Document:

Exhibit 10.6

 

 

Biofrontera Aktiengesellschaft

 

Leverkusen

 

	6% Wandelschuldverschreibung 

2017/2022	6 % Convertible Bond 

2017/2022
	Anleihebedingungen	Terms and Conditions of Bonds 

(non binding convenience translation)
	§ 1

Allgemeines	§ 1

General
	(1)   Nennbetrag
    und Einteilung. Die von der Biofrontera AG mit Sitz in Leverkusen
    („Emittentin”)
    begebene Wandelschuldverschreibung im Gesamtnennbetrag von bis zu EUR 4.999.000 ist eingeteilt in bis zu 49.990 untereinander
    gleichberechtigte, auf den Inhaber lautende Teilschuldverschreibungen („Schuldverschreibungen”)
    im Nennbetrag von jeweils EUR 100 („Nennbetrag“).	(1)   Principal
    Amount and Denomination. The convertible bond issued by Biofrontera AG with a statutory seat in Leverkusen,
    (“Issuer”), in an aggregate principal amount
    of up to EUR 4,999,000 is divided into up to 49,990 non-registered pari passu bonds (“Bonds”),
    each with a principal amount of EUR 100 (“Principal
    Amount”).
	(2)   Globalverbriefung und Verwahrung. Die Schuldverschreibungen werden durch eine auf den Inhaber lautende Dauerglobalurkunde („Globalurkunde”) ohne Zinsscheine verbrieft. Die Globalurkunde wird bei der Clearstream Banking AG mit Sitz in Frankfurt am Main („Clearstream Frankfurt“) eingeliefert und verwahrt, bis alle Verpflichtungen der Emittentin aus den Schuldverschreibungen erfüllt sind. Die Globalurkunde trägt die Unterschrift des Vorstands der Emittentin in vertretungsberechtigter Zahl. Die Ausgabe effektiver Schuldverschreibungen und Zinsscheine ist ausgeschlossen.	(2)   Global
    Certificate and Custody. The Bonds are securitized in a non-registered permanent global certificate (“Global
    Certificate”) without interest coupons. The Global Certificate will be deposited with Clearstream Banking AG with
    seat in Frankfurt am Main (“Clearstream Frankfurt”) and will be kept in custody with Clearstream until
    all obligations of the Issuer under the Bonds have been satisfied. The Global Certificate bears the signatures of members
    of the Issuer’s management board authorized to represent the Issuer. No physical certificates representing Bonds and
    interest coupons will be issued.

 

     

     

    

 

	§ 2

Zinsen	§ 2

Interest
	(1)   Zinssatz und Zinszahlungstage. Die Schuldverschreibungen werden ab dem 01. Februar 2017 (einschließlich) („Zinsbeginn”) an mit jährlich 6 % auf ihren Nennbetrag verzinst. Die Zinsen sind halbjährlich nachträglich am 01. Januar und 1. Juli eines jeden Jahres („Zinszahlungstag”), erstmals am 01. Juli 2017, zahlbar. Der Zinslauf der Schuldverschreibungen endet mit Ablauf des Tages, der dem Tag, an dem sie zur Rückzahlung fällig werden, unmittelbar vorausgeht, oder, falls das Wandlungsrecht ausgeübt wurde, mit Ablauf des Tages, der dem letzten Zinszahlungstag vor dem Ausübungstag unmittelbar vorausgeht oder, falls kein Zinszahlungstag vorausging, dem der dem Zinsbeginn vorausging.	(1)   Interest Rate and Interest Payment Dates. The Bonds shall bear interest at a rate of 6 % p.a. on their Principal Amount from and including 1 February 2017 (“Interest Commencement”). Interest shall be payable half-yearly in arrears on 1 January and 1 July of each year (“Interest Payment Date”), commencing on 1 July 2017. Interest shall cease to accrue with the expiration of the day which immediately precedes the day on which the Bonds become due for redemption, or, if the Conversion Right has been exercised, with the expiration of the day which immediately precedes the last Interest Payment Date prior to the Conversion Date or, if there was no Interest Payment Date, the Interest Commencement.
	(2)   Verzugszinsen. Sofern die Emittentin die Schuldverschreibungen nicht bei Fälligkeit zurückzahlt, wird der Nennbetrag bis zum Tag der tatsächlichen Rückzahlung der Schuldverschreibungen (ausschließlich) mit einem jährlichen Zinssatz von 6 % weiter verzinst. Die Geltendmachung eines weiteren Schadens ist nicht ausgeschlossen.	(2)   Default Interest. Insofar as the Issuer fails to redeem the Bonds on the day on which they become due for redemption, interest shall continue to accrue on the Principal Amount at the rate of 6 % per annum until (but excluding) the date of actual redemption of the Bonds. Claims for further damages shall not be excluded.

 

     

     

    

 

	(3)   Zinsperiode, Zinstagequotient. „Zinsperiode“ bezeichnet den Zeitraum ab dem Zinsbeginn (einschließlich) bis zu dem ersten Zinszahlungstag (ausschließlich) und danach ab dem jeweiligen Zinszahlungstag (einschließlich) bis zu dem nächstfolgenden Zinszahlungstag (ausschließlich). Sind Zinsen für einen Zeitraum zu berechnen, der kürzer als eine volle Zinsperiode ist oder einer Zinsperiode entspricht, werden die Zinsen gemäß Rule 251 ICMA (ACT/ACT) berechnet.	(3)   Interest Period, Interest Day Count Fraction. “Interest Period” shall mean the period from and including the Interest Commencement until but excluding the first Interest Payment Date and thereafter from and including each relevant Interest Payment Date until but excluding the next following Interest Payment Date. Where interest is to be calculated in respect of a period which is shorter than or equal to a full Interest Period, interest will be calculated on the basis of Rule 251 ICMA (ACT/ACT) 
	§ 3

Zahlungen	§ 3

Payments
	(1)   Währung. Sämtliche Zahlungen auf die Schuldverschreibungen werden von der Emittentin in Euro geleistet.	(1)   Currency. All payments on the Bonds shall be made by the Issuer in Euro.
	(2)   Zahlungen. Zahlungen von Kapital, Zinsen und aller sonstigen auf die Schuldverschreibungen zahlbaren Barbeträge werden von der Emittentin am jeweiligen Zahlungstag an eine Zahlstelle zur Weiterleitung an Clearstream zur Gutschrift auf die Konten der jeweiligen Kontoinhaber bei Clearstream geleistet. Alle Zahlungen an Clearstream oder zu deren Order befreien die Emittentin in Höhe der geleisteten Zahlungen von ihren Verbindlichkeiten aus den Schuldverschreibungen.	(2)   Payments. Payments of principal, interest and all other cash payments payable on the Bonds shall be made by the Issuer on the relevant payment date to a Paying Agent for on-payment to Clearstream for credit to the accounts of the respective accountholders in Clearstream. All payments made to Clearstream or to its order shall discharge the issuer from its liability under the Bonds to the extent of the amounts so paid.

 

     

     

    

 

	(3)   Zahlungstag/Fälligkeitstag/Geschäftstag. Im Rahmen dieser Anleihebedingungen bedeutet „Zahlungstag“ der Tag, an dem die Zahlung tatsächlich erfolgen muss, und „Fälligkeitstag“ bezeichnet den hierin vorgesehenen Zahlungstag ohne Berücksichtigung einer solchen Verschiebung. Ein „Geschäftstag” ist jeder Tag, an dem Banken in Frankfurt am Main für den Geschäftsverkehr geöffnet sind und Zahlungen in Euro über das TARGET 2 System abgewickelt werden können. Ist ein Fälligkeitstag kein Geschäftstag, so wird die betreffende Zahlung erst am nächstfolgenden Geschäftstag als Zahlungstag geleistet, ohne dass wegen dieses Zahlungsaufschubes Zinsen oder sonstige Entschädigungen zu zahlen sind.	(3)   Payment Date/Due Date/Business Day. For the purposes of these Terms and Conditions, “payment date” means the day on which the payment is actually to be made, and “due date” means the payment date provided for herein, without taking account of such adjustment. A “Business Day” shall be any day on which banking institutions are open for business in Frankfurt am Main and payments in Euro may be settled via the TARGET 2 system. If any due date is not a Business Day, such payment will not be made until the immediately following payment date, and no interest or other reimbursements shall be paid in respect of the delay in such payment. 
	§ 4

Laufzeit, Fälligkeit; Rückerwerb; Vorzeitige Rückzahlung	§ 4

Maturity; Repurchase; Early Redemption
	(1)   Laufzeit, Fälligkeit. Die Laufzeit der Schuldverschreibungen beginnt am 01. Februar 2017. Die Schuldverschreibungen werden am 01. Januar 2022 („Rückzahlungstag”) zu ihrem Nennbetrag zuzüglich auf den Nennbetrag bis zum Rückzahlungstag (ausschließlich) aufgelaufener Zinsen zurückgezahlt, sofern sie nicht vorher zurückgezahlt, gewandelt oder zurückgekauft und entwertet worden sind.	(1)   Term, Maturity. The term of the bonds commences on 1 February 2017. The Bonds will be redeemed with their Principal Amount on 1 January 2022 (“Maturity Date”), together with accrued interest on the Principal Amount until (but excluding) the Maturity Date, unless they have previously been redeemed or converted or purchased and cancelled.
	(2)   Rückerwerb. Die Emittentin und/oder ein mit ihr verbundenes Unternehmen ist berechtigt, jederzeit Schuldverschreibungen im Markt oder auf andere Weise zu erwerben. Die zurückerworbenen Schuldverschreibungen können gehalten, entwertet oder wieder verkauft werden.	(2)   Repurchases. The Issuer and/or any of its affiliates shall be entitled at any time to purchase Bonds in the market or otherwise. Bonds repurchased may be held, cancelled or resold.

