Document:

Exhibit 10.5

 

THIS DEBENTURE AND THE CONVERSION
SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS DEBENTURE AND
THE CONVERSION SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO THIS DEBENTURE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED
BY HOLDER), IN A GENERALLY ACCEPTABLE FORMTHAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

CONVERTIBLE DEBENTURE

FOR VALUE RECEIVED,
Thinspace Technology, Inc., a Delaware corporation (the “Borrower”), promises to pay to Blue Citi PR, a __________________________________________(the
“Holder”) or its registered assigns or successors in interest, the principal sum of up to Five Hundred Thirty
Five Thousand Dollars ($535,000), together with all accrued interest thereon, on April 10, 2017 (the “Maturity Date”),
if not sooner paid.

The Consideration
is: (i) Two Hundred Thousand Dollars ($200,000) payable by wire to the Borrower on the Effective Date; (ii) Two Hundred Thousand
Dollars ($200,000) payable by wire to the Borrower in the Holder’s discretion at any time within sixty (60) days of the Effective
Date, provided that, if the Holder does not make such payment prior to the date this is 60 days from the Effective Date, Holder
will be required to make such payment on the date that is 60 days from the Effective Date, subject to the condition that the average
Trading Price for the five trading days prior to the date that is 60 days from the Effective Date for the Borrower’s Common
Stock is equal to or greater than fifty percent (50%) of the five (5) day average Trading Price prior to the Effective Date; and
(iii) One Hundred Thousand Dollars at the sole discretion of the Holder within 365 days of the Effective Date, provided that, if
the Holder does not make the second $200,000 payment under this Debenture within 60 days of the Effective Date, Holder will not
have the right to make such $100,000 payment. Each such payment of Consideration reflect a 7% original issue discount (“OID”)
added to the principal amount at time of payment to Borrower (up to $35,000).

The following terms and conditions shall
apply to this Convertible Debenture (the “Debenture”):

ARTICLE
I 

INTEREST & AMORTIZATION

1.1Interest
Rate. Subject to Sections 4.1 and 5.7 hereof, interest payable on this Debenture shall accrue at a rate per annum equal to
eight percent (8%) and shall be computed on the basis of a 365-day year.

1.2             
Payments. Payment of the aggregate principal amount including OID outstanding under this Debenture (the “Principal
Amount”), together with all accrued interest thereon shall be made on the Maturity Date.

1.3Prepayment
Option. “The Borrower may prepay in cash all or any portion of the Principal Amount of this Debenture and accrued interest
thereon, with a penalty, as set forth below (each a “Prepayment”), upon written notice to the Holder. The amount
of such prepayment penalty shall be determined by multiplying that portion of the Principal Amount and accrued interest to be converted,
if any, by the then applicable prepayment percentage (the “Prepayment Percentage”). The Prepayment Percentage
shall be as follows: (i) 120%, if there is a Prepayment at any time within 90 days of the Effective Date; (ii) 125% if there is
a Prepayment between 91 and 179 days of the Effective Date; and (iii) 130%, if there is a Prepayment at any time 180 days after
the Effective Date.

 

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ARTICLE
II 

CONVERSION REPAYMENT

2.1.               
Optional Conversion. Subject to the terms of this Article II, the Holder shall have the right, but not the obligation,
at any time until the Maturity Date, or thereafter during an Event of Default, to convert all or any portion of the outstanding
Principal Amount, accrued interest and fees due and payable thereon into fully paid and nonassessable shares of Common Stock of
the Borrower (the “Common Stock”) at the Conversion Price (as defined below). The shares of Common Stock to
be issued upon such conversion are herein referred to as the “Conversion Shares.”

2.2.               
Calculation of Conversion Price. The conversion price (the “Conversion Price”) shall be subject
to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s
securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary
distributions and similar events. Subject to Section 4.6 hereof, the Conversion Price shall mean the 65% (representing a discount
rate of 35%) multiplied by the Market Price (as defined herein). “Market Price” means the average of the three lowest
Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the latest complete
Trading Day prior to the Conversion Date. “Trading Price” means, for any security as of any date, the closing price
on the OTCQB, or applicable trading market as reported by a reliable reporting service (“Reporting Service”) designated
by the Holder (i.e., Bloomberg)

2.3.               
Conversion Limitation. Notwithstanding anything contained herein to the contrary, the number of Conversion Shares
that may be acquired by the Holder upon conversion of this Debenture (or otherwise in respect hereof) shall be limited to the extent
necessary to ensure that, following such conversion (or other issuance), the total number of shares of Common Stock then beneficially
owned by such Holder and its affiliates and any other persons whose beneficial ownership of Common Stock would be aggregated with
the Holder's for purposes of Section 13(d) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”),
does not exceed 4.99% of the total number of issued and outstanding shares of Common Stock (including for such purpose the shares
of Common Stock issuable upon such conversion). For such purposes, beneficial ownership shall be determined in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. 

2.4.               
Mechanics of Holder’s Conversion. Subject to Section 2.3 hereof, this Debenture will be converted by the Holder
in part from time to time after the Issue Date, by submitting to the Borrower a Notice of Conversion (whether by facsimile, as
a Portable Document (PDF) file sent by electronic mail or other reasonable means of communication dispatched on the Conversion
Date prior to 6:00 p.m., New York, New York time). On each Conversion Date (as hereinafter defined) and in accordance with its
Notice of Conversion, the Holder shall make the appropriate reduction to the Principal Amount, accrued interest and fees as entered
in its records and shall provide written notice thereof to the Borrower on the Conversion Date. Each date on which a Notice of
Conversion is delivered or telecopied to Borrower in accordance with the provisions hereof shall be deemed a Conversion Date (the
“Conversion Date”). A form of Notice of Conversion to be employed by the Holder is annexed hereto as Exhibit
A. Pursuant to the terms of the Notice of Conversion, Borrower will issue instructions to the transfer agent within three
(3) business days of the Conversion Date accompanied by an opinion of counsel to Borrower of the Notice of Conversion and shall
cause the transfer agent to transmit the certificates representing the Conversion Shares to the Holder by physical delivery or
crediting the account of the Holder’s designated broker with the Depository Trust Corporation (“DTC”)
through its Deposit Withdrawal Agent Commission (“DWAC”) system within five (5) business days after receipt
by Borrower of the Notice of Conversion (the “Delivery Date”). In the case of the exercise of the conversion
rights set forth herein, the conversion privilege shall be deemed to have been exercised, and the Conversion Shares issuable upon
such conversion shall be deemed to have been issued, upon the date of receipt by Borrower of the Notice of Conversion. The Holder
shall be treated for all purposes as the record holder of such Common Stock, unless the Holder provides Borrower written instructions
to the contrary. 

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2.5Conversion
Mechanics. The number of shares of Common Stock to be issued upon each conversion of this Debenture shall be determined by
dividing that portion of the Principal Amount and interest and fees to be converted, if any, by the then applicable Conversion
Price.

2.6Issuance
of New Debenture. Upon any partial conversion of this Debenture, a new Debenture containing the same date and provisions of
this Debenture shall, at the request of the Holder, be issued by the Borrower to the Holder for the principal balance of this Debenture
and interest which shall not have been converted or paid. Subject to the provisions of Article III, the Borrower will pay no costs,
fees or any other consideration to the Holder for the production and issuance of a new Debenture.

 

2.7Fractional Shares.
No fractional shares shall be issued upon the conversion of this Debenture. As to any fraction of a share which Holder would otherwise
be entitled to upon such conversion, the Borrower shall round up to the next whole share.

 

2.8Share Reservation.
The Borrower shall at all times reserve and keep available out of its authorized Common Stock a number of shares equal to at least
three (3) times the full number of shares of Common Stock issuable upon conversion of all outstanding amounts under this Debenture;
and within five (5) Business Days following the receipt by the Borrower of the Holder's notice that such minimum number of Common
Stock is not so reserved, the Borrower shall promptly reserve a sufficient number of shares of Common Stock to comply with such
requirement.

 

 

ARTICLE
III 

EVENTS OF DEFAULT

The occurrence of
any of the following events set forth in Sections 3.1 through 3.12, inclusive, shall be an “Event of Default”:

3.1Failure
to Pay Principal, Interest or Other Fees. Borrower fails to pay principal, interest or other fees hereon and such failure shall
continue for a period of five (5) days following the date upon which any such payment was due.

3.2Breach
of Covenant. Borrower breaches any covenant or other term or condition of this Debenture in any material respect and such breach,
if subject to cure, continues for a period of five (5) days after the occurrence thereof.

3.3Breach
of Representations and Warranties. Any representation or warranty of Borrower made herein shall be false or misleading in any
material respect.

3.4SEC Filings.
Borrower fails to timely file, when due, any SEC report, including any required XBRL file along with such report (e.g.,
Forms 8-K, 10-Q or 10-K, or Schedules 14A, 14C or 14(f)), or, if the filing date of such report is properly extended pursuant to
SEC Rule 12b-25, when the date of any such filing extension lapses.

3.5Stop Trade.
An SEC stop trade order or Principal Market trading suspension of the Common Stock shall be in effect for five (5) consecutive
days or five (5) days during a period of 10 consecutive days, provided that Borrower shall not have been able to cure such trading
suspension within 30 days of the notice thereof or list the Common Stock on another Principal Market within 60 days of such notice.
The “Principal Market” for the Common Stock shall include the OTCQB, OTCQX, OTC Pink, OTC Bulletin Board, NASDAQ Capital
Market, NASDAQ Global Market, NYSE MKT, or New York Stock Exchange (whichever of the foregoing is at the time the principal trading
exchange or market for the Common Stock), or any securities exchange or other securities market on which the Common Stock is then
being listed or traded.

3.6SEC Reporting
Status Matters.

(a)Borrower indicates
by check mark on the cover page of an SEC report filing that it has not (1) filed all reports required to be filed by Section 13
or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90 days.

 

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(b)Borrower indicates
by check mark on the cover page of an SEC report filing that it has not submitted electronically and posted on its corporate website,
if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during
the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

(c)Borrower indicates
by check mark on the cover page of an SEC report filing that it is a shell company (as defined in Rule 12b-2 of the Exchange
Act).

(d)Borrower
files a Form 15 with the SEC to deregister its Common Stock, provided that, such event will not be deemed an Event of Default if
Borrower files current reports with attorney opinions on not less than a quarterly basis on www.otcmarkets.com until such time
as Borrower re-registers its Common Stock with the SEC.

3.7Receiver
or Trustee. Each of the Borrower or its subsidiaries (“Subsidiaries”), if any, shall make an assignment
for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part
of its property or business; or such a receiver or trustee shall otherwise be appointed; or shall
become insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to
applicable grace periods, if any

3.8Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law or any
law for the relief of debtors shall be instituted by or against the Borrower or any of its Subsidiaries (Federal law or applicable
state law).

3.9DTC Eligibility.
The Borrower shall lose its status as “DTC Eligible” or the Borrower’s shareholders shall lose the ability to
deposit (either electronically or by physical certificates, or otherwise) shares into the DTC System.

 

ARTICLE IV

DEFAULT RELATED PROVISIONS AND OTHER PRIVILEGES

4.1Default
Interest Rate. Following the occurrence and during the continuance of an Event of Default, interest on this Debenture shall
automatically be instated at a rate of 10% per annum, effective as of the date of issuance of this Debenture, which interest shall
be payable in cash or Common Stock, at the option of the Borrower.

4.2Conversion
Privileges. The conversion privileges set forth in Article II shall remain in full force and effect immediately from the date
hereof and until this Debenture is paid in full.

4.3Cumulative
Remedies. The remedies under this Debenture shall be cumulative.

.

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ARTICLE V

MISCELLANEOUS

5.1Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing hereunder are cumulative
to, and not exclusive of, any rights or remedies otherwise available.

5.2Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by FedEx or other reputable express courier service with charges prepaid, or
(iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below. Any notice or other communication required
or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be received) or (b) on the next business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

 

If to the Borrower,
to:

 

THINSPACE TECNOLOGY,
INC.

Attn: CEO

12555 Orange
Drive, Suite 216

Davie, FL 33330

facsimile:
786-763-3830

 

If to the Holder:

 

__________________________________

Attn: _____________________________

__________________________________

__________________________________

facsimile:
________________

No change in any of
such addresses shall be effective insofar as notices under this Section 5.2 are concerned unless such changed address is located
in the United States of America and notice of such change shall have been given to such other party hereto as provided in this
Section 5.2.

5.3Amendment
Provision. Any term of this Debenture may be amended only with the written consent of the Holder and the Borrower. .
The term “Debenture” and all reference thereto, as used throughout this instrument, shall mean this instrument
as originally executed, or if later amended or supplemented, then as so amended or supplemented, and any successor instrument as
it may be amended or supplemented.

5.4Assignability.
This Debenture shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Holder
and its successors and assigns, and may not be assigned by the Borrower without the prior written consent of the Holder, which
consent may not be unreasonably withheld.

 

5.5Prevailing Party
and Costs. In the event any attorney is employed by any party with regard to any legal or equitable action, arbitration or
other proceeding brought by such party for the enforcement of this Debenture or because of an alleged dispute, breach, default
or misrepresentation in connection with any of the provisions of this Debenture, the prevailing party in such proceeding will be
entitled to recover from the other party reasonable attorneys' fees and other costs and expenses incurred, in addition to any other
relief to which the prevailing party may be entitled.

 

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5.6Governing Law;
Consent to Jurisdiction; Waiver of Jury Trial. This Debenture shall be governed by, and construed in accordance with, the internal
laws of the State of New York, without regard to principles of conflicts of law. THE BORROWER AND HOLDER WAIVE ANY RIGHT TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS DEBENTURE OR ANY TRANSACTION CONTEMPLATED HEREIN, INCLUDING
CLAIMS BASED ON CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER COMMON LAW OR STATUTORY BASIS. Each party hereby submits to the exclusive
jurisdiction of the state and federal courts located in the County of New York, State of New York. If the jury waiver set forth
in this Section is not enforceable, then any dispute, controversy or claim arising out of or relating to this Debenture or any
of the transactions contemplated herein will be finally settled by binding arbitration in New York, New York in accordance with
the then current Commercial Arbitration Rules of the American Arbitration Association by one arbitrator appointed in accordance
with said rules. The arbitrator shall apply New York law to the resolution of any dispute, without reference to rules of conflicts
of law or rules of statutory arbitration. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction
thereof. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim
equitable relief, or to compel arbitration in accordance with this paragraph. The expenses of the arbitration, including the arbitrator’s
fees and expert witness fees, incurred by the parties to the arbitration, may be awarded to the prevailing party, in the discretion
of the arbitrator, or may be apportioned between the parties in any manner deemed appropriate by the arbitrator. Unless and until
the arbitrator decides that one party is to pay for all (or a share) of such expenses, both parties shall share equally in the
payment of the arbitrator’s fees as and when billed by the arbitrator.

