exhibit 10.10

 

 

Biofrontera Aktiengesellschaft

 

Option Terms

 

of the Share Option Programme 2015 

 

as resolved by the Annual General Meeting,

 

version dated

 

7 April 2016

 

 

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Preamble

 

The Annual General Meeting of Biofrontera
AG (hereinafter “Company”) held on 28 August 2015 granted an authorization (hereinafter “Authorization
Resolution”) valid until 27 August 2020 to issue up to 1,814,984 subscription rights to up to EUR 1,814,984
in no-par value registered shares in the Company (hereinafter “Options” or “Share Options”)
in accordance with the more detailed provisions of the Authorization Resolution (hereinafter “Share Option Scheme 2015”).

 

On 7 April 2016, the Management Board and
the Supervisory Board resolved to make use of the authorization granted in the Share Option Scheme 2015. The Management Board and
the Supervisory Board have adopted these option terms (hereinafter “Option Terms”) in order to regulate further details
with respect to granting Share Options and further exercising conditions.

 

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§ 1

Granting Options

 

		(1)	The Company grants Options (“Options” or
“Option Rights”) to up to EUR 1,814,984 in no-par value registered shares
in the Company. The content of the Options and the associated rights and obligations comply with the Share Option Scheme 2015 and
with these Option Terms.

 

		(2)	Options may be issued to members of the Management Board of the
Company, members of the management of affiliated companies and employees of the Company and of affiliated companies (hereinafter
collectively referred to as “Beneficiaries” or “Eligible Persons”).

 

		(3)	The precise group of Beneficiaries and the respective number
of Options to be granted to them are determined by the Management Board of the Company. Where members of the Management Board are
to receive Options, the Supervisory Board is solely responsible for determining this and deciding on the issuing of Options.

 

§ 2

Content and granting of Options

 

		(1)	In accordance with these Option Terms, each Option granted entitles
the Beneficiary to subscribe to one (1) new registered share with no nominal value (no-par value share) in the Company at the exercise
price defined in paragraph (7) below (subject to adjustments of the exercise price pursuant to section 13). The Beneficiary does
not have to pay for the granting of Options. 

 

		(2)	Up until the Option Rights are exercised, the Eligible Person
does not accrue any rights from the shares to which they may subscribe under the Options.

 

		(3)	New shares that are issued after Options are exercised participate
in profits from the beginning of the financial year in which they are created through the exercising of Options.

 

		(4)	Unless mandatory legal provisions (particularly insider trading
provisions) stipulate otherwise in individual cases, Options may be issued:

 

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		a)	in the ten trading days following the date on which annual financial
reports or half-yearly financial reports are made publicly available,

 

		b)	in the ten trading days following the date of the Annual General
Meeting,

 

		c)	in the ten trading days following the date of publication of
a quarterly report or interim announcement.

 

Options
are granted up to twice per calendar year in tranches; the total of the tranches in a calendar year may not exceed 50% of the total
volume of the Share Option Scheme 2015 (hereinafter “Tranches”).

 

		(5)	The Options are issued through the conclusion of a written contract
between the Beneficiary and the Company (hereinafter “Option Agreement”).

 

		(6)	The issue date is the date on which the Option Agreement is signed
by the Company (hereinafter “Issue Date”). The Issue Date must be determined
by the Management Board and the Supervisory Board, or by the Supervisory Board alone if the Management Board is affected, in connection
with the decision regarding the respective Tranche issue. A sample Option Agreement is attached as 

 

Annex
section 2 (5).

 

		(7)	The price to be paid for a share upon exercise of an Option corresponds
to the non-weighted average price of the Company’s shares in the Xetra closing auction on the Frankfurt Stock Exchange (XETRA)
or in an equivalent successor system on the ten trading days before the Issue Date (hereinafter “Exercise Price”).
However, the minimum Exercise Price is the proportionate amount of the Company’s share capital attributable to the individual
no-par value share (share) (section 9 (1) of the German Stock Corporation Act (AktG)). The Eligible Person will be notified of
the Exercise Price upon submission of the Option Agreement.

 

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§ 3

Blocking period for first-time exercise and exercise window

 

		(1)	Option Rights may be exercised for the first time after expiry
of a blocking period. The blocking period is four years after the respective Issue Date (hereinafter “Blocking Period”).

 

		(2)	After expiry of the respective Blocking Period, the Option Rights
may be exercised until the expiry of six years after the respective Issue Date with the proviso that in each case an exercise is
only possible within the following periods (hereinafter “Exercise Windows”)
unless mandatory legal provisions stipulate otherwise in individual cases (particularly insider trading provisions):

 

		a)	on the 6th banking day and following 20 banking days after the
Annual General Meeting,

 

		b)	on the 6th banking day and following 20 banking days after presentation
of the half-yearly or quarterly report or of an interim announcement or interim financial report of the Company,

 

		c)	in the period between the 20th and 5th banking day before the
Option Rights lapse.

 

However,
this excludes the period from the announcement that the shareholders are to be granted a subscription right to shares or other
securities to be issued by the Company until the beginning of the first day of the subscription period. 

 

		(3)	The right to exercise the Options will end no later than six
years after the Issue Date (exclusive). If the Options have not been exercised by this time they will lapse without compensation.

 

		(4)	Any entitlement of the Eligible Person to payment of a cash settlement
in the event that Option Rights are not exercised in spite of the above exercise requirements being met is precluded.

 

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§ 4

Performance targets

 

Options
may only be exercised if the following performance targets are met:

 

		a)	It is possible to exercise Options from a Tranche if the price
of the share in the Company at the beginning of the respective Exercise Window exceeds the Exercise Price by at least 20% (hereinafter
“Reference Price”) and

 

		b)	additionally if, as compared with the Exercise Price, the Reference
Price has performed as well as or better in percentage terms than the “MSCI World Health Care Index TR” or a comparable
successor index (hereinafter “Reference Index”) in the period from the last
trading day before the Issue Date until the 5th trading day (in each case the last index calculation of the day based on USA Eastern
Standard Time (EST)) before the beginning of the respective Exercise Window (hereinafter “Reference Period”).
As the Reference Index is a total return index, the gross amount of dividends distributed by the Company during the Reference Period
and other distributions to shareholders are taken into account as a value-enhancing factor when determining the performance of
the Company’s shares.

 

The
Reference Price corresponds to the non-weighted average price of the Company’s shares in the Xetra closing auction on the
Frankfurt Stock Exchange or in an equivalent successor system between the 15th and 5th trading day (inclusive in each case) before
the beginning of the respective Exercise Window.

 

§ 5

Exercise notice

 

		(1)	Option Rights are exercised by way of written notice in duplicate
from the Eligible Person in accordance with section 198 (1) AktG (hereinafter “Exercise Notice”)
to the Company or – if the Beneficiary is a member of the Management Board of the Company – to the Chairman of the
Supervisory Board of the Company, addressed in each case to the headquarters of the Company. 

 

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		(2)	The Exercise Notice must be submitted using the form available
from the Company. The Beneficiary is also required to undertake all the actions required for exercising and processing and to submit
statements.

 

		(3)	The Exercise Notice must state the number of shares for which
the Option Right is to be exercised. 

 

		(4)	The Option exercise will take effect to the permitted extent
stated in the notice upon receipt of the Exercise Notice by the Company or, if it is to be submitted to the Supervisory Board of
the Company, upon receipt by the Chairman of the Supervisory Board, provided that the other exercise requirements have been met.