 

     

     

    

 

	(3)   Vorzeitige Rückzahlung aufgrund Geringfügigkeit. Die Emittentin ist berechtigt, die noch ausstehenden Schuldverschreibungen insgesamt, nicht jedoch teilweise, jederzeit zu deren Nennbetrag zuzüglich der darauf bis zum Tag der Rückzahlung (ausschließlich) aufgelaufenen Zinsen zurückzuzahlen, wenn der Gesamtnennbetrag der ausstehenden Schuldverschreibungen zu irgendeinem Zeitpunkt unter 15% der ursprünglich begebenen Schuldverschreibungen fällt. Die vorzeitige Rückzahlung muss mindestens 30 und höchstens 60 Tage vor demjenigen Tag bekannt gemacht werden, der in der Bekanntmachung als Tag angegeben wurde, an dem die Schuldverschreibungen zur Rückzahlung fällig werden. Die Regelungen des vorstehenden Absatzes gelten entsprechend.	(3)   Early Redemption for reasons of minimal outstanding Principal Amount. The Issuer may at any time redeem all, but not part of the Bonds at their Principal Amount, together with interest accrued thereon until (but excluding) the date of redemption if at any time the Principal Amount of the Bonds outstanding is below 15% of the initially issued amount of Bonds. Notice of early redemption shall be given not less than 30 nor more than 60 days before the day fixed in the notice on which any Bonds become due for early redemption. The provisions of the preceding paragraph shall apply accordingly.
	§ 5

Steuern	§ 5

Taxes
	Alle Zahlungen der Emittentin auf die Schuldverschreibungen werden ohne Abzug oder Einbehalt gegenwärtiger oder zukünftiger Steuern, Abgaben oder amtlicher Gebühren gleich welcher Art geleistet, die von einer in der Bundesrepublik Deutschland ansässigen Behörde oder für deren Rechnung oder von oder für Rechnung einer dort zur Steuererhebung ermächtigten Gebietskörperschaft oder Behörde durch Abzug oder Einbehalt an der Quelle auferlegt, erhoben oder eingezogen werden, es sei denn, ein solcher Abzug oder Einbehalt ist rechtlich vorgeschrieben. Die Emittentin ist im Hinblick auf einen solchen Abzug oder Einbehalt nicht zu zusätzlichen Zahlungen an die Anleihegläubiger verpflichtet.	All payments by the Issuer on the Bonds will be made without deduction or withholding of any present or future taxes, duties or governmental charges of any nature whatsoever imposed, levied or collected by way of deduction or withholding at source by, in or on behalf of the Federal Republic of Germany or by or on behalf of any political subdivision or authority thereof or therein having power to tax, unless such deduction or withholding is required by law. The Issuer shall not be required to make any additional payments to the Bondholders in respect of such deduction or withholding.

 

     

     

    

 

	§ 6

Wandlungsrecht	§ 6

Conversion Right
	(1)   Die Emittentin gewährt jedem Anleihegläubiger das Recht (“Wandlungsrecht”), gemäß den Bestimmungen dieses § 6 jederzeit während des Ausübungszeitraums (§ 6(3)) jede Schuldverschreibung ganz, nicht jedoch teilweise, in nennbetragslose auf den Namen lautende Stammaktien der Emittentin mit einem rechnerischen Anteil von je EUR 1,00 am Grundkapital („Aktien“) zu wandeln. Der Wandlungspreis je Aktie („Wandlungspreis“) beträgt, vorbehaltlich einer Anpassung gemäß § 11, bis zum 31. März 2017 (einschließlich) je Aktie EUR 3,50, vom 01. April 2017 bis zum 31. Dezember 2017 (einschließlich) je Aktie EUR 4,00 und ab dem 01. Januar 2018 je Aktie EUR 5,00.	(1)   Conversion Right. The Issuer grants each Bondholder the right (“Conversion Right”) to convert in accordance with this § 6 at any time during the Conversion Period (§ 6(3)) each Bond in whole, but not in part, into no-par ordinary registered shares of the Issuer with a notional participation in registered capital of EUR 1.00 each (“Shares”). Subject to adjustments pursuant to § 11, the conversion price per Share (“Conversion Price”) amounts to, until 31 March 2017 (inclusive) EUR 3.50 per Share, from 01 April 2017 until 31 December 2018 (inclusive) EUR 4.00 per Share and from 01 January 2018 EUR 5.00 per Share.
	(2)   Das Wandlungsverhältnis (das „Wandlungsverhältnis“) errechnet sich durch Division des Nennbetrags einer Schuldverschreibung durch den am Ausübungstag geltenden Wandlungspreis, das anfängliche Wandelverhältnis beträgt abgerundet 1:28. Die Lieferung der Aktien erfolgt gemäß § 8.	(2)   The conversion ratio (“Conversion Ratio”) shall be calculated by dividing the Principal Amount of a Bond by the Conversion Price applicable on the Conversion Date; the initial Conversion Ratio is (rounded down) 1:28. Delivery of Shares shall be made in accordance with § 8.

 

     

     

    

 

	(3)   Ausübungszeitraum. Das Wandlungsrecht kann durch einen Anleihegläubiger nach Maßgabe dieser Anleihebedingungen jederzeit bis zum zehnten Geschäftstag vor dem Rückzahlungstag (beide Tage einschließlich) („Ausübungszeitraum”) ausgeübt werden, allerdings vorbehaltlich § 6(4) und § 6(5). Ist der letzte Tag des Ausübungszeitraums kein Geschäftstag, so endet der Ausübungszeitraum an dem Geschäftstag, der diesem Tag unmittelbar vorangeht. Fällt der letzte Tag des Ausübungszeitraums in einen Nichtausübungszeitraum, so endet der Ausübungszeitraum am letzten Geschäftstag vor dem Beginn des betreffenden Nichtausübungszeitraums.	(3)   Conversion Period. The Conversion Right may be exercised by a Bondholder at any time pursuant to these conditions ending on the tenth Business Day prior to the Maturity Date (both dates inclusive) (“Conversion Period”), however subject to the provisions of § 6(4) and § 6(5). If the last day of the Conversion Period falls on a day which is not a Business Day, the Conversion Period shall terminate on the Business Day immediately preceding such day. If the last day of the Conversion Period falls within an Exclusion Period, the Conversion Period shall terminate on the last Business Day prior to the commencement of such Exclusion Period.
	(4)   Vorzeitige Rückzahlung der Schuldverschreibungen. Für den Fall, dass die Schuldverschreibungen durch die Emittentin gemäß § 4(3) vorzeitig zurückgezahlt werden, darf (vorbehaltlich der Regelungen des § 6(3)) das Wandlungsrecht bis zum Ablauf des zehnten Geschäftstages ausgeübt werden, der dem für die vorzeitige Rückzahlung bestimmten Tag vorausgeht; danach erlischt das Wandlungsrecht. Fällt der so ermittelte letzte Tag des Ausübungszeitraums in einen Nichtausübungszeitraum, so endet der Ausübungszeitraum am letzten Geschäftstag vor dem Beginn des betreffenden Nichtausübungszeitraums. Wenn Schuldverschreibungen durch Anleihegläubiger gekündigt werden, darf das Wandlungsrecht im Hinblick auf die gekündigten Schuldverschreibungen von solchen Anleihegläubigern nicht mehr ausgeübt werden.	(4)   Early Redemption of the Bonds. In the event the Bonds are called for early redemption by the Issuer pursuant to § 4(3), the Conversion Right may, subject to the provisions of § 6(3)), be exercised until the end of the tenth Business Day prior to the date fixed for early redemption; thereafter, the Conversion Right expires. If the last day of the Conversion Period so determined falls within an Exclusion Period, the Conversion Period ends on the last Business Day before such Exclusion Period. If Bonds are declared due for early redemption by Bondholders, the Conversion Right with respect to the Bonds so declared due may no longer be exercised by such Bondholders.

 

     

     

    

 

	
        (5)   Nichtausübungszeitraum.
        Die Ausübung des Wandlungsrechts ist während der nachfolgenden Zeiträume („Nichtausübungszeitraum”)
        ausgeschlossen:

         

        ·     anlässlich
        von Hauptversammlungen der Emittentin während eines Zeitraums ab der Einberufung der Hauptversammlung bis zum Tag der Hauptversammlung
        (jeweils einschließlich);

         

        ·     während
eines Zeitraums von fünf Geschäftstagen vor dem Ende des Geschäftsjahres der Emittentin;

         

        ·     während
        des Zeitraums beginnend mit dem Tag, an dem ein Bezugsangebot der Emittentin an ihre Aktionäre zum Bezug von Aktien, Schuldverschreibungen
        mit Options- oder Wandlungsrechten oder –pflichten, Gewinnschuldverschreibungen oder Genussscheinen im Bundesanzeiger veröffentlicht
        wird, bis zum letzten Tag der für die Ausübung des Bezugsrechts bestimmten Frist (jeweils einschließlich); und

         

        ·     während
        des Zeitraums beginnend mit dem Tag, an dem ein Bezugsangebot der Emittentin an ihre Aktionäre zum Bezug von Aktien, Schuldverschreibungen
        mit Options- oder Wandlungsrechten oder –pflichten, Gewinnschuldverschreibungen oder Genussscheinen im Wege einer Ad-hoc-Mitteilung
        oder ähnlichen Mitteilung (mit konkreten Angaben über das bevorstehende Bezugsangebot) veröffentlicht wird, bis
        zum letzten Tag der für die Ausübung des Bezugsrechts bestimmten Frist (jeweils einschließlich).
	