5.7Maximum
Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges
in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges
hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed
by Borrower to the Holder and thus refunded to the Borrower.

 

5.8Construction.
Borrower acknowledges that its legal counsel participated in the preparation of this Debenture and, therefore, stipulates that
the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation
of this Debenture to favor any party against the other.

 

5.9Absolute Obligation.
Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligation of the Borrower, which
is absolute and unconditional, to pay the principal of, interest and liquidated damages (if any) on, this Debenture at the time,
place, and rate, and in the coin or currency, herein prescribed. This Debenture is a direct debt obligation of Borrower.

 

5.10Lost or Mutilated
Debenture. If this Debenture shall be mutilated, lost, stolen or destroyed, Borrower shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Debenture, or in lieu of or in substitution for a lost, stolen or destroyed
Debenture, a new Debenture for the principal amount of this Debenture so mutilated, lost, stolen or destroyed.

 

[signature page
follows]

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IN WITNESS WHEREOF,
Borrower has caused this Convertible Debenture to be signed in its name effective as of the 10th day of April, 2015 (the “Effective
Date”).

 

	 	BORROWER:
	 	 
	 	THINSPACE TECHNOLOGY, INC.
	 	 
	 	 
	 	 
	 	By: 	/s/ J. Christopher Bautista
	 	 	Name: J. Christopher Bautista
Title: CEO

 

 

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EXHIBIT A

NOTICE OF CONVERSION

(To be executed by the Holder in order
to convert all or part of the amounts owed under the Convertible Debenture into Common Stock)

[NAME OF HOLDER]

[ADDRESS]

 

The undersigned hereby converts $_________
due under the Convertible Debenture issued by ____________________________, Inc. (“Borrower”) dated as of ____________
__, 201_ by delivery of shares of Common Stock of Borrower on and subject to the conditions set forth in Article II of the Convertible
Debenture.

1.Date of Conversion _______________________

2.Shares To Be Delivered:_______________________

[NAME OF BORROWER]

 

By:_______________________________

Name:_____________________________

Title:______________________________

 

 

 

8Exhibit 10.23

 

EXECUTIVE VERSION

 

	 	FI N° 84413
	 	Serapis N° 2015-0010

 

COLLAGEN TECHNOLOGIES (MGF)

 

Finance Contract

 

between the

 

European Investment Bank

 

and

 

lnnocoll Pharmaceuticals Limited

 

and

 

lnnocoll AG

 

................
2015

 

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	INTERPRETATION AND DEFINITIONS	 	5
	 	 	 
	ARTICLE 1	 	14
	 	 	 	 	 
	1.01	 	Amount of Credit	 	14
	1.02	 	Disbursement procedure	 	14
	1.03	 	Currency of disbursement	 	15
	1.04	 	Conditions of disbursement	 	15
	1.05	 	[Not used]	 	17
	1.06	 	Cancellation and suspension	 	17
	1.07	 	Cancellation after expiry of the Credit	 	18
	1.08	 	Sums due under Article 1	 	18
	 	 	 	 	 
	ARTICLE 2	 	18
	 	 	 	 	 
	2.01	 	Amount of Loan	 	18
	2.02	 	Currency of repayment, return and other charges	 	18
	 	 	 	 	 
	ARTICLE 3	 	18
	 	 	 	 	 
	3.01	 	Rate of return	 	18
	3.02	 	Interest on overdue sums	 	18
	 	 	 	 	 
	ARTICLE 4	 	19
	 	 	 	 	 
	4.01	 	Normal repayment	 	19
	4.02	 	Voluntary prepayment	 	19
	4.03	 	Compulsory prepayment	 	20
	4.04	 	General	 	22
	 	 	 	 	 
	ARTICLE 5	 	22
	 	 	 	 	 
	5.01	 	Day count convention	 	22
	5.02	 	Time and place of payment	 	22
	5.03	 	No set-off by the Borrower	 	23
	5.04	 	Disruption to Payment Systems	 	23
	5.05	 	Application of sums received	 	23
	 	 	 	 	 
	ARTICLE 6	 	24
	 	 	 	 	 
	6.01	 	Use of Loan and availability of other funds	 	24
	6.02	 	Completion of Project	 	24
	6.03	 	Increased cost of Project	 	24
	6.04	 	Procurement procedure	 	24
	6.05	 	Continuing Project undertakings	 	24
	6.06	 	Disposal of assets	 	25
	6.07	 	Compliance with laws; Hedging	 	26
	6.08	 	Change in business	 	26
	6.09	 	Merger	 	26
	6.10	 	 	 	26
	6.11	 	Books and records	 	27
	6.12	 	Not used	 	27
	6.13	 	Acquisitions	 	27
	6.14	 	Indebtedness	 	27
	6.15	 	Guarantees	 	27

 

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	6.16	 	Permitted Payments	 	27
	6.17	 	Intellectual Property Rights	 	28
	6.18	 	Maintenance of Status	 	28
	6.19	 	Illicit origin	 	28
	6.20	 	General Representations and Warranties	 	28
	 	 	 	 	 
	ARTICLE 7	 	31
	 	 	 	 	 
	7.01	 	Guarantee	 	31
	7.02	 	Negative pledge	 	31
	7.03	 	Pari passu ranking	 	33
	7.04	 	Clauses by inclusion	 	33
	 	 	 	 	 
	ARTICLE 8	 	33
	 	 	 	 	 
	8.01	 	Information concerning the Project	 	33
	8.02	 	Information concerning the Borrower	 	34
	8.03	 	Visits by the Bank	 	35
	 	 	 	 	 
	ARTICLE 9	 	36
	 	 	 	 	 
	9.01	 	Taxes, duties and fees	 	36
	9.02	 	Other charges	 	36
	9.03	 	Increased costs, indemnity and set-off	 	36
	 	 	 	 	 
	ARTICLE 10	 	37
	 	 	 	 	 
	10.01	 	Right to demand repayment	 	37
	10.02	 	Other rights at law	 	38
	10.03	 	Indemnity	 	38
	10.04	 	Non-Waiver	 	39
	 	 	 	 	 
	ARTICLE 11	 	39
	 	 	 	 	 
	11.01	 	Governing Law	 	39
	11.02	 	Jurisdiction	 	39
	11.03	 	Agent of Service	 	39
	11.04	 	Place of performance	 	39
	11.05	 	Evidence of sums due	 	40
	11.06	 	Third party rights	 	40
	11.07	 	Entire Agreement	 	40
	11.08	 	Invalidity	 	40
	11.09	 	Amendments	 	40
	11.10	 	Counterparts	 	40
	 	 	 	 	 
	ARTICLE 12	 	40
	 	 	 	 	 
	12.01	 	Notices to either party	 	40
	12.02	 	Form of notice	 	41
	12.03	 	Recitals, Schedules and Annexes	 	41

 

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THIS CONTRACT IS MADE BETWEEN:

 

	The European Investment Bank having its seat at 100 boulevard Konrad Adenauer, L-2950 Luxembourg, represented by Nicholas Jennett and Stefan Becker	 	(the “Bank” or the “Lender”)
	 	 	 
	and	 	 
	 	 	 
	lnnocoll Pharmaceuticals Limited, a company incorporated in Ireland, having its registered office at 9, Block D, Monksland Business Park, Monksland, Athlone, Co. Roscommon, Ireland	 	(“Borrower”)
	 	 	 
	and	 	 
	 	 	 
	lnnocoll AG, a company incorporated in Germany, having its registered office at Donaustraße 24, 93342 Saal/Donau, Germany, acting through its Irish branch at 9, Block D, Monksland Business Park, Monksland, Athlone, Co. Roscommon, Ireland	 	(the “Guarantor”)

 

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WHEREAS:

 

		(1)	The Borrower has stated that it is undertaking research projects in respect of collagen-based pharmaceutical
products as more particularly described in the technical description (the “Technical Description”) set out in
Schedule A (the “Project”).

 

		(2)	The total cost of the Project, as estimated by the Bank, is EUR 50,000,000

 

		(3)	In order to fulfil the financing plan set out in Recital (2), the Borrower has requested from the
Bank a credit of EUR 25,000,000 (twenty five million euros) principal.

 

		(4)	The Bank considering that the financing of the Project falls within the scope of its functions,
and having regard to the statements and facts cited in these Recitals, has decided to give effect to the Borrower’s request
providing to it a credit in an amount of EUR 25,000,000 (twenty five million euros) principal under this Finance Contract (the
“Contract”); provided that the amount of the Bank loan shall not, in any case, exceed 50% (fifty per cent) of
the total cost of the Project set out in Recital (2).

 

		(5)	The Board of Directors of the Borrower has authorised the borrowing of the sum of EUR 25,000,000
(twenty five million euros) represented by this credit on the terms and conditions set out in this Contract in the form set out
in Annex I

 

		(6)	The financial obligations of the Borrower under this Contract are to be guaranteed by lnnocoll
AG (the “Guarantor”) under a guarantee and indemnity (the “Guarantee”) by execution of a
guarantee and indemnity agreement in the form approved by the Bank (the “Guarantee Agreement”).

 

		(7)	The Credit falls under a joint initiative between the Bank and the European Commission, which is
intended as a new Bank financing instrument, to finance inter alia research projects and research infrastructure under the Horizon
2020 framework programme of the European Union for Research and Technological Development (2014-2020).

 

		(8)	The statute of the Bank provides that the Bank shall ensure that its funds are used as rationally
as possible in the interests of the European Union; and, accordingly, the terms and conditions of the Bank’s loan operations
must be consistent with relevant policies of the European Union.

 

		(9)	The Bank considers that access to information plays an essential role in the reduction of environmental
and social risks, including human rights violations, linked to the projects it finances and has therefore established its Transparency
policy, the purpose of which is to enhance the accountability of the EIB Group towards its stakeholders and the citizens of the
European Union in general.

 

		(10)	The processing of personal data shall be carried out by the Bank in accordance with applicable
European Union legislation on the protection of individuals with regard to the processing of personal data by the European Union
institutions and bodies and on the free movement of such data.

 

NOW
THEREFORE it is hereby agreed as follows:

 

INTERPRETATION AND DEFINITIONS

 

		(a)	Interpretation

 

In this Contract:

 

		(i)	References to Articles, Recitals, Schedules and Annexes are, save if explicitly stipulated otherwise,
references respectively to articles of, and recitals, schedules and annexes to this Contract.

 

		(ii)	References to a provision of law are references to that provision as amended or re-enacted.

 

		(iii)	References to any other agreement or instrument are references to that other agreement or instrument
as amended, novated, supplemented, extended or restated.

 

    	5

    	 

    

 

		(b)	Definitions

 

In this Contract:

 

“Acceptance Deadline” for
a notice means:

 

		(a)	16h00 Luxembourg time on the day of delivery, if the notice is delivered by 14h00 Luxembourg time
on a Business Day; or

 

		(b)	11h00 Luxembourg time on the next following day which is a Business Day, if the notice is delivered
after 14h00 Luxembourg time on any such day or is delivered on a day which is not a Business Day.

 

“Accepted Tranche” means
a Tranche in respect of a Disbursement Offer which has been duly accepted by the Borrower in accordance with its terms on or before
the Disbursement Acceptance Deadline.

 

“Accounting Reference Date”
means 31 December.

 

“Affiliate” means, in relation
to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company.

 

“Authorisation” means an
authorisation, permit, consent, approval, resolution, licence, exemption, filing, notarisation or registration.

 

“Business Acquisitions”
means the acquisition of a company or any shares or securities or a business or undertaking (or, in each case, any interest in
any of them) or the incorporation of a company.

 

“Business Plan” means the
Group consolidated business plan, as set out in Schedule G.

 

“Business Day” means a day
(other than a Saturday or Sunday) on which the Bank and commercial banks are open for general business in Luxembourg.

 

“Calculation Date” means,
with respect to a Tranche, (i) each anniversary of the Scheduled Disbursement Date in relation to that Tranche until the Maturity
Date in relation to that Tranche and (ii) the Maturity Date in relation to that Tranche, save that, in case any such date
is not a Relevant Business Day, it means, the following Relevant Business Day, without adjustment to the return due under Article
3.01, except for a Calculation Date which is also a Maturity Date, when the preceding Relevant Business Day shall apply instead
to the repayment of principal and to the final return payment and only in this case, with adjustment to the return due under Article
3.01

 

“Calculation Period” means
each period from one Calculation Date to the next relevant Calculation Date.

 

“CAPEX” means any expenditure
or obligation in respect of expenditure (other than expenditure or obligations in respect of Business Acquisitions) which, in accordance
with IFRS, is treated as capital expenditure (and including the capital element of any expenditure or obligation incurred in connection
with a Finance Lease).

 

“Change-of-Control Event”
has the meaning given to it in Article 4.03A(2).

 

“Change-of-Law Event” has
the meaning given to it in Article 4.03A(4).

 

“Compliance Certificate”
means a certificate substantially in the form set out in Schedule E.2.

 

“Contract” has the meaning
given to it in Recital (4).

 

“Credit” has the meaning
given to it in Article 1.01.

 

“Criminal offence” means
any of the following criminal offences as applicable: fraud, corruption, coercion, collusion, obstruction, money laundering, financing
of terrorism.

 

“Disbursement Acceptance”
means a copy of the Disbursement Offer duly countersigned by the Borrower.

 

“Disbursement Acceptance Deadline”
means the date and time of expiry of a Disbursement Offer as specified therein.

 

    	6

    	 

    

 

“Disbursement Date” means
the date on which actual disbursement of a Tranche is made by the Bank.

 

“Disbursement Offer” means
a letter substantially in the form set out in Schedule C.1.

 

“Disruption Event” means
either or both of:

 

		(a)	a material disruption to those payment or communications systems or to those financial markets
which are, in each case, required to operate in order for payments to be made in connection with this Contract; or

 

		(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related
nature) to the treasury or payments operations of either the Bank or the Borrower, preventing that party:

 

		(i)	from performing its payment obligations under this Contract; or

 

		(ii)	from communicating with other parties in accordance with the terms of this Contract,

 

and which disruption (in either such case as
per (a) or (b) above) is not caused by, and is beyond the control of, the party whose operations are disrupted.