 

		(5)	The Company may require the Beneficiary to engage a third party
specified by the Company to submit the Exercise Notice for them as a subscription agent, either in their own name or in the name
of a third party. The Company shall bear the costs of the subscription agent.

 

		(6)	The date on which the Company or the subscription agent receives
the Exercise Notice is the exercise date (hereinafter “Exercise Date”).

 

§ 6

Transfer of shares/cash settlement

 

		(1)	Upon the effective exercise of Options the Company is required,
subject to the adjustments under section 13, to issue to the Beneficiary a number of shares in the Company corresponding to the
number of Option Rights exercised. In lieu of issuing shares in the Company from contingent capital, treasury shares in the Company
may also be transferred against payment of the issue amount.

 

		(2)	The Company will transfer the number of shares corresponding
to the number of Options exercised to the Eligible Person within six weeks of receipt of the subscription notice and payment of
the subscription price.

 

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		(3)	The Company may – in lieu of providing shares against payment
of the Exercise Price – pay a cash settlement to the Beneficiary in discharge of its obligations. The cash settlement may
be paid for all or part of the Options exercised. The cash settlement per Option will correspond to the difference between the
Exercise Price per share and the price of the share on the Exercise Date. The relevant price of the shares on the Exercise Date
will be determined as follows: non-weighted average price of the Company’s shares in the Xetra closing auction on the Frankfurt
Stock Exchange or in an equivalent successor system on the ten trading days before the Exercise Date. 

 

		(4)	The Company may require the Eligible Person to pay any taxes
and levies due, particularly those under section 12 below, in full together with the relevant Exercise Price.

 

§ 7

Restrictions on exercise and disposal

 

		(1)	The Beneficiary is entitled to sell on the shares acquired by
exercising the Options immediately. However, in the context of such a sale they must have regard for the legitimate interests of
the Company in appropriate price management.

 

		(2)	The Eligible Person is aware that they are among a group of persons
who can obtain knowledge of insider information concerning the Company. They are also aware that, in particular, acquiring and
disposing of shares in the Company while having knowledge of insider information is a criminal offence. 

 

		(3)	The Eligible Person is also aware that acquiring shares in the
Company can trigger statutory notification duties and, in particular, directors’ dealings and/or voting rights notifications.

 

		(4)	The Eligible person will comply with all the legal and contractual
obligations they are required to observe in connection with the Share Option Scheme 2015 and the processing thereof on their own
responsibility.

 

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§ 8

Limitation in the event of extraordinary developments

 

		(1)	The exercisability of the Options is restricted in the event
of extraordinary developments notwithstanding the other provisions of these Option Terms under this section 8.

 

		(2)	Offers within the meaning of the German Securities Acquisition
and Takeover Act (WpÜG) are deemed to be extraordinary developments.

 

		(3)	The exercising of Options in a Tranche may be restricted within
the following period: 

 

		a)	Between the publication (i) of the decision of the bidder to
submit an offer or (ii) of the assumption of control (hereinafter “Announcement”)
until expiry of the follow-up acquisition period within the meaning of section 31 (5) first sentence WpÜG.

 

		b)	The restriction of the exercisability of the Options will end
if the bidder declines to publish an offer or the period prescribed for this by law expires without result. 

 

		(4)	In the event of an offer within the meaning of WpÜG, the
Eligible Person is to be placed in the position in which they would have been had they exercised the Options before the Announcement;
however, this is with the proviso that the Eligible Person may realize a premium of no more than 50% on the market price of the
Company’s shares that was in effect before the Announcement. 

 

		(5)	The decisive factor in determining the extent of any exercising
restriction is firstly the arithmetic average (non-weighted) of the closing price of the Company’s shares determined in Xetra
trading on the Frankfurt Stock Exchange on the ten trading days before the date of the Announcement by the bidder (exclusive) plus
a premium of 50% on this amount (hereinafter “Share Price before the Offer”).

 

		a)	The Options are subject to an exercising ban in the proportion
by which the consideration offered by the bidder (hereinafter “Consideration”)
exceeds the Share Price before the Offer.

 

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Example:

 

The
Share Price before the Offer is EUR 15 (EUR 10 calculated average closing price plus a premium of 50%, i.e. EUR 5). The
Eligible Person has 100 Options. The Consideration is EUR 20.

 

The
number of Options from a Tranche still existing at the time of the Announcement and partially subject to an exercising restriction
(“x” in %) is calculated as follows:

 

x% = 100
– ([100/Consideration] * Share Price before the Offer)

 

Therefore,
in the example case 25.00% of the Options are subject to an exercising ban.

 

		b)	In each case, the (i) last offer price publicly disclosed by
the bidder will be referenced as the Consideration, in particular also an (intended) offer price such as is disclosed by the bidder
in Announcement. If the Announcement does not specify an offer price, (ii) until the bidder publicly announces the offer price
the Consideration will be based on the arithmetic average (non-weighted) of the closing price of the Company’s shares determined
in Xetra trading on the Frankfurt Stock Exchange on the last three trading days following the Announcement (exclusive).

 

		c)	If the Consideration is increased, the number of Options from
a Tranche still existing at the time of the Announcement and partially subject to an exercising restriction will be recalculated
in each case. As far as possible, any Options already exercised after the Announcement will be set off against the amount of the
newly calculated exercisable Options.

 

Example:

 

At
the time of the Announcement the Eligible Person has 100 Options. The Share Price before the Offer is EUR 15. The Consideration
is EUR 20.

 

Therefore,
25.00% of the Options are subject to an exercising ban. After 45 Options have been exercised, the Compensation is increased to
EUR 30. Thus 50% of the Options are subject to an exercising ban, leaving 5 more Options that could be exercised, which are then
exercised. The Compensation is subsequently increased to EUR 35. Around 57% of the Options are thus subject to an exercising ban.
Therefore, no further Options can be exercised but the 50 Options already exercised are not affected.

 

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		(6)	Options that were subject to an exercising ban under this section
8 may be exercised after expiry of the follow-up acquisition period within the meaning of section 31 (5) first sentence WpÜG.

 

§ 9

Transferability and heritability

 

		(1)	The Options granted to the Eligible Person are not transferable.
Any other disposal over the Options, granting of a sub-participation or establishment of a trust is also not permitted. The Eligible
Person is also not allowed to enter into short positions or comparable closing out transactions that in financial terms rank equal
to selling the Options. 

 

		(2)	Violations against section 9 (1) will cause the Options
to lapse without compensation.

 

		(3)	The Options cannot be inherited unless the Blocking Period has
expired at the time of occurrence. In such event, the heirs/legatees of the Eligible Person are entitled on one occasion to exercise
the Options in their place under the same terms in the three exercise periods after acquiring knowledge of the accrual of the inheritance,
but at the latest within a period of 12 months after the accrual of the inheritance. Upon expiry of the anniversary date of the
accrual of the inheritance, any unexercised or exercisable Options will lapse without replacement or compensation. The Company
is entitled to request sufficient evidence of the accrual of the inheritance and legal succession.

 

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§ 10

Termination of the employment relationship/executive position

 

		(1)	Options may only be exercised if their holder has an unterminated service or employment relationship
(hereinafter “Employment Relationship”) with the Company or a company affiliated with the Company or is a member
of the Management Board of the Company or of the management of a company affiliated with the Company (hereinafter “Executive
Position”).

 

		(2)	Upon termination – for whatever reason – of the Employment Relationship and/or Executive
Position, the Options will lapse without compensation if the Blocking Period has expired at the time the Employment Relationship
and/or Executive Position is legally terminated (hereinafter “Time of Termination”) and these Option Terms do
not stipulate otherwise (see section 10 (5)). They will not lapse if only the Executive Position is terminated but an Employment
Relationship continues to exist.