        (5)   Exclusion
        Period. The exercise of the Conversion Right shall be excluded during any of the following periods (“Exclusion Period”):

         

        ·     in
        connection with any shareholder assemblies of the Issuer, a period commencing on the convocation of the shareholder assembly and
        ending the day of such shareholder assembly (each inclusive);

         

        ·     a
        period of five business days prior to the end of the fiscal year of the Issuer;

         

        ·     a
        period commencing on the date on which an offer by the Issuer to its shareholders by way of a rights offering to subscribe to shares,
        debt securities with warrants or bonds with option or conversion rights or conversion obligations, profit-linked bonds or profit
        participation certificates is published in the German Federal Gazette (Bundesanzeiger), and ending on the last day of the subscription
        period (both dates inclusive); and

         

        ·     a
        period commencing on the date on which an offer by the Issuer to its shareholders by way of a rights offering to subscribe to shares,
        debt securities with warrants or bonds with option or conversion rights or conversion obligations, profit-linked bonds or profit
        participation certificates is published by way of an ad-hoc-release or a similar communication (with specific details regarding
        the imminent subscription offer), and ending on the last day of the subscription period (both dates inclusive).

 

     

     

    

 

	§ 7

Ausübung des Wandlungsrechts	§ 7

Exercise of Conversion Right
	
        (1)   Ausübungserklärung.
        Zur Ausübung des Wandlungsrechts muss der Anleihegläubiger während des Ausübungszeitraums auf eigene Kosten
        während der üblichen Geschäftszeiten an einem Geschäftstag bei einer Wandlungsstelle (§ 14) eine ordnungsgemäß
        ausgefüllte und unterzeichnete Erklärung (die „Ausübungserklärung”) unter Verwendung eines
        dann gültigen Vordrucks, der bei der Wandlungsstelle erhältlich ist, einreichen. Ausübungserklärungen sind
        unwiderruflich. Die Ausübungserklärung hat mindestens die folgenden Angaben zu enthalten:

         

        ·     Name
        und Anschrift der ausübenden Person;

         

        ·     die
        Zahl der Schuldverschreibungen, für die das Wandlungsrecht ausgeübt werden soll;

         

        ·     die
        Bezeichnung des Wertpapierdepots des Anleihegläubigers, in das die Aktien über Clearstream geliefert werden sollen;

         

        ·     gegebenenfalls
        die Bezeichnung eines auf Euro lautenden Kontos des Anleihegläubigers oder seiner Depotbank, auf das auf die Schuldverschreibungen
        zahlbare Beträge über Clearstream geleistet werden sollen; und

         

        ·     in
        dem Vordruck der Ausübungserklärung geforderte Bestätigungen und Verpflichtungserklärungen im Hinblick auf
        bestimmte Beschränkungen der Inhaberschaft der Schuldverschreibungen und/oder der Aktien.
	
        (1)   Conversion
        Notice. To exercise the Conversion Right, the Bondholder must deliver to a Conversion Agent (§ 14) at its own expense
        during normal business hours on a Business Day during the Conversion Period a duly completed and signed notice (the “Conversion
        Notice”) using a form (as amended from time to time) available from the Conversion Agent. Conversion Notices shall be
        irrevocable. The Conversion Notice shall at least include:

         

        ·     name
        and address of the exercising person;

         

        ·     the
        number of Bonds with respect to which the Conversion Right shall be exercised;

         

        ·     the
        deposit account of the Bondholder to which the Shares are to be delivered via Clearstream;

         

        ·     if
        applicable, a Euro-account of the Bondholder or its depository bank to which any payments on the Bonds are to be made via Clearstream;
        and

         

        ·     the
        certifications and undertakings set out in the form of the Conversion Notice relating to certain restrictions of the ownership
        of the Bonds and/or the Shares.

 

     

     

    

 

	(2)   Weitere Voraussetzungen für die Ausübung des Wandlungsrechts. Die Ausübung des Wandlungsrechts setzt außerdem voraus, dass die Schuldverschreibungen, für die das Wandlungsrecht ausgeübt werden soll, an die jeweilige Wandlungsstelle geliefert werden, und zwar durch Lieferung (Umbuchung) der Schuldverschreibungen auf das Konto der Wandlungsstelle bei Clearstream. Die Wandlungsstellen sind ermächtigt, die Bezugserklärung gemäß § 198 Abs. 1 AktG für den Anleihegläubiger abzugeben. Die Wandlungsstellen sind von den Beschränkungen des § 181 BGB befreit.	(2)   Further Requirements for Exercise of Conversion Right. The exercise of the Conversion Right further requires that the Bonds to be converted be delivered to the respective Conversion Agent by transferring (book-entry transfer) the Bonds to the Clearstream account of the Conversion Agent. The Conversion Agents shall be authorized to deliver the subscription certificate pursuant to sec. 198 para. 1 of the German Stock Corporation Act (Aktiengesetz, AktG) on behalf of the Bondholder. The Conversion Agents are exempt from the restrictions of sec. 181 of the German Civil Code (Bürgerliches Gesetzbuch, BGB).
	(3)   Prüfung der Ausübungserklärung. Nach Erfüllung sämtlicher in § 7(1) und § 7(2) genannten Voraussetzungen für die Ausübung des Wandlungsrechts prüft die jeweilige Wandlungsstelle, ob die Zahl der an die Wandlungsstelle gelieferten Schuldverschreibungen der in der Ausübungserklärung angegebenen Zahl von Schuldverschreibungen entspricht. Soweit die in der Ausübungserklärung angegebene Zahl von Schuldverschreibungen die Zahl der tatsächlich gelieferten Schuldverschreibungen über- oder unterschreitet, wird die Wandlungsstelle, je nachdem, welche Zahl niedriger ist, entweder (i) diejenige Gesamtzahl von Aktien, die der in der Ausübungserklärung angegebenen Zahl von Schuldverschreibungen entspricht, oder (ii) diejenige Gesamtzahl von Aktien, die der Zahl der tatsächlich gelieferten Schuldverschreibungen entspricht, von der Emittentin beziehen und an den Anleihegläubiger liefern. Verbleibende Schuldverschreibungen werden an den Anleihegläubiger auf dessen eigene Kosten zurückgeliefert.	(3)   Review of Conversion Notice. Upon fulfilment of all requirements specified in § 7(1) and § 7(2) for the exercise of the Conversion Right, the respective Conversion Agent will verify whether the number of Bonds delivered to the Conversion Agent is identical to the number of Bonds specified in the Conversion Notice. In the event of any excess or shortfall, the Conversion Agent shall subscribe from the Issuer and deliver to the Bondholder the lower of (i) such total number of Shares which corresponds to the number of Bonds set forth in the Conversion Notice, or (ii) such total number of Shares which corresponds to the number of Bonds in fact delivered. Any remaining Bonds will be redelivered to the Bondholder at its own expense.

 

     

     

    

 

	(4)   Ausübungstag. Das Wandlungsrecht ist an dem Geschäftstag wirksam ausgeübt, an dem sämtliche in § 7(1) und § 7(2) genannten Voraussetzungen für die Ausübung des Wandlungsrechts erfüllt sind und die Emittentin die Bezugserklärung erhalten hat (der „Ausübungstag”). Für den Fall, dass die in § 7(1) und § 7(2) genannten Voraussetzungen an einem Tag erfüllt worden sind, der in einen Nichtausübungszeitraum fällt, ist der Ausübungstag der erste Geschäftstag nach dem Ende dieses Nichtausübungszeitraums, sofern auch dieser Tag noch in den Ausübungszeitraum fällt; andernfalls ist das Wandlungsrecht nicht wirksam ausgeübt.	(4)   Conversion Date. The Conversion Right shall be validly exercised on the Business Day on which all of the conditions precedent specified in § 7(1) and § 7(2) for the exercise of the Conversion Right have been fulfilled and the Issuer has received the subscription certificate (the “Conversion Date”). In the event that the conditions precedent specified in § § 7(1) and § 7(2) are fulfilled on a day which falls within an Exclusion Period, then the Conversion Date shall be the first Business Day after the end of such Exclusion Period provided that such day still falls within the Conversion Period; otherwise, the Conversion Right shall not have been validly exercised.
	(5)   Kosten der Ausübung. Sämtliche Kosten, die durch die Ausübung des Wandlungsrechts und/oder durch die Lieferung der Aktien an den betreffenden Anleihegläubiger oder die in der Ausübungserklärung bezeichnete Person durch oder für Rechnung der Emittentin anfallen, werden von der Emittentin getragen. Seine Bankspesen und sonstige ihm entstehende Kosten trägt der Anleihegläubiger.	(5)   Conversion Costs. All costs arising on exercise of the Conversion Right and/or delivery of Shares by, or on behalf of, the Issuer to the relevant Bondholder or the person designated in the Conversion Notice shall be borne by the Issuer. All banking and other fees shall be borne by the bond holder.

 

     

     

    

 

	§ 8

Lieferung der Aktien; Ausgleich von Bruchteilen von Aktien	§ 8

Delivery of Shares; Compensation for Fractions of Shares
	(1)   Lieferung der Aktien; Bruchteile von Aktien. Nach Ausübung des Wandlungsrechts werden ausschließlich ganze Aktien geliefert. Ein Anspruch auf Lieferung von Bruchteilen von Aktien besteht nicht. Soweit die jeweilige Wandlungsstelle festgestellt hat (ohne dazu verpflichtet zu sein), dass für denselben Anleihegläubiger mehrere Schuldverschreibungen zur gleichen Zeit gewandelt wurden, und soweit sich für eine oder mehrere Schuldverschreibungen bei der Durchführung der Wandlung Bruchteile von Aktien ergeben, werden alle sich aus der Wandlung dieser Schuldverschreibungen ergebenden Bruchteile von Aktien addiert und die sich infolge der Addition der Bruchteile etwa ergebenden ganzen Aktien an den betreffenden Anleihegläubiger geliefert. Die zu liefernden Aktien werden so bald wie möglich nach dem Ausübungstag auf das von dem betreffenden Anleihegläubiger in der Ausübungserklärung angegebene Wertpapierdepot übertragen. Bis zur Übertragung der Aktien bestehen keine Ansprüche aus den Aktien.	(1)   Delivery of Shares; Fractions of Shares. Upon any exercise of the Conversion Right, only full Shares shall be delivered. Fractions of Shares may not be claimed. To the extent that the respective Conversion Agent has ascertained (without any obligation to do so) that several Bonds have been converted at the same time for the same Bondholder and to the extent that any conversion of one or several Bonds results in fractions of Shares, the fractions of Shares resulting from the conversion of such Bonds shall be aggregated and any full Shares resulting from such aggregation of fractions of Shares shall be delivered to the respective Bondholder. The Shares to be delivered shall be transferred as soon as practicable after the Conversion Date to the securities deposit account of the Bondholder designated in the Conversion Notice. Until delivery of the Shares, no rights may be exercised from the Shares.