 

“EBITDA” means, in respect
of any Relevant Period, the consolidated operating profit of the Group or the Borrower (as applicable) before taxation (excluding
the results from discontinued operations):

 

		(a)	before deducting any interest, commission, fees, discounts, prepayment fees, premiums or
charges and other finance payments whether paid, payable or capitalised by any member of the Group (calculated on a consolidated
basis) or the Borrower (as applicable) in respect of that Relevant Period;

 

		(b)	not including any accrued interest owing to any member of the Group or the Borrower (as
applicable);

 

		(c)	after adding back any amount attributable to the amortisation or depreciation of assets
of members of the Group or the Borrower (as applicable);

 

		(d)	before taking into account any Exceptional Items;

 

		(e)	after deducting the amount of any profit (or adding back the amount of any loss) of any
member of the Group or the Borrower (as applicable) which is attributable to minority interests;

 

		(f)	plus or minus the Group’s or the Borrower’s (as applicable) share of the profits
or losses (after finance costs and tax) of Non-Group Entities;

 

		(g)	before taking into account any unrealised gains or losses on any financial instrument (other
than any derivative instrument which is accounted for on a hedge accounting basis); and

 

		(h)	before taking into account any gain arising from an upward revaluation of any other asset,

 

in each case, to the extent added, deducted
or taken into account, as the case may be, for the purposes of determining operating profits of the Group or the Borrower (as applicable)
before taxation.

 

“Environment” means the
following, in so far as they affect human health and social well-being:

 

		(a)	fauna and flora;

 

		(b)	soil, water, air, climate and the landscape; and

 

		(c)	cultural heritage and the built environment,

 

and includes, without limitation, occupational
and community health and safety.

 

“Environmental Approval”
means any Authorisation required by Environmental Law.

 

“Environmental Claim” means
any claim, proceeding, formal notice or investigation by any person in respect of any Environmental Law.

 

“Environmental Law” means:

 

		(a)	European Union law, including principles and standards;

 

    	7

    	 

    

 

		(b)	laws and regulations; and

 

		(c)	applicable international treaties,

 

of which a principal objective is the preservation,
protection or improvement of the Environment.

 

“EURIBOR” has the meaning
given to it in Schedule B.

 

“EUR” or “euro”
means the lawful currency of the Member States of the European Union which adopt or have adopted it as their currency in accordance
with the relevant provisions of the Treaty on European Union and the Treaty on the Functioning of the European Union or their succeeding
treaties.

 

“Event of Default” means
any of the circumstances, events or occurrences specified in Article 10.01.

 

“Exceptional Items” means
any material items of an unusual or non-recurring nature which represent gains or losses including those arising on:

 

		(a)	the restructuring of the activities of an entity and reversals of any provisions for the cost of
restructuring;

 

		(b)	disposals, revaluations, write downs or impairment of non-current assets or any reversal of any
write down or impairment;

 

		(c)	disposals of assets associated with discontinued operations; and

 

		(d)	any other examples of “exceptional items” (as such term has the meaning attributed
to it in IFRS).

 

“Final Availability Date”
means:

 

		(a)	in respect of any Tranche which, if disbursed, would not cause the total amount of Tranches disbursed
(whether or not they remain outstanding) to exceed EUR 15,000,000, the date falling 15 months after the date of this Contract;
and

 

		(b)	in respect of any Tranche which, if disbursed, would cause the total amount of Tranches disbursed
(whether or not they remain outstanding) to exceed EUR 15,000,000, the date falling 18 months after the date of this Contract.

 

“Finance Documents” means:

 

		(a)	this Contract;

 

		(b)	the Guarantee Agreement;

 

		(c)	the Security Documents; and

 

		(d)	any other document the parties agree to designate a Finance Document.

 

“Finance Lease” means any
lease or hire purchase contract which would, in accordance with IFRS, be treated as a finance or capital lease.

 

“Financial Quarter” means
the period commencing on the day after one Quarter Date and ending on the next Quarter Date.

 

“Financial Year” means the
annual accounting period of the Group ending on the Accounting Reference Date.

 

“Floating Charge” means
a floating charge, in form and substance satisfactory to the Bank, over all of the assets of the Borrower granted by the Borrower
in favour of the Bank.

 

“GAAP” means:

 

		(a)	in relation to the Borrower, generally accepted accounting principles in Ireland, including IFRS;
and

 

		(b)	in relation to the Guarantor (if applicable), generally accepted accounting principles in Germany,
including IFRS

 

“Group” means the Guarantor,
the Borrower and each of their respective Subsidiaries.

 

“Guarantee” has the meaning
given to it in Recital (6).

 

    	8

    	 

    

 

“Guarantee Agreement” has
the meaning given to it in Recital (6).

 

“Guarantor” has the meaning
given to it in Recital (6).

 

“Hedging Policy” means any
derivative transaction by a member of the Group to hedge actual or projected exposure arising in the ordinary course of trading
or any derivative instrument of a member of the Group which is accounted for on a hedge accounting basis and does not include any
derivative transaction and/or instrument for speculative purposes.

 

“Holding Company” means,
in relation to a person, any other person in respect of which the first person is a Subsidiary.

 

“IFRS” means international
accounting standards within the meaning of lAS Regulation 1606/2002 to the extent applicable to the relevant financial statements.

 

“Indebtedness” means any:

 

		(a)	obligations for borrowed money;

 

		(b)	indebtedness under any acceptance credit;

 

		(c)	indebtedness under any bond, debenture, note or similar instrument;

 

		(d)	instrument under any bill of exchange;

 

		(e)	indebtedness in respect of any interest rate or currency swap or forward currency sale or purchase
or other form of interest or currency hedging transaction (including without limit caps, collars and floors);

 

		(f)	indebtedness under any finance lease;

 

		(g)	indebtedness (actual or contingent) under any guarantee, bond security, indemnity or other agreement;

 

		(h)	indebtedness (actual or contingent) under any instrument entered into for the purpose of raising
finance;

 

		(i)	indebtedness in respect of a liability to reimburse a purchaser of any receivables sold or discounted
in the event that any amount of those receivables is not paid;

 

		(j)	indebtedness arising under a securitisation; or

 

		(k)	other transaction which has the commercial effect of borrowing.

 

“lndemnifiable Prepayment Event”
means a Prepayment Event other than as specified in paragraphs 4.03A(3) (Pari passu to non-EIB financing) and 4.03A(5)
(Illegality).

 

“Intellectual Property Rights”
means, including without limitation, intellectual property of every designation (including patents, utility patents, copyrights,
design rights, trademarks, service marks and know how) whether capable of registration or not.

 

“Joint Venture” means any
joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership or any other
entity.

 

“Legal Reservations” means:

 

		(a)	the principle that equitable remedies may be granted or refused at the discretion of a court, and
the limitations on enforcement imposed by laws relating to insolvency, reorganisation, and other laws generally affecting the rights
of creditors;

 

		(b)	the time barring of claims under the Limitation Acts, the possibility that an undertaking to assume
liability for or to indemnify a person against non-payment of UK stamp duty may be void and defences of set-off or counterclaim;

 

		(c)	similar principles, rights and defences under the laws of any Relevant Jurisdiction; and

 

    	9

    	 

    

 

		(d)	any other general principles of law which are set out as qualifications or reservations to any
of the legal opinions delivered pursuant to Article 1.04.

 

“Limitation Acts” means
the Limitation Act 1980 and the Foreign Limitation Periods Act 1984.

 

“Loan” means the aggregate
amount of Tranches disbursed from time to time by the Bank under this Contract.

 

“Market Disruption Event”
means any of the following circumstances:

 

		(a)	there are, in the reasonable opinion of the Bank, events or circumstances adversely affecting the
Bank’s access to its sources of funding;

 

		(b)	in the opinion of the Bank, funds are not available from its ordinary sources of funding in order
to adequately fund a Tranche in the relevant currency and/or for the relevant maturity and/or in relation to the reimbursement
profile of such Tranche.

 

“Material Adverse Change”
means, any event or change of condition, which, in the reasonable opinion of the Bank has a material adverse effect on:

 

		(a)	the ability of the Borrower or the Guarantor to perform its obligations under the Finance Documents;

 

		(b)	the business, operations, property, condition (financial or otherwise) or prospects of the Borrower,
the Guarantor or the Group as a whole; or

 

		(c)	the validity or enforceability of, or the effectiveness or ranking of, or the value of any security
granted to the Bank, or the rights or remedies of the Bank under the Finance Documents

 

provided that if the conditions for drawing
the any Tranche set out in Article 1.04B are not met, it is not in and of itself a Material Adverse Change.

 

“Maturity Date” means the
sole repayment of a Tranche specified in respect of that Tranche pursuant to Article 4.01A.

 

“Non-Group Entity” means
any investment or entity (which is not itself a member of the Group (including associates and Joint Ventures)) in which any member
of the Group has an ownership interest.

 

“Permitted Acquisition”
means an acquisition by a member of the Group of an asset sold, leased, transferred or otherwise disposed of by another member
of the Group in circumstances permitted by Article 6.06.

 

“Permitted Disposal” means
any act effecting a sale, transfer, lease or other disposal (other than a sale, transfer, lease or other disposal of the XaraColl,
Cogenzia or CollaGUARD Intellectual Property Rights which is permitted only as covered by paragraph (e) below):

 

		(a)	related to the sale of finished products and/or services made on arm’s length terms in the
ordinary course of business of a Borrower or other member of the Group;

 

		(b)	by one member of the Group to another member of the Group;

 

		(c)	for cash in an amount reflecting or exceeding the fair market value of such assets, which is reinvested
in assets of comparable or superior type, value and quality;

 

		(d)	made in exchange for other assets comparable or superior as to type, value and quality;

 

		(e)	constituted by a licence of Intellectual Property Rights on an arm’s length basis to a third
party;

 

		(f)	made in relation to non-material assets which have depreciated to less than 25% (twenty five per
cent) of their initial value or which are obsolete; and

 

		(g)	of assets for cash where the higher of the book value and net consideration in aggregate does not
exceed EUR 500,000 in total at all times during the life of the Credit,

 

“Permitted Guarantees” means
guarantees issued by any member of the Group under or in connection with:

 

    	10

    	 

    

 

		(a)	under the Guarantee Agreement;

 

		(b)	under any negotiable instruments issued in the ordinary course of trade;

 

		(c)	in connection with any performance bond issued in the ordinary course of trade;

 

		(d)	in connection with any Permitted Indebtedness; or

 

		(e)	issued by one member of the Group in respect of the obligations of another member of the Group.

 

“Permitted Indebtedness”
means Indebtedness of the Borrower and/or members of the Group incurred:

 

		(a)	in the ordinary course of trading by members of the Group;

 

		(b)	under this Contract;

 

		(c)	under any finance or capital leases of equipment related to expansion of manufacturing facilities
in line with the Business Plan, if the aggregate liability in respect of the equipment leased does not at any time exceed EUR 2,000,000
(two million euros)(or its equivalent in another currency or currencies);

 

		(d)	under any hedging or derivative transactions entered into in accordance with the Hedging Policy;

 

		(e)	under a Permitted Guarantee;

 

		(f)	under any overdrafts made available to the Group provided that the aggregate amount of the Indebtedness
in respect of such arrangements for the Group does not exceed EUR 500,000 (or its equivalent in other currencies) in aggregate
at any time;

 

		(g)	arising under any loan made by a member of the Group to another member of the Group; or

 

		(h)	any other Indebtedness incurred with the prior written consent of the Bank.

 

“Permitted Merger” means
any amalgamation, demerger, merger or corporate reconstruction which does not result in a Material Adverse Change and which is
on a solvent basis, and where:

 

		(a)	only members of the Group are involved;

 

		(b)	the resulting entity will not be incorporated or located in a country which is in a jurisdiction
that is blacklisted by any Lead Organisation in connection with activities such as money laundering, financing of terrorism, tax
fraud and tax evasion or harmful tax practices as such blacklist may be amended from time to time; or

 

		(c)	the Borrower is involved, (i) the rights and obligations of the Borrower under this Contract will
remain with the Borrower, (ii) the surviving entity would be the Borrower and the statutory seat of the Borrower would not as a
result of such merger be transferred to a different jurisdiction, (iii) the merger will not have an effect on the validity, legality
or enforceability of the Borrower’s obligations under this Contract; and (iv) all of the business and assets of the Borrower
are retained by them.

 

“Permitted Payments” means

 

		(a)	shares purchased from former employees, former managers or former directors, provided that such
shares were awarded under a share programme of the Borrower or the Guarantor;

 

		(b)	dividends of any member of the Group distributed, or repayments of intercompany loans, to the Guarantor
or any of its Subsidiaries; or

 

		(c)	subject to applicable mandatory corporate law and other mandatory regulatory restrictions that
would restrict the distribution of cash or profits, dividends payments or share repurchases by a Borrower or other Group members,
provided that no default has occurred and is continuing and to the extent that any such dividends or repurchases do not exceed
10% (ten per cent) of the net earnings as reported in the annual, audited, consolidated accounts for the preceding Financial Year,

 

in each case without double
counting.

 

    	11

    	 

    

 

“Prepayment Amount” means
the amount of a Tranche to be prepaid by the Borrower in accordance with Article 4.02A which shall be in a minimum principal amount
(not including capitalised return under Article 3.01) of EUR 5,000,000.

 

“Prepayment Date” means
any date as notified by the Borrower pursuant to Article 4.02A on which the Borrower proposes to effect prepayment of a Prepayment
Amount.

 

“Prepayment Event” means
any of the events described in Article 4.03A.

 

“Prepayment Indemnity” means
in respect of any principal amount under a Tranche (and for the avoidance of doubt such amount shall not include any capitalised
return under Article 3.01), to be prepaid or cancelled, an amount equal to:

 

		(a)	where the prepayment or cancellation is made or required to be made at any time from the date of
this agreement until the anniversary of the Disbursement Date in respect of that Tranche, 1%;

 

		(b)	where the prepayment or cancellation is made or required to be made at any time from (and excluding)
the first anniversary until the second anniversary of the Disbursement Date in respect of that Tranche, 0.75%;

 

		(c)	where the prepayment or cancellation is made or required to be made at any time from (and excluding)
the second anniversary until the third anniversary of the Disbursement Date in respect of that Tranche, 0.5%;

 

		(d)	where the prepayment or cancellation is made or required to be made at any time from (and excluding)
the third anniversary until the fourth anniversary of the Disbursement Date in respect of that Tranche, 0.25%; and

 

		(e)	where the prepayment or cancellation is made or required to be made at any time from (and excluding)
the fourth anniversary, 0%,

 

of such principal amount to be prepaid or cancelled.