 

		(3)	The Eligible Person may still exercise Option Rights whose Blocking Period has expired at the Time
of Termination in the first Exercise Window following the Time of Termination if the other requirements have been met unless they
brought about termination of the Employment Relationship and/or Executive Position for cause within the meaning of section 626
of the German Commercial Code (BGB) due to a reason for which they were responsible. In such case, the Option Rights will lapse
without compensation notwithstanding the Company’s rights of revocation under section 11 (2).

 

		(4)	For the purposes of this regulation, if Beneficiaries have a temporary Employment Relationship
with the Company these contracts will be deemed to be unterminated Employment Relationships for the entire term of employment,
provided that they are extended or renewed without interruption and are not terminated.

 

		(5)	If the Employment Relationship and/or Executive Position has existed without interruption for at
least four years at the Time of Termination, the following will apply to Options that were granted at least 18 months before the
Time of Termination but whose Blocking Period has yet to expire:

 

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		a)	The intrinsic value of the Options will be determined at the Time of Termination. The intrinsic
value of each Option will correspond to the difference between the Exercise Price and the price of the share at the Time of Termination.
The price of the share at the Time of Termination is to be determined as follows: arithmetic average (non-weighted) of the closing
price of the Company’s shares determined in Xetra trading on the Frankfurt Stock Exchange on the ten trading days before
the Time of Termination.

 

The intrinsic value determined
in this manner will be multiplied by the number of Options that were granted at least 18 months before the Time of Termination
(hereinafter “Initial Amount”).

 

		b)	In the first Exercise Window following the Time of Termination after expiry of the Blocking Period,
the Eligible Person may then – provided that the other requirements have been met – exercise a number of Options corresponding
to the Initial Amount divided by the Exercise Price (fractions are to be rounded down) up to a maximum of the Options actually
granted and not yet exercised.

 

		c)	A further requirement for the exercising of the Options in such cases is that the performance targets
have been arithmetically achieved at least once in the period between the Options being issued and the Time of Termination.

 

		d)	The provisions of this section 10 (5) will not apply if the termination of the Employment
Relationship and/or Executive Position is attributable to

 

		(i)	good cause within the meaning of section 626 BGB due to a reason for which the Eligible Person
was responsible or

 

		(ii)	the expiry of a fixed term and if the Eligible Person did not accept an offer from the Company
to continue their respective activity after expiry of the fixed term for at least two further years on financial terms that were
not less favorable than the previously agreed financial terms (agreement on salary, working hours, leave and non-cash ancillary
benefits). A relevant offer must be submitted to the Eligible Person in writing no later than six months before expiry of the fixed
term and have a commitment period for the Company of at least three weeks in order that the offer acquires the local preclusive
effect in the event that it is not accepted by the Eligible Person.

 

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		e)	If the Company is liable for taxes or other levies on the Eligible Person that arise in connection
with the exercising of Options, it may require the Eligible Person to furnish appropriate security for this or to provide evidence
of the settlement of tax and levy liabilities. The security or evidence must be submitted within ten working days of a corresponding
request by the Company. The entitlement to exercise Options will otherwise be canceled.

 

		(6)	The following will apply if the business or part of the business division of the Company with which
the Eligible Person has an Employment Relationship and/or holds an Executive Position separates from the Company or from the Company’s
Group or if an affiliated company in which the Eligible Person is employed and/or acts in an executive capacity separates from
the Company’s Group:

 

		a)	Options whose Blocking Period has expired on the date of separation may only be exercised vis-à-vis
the Company by Eligible Persons belonging to the separating company, business or business division in the first two Exercise Windows
following the date of separation, provided that the other exercise requirements have also been met. Thereafter, any Option Rights
not yet exercised will lapse without compensation.

 

		b)	In derogation of section 10 (6) a) above, the Company is entitled to settle Options at
any time, including against the will of the Eligible Person. In such case, the Eligible Person must be paid a settlement amount
for the exercisable Options that will be calculated analogously to the cash settlement under section 6 (3). The time of separation
will be used instead of the Exercise Date for the purpose of calculating the settlement. The decisive point in time for determining
the time of separation is the date on which the change of employer pursuant to section 613 a BGB takes place or dependency
pursuant to section 17 AktG ends. There is no legal entitlement to such a settlement.

 

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		c)	Options whose Blocking Period has yet to expire on the date of separation will lapse and the Eligible
Person will be granted a settlement; section 14 (4) will apply analogously for the purpose of determining such settlement.
The decisive point in time for determining the settlement will be the date on which the change of employer pursuant to section
613 a BGB takes place or dependency pursuant to section 17 AktG ends. The settlement determined in this manner must be
paid to the Eligible Person within 12 weeks after the aforementioned point in time.

 

		d)	The provisions of this section 10 (6) will also apply if the Eligible Person makes use of
any rights to object to the transfer of the Employment Relationship in the absence of other objective grounds.

 

§ 11

Term and revocation

 

		(1)	These Option Terms will remain in effect until the term of the Options issued on its basis expires.
If the Eligible Person has not exercised the Options by this point in time, the Options will lapse without compensation.

 

		(2)	The Company may revoke the Options allocated to an Eligible Person with immediate effect if

 

		a)	insolvency proceedings are opened in respect of the assets of the Eligible Person or the opening
of such proceedings is refused for lack of assets;

 

		b)	a creditor of the Eligible Person levies execution on the Options;

 

		c)	the Beneficiary has breached material duties under the law, the Company’s articles of association,
their employment contract or these Option Terms.

 

		(3)	Upon receipt of the revocation notice all Options granted under these Option Terms and not yet
exercised will lapse without compensation. The Beneficiary cannot assert claims against the Company for compensation of any financial
disadvantages.

 

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§ 12

Taxes and other levies

 

		(1)	The Beneficiary is aware that the granting of Options and exercising of such Options can lead to
non-cash benefits that are taxable.

 

		(2)	The Company will pay the wage tax due thereon to the tax office, including church tax and the solidarity
surcharge, as well as any social security contributions due thereon in accordance with statutory requirements. The Beneficiary
is required to reimburse the Company for this (see section 6 (4)). The Company is also entitled to withhold corresponding
amounts from the Beneficiary’s salary for this purpose.

 

		(3)	The provisions above will apply analogously if the Eligible Person is an executive or employee
at a company affiliated with the Company.

 

§ 13

Option Right adjustments and anti-dilutive provisions

 

		(1)	If during the term of the Options and having granted a direct or an indirect subscription right
to its shareholders the Company increases its share capital by issuing new shares or debt instruments or profit participation rights
with conversion or option rights and the conversion or option price per share determined in this process is lower than the Exercise
Price of the Options, the Management Board and, in the event that members of the Management Board are affected, the Supervisory
Board are authorized to put the Beneficiary of the Options on an equal financial footing as far as is necessary to ensure that
the total value of the Options to which an Eligible Person is entitled remains unchanged before and after implementation of a capital
measure using recognized methods in financial mathematics. At the option of the Company this adjustment can be made by reducing
the Exercise Price or adjusting the number of Options or a combination of both. If no subscription rights trade takes place, in
the event of an adjustment by the Company the value of the subscription right will be calculated as follows with binding effect:

 

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SR = (Po - Pn) / (SRa + 1)

 

SR: subscription right

Po: market price of the old shares

Pn: issue price of the new shares

SRa: subscription ratio

 

The market price of the old
shares, “Po”, is determined as follows: arithmetic average (non-weighted) of the closing price of the Company’s
shares determined in Xetra trading on the Frankfurt Stock Exchange during the subscription period.