 

     

     

    

 

	(2)   Verbleibende Bruchteile von Aktien. Verbleibende Bruchteile von Aktien werden nicht geliefert. Ein Ausgleich in Geld findet nicht statt.	(2)   Remaining Fractions of Shares. Remaining fractions of Shares shall not be delivered and shall not be compensated in cash. .
	(3)   Steuern. Die Lieferung von Aktien gemäß § 8(1) erfolgt nur, sofern der Anleihegläubiger etwaige Steuern, Abgaben oder amtliche Gebühren zahlt, die im Zusammenhang mit der Ausübung des Wandlungsrechts oder der Lieferung der Aktien gemäß § 8(1) anfallen. 	(3)   Taxes. Delivery of Shares pursuant to § 8(1) is subject to payment by a Bondholder of any taxes, duties or governmental charges which may be imposed in connection with the exercise of the Conversion Right or the delivery of the Shares pursuant to § 8(1). 
	 	 
	§ 9

Barzahlung statt Lieferung der Aktien in bestimmten Fällen	§ 9

Cash Payment in Lieu of Delivery of Shares in Certain Circumstances
	(1)   Barzahlung statt Lieferung der Aktien. Falls die Emittentin rechtlich gehindert ist, Aktien aus bedingtem Kapital bei Ausübung des Wandlungsrechts durch einen Anleihegläubiger zu begeben, ist sie verpflichtet, an den Anleihegläubiger an Stelle der Lieferung der Aktien, auf die der Anleihegläubiger ansonsten gemäß § 6(1) einen Anspruch hätte, aber an deren Ausgabe die Emittentin gehindert ist, einen Barbetrag in Euro („Barzahlung“) zu zahlen. Die Barzahlung für eine Aktie errechnet sich aus dem Betrag des volumengewichteten arithmetischen Mittels der XETRA Kurse innerhalb eines Zeitraums von fünf aufeinanderfolgenden Handelstagen beginnend an dem zweiten auf den Benachrichtigungstag (§ 9(2)) folgenden Handelstag („Berechnungszeitraum“), gerundet auf den nächsten vollen Cent, wobei EUR 0,005 abgerundet werden. Ein Anspruch des Anleihegläubigers auf Lieferung bzw. Ausgleich von Bruchteilen von Aktien besteht nicht. Die Barzahlung wird spätestens am dritten Geschäftstag nach dem letzten Tag des Berechnungszeitraums durch die Emittentin geleistet. Auf diesen Betrag werden keine Zinsen geschuldet. § 9(3) findet entsprechende Anwendung. Steuern, Abgaben und amtliche Gebühren können von einer etwaigen Zahlung abgezogen werden, sofern der Anleihegläubiger solche Steuern, Abgaben oder amtlichen Gebühren nicht zuvor gezahlt hat.	(1)   Cash Payment in Lieu of Delivery of Shares. If due to legal reasons the Issuer is unable to issue Shares from conditional capital upon the exercise of a Conversion Right by a Bondholder, the Issuer shall be obligated to pay to the Bondholder a cash amount in Euro (the “Cash Payment”) in lieu of the delivery of the Shares to which the Bondholder is otherwise entitled pursuant to § 6(1), but which the Issuer is unable to issue. The Cash Payment relating to one Share shall be calculated as an amount equal to the volume-weighted arithmetic mean value of the XETRA-Quotations on the five consecutive Trading Days beginning on the second Trading Day following the Notification Day (§ 9(2)) (the “Calculation Period”), rounded to the nearest full cent with EUR 0.005 being rounded downwards. Fractions of Shares or compensation therefore shall be excluded. The Cash Payment shall be effected by the Issuer not later than on the third Business Day following the last day of the Calculation Period. No interest shall be payable with respect to the Cash Payment. § 8(3) shall apply accordingly. Taxes, duties and governmental charges may be deducted from a payment obligation, unless the Bondholder has already paid such taxes, duties or governmental charges.

 

     

     

    

 

	(2)   Benachrichtigung. Die Emittentin wird den Anleihegläubiger, der eine Wandlungserklärung abgegeben hat, nicht später als am siebten Geschäftstag nach dem Wandlungstag (schriftlich, per Telefax, oder auf andere Art und Weise unter Benutzung der in der Wandlungserklärung angegebenen Anschrift) benachrichtigen, ob die Emittentin eine Barzahlung zu leisten hat (der Tag, an dem die Emittentin eine solche Nachricht abschickt, wird als „Benachrichtigungstag“ bezeichnet).	(2)   Notification. The Issuer shall notify the Bondholder who has delivered a Conversion Notice no later than on the seventh Business Day after the Conversion Date (in writing, by telefax, or otherwise using the address stated in the Conversion Notice) whether the Issuer has to effect a Cash Payment (the day on which such notification is dispatched by the Issuer being the “Notification Day”).
	§ 10

Bereitstellung von Aktien; Dividenden	§ 10

Procurement of Shares; Dividends
	(1)   Bedingtes Kapital. Die Aktien werden nach Durchführung der Wandlung aus einem bedingten Kapital der Emittentin stammen. 	(1)   Conditional Capital. Upon execution of the conversion, new Shares will be issued out of a conditional capital of the Issuer. 

 

     

     

    

 

	(2)   Dividenden. Aktien, die aufgrund der Wandlung aus bedingtem Kapital (§ 10(1)) ausgegeben werden, sind ab Beginn des Geschäftsjahres der Emittentin, in dem die Aktien ausgegeben werden, für dieses und alle folgenden Geschäftsjahre der Emittentin dividendenberechtigt, und können zunächst als „junge“ Aktien eine eigene Wertpapierkennung haben.	(2)   Dividends. Shares issued upon conversion out of conditional capital (§ 10(1)) are entitled to dividends (if any) for the then current and all following business years as from the beginning of the business year of the Issuer in which such Shares are issued, and may initially have a separate securities code.
	§ 11

Verwässerungsschutz	§ 11

Anti-Dilution Protection
	
        (1)   Bezugsrecht
        für Aktionäre

         

        Wenn die Emittentin bis zur
        letzten Möglichkeit der Ausübung des Wandlungsrechts unter Gewährung von Bezugsrechten an ihre Aktionäre gemäß
        § 186 AktG (i) ihr Grundkapital durch Ausgabe neuer Aktien gegen Einlagen erhöht, oder (ii) weitere Schuldverschreibungen
        mit Options- oder Wandlungsrechten oder -pflichten, Gewinnschuldverschreibungen oder Genussscheine begibt oder garantiert oder
        eigene Aktien veräußert, ist jedem Anleihegläubiger, der zu Beginn des entsprechenden Nichtausübungszeitraums
        sein Wandlungsrecht noch nicht wirksam ausgeübt hat, vorbehaltlich der weiteren Bestimmungen des § 11(1), ein Bezugsrecht
        in dem Umfang einzuräumen, wie es ihm zustünde, wenn eine Ausübung des Wandlungsrechts an dem Geschäftstag
        unmittelbar vor dem Ex-Tag erfolgt wäre.
	
        (1)   Preemptive
        Rights for Shareholders.

         

        If the Issuer until the last
        date on which the Conversion Rights may be executed subject to preemptive rights of its shareholders pursuant to sec. 186
        of the German Stock Corporation Act (Aktiengesetz), (i) increases its share capital by issuing new shares against capital contributions;
        or (ii) issues or guarantees further debt securities with warrants or bonds with option or conversion rights or conversion obligations,
        profit-linked bonds or profit participation certificates or sells own shares, each Bondholder, who at the beginning of the relevant
        Excluded Period has not yet exercised its Conversion Right, shall, subject to the further provisions of § 11(1), be granted
        a pre-emptive right equal to the right it would have been entitled to had the Conversion Right been exercised on the Business Day
        immediately preceding the Ex-Date.

 

     

     

    

 

	„Ex-Tag” ist der erste Handelstag, an dem die Aktien „ex Bezugsrecht”, „ex Dividende“ oder ex eines anderen Rechts gehandelt werden.	“Ex-Date” shall mean the first Trading Day on which the Shares are traded “ex subscription right”, “ex dividend” or ex any other right giving rise to an adjustment of the quoted price in the XETRA-System.
	
        Anstelle der Einräumung
        eines Bezugsrechts kann die Emittentin eine Anpassung des Wandlungspreises vornehmen:

         

        Der Wandlungspreis wird um den
        Betrag ermäßigt, der dem volumengewichteten arithmetischen Mittel der Kurse des einer Aktie gewährten Bezugsrechts
        an allen Börsenhandelstagen an der Frankfurter Wertpapierbörse entspricht.

         

        Findet kein Bezugsrechtshandel
        an der Frankfurter Wertpapierbörse statt, wird der Wert des Bezugsrechts wie folgt verbindlich ermittelt:

         

        BR = (Ka - Kn) / (BV + 1)

         

        BR: Bezugsrecht

         

        Ka: Börsenkurs der alten
        Aktien

         

        Kn: Ausgabekurs der neuen Aktien

         

        BV: Bezugsverhältnis

         

        Der Börsenkurs „Ka“
        der alten Aktien wird wie folgt ermittelt: Volumengewichteter arithmetischer Mittelwert der an der Frankfurter Wertpapierbörse
        im Parkett- und XETRA-Handel festgestellten Schlusskurse der Aktie der Emittentin während der Bezugsfrist.
	