 

“Prepayment Notice” means
a written notice from the Bank to the Borrower in accordance with Article 4.02C.

 

“Prepayment Request” means
a written request from the Borrower to the Bank to prepay all or part of the Loan, in accordance with Article 4.02A.

 

“Project” has the meaning
given to it in Recital (1).

 

“Quarter Date” means each
of 31 March, 30 June, 30 September and 31 December from the date of this Contract until the Maturity Date.

 

“Rate of Return” means an
annual rate of 12% (being the rate which EIB requires in order to achieve its required internal rate of return on the Tranches).

 

“Relevant Business Day”
means a day on which the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilises a single
shared platform and which was launched on 19 November 2007 (TARGET2) is open for the settlement of payments in EUR.

 

“Relevant Interbank Rate”
means EURIBOR.

 

“Relevant Period” means
each period of twelve months ending on or about the last day of the Financial Year and each period of twelve months ending on or
about the last day of the second Financial Quarter of a Financial Year.

 

“Scheduled Disbursement Date”
means the date on which a Tranche is scheduled to be disbursed in accordance with Article 1.02B.

 

“Security” means any mortgage,
pledge, lien, charge, assignment, hypothecation, or other security interest securing any obligation of any person or any other
agreement or arrangement having a similar effect.

 

    	12

    	 

    

 

“Security Documents” means:

 

		(a)	the Share Charge; and

 

		(b)	the Floating Charge.

 

“Share Charge” means the
fixed charge, in form and substance satisfactory to the Bank, over all the shares in the Borrower granted by the Guarantor in favour
of the Bank.

 

“Subsidiary” means an entity
of which a Borrower has direct or indirect control or owns directly or indirectly more than 50% of the voting capital or similar
right of ownership and “control” for this purpose means the power to direct the management and the policies of the
entity, whether through the ownership of voting capital, by contract or otherwise.

 

“Tax” means any tax, levy,
impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any
failure to pay or any delay in paying any of the same).

 

“Technical Description”
has the meaning given to it in Recital (1).

 

“Total Assets” means the
total consolidated assets of the Group, as shown in the Guarantor’s latest consolidated financial statements.

 

“Tranche” means each disbursement
made or to be made under this Contract. In case no Disbursement Acceptance has been received, Tranche shall mean a Tranche as offered
under Article 1.02B.

 

    	13

    	 

    

 

ARTICLE 1

Credit and Disbursements

 

		1.01	Amount of Credit

 

By this Contract the Bank establishes
in favour of the Borrower, and the Borrower accepts, a credit in an amount of EUR 25,000,000 (twenty five million euros) for the
financing of the Project (the “Credit”).

 

		1.02	Disbursement procedure

 

		1.02A	Tranches

 

The Bank shall disburse the Credit
in Euros in up to 5 Tranches. The amount of each Tranche shall be a minimum of EUR 5,000,000 (five million euros) and shall be
in integral multiples of EUR 5,000,000 (five million euros).

 

		1.02B	Disbursement Offer

 

Upon request by the Borrower, provided
that no Market Disruption Event has occurred and is continuing and provided that the conditions in Article 1.04 (other than Article
1.04C(a)) relevant to the applicable Tranche are satisfied, the Bank shall send to the Borrower that requested disbursements a
Disbursement Offer for the disbursement of a Tranche. The latest time for receipt by a Borrower of a Disbursement Offer is 15 (fifteen)
days before the Final Availability Date. The Disbursement Offer shall specify:

 

		(a)	the currency and amount of the Tranche;

 

		(b)	the Scheduled Disbursement Date, which shall be a Relevant Business Day, falling between 15 (fifteen)
and 30 days after the date of the Disbursement Offer and on or before the Final Availability Date;

 

		(c)	the first Calculation Date for the Tranche;

 

		(d)	the Maturity Date for the Tranche (being a date falling not less than 3 or more than 5 years from
the Scheduled Disbursement Date, as requested by the Borrower in its request);

 

		(e)	the Disbursement Acceptance Deadline; and

 

		(f)	the expected repayment amount at the Maturity Date.

 

		1.02C	Disbursement Acceptance

 

A Borrower may accept a Disbursement
Offer by delivering a Disbursement Acceptance to the Bank no later than the Disbursement Acceptance Deadline. The Disbursement
Acceptance shall be accompanied by evidence of the authority of the person or persons authorised to sign the Disbursement Acceptance
and the specimen signature of such person or persons.

 

If a Disbursement Offer is duly accepted
by the Borrower in accordance with its terms on or before the Disbursement Acceptance Deadline, the Bank shall make the Accepted
Tranche available to that Borrower in accordance with the relevant Disbursement Offer and subject to the terms and conditions of
this Contract.

 

A Borrower shall be deemed to have
refused any Disbursement Offer which has not been duly accepted in accordance with its terms on or before the Disbursement Acceptance
Deadline.

 

    	14

    	 

    

 

		1.02D	Disbursement Account

 

Disbursement shall be made to such
account of the Borrower which requested that disbursement as that Borrower shall notify in writing to the Bank not later than 15
(fifteen) days before the Scheduled Disbursement Date (with IBAN code or with the appropriate format in line with local banking
practice).

 

Only one account may be specified
for that Borrower for each Tranche.

 

		1.03	Currency of disbursement

 

The Bank shall disburse each Tranche
in EUR.

 

		1.04	Conditions of disbursement

 

		1.04A	First Tranche

 

The disbursement of the first Tranche
under Article 1.02 is conditional upon receipt by the Bank, in form and substance satisfactory to it, on or before the date falling
5 (five) Business Days before the Scheduled Disbursement Date, of the following documents or evidence:

 

		(a)	a certified copy of the resolution of the board of directors of the Borrower duly authorising the
execution of this Contract and duly authorising the person or persons signing this Contract on behalf of the respective Borrower
together with the specimen signature of each such person or persons;

 

		(b)	a certified copy of the resolution of the board of directors of the Guarantor duly authorising
the execution of the Guarantee Agreement and duly authorising the person or persons signing the Guarantee Agreement on behalf of
the Guarantor together with the specimen signature of each such person or persons;

 

		(c)	evidence that the Borrower has obtained all necessary Authorisations required in connection with
the Finance Documents and the Project;

 

		(d)	evidence that this Contract has been executed by the Borrower;

 

		(e)	the duly executed Guarantee Agreement in the form approved by the Bank;

 

		(f)	the duly executed Security Documents;

 

		(g)	a legal opinion of Norton Rose Fulbright LLP, legal advisers to the Bank on the legality, validity
and enforceability of this Contract and the Guarantee Agreement;

 

		(h)	a legal opinion of A&L Goodbody, legal adviser to the Bank on Irish law, addressed to the Bank
in form and substance satisfactory to the Bank, on the valid existence of the Borrower and the authority and capacity of the Borrower
to enter into the Finance Documents (as applicable) and on the due execution and choice of law of the Finance Documents (as applicable);

 

		(i)	a legal opinion of Norton Rose Fulbright LLP, legal adviser to the Bank on German law, addressed
to the Bank in form and substance satisfactory to the Bank, on the valid existence of the Guarantor and Syntacoll GmbH, the authority
and capacity of the Guarantor and Syntacoll GmbH to enter into the Finance Documents (as applicable) and on the due execution and
choice of law of the Finance Documents (as applicable);

 

		(j)	a copy of the latest audited financial statements of the Guarantor and the latest unaudited financial
statements of the Borrower;

 

		(k)	a copy of the constitutional documents of the Borrower and the Guarantor and evidence in form and
substance satisfactory to the Bank that the constitutional documents of the

 

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			Borrower have been amended to dis-apply (i) the company’s lien over the shares in the Borrower
and (ii) the directors’ discretion to refuse to register any transfer of the shares in the Borrower, in each case in relation
to the Security created under the Share Charge and the enforcement of that Security;

 

		(l)	the Group structure chart showing the Group as of the date of this Contract;

 

		(m)	a certificate of an authorised signatory of the Borrower and the Guarantor certifying that each
copy document relating to it specified in this Article 1.04A is correct, complete and in full force and effect as at a date no
earlier than the date of this Contract;

 

		(n)	a schedule setting out the insurance policies of the Group;

 

		(o)	evidence of appointment of the Borrower’s and the Guarantor’s agent of service;

 

		(p)	a Compliance Certificate;

 

		(q)	evidence of payment of all the fees and expenses as required under the Finance Documents; and

 

		(r)	a copy of any other document, authorisation, opinion or assurance which the Bank considers to be
necessary (if it has notified the Borrower and the Guarantor accordingly) in connection with the entry into and performance of
this Contract.

 

		1.04B	Tranches above EUR 15,000,000

 

The disbursement of the first Tranche
or Tranches under Article 1.02, which would cause the total amount of Tranches disbursed (whether or not they remain outstanding)
to exceed EUR 15,000,000, is conditional upon receipt by the Bank, in form and substance satisfactory to it, on or before
the date falling 5 Business Days before the Scheduled Disbursement Date, of:

 

		(a)	data, certified by the management board of the Guarantor, confirming to the satisfaction of the
Bank that the primary clinical endpoints for either Cogenzia or XaraColl Phase Ill trials have been achieved and therefore it can
be concluded that the Phase Ill clinical trial has successfully been completed.

 

		1.04C	All Tranches

 

The disbursement of each Tranche
under Article 1.02 is subject to the following conditions:

 

		(a)	that the Bank has received, in form and substance satisfactory to it, on or before the date falling
5 (five) Business Days before the Scheduled Disbursement Date for the proposed Tranche, of the following documents or evidence:

 

		(i)	a certificate from the Borrower in the form of Schedule E.1, signed by an authorised representative
of the Borrower and dated no earlier than the date falling 10 (ten) days before the Scheduled Disbursement Date; and

 

		(ii)	evidence of the Guarantor’s consent (executed by the management board of the Guarantor) to
the Borrower’s acceptance of the Disbursement Offer; and

 

		(iii)	a copy of any other authorisation or other document, opinion or assurance which the Bank has notified
the Borrower is necessary in connection with the entry into and performance of, and the transactions contemplated by, this Contract
or the security provided in respect of this Contract or the validity and enforceability of the same; and

 

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		(b)	that on the Disbursement Date for the proposed Tranche:

 

		(i)	the representations and warranties which are repeated pursuant to Article 6.20 are correct in all
respects;

 

		(ii)	no event or circumstance has occurred and is continuing which constitutes or would with the expiry
of a grace period and/or the giving of notice under this Contract constitute:

 

		(aa)	an Event of Default; or

 

		(bb)	a Prepayment Event,

 

or would, in each case, result from
the disbursement of the proposed Tranche; and

 

		(iii)	no Market Disruption Event has occurred and is continuing.

 

		1.05	[Not used]

 

		1.06	Cancellation and suspension

 

		1.06A	Borrower’s right to cancel

 

The Borrower may at any time by notice
in writing to the Bank cancel, in whole or in part and with immediate effect, the undisbursed portion of the Credit. However, the
notice shall have no effect in respect of an Accepted Tranche which has a Scheduled Disbursement Date falling within 5 (five)
Business Days of the date of the notice.

 

		1.06B	Bank’s right to cancel

 

		(a)	The Bank may, by notice in writing to the Borrower, cancel the undisbursed portion of the Credit
in whole or in part, which includes for the avoidance of doubt an Accepted Tranche, at any time and with immediate effect:

 

		(i)	upon the occurrence of a Prepayment Event other than pursuant to Article 4.03A(1) or an Event
of Default; or

 

		(ii)	by an amount equal to the amount by which it is entitled to cancel the Credit pursuant to Articles
4.03A(1).

 

		(b)	The Bank may also, by notice in writing to the Borrower, cancel the portion of the Credit in respect
of which it has issued a Disbursement Offer but has not received a Disbursement Acceptance with immediate effect where a Market
Disruption Event occurs.

 

		1.06C	Indemnity for cancellation of a Tranche

 

If pursuant to Article 1.06A, the
Borrower cancels a Tranche which is an Accepted Tranche, they shall indemnify the Bank under Article 4.02B.

 

If the Bank cancels

 

		(i)	an Accepted Tranche upon an lndemnifiable Prepayment Event or pursuant to Article 1.06B, the
Borrower shall pay to the Bank the Prepayment Indemnity; or
	 	 	 

		(ii)	an Accepted Tranche upon an Event of Default, the Borrower shall indemnify the Bank under Article
10.03.

 

Save in these cases, no indemnity
is payable upon cancellation of a Tranche by the Bank.

 

The indemnity shall be calculated
on the basis that the cancelled amount is deemed to have been disbursed and repaid on the Scheduled Disbursement Date or, to the
extent that the disbursement of the Tranche is currently deferred or suspended, on the date of the cancellation notice.

 

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		1.07	Cancellation after expiry of the Credit

 

On the day following the Final Availability
Date, and unless otherwise specifically agreed to in writing by the Bank, the part of the Credit in respect of which no Disbursement
Acceptance has been made in accordance with Article 1.02C shall be automatically cancelled, without any notice being served by
the Bank to the Borrower and without liability arising on the part of any party.

 

		1.08	Sums due under Article 1

 

Sums due under Articles 1.05 and
1.06 shall be payable in EUR. They shall be payable within 15 (fifteen) days of the Borrower’s receipt of the Bank’s
demand or within any longer period specified in the Bank’s demand.

 

ARTICLE 2

The Loan

 

		2.01	Amount of Loan

 

The Loan shall comprise the aggregate
amount of Tranches disbursed by the Bank under the Credit, as confirmed by the Bank pursuant to Article 2.03.

 

		2.02	Currency of repayment, return and other charges

 

The return under Article 3.01, repayments
and other charges payable in respect of each Tranche shall be made by the Borrower in EUR.

 

Any other payment shall be made in
the currency specified by the Bank having regard to the currency of the expenditure to be reimbursed by means of that payment.

 

ARTICLE 3

Return

 

		3.01	Rate of return

 

The Bank’s return shall accrue
on the Loan in respect of a Tranche for each of its Calculation Periods at the Rate of Return on the basis of Article 5.01.

 

Any such return accrued to that Loan
from time to time during that Calculation Period shall be automatically capitalised and added to the amount of that Loan on the
last day of that Calculation Period.

 

Any such accrued return shall, after
being so capitalised, be treated as a part of the principal amount of that Loan and shall bear a return in accordance with this
Article 3 which shall be payable in accordance with the provisions of this Contract.