 

		(2)	In the event of a capital increase from company funds through the issuing of shares, the contingent
capital pursuant to section 218 AktG will be increased by the same ratio as the share capital. The Beneficiary’s right to
subscribe to new shares through exercising the subscription right will increase by the same ratio; the Exercise Price per share
will be reduced by the same ratio. In the event of a capital increase from company funds without the issue of new shares (section
207 (2) second sentence AktG), the subscription right under the Options and the Exercise Price will remain unchanged.

 

		(3)	In the event of a capital reduction, the Exercise Price and Option ratio will not be adjusted,
provided that the capital reduction does not change the total number of shares or the capital reduction is linked to a capital
repayment or an acquisition of treasury shares against payment. In the event of a capital reduction through the consolidation of
shares without a capital repayment and in the event of an increase in the number of shares without a change in capital (share split),
the number of shares that can be acquired for each Option at the Exercise Price will be reduced or increased in proportion to the
capital reduction or share split; the Exercise Price per share will be changed by the same ratio.

 

		(4)	If an adjustment is made in accordance with the paragraphs above, fractions of shares will not
be issued when the subscription right is exercised. There will be no cash settlement.

 

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		(5)	In the event that the Company merges with another company, changes its legal form or undertakes
comparable measures that impair the rights of the Beneficiary due to the loss of or changes to the Company’s shares, the
right under section 2 (1) of these Option Terms will be replaced by the right to acquire at the Exercise Price a number of
shares, shares in a business or other rights replacing shares in the Company to invest in the Company or its legal successor that
corresponds in value to the market value of a share in the Company at the time such a measure is carried out (full entry of its
execution in the commercial register).

 

		(6)	In the event of an integration, the conclusion of profit transfer or domination agreements, a squeeze-out
of minority shareholders or an asset transfer within the meaning of section 174 et seq. of the German Act Regulating Transformation
of Companies (UmwG), the Company will, as far as is legally and practicably possible, place the Eligible Person in the position
when exercising their Options in which they would have been had they already exercised their Option Rights at the time of the contract
coming into effect or such measure being implemented. If trading in the Company’s shares is suspended as a result of such
a measure and for this reason it is no longer possible to determine if performance targets have been met, the extent to which targets
have been met will be determined by means of an assessment by a public auditor/public audit firm commissioned by the Company at
its expense calculating the capitalized earnings value of the Company’s shares on 31 December of each year in each case.

 

		(7)	In the event of other measures having an effect comparable to that of an adjustment as described
in the cases above, the Company may adjust the Exercise Price in accordance with section 315 BGB.

 

		(8)	The Company will notify the Eligible Person without delay of any adjustment and the date from which
the adjustment will apply.

 

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§ 14

Settlement of Options

 

		(1)	In the event of a change of control, the Company may settle the Options granted to an Eligible
Person, including against the will of the Eligible Person (hereinafter “Settlement Requirement”). A settlement
must be paid to the Eligible Person (hereinafter “Settlement Amount”).

 

		(2)	A “Change of Control” will be deemed to occur if there is an assumption
of control within the meaning of section 35 WpÜG.

 

		(3)	The Beneficiary must be informed of the Settlement Requirement within a period of four months after
the Change of Control has occurred. The Company must pay the Settlement Amount under section 14 (4) to the Beneficiary (less any
taxes and levies) within eight weeks of the notice of the Settlement Requirement being given. The Settlement Amount will be determined
based on the date on which the Change of Control occurred.

 

		(4)	The Settlement Amount will correspond to the full value (hereinafter “Fair Value”)
of the Options granted to the Beneficiary. The Settlement Amount must be determined using recognized methods in financial mathematics
along with an appraisal of the financial position of the Company and the Option Terms; in particular, this appraisal must assess
the intrinsic value and time value of the Options. For the purpose of calculating the Settlement Amount, the Company may at its
option and expense have the value of the Options determined by a public auditor/public audit firm or recognized financial institution
using recognized methods in financial mathematics with binding effect on the Company and the Eligible Person.

 

		(5)	The provisions in sections 14 (1) to 14 (4) apply analogously in the cases specified in section
13 (5) unless mandatory legal provisions stipulate otherwise. The point at which such a measure came into effect or was implemented
is relevant for the purpose of calculating the periods under section 14 (3).

 

		(6)	The provisions in sections 14 (1) to 14 (4) also apply analogously in the cases specified
in section 13 (6). The point at which the contract came into effect or such a measure was implemented is relevant for the
purpose of calculating the periods under section 14 (3).

 

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§ 15

Limitations of liability

 

		(1)	The Company, its legal representatives and their vicarious agents shall not be liable for slight
negligence or for consequential damage or lost profit.

 

		(2)	The Company assumes no liability for the overall performance of the market or the performance of
the Company’s shares.

 

		(3)	The respective Eligible Person accepts and exercises Options solely at their own risk.

 

§ 16

Prohibition on insider trading

 

		(1)	Each Eligible Person is personally responsible for ensuring they do not sell shares in the Company
they have acquired through exercising Options in violation of prohibitions on insider trading. The establishment of Exercise Windows
under section 3 does not constitute a guarantee that selling shares in the Company within the Exercise Window is unproblematic
in individual cases.

 

		(2)	Each Eligible Person is required to find out about the respective legal situation as regards prohibitions
on insider trading before exercising Options or selling shares and to act accordingly. The Company does not issue any advice on
this matter and assumes no responsibility for the legality of actions in this regard.

 

    	 	Page 20 of 22	 

     

    

 

§ 17

No establishment of a company practice

 

The Company grants Option Rights as a voluntary
measure. Therefore, even if Option Rights are granted repeatedly this does not give rise to any entitlement to the renewed granting
of Option Rights or to similar or equivalent benefits.

 

§ 18

Priority of the Annual General Meeting resolution of 28 August 2015 over the Share Option Scheme 2015

 

A copy of the Annual General Meeting resolution
of 28 August 2015 is attached to these Option Terms as

 

Annex section 18.

 

The content of the Annual General Meeting
resolution on the Share Option Scheme 2015 forms part of these Option Terms. In the event of any inconsistencies between these
Option Terms and the content of the Annual General Meeting resolution, the content of the Annual General Meeting resolution will
take precedence over the provisions of these Option Terms.

 

§ 19

Applicable law

 

The form and content of the Options and
of these Option Terms as well as all rights and obligations of the Beneficiary or Company arising thereunder will be governed in
every respect by the law of the Federal Republic of Germany and – to the extent permitted by law – to the exclusion
of the provisions of private international law.

 

§ 20

Place of performance, place of jurisdiction

 

The place of performance and place of jurisdiction
for any and all legal disputes arising from or in connection with these Option Terms is the registered office of the Company.

 

    	 	Page 21 of 22	 

     

    

 

§ 21

Other provisions

 

		(1)	Trading days for the purposes of this contract are all trading
days at the Frankfurt Stock Exchange.

 

		(2)	Any amendments or additions to the Option Agreement must be made in writing unless notarization
is required. This also applies to any amendment of this requirement of written form.

 

		(3)	The Company is entitled to modify or cancel the Option Terms at any time in accordance with mandatory
legal requirements without giving rise to any obligation to compensate the Eligible Person.