        Instead of granting a preemptive
        right, the Issuer may elect to adjust the Conversion Price:

         

        The Conversion Price shall be
        reduced by the amount equal to the volume-weighted arithmetic average of the stock prices of a subscription right granted by one
        share on all trading days of the Frankfurt Stock Exchange.

         

        If subscription rights are not
        traded at the Frankfurt Stock Exchange, the value of the subscription right shall be determined with binding effect as follows:

         

        BR = (Ka - Kn) / (BV + 1)

         

        BR: Subscription Right

         

        Ka: Stock price of old shares

         

        Kn: Issue price of New Shares

         

        BV: Subscription ratio

         

        The stock price “Ka”
        of the old shares shall be determined as follows: volume-weighted arithmetic mean of the closing prices of the Issuer’s shares
        determined in the floor and XETRA trade of the Frankfurt Stock Exchange during the subscription period.

 

     

     

    

 

	
        (2)   Kapitalerhöhung
        aus Gesellschaftsmitteln. Im Falle einer Kapitalerhöhung der Emittentin aus Gesellschaftsmitteln gemäß § 207
        AktG (d.h. durch Umwandlung von Kapitalrücklagen oder Gewinnrücklagen) unter Ausgabe neuer Aktien vor Ablauf des Ausübungszeitraums
        oder einem früheren Rückzahlungstag wird der Wandlungspreis mit dem nach der nachstehenden Formel errechneten Wert multipliziert:

         

        

         

        Dabei ist

         

        N0:
        die Anzahl der ausgegebenen Aktien vor der Kapitalerhöhung aus Gesellschaftsmitteln, und

         

        Nn:
        die Anzahl der ausgegebenen Aktien nach der Kapitalerhöhung aus Gesellschaftsmitteln.
	
        (2)   Capital
        Increase from Company Reserves. In the event of a capital increase of the Issuer from company reserves (i.e., capital reserves
        (Kapitalrücklagen) or retained earnings (Gewinnrücklagen)) pursuant to sec. 207 AktG (Kapitalerhöhung aus Gesellschaftsmitteln)
        by issuing new shares prior to the expiration of the Conversion Period or an earlier date of redemption, the Conversion Price shall
        be multiplied by the number determined by the following formula:

         

        

         

        Whereas

         

        N0:
        the number of issued Shares before the increase of share capital from company reserves, and

         

        Nn:
        the number of issued Shares after the increase of share capital from company reserves.

	
        (3)   Änderung
        der Zahl der Aktien ohne Änderung des Grundkapitals; Kapitalherabsetzung. Sofern bis zur letzten Möglichkeit der
        Ausübung des Wandlungsrechts (i) die Zahl der ausstehenden Aktien ohne Änderung des Grundkapitals der Emittentin geändert
        wird (z.B. in Folge eines Aktiensplits oder einer Zusammenlegung von Aktien (umgekehrter Aktiensplit)), oder (ii) das Grundkapital
        der Emittentin durch Zusammenlegung von Aktien herabgesetzt wird, gilt § 11(2) entsprechend.

         

        Im Falle einer Herabsetzung
        des Grundkapitals der Emittentin allein durch Herabsetzung des auf die einzelne Aktie entfallenden anteiligen Betrages des Grundkapitals
        bleibt das Wandlungsverhältnis unverändert, jedoch mit der Maßgabe, dass nach einem solchen Ereignis zu liefernde
        Aktien mit ihrem jeweiligen neuen, auf die einzelne Aktie entfallenden anteiligen Betrag des Grundkapitals geliefert werden.

         

        Ist die Kapitalherabsetzung
        mit einer Kapitalrückzahlung oder einem entgeltlichen Erwerb eigener Aktien verbunden, bleibt der Wandlungspreis und damit
        das Wandlungsverhältnis unverändert.
	
        (3)   Changes
        in the Number of Shares without Change in the Share Capital; Capital Decrease. If until the last date on which the Conversion
        Rights may be executed (i) the number of outstanding Shares is being changed without a change in the aggregate amount of the Issuer’s
        share capital (e.g. by means of splitting or combining shares (reverse split)) or (ii) the Issuer decreases its share capital by
        combining shares, § 11(2) shall apply mutatis mutandis.

         

        In the event of a decrease of
        the Issuer’s share capital which is solely the result of a reduction of the amount in the share capital represented by each
        Share, the Conversion Price shall remain unchanged provided that Shares to be delivered after the occurrence of such an event shall
        be delivered with their respective new portion of the share capital allotted to them.

         

        If the capital decrease is connected
        with a capital repayment or a share repurchasing, the Conversion Price and therefore the Conversion Ratio remain unaffected.

 

     

     

    

 

	(4)   Ausschüttungen. Falls die Emittentin bis zur letzten Möglichkeit der Ausübung des Wandlungsrechts an ihre Aktionäre Vermögenswerte, insbesondere Dividenden, gewährt, mindert sich der Wandlungspreis um den Betrag der Brutto-Ausschüttung je Aktie, soweit diese 4 % des anteiligen Betrags der Aktie am Grundkapital p.a. übersteigt.	(4)   Distributions. If the Issuer until the last date on which the Conversion Rights may be executed distributes, allots or grants to its shareholders (i) assets, in particular dividends, the Conversion Price will be reduced by the amount of the gross distribution per Share, insofar as this exceeds 4% of the pro rata participation of the share in the registered capital p.a
	(5)   Andere Ereignisse. Bei einer Maßnahme nach dem Umwandlungsgesetz oder bei dem Eintritt eines anderen Ereignisses, das die Aktien, das Wandlungsverhältnis oder den Wandlungspreis berühren könnte, bleibt das Wandlungsverhältnis unverändert. Es wer-den insbesondere keine Anpassungen vorgenommen im Hinblick auf (i) die Ausgabe von Aktienoptionen an Mitglieder des Vorstands, des Aufsichtsrats oder Mitarbeiter der Emittentin oder ihrer Tochtergesellschaften im Rahmen von Aktienoptions-Programmen der Emittentin oder (ii) die Ausgabe von Aktien aus am Emissionstag bereits existierenden bedingtem oder genehmigten Kapital.	(5)   Other events. In the event of a measure pursuant to the German Transformation Act (Umwandlungsgesetz, UmwG) or in any other event which may affect the Shares, the Conversion Ratio or the Conversion Price, the Conversion Ratio shall remain unaffected. In particular, no adjustments shall be made in relation to (i) the issuance of stock options for members of the management board or supervisory board or employees of the Issuer or its subsidiaries under stock option programs of the Issuer or (ii) the issuance of Shares out of conditional or authorized capital existing on the Issue Date.

 

     

     

    

 

	(6)   Wirksamkeit; Ausschluss. Anpassungen nach Maßgabe dieses § 11 werden mit Wirkung zum Beginn des Ex-Tages wirksam. Anpassungen nach Maßgabe dieses § 11 werden nicht vorgenommen, sofern der Ex-Tag im Falle von Schuldverschreibungen, für die das Wandlungsrecht ausgeübt wurde, nach dem Tag liegt, an dem die Aktien dem Depotkonto des betreffenden Anleihegläubigers gemäß § 8(1) gutgeschrieben wurden, oder, im Falle von nicht gewandelten Schuldverschreibungen, nach dem letzten Tag des Wandlungszeitraums bzw. nach dem früheren für die Rückzahlung festgelegten Tag.	(6)   Effectiveness; Preclusion. Adjustments pursuant to this § 11 shall become effective with the Ex-Date. Adjustments pursuant to this § 11 will not be made if the Ex-Date is, in the case of Bonds in respect of which the Conversion Right has been exercised, the date on which the Shares have been delivered pursuant to § 8(1) to the securities deposit account of the Bondholder or, in the case of Bonds not converted, later than the last day of the Conversion Period or the earlier date fixed for redemption, as the case may be.
	(7)   Auf- bzw. Abrundung und Lieferung. Der Wandlungspreis, der sich aufgrund einer Anpassung gemäß § 11 ergibt, wird auf vier Nachkommastellen aufgerundet; das Wandlungsverhältnis, das sich aufgrund des so angepassten und gerundeten Wandlungspreises errechnet, wird (vor einer etwaigen Addition von Aktien) auf vier Nachkommastellen abgerundet. Die sich daraus ergebende Zahl von Aktien wird gemäß § 8(1) geliefert. Bruchteile von Aktien werden gemäß § 8(1) zusammengefasst. Verbleibende Bruchteile von Aktien werden nicht ausgeglichen.	(7)   Rounding up or down and Delivery. The Conversion Price determined by an adjustment pursuant to § 11 shall be rounded upwards to four decimal points; the Conversion Ratio, calculated on the basis of the Conversion Price so adjusted and rounded, shall be rounded downwards to four decimal points (before any aggregation of Shares). The number of Shares resulting therefrom shall be delivered pursuant to § 8(1). Fractions of Shares shall be aggregated in accordance with § 8(1). Remaining fractions of Shares shall not be compensated.

 

     

     

    

 

	
        (8)   Zuständigkeit;
        Bekanntmachung. Anpassungen gemäß diesem § 11 werden durch die Wandlungsstelle oder, nach Wahl der Anleiheschuldnerin,
        einen von der Anleiheschuldnerin auf ihre Kosten zu bestellenden geeigneten Dritten vorgenommen und sind (sofern nicht ein offensichtlicher
        Fehler vorliegt) für alle Beteiligten bindend.

         

        Jedwede Anpassung des Wandlungsverhältnisses
        gemäß diesem § 11 darf nicht zu einem Wandlungspreis führen, der niedriger ist als der auf die einzelne Aktie
        entfallende anteilige Betrag am Grundkapital der Emittentin.
	
        (8)   Responsibility;
        Notice. Adjustments pursuant to this § 11 shall be made by the Conversion Agent or, at the option of the Issuer, an appropriate
        third party appointed by the Issuer at the expense of the Issuer and will be binding on all parties involved, absent an obvious
        mistake.