 

All amounts of capitalised return
must, except as provided in Article 4.02, 4.03 or Article 10, be repaid in full on the relevant Maturity Date.

 

If all or part of that Loan is prepaid
prior to the end of a Calculation Period, any accrued and unpaid return on such portion of that Loan that is prepaid that has not
been so capitalised will be payable in cash on the date of such prepayment.

 

		3.02	Interest on overdue sums

 

Without prejudice to Article 10 and
by way of exception to Article 3.01, if the Borrower fails to pay any amount payable by them under the Contract on its due date,
interest shall accrue on any overdue amount payable under the terms of this Contract from the due date to the date of actual

 

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payment at an annual rate equal to
the Relevant Interbank Rate plus 2% (200 basis points) and shall be payable in accordance with the demand of the Bank.

 

ARTICLE 4

Repayment

 

		4.01	Normal repayment

 

		4.01A	Single instalment

 

The Borrower shall repay each Tranche
in a single instalment on the Maturity Date specified in the Disbursement Offer, being a date falling not less than 3 (three) years
or more than 5 (five) years from the Scheduled Disbursement Date.

 

		4.02	Voluntary prepayment

 

		4.02A	Prepayment option

 

Subject to Articles 4.02B, 4.02C
and 4.04, the Borrower may prepay all or any part of any Tranche provided such prepayment amount is in a minimum principal amount
of EUR 5,000,000 (not including capitalised return under Article 3.01), together with accrued return under Article 3.01 and
indemnities if any, upon giving a Prepayment Request with at least 1 (one) month’s prior notice specifying (i) the Prepayment
Amount, (ii) the Prepayment Date, (iii) if applicable, the choice of application method of the Prepayment amount in line with Article 5.05C(i)
and (iv) the contract number (“FI nr”) mentioned on the cover page of this Contract.

 

Subject to Article 4.02C the Prepayment
Request shall be binding and irrevocable.

 

		4.02B	Prepayment indemnity

 

		4.02B	PREPAYMENT INDEMNITY

 

If the Borrower prepays a Tranche
under Article 4.02A or Article 4.03 (in the case of an lndemnifiable Prepayment Event), the Borrower shall pay to the Bank on the
Prepayment Date the Prepayment Indemnity in respect of the Tranche which is being prepaid.

 

		4.02C	Prepayment mechanics

 

Upon presentation by the Borrower
to the Bank of a Prepayment Request, the Bank shall issue a Prepayment Notice to the Borrower, not later than 15 (fifteen) days
prior to the Prepayment Date. The Prepayment Notice shall specify the Prepayment Amount, the accrued return under Article 3.01
due thereon, the Prepayment Indemnity payable under Article 4.02B or, as the case may be, that no indemnity is due, the method
of application of the Prepayment Amount and the Acceptance Deadline.

 

If the Borrower accepts the Prepayment
Notice no later than by the Acceptance Deadline, they shall effect the prepayment. In any other case, the Borrower may not effect
the prepayment.

 

The Borrower shall accompany the
prepayment by the payment of accrued return under Article 3.01 and indemnity, if any, due on the Prepayment Amount, as specified
in the Prepayment Notice.

 

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		4.03	Compulsory prepayment

 

		4.03A	Prepayment Events

 

4.03A(1) PROJECT COST REDUCTION

 

If the total cost of the Project
falls below the figure stated in Recital (2) so that the amount of the Credit (excluding any amount of the Credit represented by
return under Article 3.01 which has been capitalised in accordance with Article 3.01) exceeds 50% (fifty per cent) of such total
cost:

 

		(i)	the Borrower shall promptly inform the Bank and provide the required information to the Bank to
justify the deviation from the total costs of the Project as specified in Recital (2) together with a proposal for alternative
investment costs to be included in the Project definition; and

		(ii)	the Borrower and the Bank shall consult with each other for 15 (fifteen) Business Days with a view
to agreeing on a redefinition and/or substitution of the investment costs to be included in the Project definition or to agreeing
on an alternative manner in which the breach of this Article should be rectified.

 

If no agreement is reached as per
(i) and (ii) above, the Bank may forthwith, by notice to the Borrower, cancel the undisbursed portion of the Credit and/or demand
prepayment of the Loan up to the amount by which the Credit (excluding any amount of the Credit represented by return under Article
3.01 which has been capitalised in accordance with Article 3.01) exceeds 50% (fifty per cent) of the total cost of the Project.
The Borrower shall effect payment of the amount demanded on the date specified by the Bank, such date being a date falling not
less than 30 (thirty) days from the date of the demand.

 

4.03A(2) CHANGE OF CONTROL

 

The Borrower shall (so long as such
information is publicly available or the Borrower can disclose it without breaching any applicable law or mandatory regulations)
promptly inform the Bank if it becomes aware that a Change-of-Control Event has occurred or is likely to occur in respect of itself
or the Guarantor. At any time after the occurrence of a Change-of-Control Event, the Bank may, by notice to the Borrower, cancel
the undisbursed portion of the Credit and demand prepayment of the Loan, together with accrued return under Article 3.01 and all
other amounts accrued or outstanding under this Contract.

 

In addition, if the Borrower has
informed the Bank that a Change-of-Control Event is about to occur, or if the Bank has reasonable cause to believe that a Change-of-Control
Event is about to occur, the Bank may request that the Borrower consult with it. Such consultation shall take place within 30 (thirty)
days from the date of the Bank’s request. After the earlier of (a) the lapse of 30 (thirty) days from the date of such
request for consultation, or (b) at any time thereafter, upon the occurrence of the anticipated Change-of-Control Event the Bank
may, by notice to the Borrower, cancel the undisbursed portion of the Credit and demand prepayment of the Loan, together with accrued
return under Article 3.01 and all other amounts accrued or outstanding under this Contract.

 

The Borrower shall effect payment
of the amount demanded on the date specified by the Bank, such date being a date falling not less than 30 (thirty) days from the
date of the demand.

 

For the purposes of this Article:

 

		(a)	a “Change-of-Control Event” occurs if:

 

		(i)	any person or group of persons acting in concert gains control of the Guarantor; or

 

		(ii)	the Guarantor ceases to control the Borrower or be the beneficial owner directly or indirectly
through wholly owned subsidiaries of more than 50% (fifty per cent) of the issued share capital of the Borrower;

 

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		(b)	“acting in concert” means acting together pursuant to an agreement or understanding
(whether formal or informal); and

 

		(c)	“control” means the power to direct the management and policies of an entity,
whether through the ownership of voting capital, by contract or otherwise.

 

4.03A(3) PARI PASSU TO NON-EIB FINANCING

 

If the Borrower (or any other member
of the Group) or the Guarantor voluntarily prepays (for the avoidance of doubt, prepayment shall include a repurchase, redemption
or cancellation where applicable) a part or the whole of any Non-EIB Financing and such prepayment is not made within a revolving
credit facility (save for the cancellation of the revolving credit facility), the Bank may, by notice to the Borrower, cancel the
undisbursed portion of the Credit and demand prepayment of the Loan. The proportion of the Loan that the Bank may require to be
prepaid shall be the same as the proportion that the prepaid amount of the Non-EIB Financing bears to the aggregate outstanding
amount of all Non-EIB Financing.

 

The Borrower shall effect payment
of the amount demanded on the date specified by the Bank, such date being a date falling not less than 30 (thirty) days from the
date of the demand.

 

For the purposes of this Article,
“Non-EIB Financing” includes any loan (save for the Loan and any other direct loans from the Bank to the Borrower
(or any other member of the Group) or the Guarantor), credit bond or other form of financial indebtedness or any obligation for
the payment or repayment of money originally granted to the Borrower (or any other member of the Group) or the Guarantor) for a
term of more than 3 (three) years.

 

4.03A(4) CHANGE OF LAW

 

The Borrower shall promptly inform
the Bank if a Change-of-Law Event has occurred or is likely to occur. In such case, or if the Bank has reasonable cause to believe
that a Change-of-Law Event has occurred or is about to occur, the Bank may request that the Borrower consult with it. Such consultation
shall take place within 30 (thirty) days from the date of the Bank’s request. If, after the lapse of 30 (thirty) days from
the date of such request for consultation the Bank is of the reasonable opinion that the effects of the Change-of-Law Event cannot
be mitigated to its reasonable satisfaction, the Bank may by notice to the Borrower, cancel the undisbursed portion of the Credit
and demand prepayment of the Loan, together with accrued return under Article 3.01 and all other amounts accrued or outstanding
under this Contract.

 

The Borrower shall effect payment
of the amount demanded on the date specified by the Bank, such date being a date falling not less than 30 (thirty) days from the
date of the demand.

 

For the purposes of this Article
“Change-of-Law Event” means the enactment, promulgation, execution or ratification of or any change in or amendment
to any law, rule or regulation (or in the application or official interpretation of any law, rule or regulation) that occurs after
the date of this Contract and which, in the opinion of the Bank, would materially impair the Borrower’s or Guarantor’s
ability to perform their obligations under this Contract or any guarantee or security provided in respect of this Contract.

 

4.03A(5) ILLEGALITY

 

If it becomes unlawful in any applicable
jurisdiction for the Bank to perform any of its obligations as contemplated in this Contract or to fund or maintain the Loan, the
Bank shall promptly notify the Borrower and may immediately (i) suspend or cancel the undisbursed portion of the Credit and/or
(ii) demand prepayment of the Loan, together with accrued return under Article 3.01 and all other

 

    	21

    	 

    

 

amounts accrued or outstanding under
this Contract on the date indicated by the Bank in its notice to the Borrower.

 

		4.03B	Prepayment mechanics

 

Any sum demanded by the Bank pursuant
to Article 4.03A, together with any return under Article 3.01 or other amounts accrued or outstanding under this Contract
including, without limitation, any indemnity due under Article 4.03C, shall be paid on the date indicated by the Bank in its notice
of demand.

 

		4.03C	Prepayment indemnity

 

In the case of an lndemnifiable Prepayment
Event, the indemnity, if any, shall be determined in accordance with Article 4.02B.

 

		4.04	General

 

A repaid or prepaid amount may not
be reborrowed. This Article 4 shall not prejudice Article 10.

 

ARTICLE 5

Payments

 

		5.01	Day count convention

 

Any amount due by way of return under
Article 3.01, interest, indemnity or fee from the Borrower under this Contract, and calculated in respect of a fraction of a year,
shall be determined on the following respective conventions:

 

		(a)	in respect of the rate of return under this Contract, interest and indemnities due, a year of 360
(three hundred and sixty) days and a month of 30 (thirty) days; and

 

		(b)	in respect of any fees, a year of 360 (three hundred and sixty) days and the number of days elapsed.

 

		5.02	Time and place of payment

 

Unless otherwise specified in this
Contract or in the Bank’s demand, all sums other than sums of return under Article 3.01, indemnity and principal are payable
within 15 (fifteen) days of the Borrower’s receipt of the Bank’s demand.

 

Each sum payable by the Borrower
under this Contract shall be paid to the relevant account notified by the Bank to the Borrower. The Bank shall notify the account
not less than 15 (fifteen) days before the due date for the first payment by the Borrower and shall notify any change of account
not less than 15 (fifteen) days before the date of the first payment to which the change applies. This period of notice does not
apply in the case of payment under Article 10.

 

The Borrower shall indicate in each
payment made hereunder the contract number (“FI nr”) found on the cover page of this Contract.

 

A sum due from the Borrower shall
be deemed paid when the Bank receives it.

 

Any disbursements by and payments
to the Bank under this Contract shall be made using account(s) acceptable to the Bank. For the avoidance of doubt, any account
in the name of a Borrower held with a duly authorised financial institution in the jurisdiction where the Borrower is incorporated
or where the Project is undertaken is deemed acceptable to the Bank.

 

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		5.03	No set-off by the Borrower

 

All payments to be made by the Borrower
under this Contract shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

		5.04	Disruption to Payment Systems

 

If either the Bank determines (in
its discretion) that a Disruption Event has occurred or the Bank is notified by a Borrower that a Disruption Event has occurred:

 

		(a)	the Bank may, and shall if requested to do so by the Borrower, consult with the Borrower with a
view to agreeing with the Borrower such changes to the operation or administration of the Contract as the Bank may deem necessary
in the circumstances;

 

		(b)	the Bank shall not be obliged to consult with the Borrower in relation to any changes mentioned
in paragraph (a) if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation
to agree to such changes; and

 

		(c)	the Bank shall not be liable for any damages, costs or losses whatsoever arising as a result of
a Disruption Event or for taking or not taking any action pursuant to or in connection with this Article 5.04.

 

		5.05	Application of sums received

 

		(a)	General

 

Sums received from the Borrower shall
only discharge their payment obligations if received in accordance with the terms of this Contract.

 

		(b)	Partial payments

 

If the Bank receives a payment that
is insufficient to discharge all the amounts then due and payable by the Borrower under this Contract, the Bank shall apply that
payment in or towards payment of:

 

		(i)	first, any unpaid fees, costs, indemnities and expenses due under this Contract;

 

		(ii)	secondly, any accrued return under Article 3.01 due but unpaid under this Contract;

 

		(iii)	thirdly, any principal due but unpaid under this Contract; and

 

		(iv)	fourthly, any other sum due but unpaid under this Contract.

 

		(c)	Allocation of sums related to Tranches

 

		(i)	In case of:

 

		-	a partial voluntary prepayment of a Tranche that is subject to a repayment in several instalments,
the Prepayment Amount shall be applied pro rata to each outstanding instalment, or, at the request of the Borrower, in inverse
order of maturity,

 

		-	a partial compulsory prepayment of a Tranche that is subject to a repayment in several instalments,
the Prepayment Amount shall be applied in reduction of the outstanding instalments in inverse order of maturity.

 

		(ii)	Sums received by the Bank following a demand under Article 10.01 and applied to a Tranche, shall
reduce the outstanding instalments in inverse order of maturity. The Bank may apply sums received between Tranches at its discretion.

 

    	23

    	 

    

 

		(iii)	In case of receipt of sums which cannot be identified as applicable to a specific Tranche, and
on which there is no agreement between the Bank and the Borrower on their application, the Bank may apply these between Tranches
at its discretion.

 

ARTICLE 6

Borrower undertakings and representations

 

The undertakings in this Article
6 remain in force from the date of this Contract for so long as any amount is outstanding under this Contract or the Credit is
in force.

 

A. Project undertakings

 

		6.01	Use of Loan and availability of other funds

 

The Borrower shall use all amounts
borrowed by it under the Loan for the execution of the Project.