 

		(4)	If one of the provisions of these Option Terms should be or become invalid or impracticable, this
shall not affect the validity or practicability of the remaining provisions. Any gap in the provisions arising as a result of an
invalid or impracticable provision and any other gaps in the provisions shall be filled analogously by way of supplementary interpretation
of the contract, taking into account the interests of the parties. This shall also apply where a measure of performance or time
(time periods, dates) is concerned. In such cases, a legally permissible measure of performance or time (time periods, dates) coming
as close as possible to the intention of the parties shall replace that initially agreed.

 

		(5)	Headings are used for guidance only and are not to be used in the interpretation of the contract.

 

    	 	Page 22 of 22Exhibit 10.1

  

	Master
        Agreement

         

        relating
        to

         

        Contract
        Manufacturing, Supply and Confidentiality

	 	 
	between	 
	 	 
	 	Manufacturer
	
        FRIKE
        GROUP, Auenstrasse 11, 8617 Mönchaltorf 

        Glaropharm
        AG in Sändli, CH- 8756 Mitlödi
	
	 	 
	and	 
	 	 
	
        Biofrontera
        Pharma GmbH,

        Hemmelrather
        Weg 201, D-51377 Leverkusen
	
	 	Customer
	 	 

  

		1.	Preamble and
                                         purpose

 

		1.1.	FRIKE and its affiliated operations hold regulatory approvals
to manufacture pharmaceutical, cosmetic and chemical-technical contract products, and are subject to supervision by the relevant
authorities.

 

		1.2.	The Customer is the holder of the ownership rights and
utilisation rights to preparations, formulations, requisite manufacturing methods, and inspection methods for the manufacturing
of all contract products, including the rights to such contract products' brands. It distributes the contract products. The Customer
is also the authorisation holder and authorisation holders' representative in relation to FRIKE.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

     

     

    

  

	 	Agreement on contract manufacturing, supply and confidentiality

 

		1.3.	This Master Agreement including its annexes shall regulate
the responsibilities, obligations and conditions between FRIKE and the Customer for the issuing of orders to manufacture contract
products on a contract manufacturing basis by FRIKE and their delivery to the Customer or third Parties nominated by the Customer.
All quality-relevant matters for pharmaceutical contract products, including compliance with the guidelines of Good Manufacturing
Practice (GMP) and Good Distribution Practice (GDP), shall be regulated in a separate agreement (QAA / Quality Assurance Agreement).

 

		2.	Definitions

 

The terms utilised in this Master Agreement shall have
the following meaning:

 

		2.1.	"Contract products" shall refer to the products described in the separate supplements pursuant to Annex 1.

 

		2.2.	"Pharmaceutical contract products" shall refer to such as listed by trademark, generic name, galenic formulation,
dosing and packaging size in Annex 1 to this Master Agreement.

 

		2.3.	"Cosmetic products" shall include preparations and formulations of cosmetic nature.

 

		2.4.	"Preparation and formulation" shall comprise the quantitative and qualitative composition of the ingredients
contained in the individual contract products.

 

		2.5.	The "manufacturing – manufacture" term applied in this Agreement shall refer to the manufacturing process and
all working steps (such as purchasing, entry inspection and approval, bulk manufacturing including in-process controls, filling,
packing, inspecting bulk wares and finished products, warehousing and delivery), where FRIKE produces the contract products on
the basis of technical data provided by the Customer, and where the Customer provides to FRIKE the ingredients (APIs), raw materials
and packaging materials (Annex 4), or FRIKE purchases the ingredients (APIs), raw materials and packaging materials from suppliers
approved by the Customer in accordance with the QAA requirements.

 

		2.6.	"Technical specifications" shall refer to those documents, information, data, and manufacturer instructions
issued by the Customer to FRIKE for the manufacturing of the contract products. These should generally include information about
production methods, instructions for in-process controls, inspection regulations, quality controls and data relating to security,
environmental protection, occupational hygiene, and warehousing and transportation regulations.

 

		2.7.	The term "in writing" shall include letter, fax and email.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	Agreement on contract manufacturing, supply and confidentiality

  

		3.	Responsibilities

 

		3.1.	FRIKE and the Customer shall confirm that they possess the requisite official authorisations, whose scope shall fully cover
the respective activity.

 

In terms of pharmaceuticals, FRIKE shall fulfil the
national provisions of the German Pharmaceuticals Act (HMG) as well as related directives, especially the German Pharmaceutical
Approval Act (AMBV), and in relation to cosmetics, the German Food Manufacturing Act and its specific directives.

 

FRIKE shall also satisfy all requisite provisions for
the manufacturing of pharmaceuticals for the EU and the USA, as described in the QAA.

 

Without being asked, the Contractual Partners shall
inform each other immediately about modifications to approval statuses.

 

		3.2.	The Customer shall be obligated to provide FRIKE – wherever available – with all requisite documents such as preparations
and formulations, technical specifications, the manufacturing process and quality control methods.

 

		3.3.	FRIKE shall obligate itself to produce the contract products in accordance with the requirements agreed with the Customer,
especially the requirements of the QAA, and in compliance with the respective valid Good Manufacturing Practice (GMP / cGMP).

 

		3.4.	Otherwise, reference is made to the binding regulation of responsibilities in the QAA.

 

		4.	Subject of the agreement

 

		4.1.	This agreement shall regulate the overall conditions for the case-by-case issuing of orders to FRIKE for the manufacturing,
assembly, packaging and delivery of the contract products. The underlying specifications (product, product volume etc) for this
purpose shall be regulated in the individual agreement. The provisions of this Master Agreement shall be valid on a supplementary
basis.

 

		4.2.	The provisions of this Agreement shall have precedence in any instance before any general terms and conditions of business
of the contractual Partners. General terms and conditions of business shall apply on a supplementary basis only after the express
consent of the contractual partner.

 

		4.3.	FRIKE shall manufacture the contract products exclusively for the Customer or companies it licenses.

 

		4.4.	The manufacturing of the contract product shall occur at the operating location of FRIKE as agreed with the Customer. Following
previous coordination, the Customer shall have the right to conduct audits.

 

		4.5.	FRIKE shall obligate itself to supply to the Customer the entire demanded amount of contract products during the contract term.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	Agreement on contract manufacturing, supply and confidentiality

  

		5.	Ownership of and transfer of preparations and formulations
                                         as well as further development and manufacturing know-how

 

		5.1.	The preparations and formulations attached to the contract products (Annex 1), including the manufacturing and inspection know-how
required to manufacture the contract products, shall be the Customer's property. In particular, this shall include the know-how
conveyed by the Customer to FRIKE before the conclusion of the contract for this purpose.

 

New developments, further developments and/or improvements
to contract products, or of the manufacturing process, as well as analysis methods, including resultant property rights that the
Customer orders from FRIKE and pays for, shall be the Customer's property.

 

		5.2.	Any development costs shall be budgeted in advance and invoiced separately. These shall be based on expense actually occurred
by FRIKE (briefing, raw materials costs, development expense, documentation, scale-up).

 

		5.3.	Unless it has already occurred, the entire know-how shall be transferred to FRIKE after the signing of this Agreement or respective
individual order by the Customer's specialist personnel. The Customer shall provide free training and support to FRIKE in setting
up the manufacturing of the contract products.

 

		5.4.	The commencement of series production shall occur according to a separate arrangement.

 

		6.	Manufacturing of the contract products, controlling
                                         and modifications

 

		6.1.	The manufacturing of the pharmaceutical shall be regulated by the QAA. FRIKE must conduct the manufacturing and inspection
of the remaining contract products (pursuant to Annex 1) according to the preparations and technical specifications prescribed
by the Customer, and according to the applicable statutory provisions and relevant GMP regulations.