         

        Any adjustment to the Conversion
        Price pursuant to this § 11 shall not cause the Conversion Price to fall below the nominal participation in the registered
        capital represented by each Share.

	(9)   Bekanntmachung von Anpassungen. Die Emittentin wird eine Anpassung des Wandlungsverhältnisses, des Wandlungspreises und/oder jede andere Anpassung der Bedingungen des Wandlungsrechts in Übereinstimmung mit § 15 bekannt machen. 	(9)   Disclosure of adjustments. The Issuer shall disclose any adjustments to the Conversion Ratio, the Conversion Price and/or any other adjustments to the terms and conditions of the conversion right pursuant to § 15.
	§ 12

Rang	§ 12

Status
	Rang. Die Anleihegläubiger treten mit ihrem Anspruch auf Rückzahlung des Nominalbetrages und ihrem Anspruch auf fällige Zinszahlungen dergestalt im Rang hinter die Forderungen aller bestehenden und künftigen Finanzgläubiger der Emittentin zurück, dass sie erst nach Befriedigung sämtlicher übrigen nicht nachrangigen Finanzgläubiger (und, soweit ein Liquidationsüberschuss oder ein die sonstigen Verbindlichkeiten übersteigendes Vermögen der Emittentin hierfür zur Verfügung steht, nur zugleich mit, im Rang jedoch vor den Einlagerückgewähransprüchen der Gesellschafter der Emittentin) Erfüllung ihrer Ansprüche, also Zahlung verlangen können. „Finanzgläubiger“ sind Inhaber von Finanzierungsforderungen gegen die Emittentin, sowohl verbrieft (z.B. Schuldverschreibungen, Schuldscheindarlehen oder Genussscheine) als auch unverbrieft (z.B. Darlehen oder Stille Beteiligungen von Kreditinstituten oder Zuschüsse aus Subventionen). Der Rangrücktritt gilt, solange und soweit durch eine teilweise oder vollständige Befriedigung der im Rang zurückgetretenen Ansprüche der Anleihegläubiger eine Überschuldung oder aber eine Zahlungsunfähigkeit der Emittentin im insolvenzrechtlichen Sinne entsteht oder zu entstehen droht; die im Rang zurückgetretenen Ansprüche der Anleihegläubiger gelten für diesen Fall als zinslos gestundet. Der Nachrang gilt auch im Insolvenzverfahren.	Status. The rights of the Bondholders regarding repayment of the principal and interest are subordinated to the rights of all current and future third party Financial Creditors of the Issuer, and their claims, i.e. payments, will only be satisfied after all other non-subordinate Financial Creditors are satisfied (and, insofar as liquidation proceeds or assets of the Issuer which exceed the remaining liabilities are available for this purpose, will be satisfied only together with, but ranking above, the claims of the Issuer’s shareholders regarding the repayment of the shares). „Financial Creditors“ are holders of financial claims against the Issuer, both securitized (e.g. bonds, certified loans, or mezzanine) and unsecuritized (e.g. loans or silent participation by financial institutions or repayable grants from subsidies). The subordination shall apply as long as and insofar as a partial or full satisfaction of the subordinated claims of the Bondholders would cause or threaten an over-indebtedness or illiquidity of the Issuer pursuant to applicable insolvency law; the subordinated claims of the Bondholders shall be considered as deferred without interest. The subordination shall also apply in insolvency proceedings. 

 

     

     

    

 

	§ 13

Kündigung durch Anleihegläubiger	§ 13

Termination by Bondholders
	(1)   Kündigungsrecht. Jeder Anleihegläubiger ist berechtigt, seine sämtlichen Ansprüche aus den Schuldverschreibungen durch Abgabe einer Kündigungserklärung („Kündigungserklärung”) zu kündigen und fällig zu stellen und Rückzahlung des Nennbetrags zuzüglich der darauf bis zum Tag der tatsächlichen Rückzahlung (ausschließlich) aufgelaufenen Zinsen zu verlangen, wenn	(1)   Right to Terminate. Each Bondholder is entitled to declare due and payable by submitting a notice of termination (“Termination Notice”) its entire claims arising from the Bonds and demand payment of their Principal Amount, plus interest accrued on the Principal Amount until (but excluding) the day of actual redemption, if

 

     

     

    

 

	die Emittentin, gleichgültig aus welchen Gründen, innerhalb von 30 Tagen nach dem betreffenden Zahlungstag irgendwelche Beträge, die fällig und auf die Schuldverschreibungen zahlbar sind, nicht zahlt; oder	the Issuer, for any reason whatsoever, fails within 30 days after the relevant payment date to pay any amounts due and payable on the Bonds; or
	die Emittentin durch Aufnahme von Fremdkapital eine Überschreitung der Zulässigen Verschuldung versursacht.	the Issuer Exceeds the Permissible Indebtedness by debt borrowing.
	Eine „Überschreitung der Zulässigen Verschuldung“ liegt vor, wenn durch Aufnahme von Fremdkapital sowohl (i) die Netto-Finanzverschuldung der Emittentin EUR 25 Mio. übersteigt als auch (ii) der Netto-Verschuldungsgrad der Emittentin 4,0 übersteigt. Davon ausgenommen ist die Aufnahme von Fremdkapital zur Finanzierung der Ansprüche der Anleihegläubiger aus diesen Schuldverschreibungen. 	The Issuer “Exceeds the Permissible Indebtedness” if by debt borrowing both (i) the Net Financial Indebtedness of the Issuer exceeds EUR 25 million, and (ii) the Net Indebtedness Quota of the Issuer exceeds 4.0. Exempt are any debt borrowings for the purpose of financing the claims of Bondholders arising out of these Bonds. 
	Die „Netto-Finanzverschuldung“ ist die Summe aus langfristigen finanziellen Verbindlichkeiten und kurzfristigen Finanzschulden, abzüglich Zahlungsmittel und Zahlungsmitteläquivalente. 	“Net Financial Indebtedness” means the sum of long-term financial liabilities and short-term financial debt, less cash and cash equivalents.
	Der „Netto-Verschuldungsgrad“ ist der Quotient aus der Netto-Finanzverschuldung geteilt durch das EBITDA.	“Net Indebtedness Quota” means the quotient of Net Financial Indebtedness divided by EBITDA.
	Das „EBITDA“ ist das Periodenergebnis des Geschäftsjahrs, bereinigt um Abschreibungen, Steuern, Zinsaufwendungen und Zinserträge. 	“EBITDA” means the profit or loss for the period, adjusted for depreciation and amortization, tax, interest expenses and interest income. 

 

     

     

    

 

	Maßgeblich für die Berechnung von Netto-Finanzverschuldung, Netto-Verschuldungsgrad und EBITDA ist der jeweils aktuellste veröffentlichte Konzernabschluss oder Quartalszwischenabschluss zum Zeitpunkt der Fremdkapitalaufnahme. Soweit im testierten Konzernabschluss Netto-Finanzverschuldung, Netto-Verschuldungsgrad und/oder EBITDA ausgewiesen werden, ist deren Berechnung für die Emittentin und die Anleihegläubiger bindend.	The calculation of Net Financial Indebtedness, Net Indebtedness Quota and EBITDA shall be based on the respective most recent published annual group or interim quarterly financial reports at the time of the debt borrowing. Insofar as the audited financial report shows Net Financial Indebtedness, Net Indebtedness Quota and/or EBITDA, the respective calculation shall be binding both for the Issuer and the Bondholders. 
	Ein Überschreiten eines Netto-Verschuldungsgrads von 4,0 durch Absinken des EBITDA stellt keine Überschreitung der Zulässigen Verschuldung dar.	The Issuer shall not be considered to Exceed the Permissible Indebtedness if the Net Indebtedness Quota exceeds 4.0 due to a reduction of the EBITDA. 
	(2)   Erlöschen des Kündigungsrechts. Das Kündigungsrecht der Anleihegläubiger erlischt, falls der Kündigungsgrund vor Ausübung des Kündigungsrechts geheilt wurde.	(2)   Cessation of Termination Right. The Bondholders’ right to declare the Bonds due and payable will cease in the event that the event of default has been remedied prior to the exercise of the termination right.
	(3)   Kündigungserklärung. Eine Kündigungserklärung hat in der Weise zu erfolgen, dass der Anleihegläubiger der Emittentin eine schriftliche Erklärung übergibt oder durch eingeschriebenen Brief übersendet und dabei durch eine Bescheinigung seiner Depotbank nachweist, dass er die betreffenden Schuldverschreibungen zum Zeitpunkt der Erklärung hält. 	(3)   Termination Notice. Any Termination Notice shall be made by means of a written notice to be delivered by hand or registered mail to the Issuer  together with evidence by means of a certificate of the Bondholder’s depository bank that such Bondholder at the time of such written notice is a holder of the relevant Bonds. 