 

The Borrower shall ensure that it
has available to it the other funds listed in Recital (2) and that such funds are expended, to the extent required, on the financing
of the Project.

 

		6.02	Completion of Project

 

The Borrower shall or shall procure
that the Project is carried out in accordance with the Technical Description as may be modified from time to time with the approval
of the Bank, and complete it by the final date specified therein.

 

		6.03	Increased cost of Project

 

If the total cost of the Project
exceeds the estimated figure set out in Recital (2), the Borrower shall obtain the finance to fund the excess cost without recourse
to the Bank, so as to enable the Project to be completed in accordance with the Technical Description. The plans for funding the
excess cost shall be communicated to the Bank without delay.

 

		6.04	Procurement procedure

 

The Borrower shall purchase equipment,
secure services and order works for the Project (a) in so far as they apply to it or to the Project, in accordance with European
Union law in general and in particular with the relevant European Union Directives and (b) in so far as European Union Directives
do not apply, by procurement procedures which, to the satisfaction of the Bank, respect the criteria of economy and efficiency
and, in case of public contracts, the principles of transparency, equal treatment and non-discrimination on the basis of nationality.

 

		6.05	Continuing Project undertakings

 

The Borrower shall:

 

		(a)	Maintenance: maintain, repair, overhaul and renew all project assets as required to keep
such assets in good working order;

 

		(b)	Project assets: unless it is expressly permitted under this Contract or the Bank shall have
given its prior consent in writing retain title to and possession of all or substantially all the project assets or, as appropriate,
replace and renew such assets and maintain the Project in substantially continuous operation in accordance with its original purpose;
provided that the Bank may withhold its consent only where the proposed action would prejudice the Bank’s interests as lender
to the Borrower or would render the Project ineligible for financing by the Bank under its statute or under Article 309 of the
Treaty on the Functioning of the European Union;

 

    	24

    	 

    

 

		(c)	Insurance: insure all works and property forming part of the Project with reputable insurance
companies in accordance with relevant industry practice;

 

		(d)	Rights and Permits: maintain in force all rights of way or use and all Authorisations reasonably
necessary for the execution and operation of the Project; and

 

		(e)	Environment:

 

		(i)	implement and operate the Project in compliance with Environmental Law;

 

		(ii)	obtain and maintain requisite Environmental Approvals for the Project; and

 

		(iii)	comply with any such Environmental Approvals;

 

On becoming aware of any breach of
this Article 6.05(e):

 

		(A)	the Borrower shall promptly notify the Bank;

 

		(B)	the Borrower and the Bank will consult for 15 Business Days from the date of notification (the
consultation period) with a view to agreeing the manner in which the breach should be rectified; and

 

		(C)	the Borrower will use its best endeavours to comply with the provisions set out in paragraphs (i)
to (iii) (inclusive) above and shall in any event remedy the breach within 30 Business Days of the end of the consultation
period.

 

		(D)	Integrity: take, within a reasonable timeframe, appropriate measures in respect of any member
of its management bodies who has been convicted by a final and irrevocable court ruling of a Criminal Offence perpetrated in the
course of the exercise of his/her professional duties, in order to ensure that such member is excluded from any Borrower’s
activity in relation to the Loan or the Project;

 

		(E)	Integrity Audit Rights: ensure that all contracts under the Project to be procured after
the date of signature of this Contract in accordance with European Union Directives on procurement provide for:

 

		(i)	the requirement that the relevant contractor promptly informs the Bank of a genuine allegation,
complaint or information with regard to Criminal Offences related to the Project;

 

		(ii)	the requirement that the relevant contractor keeps books and records of all financial transactions
and expenditures in connection with the Project; and

 

		(iii)	the Bank’s right, in relation to an alleged Criminal Offence, to review the books and records
of the relevant contractor in relation to the Project and to take copies of documents to the extent permitted by law.

 

B. General undertakings

 

		6.06	Disposal of assets

 

		(a)	Except as provided below, the Borrower shall not, and shall procure that no other member of the
Group will, either in a single transaction or in a series of transactions whether related or not and whether voluntarily or involuntarily
dispose of all or any part of its business, undertaking or assets, including any Intellectual Property Rights unless:

 

		(i)	with the prior written consent of the Bank; or

 

		(ii)	such disposal is a Permitted Disposal.

 

    	25

    	 

    

 

For the purposes of this Article,
“dispose” and “disposal” includes any act effecting sale, transfer, lease or other disposal.

 

		6.07	Compliance with laws; Hedging

 

		6.07A	Compliance with laws

 

The Borrower and the Guarantor shall
comply in all material respects with all laws and regulations to which it or the Project is subject.

 

		6.07B	Hedging

 

The Borrower shall not, and shall
procure that each other member of the Group shall not, enter into any derivative transaction other than in accordance with the
Hedging Policy.

 

		6.08	Change in business

 

The Borrower shall procure that no
substantial change is made to the general nature business of the Borrower or the Group and the Guarantor as a whole from that carried
on at the date of this Contract.

 

		6.09	Merger

 

The Borrower shall not, and shall
ensure that no other member of the Group shall, enter into any amalgamation, demerger, merger or corporate reconstruction unless:

 

		(a)	with the prior written consent of the Bank; or

 

		(b)	such amalgamation, demerger, merger or corporate reconstruction is a Permitted Merger.

 

		6.10	

 

6.10A(1) Minimal worth of Borrower

 

The Borrower shall ensure that at
all times:

 

		(a)	gross revenues of the Borrower represent not less than 85% of the consolidated gross revenues of
the Group taken as a whole;

 

		(b)	Total Assets of the Borrower and the Guarantor represent not less than 85% of the consolidated
total assets of the Group taken as a whole; and

 

		(c)	EBITDA of the Borrower represents not less than 85% of the consolidated EBITDA of the Group,

 

each as calculated based on the then
latest consolidated audited accounts of the Group.

 

6.10A(2) Expenditure covenant

 

For the period from 1 January 2016
until 31 December 2020, the Borrower shall ensure that the total expenditure of the Group in respect of clinical trials, internal
research and development and CAPEX from 1 January 2015 to the relevant test date shall be no less than 75% of the figure for such
expenditure set out in the Business Plan for such period.

 

		6.10B	Financial Testing

 

		(a)	The covenant set out in Article 6.10A(1) shall be tested semi-annually on a 12-month rolling consolidated
basis with respect to the end of each Financial Year and the end of the second Financial Quarter in each Financial Year.

 

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		(b)	The covenant set out in Article 6.10(A)(2) shall be tested semi-annually on a consolidated basis
for the relevant period specified in that Article ending on 31 December and 30 June in each year.

 

		6.10C	Ownership

 

The Borrower shall immediately notify
the Bank in the event of a new entity becoming a majority owned subsidiary (meaning ownership of 50.1% (fifty point one per cent)
or more) through any means, including but not limited to acquisition, creation and spin-off.

 

		6.11	Books and records

 

The Borrower shall ensure that it
has kept and will continue to keep proper books and records of account, in which full and correct entries shall be made of all
financial transactions and the assets and business of that Borrower, including expenditures in connection with the Project, in
accordance with GAAP as in effect from time to time.

 

		6.12	Not used

 

		6.13	Acquisitions

 

The Borrower shall not, and shall
ensure that no other member of the Group shall invest in or acquire any entity or a business going concern or an undertaking (whether
whole or substantially the whole of the assets or business), or any division or operating unit thereof, or any shares or securities
of any entity or a business or undertaking (or in each case, any interest in any of them)(or agree to any of the foregoing), unless:

 

		(a)	with the prior written consent of the Bank; or

 

		(b)	such acquisition is a Permitted Acquisition.

 

		6.14	Indebtedness

 

The Borrower shall not, and shall
ensure that no other member of the Group shall incur any Indebtedness, unless:

 

		(a)	with the prior written consent of the Bank; or

 

		(b)	such Indebtedness is Permitted Indebtedness.

 

		6.15	Guarantees

 

The Borrower shall not, and shall
procure that no other member of the Group will issue or allow to remain outstanding any guarantees in respect of any liability
or obligation of any person unless:

 

		(a)	with the prior written consent of the Bank; or

 

		(b)	such guarantees are Permitted Guarantees.

 

		6.16	Permitted Payments

 

The Borrower shall not, and shall
procure that no other member of the Group shall, declare or distribute dividends, or make any payment in respect of any intercompany
loan, or return or purchase shares unless:

 

		(a)	with the prior written consent of the Bank;

 

		(b)	such payments are Permitted Payments; or

 

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		(c)	the solvent liquidation or reorganisation of any member of the Group which is not a Borrower or
the Guarantor so long as any payments or assets distributed as a result of such liquidation or reorganisation are distributed to
other members of the Group.

 

		6.17	Intellectual Property Rights

 

The Borrower shall, and shall procure
that each other member of the Group shall, (i) safeguard and maintain its rights with respect to the Intellectual Property Rights
required for the implementation of the Project in accordance with this Contract, including complying with all material contractual
provisions and that the implementation of the Project in accordance with this Contract will not result in the infringement of the
rights of any person with regard to the Intellectual Property Rights and (ii) ensure that any Intellectual Property Rights required
for the implementation of the Project will be owned by or licensed to the Borrower, and where such Intellectual Property Rights
which are owned by a member of the Group are capable of registration and it is commercially reasonable to do so, are registered
in the name of the Borrower or the Guarantor.

 

		6.18	Maintenance of Status

 

The Borrower shall, and shall procure
that each other member of the Group shall, remain duly incorporated and validly existing as a corporate entity with limited liability
under the jurisdiction in which it is incorporated and, other than in respect of the Guarantor’s tax domiciliation in Ireland
and the business carried out and assets owned by the Borrower in Germany, that it will have no centre of main interests, permanent
establishment or place of business outside the jurisdiction in which it is incorporated, and that it will continue to have the
power to carry on its business as it is now being conducted and continue to own its property and other assets.

 

		6.19	Illicit origin

 

The Borrower shall, and shall procure
that each other member of the Group shall, promptly inform the Bank if at any time it becomes aware of any funds that are invested
in the Project by the Borrower or by any other member of the Group that are of illicit origin, including products of money laundering
or linked to the financing of terrorism.

 

		6.20	General Representations and Warranties

 

The Borrower (or, where the Guarantor
is specifically referred to below, the Guarantor) represents and warrants to the Bank that:

 

		(a)	the Borrower is duly incorporated and validly existing as a company with limited liability under
the laws of Ireland, and the Guarantor is duly incorporated and validly existing as a company with limited liability under the
laws of Germany, and it has power to carry on its business as it is now being conducted and to own its property and other assets;

 

		(b)	it has the power to execute, deliver and perform its obligations under the Finance Documents and
all necessary corporate, shareholder and other action has been taken to authorise the execution, delivery and performance of the
same by it;

 

		(c)	subject to the Legal Reservations, each Finance Document to which the Borrower and the Guarantor
is a party constitutes the legally valid, binding and enforceable obligations of the Borrower or the Guarantor (as applicable);

 

		(d)	the execution and delivery of, the performance of the Borrower’s and the Guarantor’s
obligations under and compliance with the provisions of the Finance Documents to which each of them is a party do not and will
not:

 

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		(i)	contravene or conflict with any applicable law, statute, rule or regulation, or any judgement,
decree or permit to which it is subject in its jurisdiction of incorporation or in any jurisdiction in which it has its centre
of main interests or owns any assets;

 

		(ii)	contravene or conflict with any agreement or other instrument binding upon it which might reasonably
be expected to have a material adverse effect on its ability to perform its obligations under such Finance Documents;

 

		(iii)	contravene or conflict with any provision of its constitutional documents;

 

		(e)	the latest available consolidated audited accounts of the Guarantor and the latest available unaudited
accounts of the Borrower have been prepared on a basis consistent with previous years and have been approved by its auditors as
representing a true and fair view of the results of its operations for that year and accurately disclose or reserve against all
the liabilities (actual or contingent) of the Guarantor;

 

		(f)	there has been no Material Adverse Change since the date of the latest audited accounts of the
Guarantor;

 

		(g)	no event or circumstance which constitutes an Event of Default has occurred and is continuing unremedied
or unwaived;

 

		(h)	no litigation, arbitration, administrative proceedings or investigation is current or to its knowledge
is threatened or pending before any court, arbitral body or agency which has resulted or if adversely determined is reasonably
likely to result in a Material Adverse Change, nor is there subsisting against it or any of its subsidiaries any unsatisfied judgement
or award;

 

		(i)	each of the Borrower and the Guarantor has obtained all necessary Authorisations in connection
with the Finance Documents to which it is a party and in order to lawfully comply with its obligations hereunder, and the Project
and all such Authorisations are in full force and effect and admissible in evidence;

 

		(j)	the Borrower and the Guarantor (as applicable) is the sole legal and beneficial owner and has good
title to the assets which it charges or purports to charge pursuant to the Security Documents;

 

		(k)	the payment obligations of each of the Borrower and the Guarantor under the Finance Documents rank
not less than pari passu in right of payment with all other present and future unsecured and unsubordinated obligations
under any of its debt instruments except for obligations mandatorily preferred by law applying to companies generally;

 

		(l)	it is in compliance with Article 6.05(e) and to the best of its knowledge and belief (having made
due and careful enquiry) no material Environmental Claim has been commenced or is threatened against it not previously disclosed
to the Bank; and

 

		(m)	no financial covenants have been concluded with any other creditor of the Borrower;

 

		(n)	the Group structure chart is true, complete and accurate in all material respects and represents
the complete corporate structure of the Group as at the date of this Contract;

 

		(o)	it is not required to make any deduction for or on account of any Tax from any payment it may make
under this Contract;

 

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		(p)	to the best of its knowledge, no funds invested in the Project by the Borrower or by another member
of the Group are of illicit origin, including products of money laundering or linked to the financing of terrorism;

 

		(q)	all Tax returns required to have been filed by it or on its behalf under any applicable law have
been filed when due and contain the information required by applicable law to be contained in them;

 

		(r)	each of the Borrower and the Guarantor has paid when due all Taxes payable by it under applicable
law except to the extent that it is contesting payment in good faith and by appropriate means;

 

		(s)	with respect to Taxes which have not fallen due or which it is contesting, each of the Borrower
and the Guarantor is maintaining reserves adequate for their payment and in accordance, where applicable, with GAAP;

 

		(t)	[not used];

 