 

		6.2.	The Customer shall be entitled to conduct audits at the Contractor's locations following prior announcement (at least 10 working
days in advance) and during normal business hours. Further audits can be arranged by mutual agreement. All of the Customer's audit
teams shall be accompanied and supported by FRIKE staff during the audits.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	Agreement on contract manufacturing, supply and confidentiality

  

		6.3.	FRIKE shall inform the Customer immediately about regulatory inspections that may affect the contract product, and shall prepare
for the Customer a summary and special findings in connection with the effects or potential effects on the contract product.

 

		6.4.	Modifications to the preparation and/or technical specification affecting the contract of products shall be communicated mutually.
Any resultant costs shall be subject to written approval by the Customer.

 

		6.5.	FRIKE shall inform the Customer immediately if problems occur in the manufacturing of the contract products that could entail,
in particular, qualitative, volume-related or deadline-related consequences.

 

		7.	Procurement of ingredients (APIs), raw materials and packaging
                                         materials

 

		7.1.	The procurement of ingredients (APIs), raw materials and packaging materials for the manufacturing of pharmaceuticals shall
be regulated in the QAA. The following shall apply for all other contract products: The Customer shall provide FRIKE with raw materials
and packaging materials for the manufacturing of the contract products (Annex 4), or FRIKE shall procure after consultation with
the Customer – in its own name and for its own account – the requisite raw materials and packaging materials for the
manufacturing of the contract product on the basis of the suppliers/manufacturers approved by the Customer and according to the
specifications determined by the Customer.

 

		7.2.	A change of supplier/manufacturer or modifications to the quality of the ingredients (APIs), raw materials or packaging materials
shall require statutory approval in the case of pharmaceuticals, and in the case of cosmetics conformity with relevant legislation,
including stating the reasons for the written approval by the Customer. External costs arising from such procedures (e.g. analysis
methods) shall be invoiced after consultation with, and approval by, the Customer.

 

		7.3.	If the Customer plans a modification to the packaging or if a type is withdrawn from the product range or is replaced by another,
the Customer and FRIKE shall process the orders that have already occurred as part of a targeted expiry management so that as few
as possible remaining stocks of ingredients (APIs), raw materials and packaging materials remain for acceptance by the Customer.

 

		7.4.	The volumes of ordering and warehousing volumes of raw materials and packaging materials to be procured by FRIKE shall secure
the requirements as defined on a binding basis in the production forecast. -> Section 10.1

 

		8.	Quality assurance

 

The Contractual Parties shall agree a separate quality
agreement pursuant to Annex 2 (QAA) for the manufacturing of pharmaceuticals. The quality standards agreed in this Agreement shall
apply for the other contract products.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	Agreement on contract manufacturing, supply and confidentiality

  

		9.	Warehousing

 

		9.1.	FRIKE shall warehouse the finished contract products, packaging materials, ingredients (APIs) and raw materials pursuant to
the instructions of the GMP guidelines (EU and USA), and according to the Customer's instructions.

 

		9.2.	FRIKE shall insure merchandise and contract products provided by the Customer (until the transfer of risk) against losses.

 

		10.	Demand planning, order processing

 

		10.1.	The Customer shall convey to FRIKE at the latest [***] working days before the start of a quarter a rolling, non-binding
preview of its requirements for the various contract products over the next [***] quarters, of which the [***] quarters
within a range of [***] shall serve as a binding procurement basis for raw materials and packaging materials as well as
production planning.

 

		10.2.	As a rule, binding manufacturing orders shall be placed as part of written individual orders.

 

		10.3.	Individual orders shall include the manufacturing order as well as delivery volume, delivery date and place of delivery, among
other items.FRIKE shall confirm the orders. The individual orders by the Customer shall be placed at least [***] weeks
before the delivery date.

 

		10.4.	Minimum order volumes per contract product are regulated in Annex 3.

 

		11.	Packaging and delivery

 

		11.1.	The packaging and labelling of the contract products shall occur according to the target regions' statutory directives and
the Customer's specifications.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	AG Visum

     

    

  

	 	Agreement on contract manufacturing, supply and confidentiality

 

		11.2.	Deliveries shall be made FCA to the FRIKE operating location, subject to other arrangements. FRIKE shall prepare the requisite
freight papers and shall organise the transportation according to the Customer's instructions.

 

		11.3.	The contract products shall be delivered either to the sales centres or warehouses designated by the Customer, or directly
to wholesalers or retailers according to the Customer's order.

 

		11.4.	The order volumes may not be delivered [***]% more or [***]% less than as ordered. In the case of under-delivery
by more than [***]% of the order volume, the Customer can demand the corresponding subsequent delivery without incurring
additional cost. FRIKE shall not be entitled to take into account over-deliveries of more than [***]% of the order volume
when invoicing.

 

		12.	Delivery deadlines, delivery delays

 

		12.1.	Unless agreed differently in individual cases, the delivery period shall amount to [***] after the respective order
and packaging materials approval by the Customer.

 

		12.2.	If the agreed delivery deadline is exceeded, FRIKE shall be deemed to be in delay in performance of the order, including without
a warning being issued by the Customer.

 

		13.	Prices

 

		13.1.	The prices and terms for the contract products are set out in Annex 3.

 

		13.2.	FRIKE shall endeavour as part of a continuous improvement process to reduce manufacturing costs and the prices of the contract
products' materials, and to examine measures suggested by the Customer to enhance efficiency and cut costs.

 

		13.3.	Based on cost-cutting and the Customer's proposed modifications, FRIKE shall pass on such cost reductions in full. A total
of [***]% of cost reductions based on a modification proposed by FRIKE shall be passed on to the Customer.

 

		14.	Invoicing, payment terms

 

		14.1.	For each order/contract, FRIKE shall submit an invoice with the order number and article number to the Customer.

 

		14.2.	The Customer shall obligate itself to transfer the invoice amount at the latest [***] days net, after receiving the
invoice and delivery.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	Agreement on contract manufacturing, supply and confidentiality

 

		15.	Warranty for the contract products

 

		15.1.	FRIKE shall warranty that the contract products shall not exhibit any defects diminishing their value or suitability for their
intended utilisation in terms of specification, durability and characterisation.

 

		15.2.	The Contractual Partners shall inform each other immediately if they become aware of defective functions or quality defects
or other risks relating to third-party products comparable with the contract products, which can lead, or have led, to fatalities
or serious health damage for consumers or users, and which are recalled from the market for such reasons.

 

		15.3.	Legal warranty claims shall otherwise be valid.

 

		16.	Notification of defects

 

		16.1.	Immediately after the goods have been received at the agreed delivery location, the Customer shall investigate them for evident
defects, quality complaints (e.g. internal differences to the manufacturing regulation, values not in conformity with specifications
when analysing the end-product), identity, deficient volumes as well as transportation damage.

 

		16.2.	To avoid a plea of late notification of defects, the Customer shall notify FRIKE at the latest within [***] working
days after discovering defects.

 

		16.3.	If defects arise during the warranty period, FRIKE shall be obligated, following mutual coordination, to immediately remedy,
or have remedied, the defects at its cost, or to provide the Customer with defect-free replacements free of charge. All additional
costs incurred as the result of subsequent improvement or replacement delivery, in other words, costs for the provision, transportation
and taxation of the defective goods, or replacement delivery, shall be borne by FRIKE.