 

     

     

    

 

	§ 14

Zahlstellen, Wandlungsstellen	§ 14

Paying Agents; Conversion Agents
	(1)   Zahlstellen. Die Emittentin hat die Bankhaus Gebr. Martin AG, Schlossplatz 7, D-73033 Göppingen, zur Hauptzahlstelle („Hauptzahlstelle” und zusammen mit etwaigen anderen von der Emittentin gemäß § 14(3) bestellten Zahlstellen, „Zahlstellen“) bestellt. Die Zahlstellen sind von den Beschränkungen des § 181 des Bürgerlichen Gesetzbuchs befreit. Adressänderungen werden gemäß § 15 bekannt gemacht.	(1)   Paying Agents. The Issuer has appointed Bankhaus Gebr. Martin AG, Schlossplatz 7, D-73033 Göppingen, to act as principal paying agent (“Principal Paying Agent” and, together with any other paying agent appointed by the Issuer in accordance with § 14(3), “Paying Agents”). The Paying Agents are exempt from the restrictions of sec. 181 of the German Civil Code (Bürgerliches Gesetzbuch). Changes of address shall be published in accordance with § 15.
	(2)   Wandlungsstelle. Die Emittentin hat die Bankhaus Gebr. Martin AG, Schlossplatz 7, D-73033 Göppingen, zur Hauptwandlungsstelle („Hauptwandlungsstelle” und zusammen mit etwaigen anderen von der Emittentin gemäß § 14(3) bestellten Wandlungsstellen, die „Wandlungsstellen“) bestellt. Die Wandlungsstellen sind von den Beschränkungen des § 181 BGB befreit. Adressänderungen werden gemäß § 15 bekannt gemacht.	(2)   Conversion Agent. The Issuer has appointed Bankhaus Gebr. Martin AG, Schlossplatz 7, D-73033 Göppingen, to act as principal conversion agent (“Principal Conversion Agent” and, together with any other conversion agent appointed by the Issuer in accordance with § 14(3), the “Conversion Agents”). The Conversion Agents are exempt from the restrictions of sec. 181 of the German Civil Code (Bürgerliches Gesetzbuch). Changes of address shall be published in accordance with § 15.
	(3)   Ersetzung. Die Emittentin kann jederzeit durch Bekanntmachung gemäß § 15 mit einer Frist von mindestens 30 Tagen eine andere Bank zur Zahlstelle oder Wandlungsstelle bestellen. Die Zahlstellen und die Wandlungsstellen können jederzeit von ihrem jeweiligen Amt zurücktreten. Der Rücktritt wird jedoch nur wirksam mit der Bestellung einer anderen Bank zur neuen Zahlstelle bzw. Wandlungsstelle durch die Emittentin unter Bekanntmachung dieser Bestellung gemäß § 15 mit einer Frist von mindestens 30 Tagen.	(3)   Substitution. The Issuer may at any time, by giving not less than 30 days’ notice by publication in accordance with § 15, appoint another bank as Paying Agent or Conversion Agent. Each of the Paying Agents or the Conversion Agents may at any time resign from their respective offices. Such resignation shall become effective only upon the appointment by the Issuer of a bank as the new Paying Agent and/or Conversion Agent and the giving of not less than 30 days’ notice of any such appointment by publication in accordance with § 15.

 

     

     

    

 

	§ 15

Bekanntmachungen	§ 15

Notices
	Die Emittentin wird Bekanntmachungen im Bundesanzeiger vornehmen. Der Tag der Veröffentlichung ist maßgeblich, soweit für Zwecke von Fristberechnungen nach diesen Anleihebedingungen auf den Tag der Bekanntmachung Bezug genommen wird.	(1)   The Issuer will publish notices in the German Federal Gazette. The day of publication is relevant insofar as these terms and conditions refer to publication days for the purpose of calculation of periods. 
	§ 16

Änderung der Anleihebedingungen durch Beschluss der Anleihegläubiger; Gemeinsamer Vertreter	§ 16

Amendments to the Terms and Conditions by resolution of the Bondholders; Joint Representative
	(1)   Änderung der Anleihebedingungen. Die Anleihebedingungen können durch die Emittentin mit Zustimmung der Anleihegläubiger aufgrund Mehrheitsbeschlusses nach Maßgabe der §§ 5 ff. SchVG in seiner jeweiligen gültigen Fassung geändert werden. Die Anleihegläubiger können insbesondere einer Änderung wesentlicher Inhalte der Anleihebedingungen, einschließlich der in § 5 Abs. 3 SchVG vorgesehenen Maßnahmen, zustimmen und einen gemeinsamen Vertreter bestellen. Ein ordnungsgemäß gefasster Mehrheitsbeschluss ist für alle Anleihegläubiger verbindlich.	(1)   Amendments to the Terms and Conditions. The Issuer may amend the Terms and Conditions with consent by a majority resolution of the Bondholders pursuant to sec. 5 et seq. of the German Act on Issues of Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen, SchVG), as amended from time to time. In particular, the Bondholders may consent to amendments which materially change the substance of the Terms and Conditions, including such measures as provided for under sec. 5 para. 3 of the SchVG, and appoint a joint representative. A duly passed majority resolution shall be binding upon all Bondholders.
	(2)   Nachweise. Anleihegläubiger haben die Berechtigung zur Teilnahme an der Abstimmung zum Zeitpunkt der Stimmabgabe durch besonderen Nachweis der Depotbank und die Vorlage eines Sperrvermerks der Depotbank zugunsten der Zahlstelle als Hinterlegungsstelle für den Abstimmungszeitraum nachzuweisen.	(2)   Proof of Eligibility. Bondholders must demonstrate their eligibility to participate in the vote at the time of voting by means of a special confirmation of the Depositary Bank hereof and by submission of a blocking instruction by the Depositary Bank for the benefit of the Paying Agent as depository (Hinterlegungsstelle) for the voting period.

 

     

     

    

 

	§ 17

Verschiedenes	§ 17

Miscellaneous
	(1)   Anwendbares Recht. Form und Inhalt der Schuldverschreibungen sowie sämtliche sich aus diesen Anleihebedingungen ergebenden Rechte und Pflichten der Anleihegläubiger und der Emittentin bestimmen sich in jeder Hinsicht nach dem Recht der Bundesrepublik Deutschland.	(1)   Governing Law. The Bonds, with regard to both form and content, as well as all rights and obligations arising from these Terms and Conditions for the Bondholders and the Issuer shall in all respects be governed by German law.
	(2)   Erfüllungsort. Erfüllungsort ist Frankfurt am Main, Bundesrepublik Deutschland.	(2)   Place of Performance. Place of performance shall be Frankfurt am Main, Federal Republic of Germany.
	(3)   Gerichtsstand. Gerichtsstand für alle Rechtsstreitigkeiten aus den in diesen Anleihebedingungen geregelten Angelegenheiten ist, soweit rechtlich zulässig, und vorbehaltlich dem nachstehenden Absatz, Frankfurt am Main, Deutschland.	(3)   Place of Jurisdiction. The place of jurisdiction for all proceedings arising from matters provided for in these Terms and Conditions shall, to the extent legally permitted and subject to the following paragraph, be Frankfurt am Main, Germany.
	(4)   Zuständigkeit. Für Entscheidungen gemäß § 9 Abs. 2, § 13 Abs. 3 und § 18 Abs. 2 SchVG ist gemäß § 9 Abs. 3 SchVG das Amtsgericht zuständig, in dessen Bezirk die Emittentin ihren Sitz hat. Für Entscheidungen über die Anfechtung von Beschlüssen der Anleihegläubiger ist gemäß § 20 Abs. 3 SchVG das Landgericht ausschließlich zuständig, in dessen Bezirk die Emittentin ihren Sitz hat.	(4)   Competence. The local court (Amtsgericht) in the district where the Issuer has its registered office will have jurisdiction for all judgments pursuant to sec. 9 para. 2, sec. 13 para. 3 and sec. 18 para. 2 SchVG in accordance with sec. 9 para. 3 SchVG. The regional court (Landgericht) in the district where the Issuer has its registered office will have exclusive jurisdiction for all judgments over contested resolutions by Bondholders in accordance with sec. 20 para. 3 SchVG.

 

     

     

    

 

	(5)   Vorlegungsfrist. Die in § 801 Abs. 1 S. 1 BGB bestimmte Vorlegungsfrist wird für die Schuldverschreibungen in Bezug auf Kapital auf zehn Jahre verkürzt. Die Vorlegungsfrist für die Schuldverschreibungen in Bezug auf Zinsen beträgt vier Jahre und beginnt mit dem Datum, an dem die jeweilige Zinszahlung erstmals fällig und zahlbar wird.	(5)   Term for Presentation. The term for presentation of the Bonds with respect to principal as set forth in sec. 801 para. 1 sentence 1 of the German Civil Code (Bürgerliches Gesetzbuch, BGB) shall be reduced to ten years. The term for presentation of the Bonds with respect to interest shall be four years after the date on which payment thereof first becomes due and payable.
	(6)   Keine Gesamtnichtigkeit. Sollten einzelne Bestimmungen dieser Anleihebedingungen ganz oder teilweise unwirksam oder nicht durchsetzbar sein oder unwirksam oder nicht durchsetzbar werden, so wird hierdurch die Wirksamkeit oder die Durchsetzbarkeit der übrigen Bestimmungen nicht berührt. Anstelle der unwirksamen bzw. nicht durchsetzbaren Bestimmung soll, soweit rechtlich möglich, eine dem Sinn und wirtschaftlichen Zweck dieser Anleihebedingungen zum Zeitpunkt der Begebung der Schuldverschreibungen entsprechende Regelung gelten. Unter Umständen, unter denen sich diese Anleihebedingungen als unvollständig erweisen, soll eine ergänzende Auslegung, die dem Sinn und Zweck dieser Anleihebedingungen entspricht, unter angemessener Berücksichtigung der berechtigten Interessen der beteiligten Parteien erfolgen.	(6)   Severability. Should any of the provisions of these Terms and Conditions be or become invalid or unenforceable in whole or in part, the validity or the enforceability of the remaining provisions shall not in any way be affected or impaired thereby. In this case the invalid or unenforceable provision shall be replaced by a provision which, to the extent legally possible, provides for an interpretation in keeping with the meaning and the economic purposes of the Terms and Conditions at the time of the issue of the Bonds. Under circumstances in which these Terms and Conditions prove to be incomplete, a supplementary interpretation in accordance with the meaning and the purposes of these Terms and Conditions under due considerations of the legitimate interest of the parties involved shall be applied.
	(7)   Sprache. Der deutsche Wortlaut dieser Anleihebedingungen ist allein rechtsverbindlich. Die englische Übersetzung dient nur der Information.	(7)   Language. The German text of these Terms and Conditions is the only legally binding one. This English translation is for convenience purposes only.