		(u)	under the laws of England and Wales it is not necessary that any Finance Document be filed, recorded
or enrolled with any court or other authority in Ireland or that any stamp, registration or similar tax be paid on or in relation
to any Finance Document, or the transactions contemplated by any Finance Document;

 

		(v)	any factual information (including the Business Plan) provided by the Borrower or any member of
the Group for the purposes of entering into this Contract and any related documentation was true and accurate in all material respects
as at the date it was provided or as at the date (if any) at which it is stated; any financial projections contained in the Business
Plan have been prepared on the basis of recent historical information and on the basis of reasonable assumptions; nothing has occurred
or been omitted from the Business Plan and no information has been given or withheld that results in the information contained
in the Business Plan being untrue or misleading in any material respect;

 

		(w)	the Borrower and each other member of the Group has no Indebtedness outstanding other than the
Permitted Indebtedness;

 

		(x)	neither it nor the Guarantor, nor any of their respective assets, is entitled to immunity from
suit, execution, attachment or other legal process;

 

		(y)	it has done, or will have done by the appropriate time for the Project to be implemented in accordance
with this Contract, all that is required or desirable to obtain, safeguard and maintain its rights with respect to the Intellectual
Property Rights required for the implementation of the Project in accordance with this Contract including complying with all contractual
provisions;

 

		(z)	to the best of its knowledge and belief, having made reasonable enquiry the implementation of the
Project in accordance with this Contract, will not result in the infringement of the rights of any person with regard to the Intellectual
Property Rights;

 

		(aa)	the pension schemes for the time being operated by the Borrower and the Guarantor (if any) are
funded in accordance with their rules and to the extent required by law or otherwise comply with the requirements of any law applicable
in the jurisdiction in which the relevant pension scheme is maintained;

 

    	30

    	 

    

 

		(bb)	each of the Borrower and the Guarantor is in compliance with all applicable European Union legislation
and the legislation of its jurisdiction of incorporation, including any applicable anti-corruption legislation;

 

		(cc)	other than as set out in the Group structure chart, the Borrower and the Guarantor own no other
equity and/or shares in any other business entity;

 

		(dd)	it has read and understood this Contract and determined that it is in its best commercial interest
and consistent with its purpose of operations to enter into this Contract;

 

		(ee)	no member of the Group is dormant;

 

		(ff)	it is in compliance with Article 6.10A and Article 6.10B; and

 

		(gg)	to the best of its knowledge and belief (having made reasonable enquiry) as on the date of this
Contract, (i) information provided by the Borrower under the lnnovFin Application Form is complete, accurate and true in all respects;
and (ii) the Borrower (and the Group as a whole where relevant) comply with all eligibility and exclusion criteria set out in the
Horizon 2020 Framework EU Programme as to be the beneficiary of the Credit, as listed in the lnnovFin Application Form.

 

The representations and warranties
set out above shall survive the execution of this Contract and are, with the exception of the representations set out in paragraph
(n), (o), (u), (v) and (gg) above, deemed repeated on each Disbursement Acceptance, Disbursement Date and on each Calculation Date
by reference to the facts and circumstances then existing.

 

ARTICLE 7

Security

 

The undertakings in this Article
7 remain in force from the date of this Contract for so long as any amount is outstanding under this Contract or the Credit is
in force.

 

		7.01	Guarantee

 

The obligations of the Bank under
this Contract are conditional upon the prior execution and delivery to the Bank of the Guarantee in form and substance satisfactory
to it. The Borrower hereby acknowledges and consents to the terms of the Guarantee.

 

		7.02	Negative pledge

 

		(a)	The Borrower shall not (and the Borrower shall ensure that no other member of the Group will) create
or permit to subsist any Security over any of its assets.

 

For the purposes of this Article 7.02,
the term Security shall also include any arrangement or transaction on assets or receivables or money (such as the sale, transfer
or other disposal of assets on terms whereby they are or may be leased to or re-acquired by a Borrower or any other member of the
Group, the sale, transfer or otherwise dispose of any receivables on recourse terms or any arrangement under which money or the
benefit of a bank account or other account may be applied or set-off or any preferential arrangement having a similar effect) in
circumstances where the arrangement or transaction is entered into primarily as a method of raising credit or of financing the
acquisition of an asset.

 

		(b)	Paragraph (a) above does not apply to any Security, listed below:

 

		(i)	NOT USED

 

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		(ii)	any netting or set-off arrangement entered into by any member of the Group in the ordinary course
of its banking arrangements for the purpose of netting debit and credit balances;

 

		(iii)	any payment or close out netting or set-off arrangement pursuant to any hedging transaction entered
into by a member of the Group for the purpose of:

 

		(A)	hedging any risk to which any member of the Group is exposed in its ordinary course of trading;
or

 

		(B)	its interest rate or currency management operations which are carried out in the ordinary course
of business and for non-speculative purposes only,

 

excluding, in each case, any Security
under a credit support arrangement in relation to a hedging transaction;

 

		(iv)	any lien arising by operation of law and in the ordinary course of trading;

 

		(v)	any Security over or affecting any asset acquired by a member of the Group after the date of this
Contract if:

 

		(A)	the Security was not created in contemplation of the acquisition of that asset by a member of the
Group;

 

		(B)	the principal amount secured has not been increased in contemplation of or since the acquisition
of that asset by a member of the Group; and

 

		(C)	the Security is removed or discharged within 3 months of the date of acquisition of such asset;

 

		(vi)	any Security over or affecting any asset of any company which becomes a member of the Group after
the date of this Contract, where the Security is created prior to the date on which that company becomes a member of the Group,
if:

 

		(A)	the Security was not created in contemplation of the acquisition of that company;

 

		(B)	the principal amount secured has not increased in contemplation of or since the acquisition of
that company; and

 

		(C)	the Security is removed or discharged within 3 months of that company becoming a member of the
Group;

 

		(vii)	any Security entered into pursuant to this Contract or the Security Documents;

 

		(viii)	any Security arising under any retention of title, hire purchase or conditional sale arrangement
or arrangements having similar effect in respect of goods supplied to a member of the Group in the ordinary course of trading and
on the supplier’s standard or usual terms and not arising as a result of any default or omission by any member of the Group;

 

		(ix)	any Security arising as a consequence of any finance or capital lease permitted pursuant to paragraph
(c) of the definition of Permitted Indebtedness; and

 

    	32

    	 

    

 

		(x)	any Security securing indebtedness the principal amount of which (when aggregated with the principal
amount of any other indebtedness which has the benefit of Security given by any member of the Group other than any permitted under
paragraphs (i) to (ix) above) does not exceed EUR 200,000 (or its equivalent in another currency or currencies).

 

		7.03	Pari passu ranking

 

The Borrower shall ensure that its
payment obligations under this Contract rank, and will rank, not less than pari passu in right of payment with all other
present and future secured and unsubordinated obligations under any of its debt instruments except for obligations mandatorily
preferred by law applying to companies generally.

 

		7.04	Clauses by inclusion

 

If a Borrower or any other member
of the Group concludes with any other financial creditor a financing agreement that includes a loss-of-rating clause or a covenant
or other provision regarding its financial ratios, if applicable, that is not provided for in this Contract or is more favourable
to the relevant financial creditor than any equivalent provision of this Contract is to the Bank, that Borrower shall promptly
inform the Bank and shall provide a copy of the more favourable provision to the Bank. The Bank may request that the Borrower promptly
executes an agreement to amend this Contract so as to provide for an equivalent provision in favour of the Bank.

 

ARTICLE 8

Information and Visits

 

		8.01	Information concerning the Project

 

The Borrower shall:

 

		(a)	deliver to the Bank:

 

		(i)	the information in content and in form, and at the times, specified in Schedule A.2 or otherwise
as agreed from time to time by the parties to this Contract; and

 

		(ii)	any such information or further document concerning the financing, procurement, implementation,
operation and environmental matters of or for the Project as the Bank may reasonably require within a reasonable time;

 

provided always that if such information
or document is not delivered to the Bank on time, and the Borrower does not rectify the omission within a reasonable time set by
the Bank in writing, the Bank may remedy the deficiency, to the extent feasible, by employing its own staff or a consultant or
any other third party, at the Borrower’s expense and the Borrower shall provide such persons with all assistance necessary
for the purpose;

 

		(b)	submit for the approval of the Bank without delay any material change to the Project, also taking
into account the disclosures made to the Bank in connection with the Project prior to the signing of this Contract, in respect
of, inter alia, the price, design, plans, timetable or to the expenditure programme or financing plan for the Project;

 

		(c)	promptly inform the Bank of:

 

		(i)	any action or protest initiated or any objection raised by any third party or any genuine complaint
received by the Borrower or any material Environmental Claim that is to its knowledge commenced, pending or threatened against
it with regard to environmental or other matters affecting the Project; and

 

    	33

    	 

    

 

		(ii)	any fact or event known to the Borrower, which may substantially prejudice or affect the conditions
of execution or operation of the Project;

 

		(iii)	a genuine allegation, complaint or information with regard to Criminal Offences related to the
Project;

 

		(iv)	any non-compliance by it with any applicable Environmental Law; and

 

		(v)	any suspension, revocation or modification of any Environmental Approval,

 

and set out the action to be taken
with respect to such matters;

 

		8.02	Information concerning the Borrower

 

The Borrower shall:

 

		(a)	deliver to the Bank:

 

		(i)	as soon as they become available but in any event within 180 days after the end of each of its
financial years the Guarantor’s audited consolidated annual report, balance sheet, profit and loss account and auditors report
for that financial year, and the Borrower’s unaudited annual report, balance sheet, profit and loss account, together with
a Compliance Certificate as set out in Schedule E.2 signed by two directors confirming compliance by the Borrower with the covenants
pursuant to Article 6.10A and with evidence of such compliance and related calculations; and

 

		(ii)	as soon as they become publicly available but in any event within 90 days after the end of each
of the relevant accounting periods the Guarantor’s and the Borrower’s interim consolidated and unconsolidated semi-annual
report, balance sheet and profit and loss account for the first half-year of each of its financial years together with a Compliance
Certificate as set out in Schedule E.2 signed by two directors confirming compliance by the Borrower with the covenants pursuant
to Article 6.10A and with evidence of such compliance and related calculations;

 

		(iii)	as soon as they become publicly available but in any event within 45 days after the end of each
of the relevant accounting periods the Guarantor’s and the Borrower’s interim consolidated and unconsolidated quarterly
reports, balance sheet and profit and loss account for the first and the third quarter of each of its financial years;

 

		(iv)	as soon as they are delivered to the Board of Directors, the monthly management accounts as delivered
to the Board of Directors on a monthly basis;

 

		(v)	as soon as they are delivered to the Board of Directors, the annual budgets delivered to the Board
of Directors on an annual basis; and

 

		(vi)	from time to time, such further information on its general financial situation as the Bank may
reasonably require or such certificates of compliance with the undertakings of Article 6 as the Bank may deem necessary;

 

and

 

		(b)	inform the Bank immediately of:

 

    	34

    	 

    

 

		(i)	any material alteration to the constitutional documents (as applicable) or shareholding structure
of the Borrower or the Guarantor and of any change of ownership of 5% or more of the Borrower shares after the date of this Contract;

 

		(ii)	any fact which obliges it to prepay any financial indebtedness or any European Union funding;

 

		(iii)	any event or decision that constitutes or may result in a Prepayment Event;

 

		(iv)	any intention on its part to grant any security over any of its assets in favour of a third party;

 

		(v)	any intention on its part to relinquish ownership of any material component of the Project;

 

		(vi)	any fact or event that is reasonably likely to prevent the substantial fulfilment of any obligation
of the Borrower under this Contract;

 

		(vii)	any event listed in Article 10.01 having occurred or being threatened or anticipated;

 

		(viii)	any investigations concerning the integrity of the members of the Borrower’s Board of Directors
or managers; or

 

		(ix)	to the extent permitted by law, any material litigation, arbitration, administrative proceedings
or investigation carried out by a court, administration or similar public authority, which, to the best of its knowledge and belief,
is current, imminent or pending against the Borrower or its controlling entities or members of the Borrower’s management
bodies in connection with Criminal Offences related to the Loan or the Project; and

 

		(x)	any litigation, arbitration or administrative proceedings or investigation which is current, threatened
or pending and which might if adversely determined result in a Material Adverse Change.

 

		8.03	Visits by the Bank

 

The Borrower shall allow persons
designated by the Bank, as well as persons designated by other institutions or bodies of the European Union in each case when so
required by the relevant mandatory provisions of European Union law upon reasonable notice:

 

		(a)	to visit the sites, installations and works comprising the Project;

 

		(b)	to interview representatives of the Borrower, and not obstruct contacts with any other person involved
in or affected by the Project; and

 

		(c)	to review the Borrower’s books and records in relation to the execution of the Project and
to be able to take copies of related documents to the extent permitted by the law.

 

The Borrower shall provide the Bank,
or ensure that the Bank is provided, with all necessary assistance for the purposes described in this Article.

 

The Borrower acknowledges that the
Bank may be obliged to communicate information relating to that Borrower and the Project to any competent institution or body of
the European Union in accordance with the relevant mandatory provisions of European Union law.

 

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ARTICLE 9

Charges and expenses

 

		9.01	Taxes, duties and fees

 

The Borrower shall pay all Taxes,
duties, fees and other impositions of whatsoever nature, including stamp duty and registration fees, arising out of the execution
or implementation of this Contract or any related document and in the creation, perfection, registration or enforcement of any
security for the Loan to the extent applicable.

 

The Borrower shall pay all principal,
return under Article 3.01, interest, indemnities and other amounts due under this Contract gross without deduction of any national
or local impositions whatsoever; provided that, if the Borrower is obliged to make any such deduction, the Borrower will gross
up the payment to the Bank so that after deduction, the net amount received by the Bank is equivalent to the sum due.

 

		9.02	Other charges

 

The Borrower shall bear all charges
and expenses, including professional, banking or exchange charges incurred in connection with the preparation, execution, implementation,
enforcement and termination of a Finance Document or any related document, any amendment, supplement or waiver in respect a Finance
Document or any related document, and in the amendment, creation, management, enforcement and realisation of the Guarantee, any
Security Document and/or any security for the Loan.

 

The Bank shall provide documentary
support for any such charges or expenses 14 (fourteen) days before its demand for payment falls due.

 

		9.03	Increased costs, indemnity and set-off

 

		(a)	The Borrower shall pay to the Bank any sums or expenses incurred or suffered by the Bank as a consequence
of the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation or compliance
with any law or regulation made after the date of signature of this Contract, in accordance with or as a result of which (i) the
Bank is obliged to incur additional costs in order to fund or perform its obligations under this Contract, or (ii) any amount owed
to the Bank under this Contract or the financial income resulting from the granting of the Credit or the Loan by the Bank to the
Borrower is reduced or eliminated.