 

		16.4.	If FRIKE continues to fail to remedy defects following two written warnings, the Customer shall be entitled to remedy the defect
itself at the cost and risk of FRIKE, or have them remedied by a third party.

 

		17.	Liability

 

		17.1.	FRIKE shall be liable for all personal injuries and property damage which are caused by defects and faults of the contract
product that it produces and for which it is responsible, up to a maximum of CHF [***] per loss.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	Agreement on contract manufacturing, supply and confidentiality

  

		18.	Confidentiality obligation and restitution

 

		18.1.	FRIKE shall utilise all information relating to preparations and formulations as well as concerning technical specifications
and all know-how of which it becomes aware in connection with this Agreement and collaboration with the Customer only for the purposes
of manufacturing the contract products.

 

		18.2.	FRIKE shall also impose this confidentiality obligation on its employees and on the subcontractors and suppliers it mandates.

 

		18.3.	Information that can be proved to have been known to FRIKE as of the date when this collaboration started, information that
becomes generally known without infringing this Agreement, or information that is made accessible to FRIKE by third parties entitled
to do so, shall be exempted from this obligation.

 

		18.4.	When this Agreement ends, all of the Customer's related documents shall be returned, to the extent that they are not still
required to process open orders or to meet statutory obligations. The manufacturing and inspection documentation prepared as part
of quality assurance shall be excluded from this obligation to return.

 

		18.5.	This confidentiality and non-utilisation obligation shall be valid for the contractual duration as well as for a 10-year period
after the agreement ends.

 

		18.6.	Documents forming the object of this Agreement must be disclosed to authorities on demand.

 

		19.	Force majeure

 

		19.1.	Instances of force majeure shall wholly or partly release both Contractual Partners from the obligation to fulfil this Agreement
until the discontinuation of the force majeure. The contractual partner at which the force measure occurs must immediately inform
the other contractual partner of the event.

 

		19.2.	The unavailability of sufficient supplies of ingredients (APIs), raw materials, packaging materials or the procurement of means
of transportation as well as occurrence of strikes and lockouts, for which none of the Contractual Parties is responsible, shall
be considered equivalent to force majeure.

 

		19.3.	Once the force measure has ended, subsequent delivery shall immediately be realised of supplies that have not occurred during
this period. The aforementioned shall be subject to other arrangements between the two Contractual Parties.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	Agreement on contract manufacturing, supply and confidentiality

  

		20.	Contractual duration and termination

 

		20.1.	This agreement shall come into force when it has been signed by the Contractual Parties. It can be terminated on a regular
basis with a 12-month notice period, for the first time at the earliest with effect as of the end of the fifth year of the contract
term.

 

		20.2.	The quality assurance agreement (Annex 2) shall remain valid as long as FRIKE renders services, or up to one year after the
expiry date of the last batch of the contract product.

 

		20.3.	Early termination, without notice, shall be reserved for good cause, namely:

 

a)        if an
insolvency petition has been brought against the other party, a debt restructuring moratorium has been applied for, or if its insolvency
is established without doubt in another manner;

 

b)       if a party
grossly infringes the Agreement, and the condition in conformity with the Agreement is not restored within at most 30 days after
a written warning has been issued;

 

c)       if the
Customer discontinues distribution of the contract products; if, however, the Customer outsources distribution of the contract
products to a company, be it a third party company or one of its own companies, and discontinues distribution for this reason,
the rights and obligations of this Agreement shall transfer to this company.

 

d)       if the
agreement can no longer be fulfilled during a period of more than eight weeks due to force majeure.

 

		21.	Legal consequences of ending the Agreement

 

		21.1.	The ending of this Master Agreement shall leave unaffected the Parties' obligations to fulfil orders that are still open as
of the respective date.

 

		21.2.	FRIKE shall remain obligated to execute the Customer's orders on the last agreed terms during a maximum period of 12 months
after the agreement is ended, if this is required to ensure supplies of the contract products until another contractor assumes
production or production is assumed by the Customer itself.

 

		21.3.	Within a month after the agreement is ended (irrespective
for which reason) or after the delivery of the last order, FRIKE shall return to the Customer all documents it has received, including
updates to them. This should apply particularly for preparations and formulations, technical specifications, working and inspection
instructions, batch records filled out as examples, procurement sources for ingredients (APIs), raw materials and packaging materials.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	Agreement on contract manufacturing, supply and confidentiality

 

		21.4.	After one of the Parties terminates the Agreement, the Customer shall also be entitled to designate one or two individuals
to acquire at FRIKE during a period of at least three months all know-how required for the manufacturing and assembly of the contract
products in return for payment (cost rate: see Section 21.5). FRIKE shall obligate itself to disclose to these individuals all
information, without exception, connected with the manufacturing of the contract products.

 

		21.5.	In the period between the termination and three months after the contract end, FRIKE shall be available on an advisory basis
to the Customer on request for the establishment of any new production of the contract products at the Customer or a third party.
The compensation per hour per individual shall amount to CHF [***] plus value added tax and inflation in accordance with the Swiss
wage index (basis = date when this Master Agreement is signed), plus travel expenses.

 

		21.6.	The Customer shall obligate itself to purchase at the end of the Agreement or given the termination of individual contract
products, remaining stocks of approved planning quantities (plus any surplus volumes up to a maximum of 20%) of ingredients (APIs),
raw materials and packaging materials ordered by FRIKE at cost prices including additional logistics costs plus 10% handling fees.
This shall also apply in the case of relaunches or modifications to preparations required by the Customer during the contract term.

 

		22.	Final provisions

 

		22.1.	This Agreement shall contain the entire contractual will of the Parties in relation to the manufacturing of the contract products
and shall replace, subject to a written agreement worded otherwise, all previous related agreements and statements by the Parties.
Ancillary agreements shall not exist.

 

		22.2.	In the case of mergers or similar transactions, the transfer of this Agreement, or the transfer of resultant rights or obligations
to third Parties, shall require the Contractual Parties' written consent.

 

		22.3.	Amendments or supplements to this Agreement as well as amendments to the annexes shall require written form to be legally valid.
The text of the agreement in the German version shall prevail.

 

		22.4.	Terminations or other declarations by the Parties relating to this Agreement shall require written form to be valid.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	Agreement on contract manufacturing, supply and confidentiality

  

		23.	Place of performance, applicable law and place of jurisdiction

 

		23.1.	The corresponding FRIKE operating location shall be the place of performance.

 

		23.2.	This agreement and all related legal relationships shall be exclusively subject to substantive Swiss law under exclusion of
Conflict-of-Law Rules and the United Nations Convention on Contracts for the International Sale of Goods (CISG).

 

		23.3.	The Parties shall endeavour to settle amicably any differences of opinion arising from this Agreement, or in connection with
it.

 

		23.4.	The exclusive place of jurisdiction shall be Mönchaltorf (Uster District / Canton of Zürich, Switzerland). FRIKE
shall also be entitled, however, to submit a claim to the Customer at the Customer's general place of jurisdiction.

 

		24.	Severability clause and waiver clause

 

		24.1.	Should one or several of the provisions of this Agreement, or of a document issued in connection with this Agreement, be found
by a relevant court or relevant authority according to an applicable law, including competition law, to be in any aspect ineffective,
illegal or unenforceable, the efficacy, legality and enforceability of the remaining provisions of this Agreement document shall
under no circumstances be thereby affected or diminished. In this instance, the Contractual Parties shall obligate themselves to
undertake all economically feasible efforts to satisfy the objective of the ineffective provision by a new and legally valid provision
that effects the same (or a mainly similar) economic benefit or the same (or mainly similar) economic burden. Corresponding shall
apply for the interpretation of questions or general contractual loopholes.

 

		24.2.	If one party at any time refrains from the implementation of provisions arising from this Agreement, whether wholly or in part,
this shall have no effect on this party's right to demand implementation subsequently. Any waiver of the enforcement of an infringement
against this Agreement must occur in writing and be signed by the waiving party.

 

		25.	Annexes

 

The following annexes shall form part of this Agreement.
In the case of contradictions between the Master Agreement and its annexes, the text of the respective annex shall prevail.

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	Agreement on contract manufacturing, supply and confidentiality

  

Annex 1 Product list and specifications

Annex 2 Quality agreement

Annex 3 Prices, bases, payment target and PQR costs

Annex 4
Materials to be provided free of charge by Biofrontera

 

	(Place, date)	(Place, date)

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	Visum FRIKE
	 	AG Visum

     

    

  

	 	Agreement on contract manufacturing, supply and confidentiality

 

Annex
1

 

Master Agreement

 

BIOFRONTERA

 

 and

 

 GLAROPHARM AG

 

Product
list and specifications

 

Product
description: pharmaceutical products

 

Ameluz Gel 2 gr DEU (Hapila)

 

Ameluz Gel 2 gr NLD ([***])

 

Ameluz Gel 2 gr BEL (Hapila)

 

Ameluz Gel 2 gr ESP Reimbursement
(Hapila) Ameluz

 

Gel 2 gr UK ([***])

 

Ameluz Gel 2 gr ESP Non Reimbursement
(Hapila)

 

Ameluz Gel 2 gr DEU Muster (Hapila)

 

Ameluz Gel 2 gr ESP Muster (Hapila)

 

Ameluz Gel 2 gr NLD Muster ([***])

 

Ameluz Gel 2 gr UK Muster ([***])

 

Ameluz Gel 2 gr ISR (Hapila)

 

Ameluz Gel 2 gr BEL Muster (Hapila)

 

Ameluz Gel 2 gr DEU ([***])

 

Ameluz Gel 2 gr ESP Reimbursement
([***])

 

Ameluz Gel 2 gr DEU Muster ([***])

 

Ameluz Gel 2 gr USA commercial
([***])

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

    	 	 	 
	Visum FRIKE
	 	AG Visum

     

    

  

	 	Agreement on contract manufacturing, supply and confidentiality

  

Ameluz Gel 2 gr CHE (Hapila)

 

Ameluz Gel 2 gr UK Muster (Hapila)

 

Ameluz Gel 2 gr USA drug sample
([***])

 

Ameluz Gel 2 gr UK (Hapila)

 

Ameluz Gel 2 gr DNK-NOR-SWE ([***])

 

Placebo Gel

 

Product description: cosmetic products

 

Belixos Creme 5 ml DEU Belixos
Creme 30 ml DEU Belixos Creme 30 ml Export

 

The specifications are listed in the registered
dossiers.

 

	 	For the FRIKE Group (Glaropharm AG):   
	 	 
	 	(legally valid signature)

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

    	 	2 | 2	 
	Visum FRIKE
	 	AG Visum

     

    

 

	 	Agreement on contract manufacturing, supply and confidentiality

 

 Annex
2

 

Master Agreement

 

BIOFRONTERA

 

and

 

GLAROPHARM AG

 

Quality
agreement

 

New version valid from October 2017

 

	(Place, date)	*

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

    	 		 
	Visum FRIKE
	 	AG Visum

     

    

  

	 	Agreement on contract manufacturing, supply and confidentiality

 

Annex
3

 

Master Agreement

   

BIOFRONTERA

 

and

 

GLAROPHARM AG

 

Prices,
bases, payment target and PQR costs

 

		[***] batch per 

tube in CHF	[***] batch per 

tube in CHF
	Article description	 	 
	 	 	 
	Ameluz Gel 2 gr DEU (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr NLD ([***])	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr BEL (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr ESP Reimbursement (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr UK ([***])	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr ESP Non Reimbursement (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr DEU Muster (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr ESP Muster (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr NLD Muster ([***])	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr UK Muster ([***])	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr ISR (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr BEL Muster (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr DEU ([***])	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr ESP Reimbursement ([***])	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr DEU Muster ([***])	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr USA commercial ([***])	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr CHE (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr UK Muster (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr USA drug sample ([***])	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr UK (Hapila)	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr DNK-NOR-SWE ([***])	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr mit Hapila API ohne FS und Gl	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr mit Parabolic API ohne FS und Gl	[***]	[***]
	 	 	 
	Ameluz Gel 2 gr Placebo ohne API ohne FS und Gl	[***]	[***]

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

    	 		 
	Visum FRIKE
	 	AG Visum

     

    

  

	 	Agreement on contract manufacturing, supply and confidentiality

 

		2.	Bases:

 

In
the case of small batches of [***], at least [***] batches
shall be produced in a campaign.

Batch
splits shall be charged at CHF [***]
per split due to additional expense.

Stability
studies, validation work and development contracts shall be offered
and invoiced separately.

 

If
the following occurs during the course of the year:

 

		•	Biofrontera approves a new laboratory for analysis work,

		•	Biofrontera delivers larger Hapila API batches

		•	forthcoming modifications to prices of raw materials and
packaging materials of > +/- 5 %

 

the
new costs shall be taken into account in price structuring.

 

		3.	Bonus regulation
                                         for sales goods and market samples (forecast: [***] units for 2018)

 

If
more than [***] tubes are sold per calendar year, Glaropharm shall pay a

 

		•	a) Bonus from [***] units of:                  CHF [***]/unit

(->max. CHF [***]
if [***] units are reached)

 

		•	b) Bonus from [***] units of:                  CHF [***]/unit

(example: given [***]
units -> [***] x [***] = CHF [***] + CHF [***] from a) = total CHF [***])

 

Payment
shall be made in [***] of the new year

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

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	 	AG Visum

     

    

  

	 	Agreement on contract manufacturing, supply and confidentiality

  

		4.	Payment target:

 

[***] days net,
from invoicing date

 

		5.	Delivery:

 

FCA Mitlödi (Incoterms
2015)

 

The contract products
must be transported pursuant to the currently valid GDP guidelines on a temperature-controlled basis and in vehicles qualified
for such purpose. The warehousing and transportation temperature must lie between 2° and 8°C.

 

		6.	PQR costs:

 

Batch
1-5:CHF [***]/PQR

 

Batch
6-10:+ CHF [***] per batch

 

	 	 
	(Place, date)	(Place, date) 
	 	 
	For the Customer:	For the FRIKE Group (Glaropharm AG) :
	 	 
	(legally valid signature)	(legally valid signature)

  

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

    	 	3 | 3	 
	Visum FRIKE
	 	AG Visum

     

    

   

	 	Agreement on contract manufacturing, supply and confidentiality

 

Annex
4

 

Master Agreement

 

BIOFRONTERA

 

and

 

GLAROPHARM AG

 

Materials
provided free of charge by Biofrontera

  

	
        

        Material
	 	Manufacturer
	Aminolevulinic acid HCl	 	[***]
	Aminolevulinic acid HCl	 	Hapila
	Phospholipon 90 G	 	Phospholipid GmbH Deutschland

  

	 	(Place, date)

 

	(Place, date)
	 
	For the FRIKE Group (Glaropharm):
	(legally valid signature)

 

Confidential treatment has been requested with respect to
the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately
with the Securities and Exchange Commission.

 

    	 		 
	Visum FRIKE
	 	AG Visum

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