 

		(b)	Without prejudice to any other rights of the Bank under this Contract or under any applicable law,
the Borrower shall indemnify and hold the Bank harmless from and against any loss incurred as a result of any payment or partial
discharge that takes place in a manner other than as expressly set out in this Contract.

 

		(c)	The Bank may set off any matured obligation due from a Borrower under this Contract (to the extent
beneficially owned by the Bank) against any obligation (whether or not matured) owed by the Bank to a Borrower regardless of the
place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Bank may
convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. If either
obligation is unliquidated or unascertained, the Bank may set off in an amount estimated by it in good faith to be the amount of
that obligation.

 

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ARTICLE 10

Events of Default

 

		10.01	Right to demand repayment

 

The Borrower shall repay all or part
of the Loan (as requested by the Bank) forthwith, together with accrued return under Article 3.01 and all other accrued or outstanding
amounts under this Contract, upon written demand being made by the Bank if any of the following events occur.

 

		10.01A	Immediate demand

 

The Bank may make such demand immediately:

 

		(a)	if the Borrower does not pay on the due date any amount payable by it pursuant to this Contract
at the place and in the currency in which it is expressed to be payable, unless (i) its failure to pay is caused by an administrative
or technical error or a Disruption Event and (ii) payment is made within 3 Business Days of its due date;

 

		(b)	if any information or document given to the Bank by or on behalf of the Borrower or the Guarantor
or any representation, warranty or statement made or deemed to be made by the Borrower in or pursuant to this Contract is or proves
to have been incorrect, incomplete or misleading in any material respect;

 

		(c)	if, following any default of the Borrower or the Guarantor or any other member of the Group in
relation to any loan, or any obligation arising out of any financial transaction, other than the Loan,

 

		(i)	the Borrower or the Guarantor or any other member of the Group is required or is capable of being
required or will, following expiry of any applicable contractual grace period, be required or be capable of being required to prepay,
discharge, close out or terminate ahead of maturity such other loan or obligation; or

 

		(ii)	any financial commitment for such other loan or obligation is cancelled or suspended;

 

		(d)	if the Borrower or the Guarantor or any member of the Group is unable to pay its debts as they
fall due, or suspends its debts, or makes or seeks to make a composition with its creditors including a moratorium, or commences
negotiations with one or more of its creditors (or, in the case of the Borrower, is unable or admits inability to pay its debts
within the meaning of section 214 of the Irish Companies Act 1963 (as amended by section 123 of the Irish Companies Act 1990) and/or
section 2 of the Irish Companies (Amendment) Act 1990) with a view to rescheduling any of its financial indebtedness;

 

		(e)	if any corporate action, legal proceedings or other procedure or step is taken in relation to the
suspension of payments, a moratorium of any indebtedness, dissolution, administration, examinership or reorganisation (by way of
voluntary arrangement, scheme of arrangement or otherwise) or an order is made or an effective resolution is passed for the winding
up of the Borrower or the Guarantor or any member of the Group, or if the Borrower or the Guarantor or any member of the Group
takes steps towards a substantial reduction in its capital, is declared insolvent or ceases or resolves to cease to carry on the
whole or any substantial part of its business or activities;

 

		(f)	if an encumbrancer takes possession of, or a receiver, liquidator, administrator, administrative
receiver, examiner or similar officer is appointed, whether by a court of competent jurisdiction or by any competent administrative
authority or by any person, of or over, any part of the business or assets of the Borrower or the Guarantor or any member of the
Group or any property forming part of the Project;

 

    	37

    	 

    

 

		(g)	if the Borrower or Guarantor or any member of the Group defaults in the performance of any obligation
in respect of any other loan granted by the Bank or financial instrument entered into with the Bank or from the resources of the
bank or the European Union;

 

		(h)	if any distress, execution, sequestration or other process is levied or enforced upon the property
of the Borrower or any property forming part of the Project and is not discharged or stayed within 14 (fourteen) days;

 

		(i)	if a Material Adverse Change occurs, as compared with the Borrower’s or the Guarantor’s
condition at the date of this Contract; or

 

		(j)	if it is or becomes unlawful for the Borrower or the Guarantor to perform any of its obligations
under this Contract, the Guarantee or the Security Documents or this Contract, the Guarantee or the Security Documents are not
effective in accordance with its terms or is alleged by the Borrower or the Guarantor to be ineffective in accordance with its
terms.

 

		10.01B	Demand after notice to remedy

 

The Bank may also make such demand:

 

		(a)	if the Borrower or the Guarantor fails to comply with any obligation under this Contract, the Guarantee
or the Security Documents not being an obligation mentioned in Article 10.01A (other than Article 10.01A(j)) or Article 6.10A(2);
or

 

		(b)	if any fact related to a Borrower or the Project stated in the Recitals materially alters and is
not materially restored and if the alteration either prejudices the interests of the Bank as lender to the Borrower or adversely
affects the implementation or operation of the Project,

 

unless the non-compliance or circumstance
giving rise to the non-compliance is capable of remedy and is remedied within 10 Business Days from a notice served by the Bank
on the Borrower or the Guarantor.

 

		10.01C	Demand after notice to remedy (in relation to Article
6.10A(2))

 

If the Borrower fails to comply with
any obligation under Article 6.10A(2), the Borrower and the Bank will consult with each other for a period of 15 Business Days
since the Bank served notice of such non-compliance on the Borrower or the Guarantor. The parties will enter in such consultation
with a view to agreeing on revised expenditure of the Group in respect of the items referred to in Article 6.10A(2) and a revised
Business Plan reflecting such revised expenditure, such that if such expenditure is made on such revised basis before the next
date on which the covenant set out in Article 6.10(A)(2) will be tested under Article 6.10B(b), the covenant set out in Article
6.10(A)(2) will be satisfied on that date. If this period has elapsed and no agreement has been reached, the Bank may also make
such a demand under Article 10.01 immediately.

 

		10.02	Other rights at law

 

Article 10.01 shall not restrict
any other right of the Bank at law to require prepayment of the Loan.

 

		10.03	Indemnity

 

		10.03A	All Tranches

 

In case of demand under Article 10.01
in respect of any Tranche, the Borrower shall pay to the Bank the amount demanded together with the Prepayment Indemnity on any
amount of principal due to be prepaid. Such Prepayment Indemnity shall accrue from the due date for payment specified in the Bank’s
notice of demand and be calculated on the basis that prepayment is effected on the date so specified.

 

    	38

    	 

    

 

		10.03B	General

 

Amounts due by the Borrower pursuant
to this Article 10.03 shall be payable on the date of prepayment specified in the Bank’s demand.

 

		10.04	Non-Waiver

 

No failure or delay or single or
partial exercise by the Bank in exercising any of its rights or remedies under this Contract shall be construed as a waiver of
such right or remedy. The rights and remedies provided in this Contract are cumulative and not exclusive of any rights or remedies
provided by law.

 

ARTICLE 11

Law and jurisdiction, miscellaneous

 

		11.01	Governing Law

 

This Contract and any non-contractual
obligations arising out of or in connection with it shall be governed by the laws of England and Wales.

 

		11.02	Jurisdiction

 

		(a)	The courts of England have exclusive jurisdiction to settle any dispute (a “Dispute”)
arising out of or in connection with this Contract (including a dispute regarding the existence, validity or termination of this
Contract or the consequences of its nullity) or any non-contractual obligation arising out of or in connection with this Contract.

 

		(b)	The parties agree that the courts of England are the most appropriate and convenient courts to
settle Disputes between them and, accordingly, that they will not argue to the contrary.

 

		(c)	This Article 11.02 is for the benefit of the Bank only. As a result and notwithstanding Article
11.02(a), it does not prevent the Bank from taking proceedings relating to a dispute (including a dispute relating to the existence,
validity or termination hereof or any non-contractual obligation arising out of or in connection with this Contract) in any other
courts with jurisdiction. To the extent allowed by law, the Bank may take concurrent proceedings in any number of jurisdictions.

 

		11.03	Agent of Service

 

Without prejudice to any other mode
of service allowed under any relevant law, the Borrower and the Guarantor hereby irrevocably appoints Law Debenture Corporate Services
Limited of Fifth Floor, 100 Wood Street, London, EC2V 7EX as its agent of service for the purposes of accepting service on its
behalf of any writ, notice, order, judgement or other legal process. The Borrower and the Guarantor agrees that failure by a process
agent to notify it of the process will not invalidate the proceedings concerned.

 

The Bank hereby appoints The Securities
Management Trust Limited of 8 Lothbury, London EC2 7HH to be its agent for the purpose of accepting service of legal process.

 

		11.04	Place of performance

 

Unless otherwise specifically agreed
by the Bank in writing, the place of performance under this Contract, shall be the seat of the Bank.

 

    	39

    	 

    

 

		11.05	Evidence of sums due

 

In any legal action arising out of
this Contract the certificate of the Bank as to any amount or rate due to the Bank under this Contract shall, in the absence of
manifest error, be prima facie evidence of such amount or rate.

 

		11.06	Third party rights

 

A person who is not a party has no
right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Contract.

 

		11.07	Entire Agreement

 

This Contract constitutes the entire
agreement between the Bank and the Borrower in relation to the provision of the Credit hereunder, and supersedes any previous agreement,
whether express or implied, on the same matter.

 

		11.08	Invalidity

 

If at any time any term of this Contract
is or becomes illegal, invalid or unenforceable in any respect, or this Contract is or becomes ineffective in any respect, under
the laws of any jurisdiction, such illegality, invalidity, unenforceability or ineffectiveness shall not affect:

 

		(a)	the legality, validity or enforceability in that jurisdiction of any other term of this Contract
or the effectiveness in any other respect of this Contract in that jurisdiction; or

 

		(b)	the legality, validity or enforceability in other jurisdictions of that or any other term of this
Contract or the effectiveness of this Contract under the laws of such other jurisdictions.

 

		11.09	Amendments

 

Any amendment to this Contract shall
be made in writing and shall be signed by the parties hereto.

 

		11.10	Counterparts

 

This Contract may be executed in
any number of counterparts, all of which taken together shall constitute one and the same instrument. Each counterpart is an original,
but all counterparts shall together constitute one and the same instrument.

 

ARTICLE 12

Final clauses

 

		12.01	Notices to either party

 

Notices and other communications
given under this Contract addressed to either party to this Contract shall be made to the address or facsimile number as set out
below, or to such other address or facsimile number as a party previously notifies to the other in writing:

 

	 	For the Bank	Attention:  Hristo Stoykov
	 	 	 
	 	 	100 boulevard Konrad Adenauer
	 	 	L-2950 Luxembourg
	 	 	 
	 	 	Facsimile no: +352 4379 67397
	 	 	 
	 	For the Borrower	Attention:  Department/Division
	 	 	 
	 	 	Corporate Controller
	 	 	Unit 9, Block D

 

    	40

    	 

    

 

	 	 	Monksland Business Park
	 	 	Monksland
	 	 	Athlone
	 	 	Co. Roscommon
	 	 	Ireland
	 	 	 
	 	 	Facsimile no.: +353 (0) 90 6486835
	 	 	 
	 	For Guarantor	Attention:  Department/Division
	 	 	 
	 	 	Corporate Controller
	 	 	Unit 9, Block D
	 	 	Monksland Business Park
	 	 	Monksland
	 	 	Athlone
	 	 	Co. Roscommon
	 	 	Ireland
	 	 	 
	 	 	Facsimile no.: +353 (0) 90 6486835

 

		12.02	Form of notice

 

Any notice or other communication
given under this Contract must be in writing.

 

Notices and other communications,
for which fixed periods are laid down in this Contract or which themselves fix periods binding on the addressee, may be made by
hand delivery, registered letter or facsimile. Such notices and communications shall be deemed to have been received by the other
party on the date of delivery in relation to a hand-delivered or registered letter or on receipt of transmission in relation to
a facsimile.

 

Other notices and communications
may be made by hand delivery, registered letter or facsimile or, to the extent agreed by the parties by written agreement, by email
or other electronic communication.

 

Without affecting the validity of
any notice delivered by facsimile according to the paragraphs above, a copy of each notice delivered by facsimile shall also be
sent by letter to the relevant party on the next following Business Day at the latest.

 

Notices issued by the Borrower pursuant
to any provision of this Contract shall, where required by the Bank, be delivered to the Bank together with satisfactory evidence
of the authority of the person or persons authorised to sign such notice on behalf of the Borrower and the authenticated specimen
signature of such person or persons.

 

		12.03	Recitals, Schedules and Annexes

 

The Recitals and following Schedules
form part of this Contract:

 

	 	Schedule A	Project Specification and Reporting
	 	 	 
	 	Schedule B	Definition of EURIBOR
	 	 	 
	 	Schedule C	Forms for Borrower
	 	 	 
	 	Schedule D	[not used]
	 	 	 
	 	Schedule E	Conditions Precedent and Certificates of the Borrower

 

    	41

    	 

    

 

 

	 	Schedule F	[not used]
	 	 	 
	 	Schedule G	Business Plan
	 	 	 
	 	The following Annexes are attached hereto:
	 	 	 
	 	Annex I	Resolution of Board of Directors of the Borrower and authorisation of signatory
	 	 	 
	 	Annex II	Certificate of Borrowing Powers

 

IN WITNESS
WHEREOF the parties hereto have caused this Contract to be executed in three originals in the English language

 

    	42

    	 

    

 

This 27 March 2015

 

	INNOCOLL PHARMACEUTICALS LIMITED	 
	 	 	 
	 	Signed for and on behalf of	 
	 	 	 
	 	lnnocoll Pharmaceuticals Limited	 
	 	 	 
	 	By:	 
	 	 	 
	 	D Prior	 
	 	Director / Attorney	 
	 	 	 
	INNOCOLL AG	 
	 	 	 
	 	Gordon B. Dunn	 
	 	Gordon Dunn	 
	 	acting as Director (Vorstand) authorized to represent singly on behalf of
	 	lnnocoll AG	 
	 	 	 
	EUROPEAN INVESTMENT BANK	 
	 	 	 
	By:	N Jennett	 
	 	Name:  Nicholas Jennett	 
	 	Title:  Director	 
	 	 	 
	By:	Stefan Becker	 
	 	Name:  Stefan Becker	 
	 	Title:  Senior Legal Counsel	 

 

    	43

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