 

Leverkusen, im Januar 2017

 

Der VorstandExhibit 10.7

 

Rental contract number 28390041

 

Rental
contract

 

between

 

YAL Immobilien GmbH Ernst-Reuter-Strasse
119 95030 Hof/Saale

v

represented by the Managing Director
entitled to collective representation

 

- hereinafter referred to as the "Landlord" –
and

 

Biofrontera Bioscience GmbH Hemmelrather Weg 201 51377 Leverkusen
represented by the Managing Directors entitled to collective representation, Prof. Dr. Hermann Lübbert and Dr. Reinhold Gahlmann

 

- hereinafter referred to as the "Tenant"

 

     

     

    

 

LIST
OF CONTENTS

 

	Preamble	 
	 	 
	Part A – Special contractual conditions	 
	 	 
	§ A.1 Cancellation of the existing rental agreement	 
	 	 
	§ A.2 Rental object	 
	 	 
	§ A.3 Rental period	 
	 	 
	§ A.4 Rent, VAT	 
	 	 
	§ A.5 Incidental costs	 
	 	 
	§ A.6 Deposit	 
	 	 
	§ A.7 Further regulations	 
	 	 
	§ A.8 Commitment period for the first signing contractual party	 
	 	 
	§ A.9 Contractual elements	 
	 	 
	Part B – General contractual terms and conditions	 
	 	 
	§ B.1 Utilisation of the rental object	 
	 	 
	§ B.2 Transfer of the rental object	 
	 	 
	§ B.3 Payment of rent, offsetting, retention	 
	 	 
	§ B.4 Incidental cost invoicing/adaptation of prepayments	 
	 	 
	§ B.5 Termination for an important reason	 
	 	 
	§ B.6 Construction modifications by the Tenant	 
	 	 
	§ B.7 Liability for the condition of the rental object	 
	 	 
	§ B.8 Ending of the rental agreement	 
	 	 
	§ B.9 Access to the rental premises	 
	 	 
	§ B.10 Building modifications by the Landlord	 
	 	 
	§ B.11 Design of advertising, nameplates and company signs	 
	 	 
	§ B.12 Subletting	 
	 	 
	§ B.13 Keys	 

 

    	 	- 2 -	 

     

    

 

	§ B.14 Sale of the rental object § B.15 Insurance	 
	 	 
	§ B.16 Several individuals as Tenant	 
	 	 
	§ B. 17 Authorisation of the Tenant to take receipt in relation to declarations of intent and constitutive declarations	 
	 	 
	§ B.18 No competitive protection	 
	 	 
	§ B.19 House rules	 
	 	 
	§ B.20 Time limits	 
	 	 
	§ B.21 Written form clause	 
	 	 
	§ B.22 Partial inefficacy	 

 

    	 	- 3 -	 

     

    

 

Preamble

 

A rental agreement dated 18 June 2007 exists
between the parties concerning the property Hemmelrather Weg 201 in 51377 Leverkusen. The parties now intend to re-establish the
rental relationship on a new basis. To this end, the rental agreement dated 18 June 2007 is to be cancelled and replaced by this
rental agreement. As a consequence, the parties shall agree as follows:

 

Part
A – Special contractual conditions

 

		§ A.1	Cancellation of the existing rental agreement

 

The parties shall cancel the rental
agreement dated 18 June 2007 with effect as of the rental start pursuant to A.3.1.

 

		§ A.2	Rental object

 

		A.2.1	The Landlord is the owner of the property Hemmelrather
Weg 201 in 51377 Leverkusen.

 

		A.2.2	The aforementioned plot of land is developed with
an office and business park, hereinafter also referred to as the "rental object".

 

		A.2.3	In the rental object, the Landlord shall rent to the
Tenant,

 

		A.2.3.1	Building II, the premises marked in colour in this
agreement as Annex 1 on the first floor, and

 

		A.2.3.2	Building III, the premises marked in colour in this
agreement as Annex 2 on the ground floor, and

 

		A.2.3.3	Building II, the premises marked in colour in this
agreement as Annex 3 in the basement, and

 

		A.2.3.4	A total of 20 car parking spaces whose location is marked in colour in the plan as Annex 4.

 

    	 	- 4 -	 

     

    

 

			The spaces designated above in § A.2.3 are referred to hereinafter in their entirety as
                                                                               the "rental object". The entire space is determined as amounting to 1,330 m2. The parties are aware that a
                                                                               precise measurement has not been made, with this space being regarded as binding nevertheless.

 

		A.2.4	The Tenant shall rent the rental object for the purposes of utilising it as an office. It already
utilises the rental object on the basis of the rental agreement dated 18 June 2007. It shall recognise the rental object contractually
as it stands.

 

		§ A.3 	Rental period

 

		A.3.1	The rental agreement shall commence on 1 July 2009.4

 

		A.3.2	The rental contract shall end on 30 June 2019.

 

		A.3.3	is dispensed with.

 

		A.3.4	is dispensed with.

 

		A.3.5	The rental agreement shall renew in each case by one year unless one of the parties gives notice
of termination at least 12 months before the expiry of the rental duration.

 

		§ A.4	Rent, VAT

 

A.4.1

 

	The monthly rent for	 	EUR	8,279.17	 
	the rental spaces
    pursuant to § A.2.3. shall amount to (basic rent	 	EUR	3,000.00	 
	excluding incidental costs)	 	EUR	11,279.17	 
	plus monthly
    prepayment of incidental costs pursuant to § A.5.5	 	EUR	2,143.04	 
	Total monthly amount, net	 	EUR	13,422.21	 
	plus VAT to the respective statutory
    level, currently 19% of the gross	 	 	 	 
	monthly total amount	 	 	 	 

 

    	 	- 5 -	 

     

    

 

		A.4.2	Graduated rent

 

			The basic rent of currently EUR 8,279.17 shall increase as follows:

 

			as of 01/07/2011 to EUR 8,527.54,

 

			as of 01/07/2013 to EUR 8,783.37,

 

			as of 01/07/2015 to EUR 9,046.87, and

 

			as of 01/07/2017 to EUR 9,318.28.

 

		A.4.3.1	For the rental of the rental object, the Landlord
has waived the VAT option pursuant to Section 9 of the German Value Added Tax Act (UStG). In light of this, the Tenant shall obligate
itself to utilise the rental object exclusively for sales turnover that does not exclude input tax deduction (VAT) pursuant to
Section 9 (2) UStG. Moreover, the Tenant shall obligate itself to always immediately make available to the Landlord upon demand
those documents that enable the Landlord to fulfil its duty of proof to the tax authorities pursuant to Section 9 (2) UStG.

 

		A.4.3.2	In the instance of subletting, the Tenant shall be
obligated for its part to opt for VAT and to impose on the subtenant the obligations arising from § A.4.3.1 and § A.4.3.2
of this agreement. The Tenant shall guarantee to the Landlord that the subtenant shall fulfil such obligations. This regulation
is not connected with a permission to conduct subletting.

 

		A.4.3.3	If the Tenant infringes the obligations pursuant to
§ A.4.3.1 and § A.4.3.2, it should be obligated to compensate the Landlord for any losses arising as a consequence.
The Landlord draws attention to the fact that extraordinarily high losses can arise.

 

		§ A.5 	Incidental costs

 

		A.5.1	In addition to payment of the rent, the Tenant shall
bear on a proportional basis incidental costs pursuant to § A.5.3.

/

		A.5.2	Incidental costs in the meaning of this agreement
shall comprise:

 

		A.5.2.1	all operating costs in the meaning of the German Operating Costs Regulation (BetrKV) dated 25 November
2003 which is attached to this agreement as Annex 5, over and above this the following incidental costs:

 

    	 	- 6 -	 

     

    

 

		A.5.2.2	costs for commercial and technical property management including house management on a lump-sum
basis of 3% of the annual basic rent excluding incidental costs;

 

		A.5.2.3	costs for cleaning exterior glass surfaces and facade cleaning including costs for the cleaning
of external shutters;

 

		A.5.2.4	costs for operation and maintenance of garage doors and technical access restrictions (e.g. code
card systems);

 

		A.5.2.5	costs for the operation and maintenance of the air-conditioning and ventilation systems;

 

		A.5.2.6	costs for the operation and maintenance of all other technical systems and equipment of the building
and land plot not referred to above or in the BetrKV, such as especially fire extinguishing systems, emergency electricity systems,
emergency electric lighting, door bell and intercom systems;

 

		A.5.2.7	costs for caretaker services and for other personnel required for the operation and supervision
of the building and land;

 

		A.5.2.8	costs for insurance as referred to in § B. 15.1;

 

		A.5.2.9	costs for the aesthetic repair, maintenance and repair of common areas and common facilities, as
well as the costs of maintaining and repairing all common technical systems and facilities mentioned above or referred to in the
BetrKV or otherwise existing, and including the replacement of defective door and window panes and coverings in rooms not serving
the Tenant's exclusive use;

 

		A.5.2.10	all fees, taxes and levies based on the law, regulations or bylaws, which might be introduced in
the future for the plot of land for the building or its use;

 

		A.5.2.11	The Tenant shall also bear ancillary costs that might be included in a new version of the BetrKV
that is valid in the future.

 

		A.5.2.12	The costs pursuant to § A.5.2.3 to A.5.2.9 shall be limited to a maximum of 10% of the annual
basic rent excluding incidental costs.

 

		A.5.3	All incidental costs in the meaning of § A.5.2 shall be passed on to the Tenant on the basis
of the ratio of rental space, unless they are settled directly by the Tenant or are calculated on the basis of consumption.

 

    	 	- 7 -	 

     

    

 

			The Landlord at its discretion shall decide which ancillary costs shall be passed on
                                                                                 according to consumption, unless related statutory regulations exist.

 

			The Landlord shall also be entitled to decide at its discretion whether and which ancillary
                                                                                 costs are to be distributed among user groups by type and extent of utilisation or consumption

 

		A.5.4	VAT at the respective statutory level, to the extent that it is incurred, shall be added to all
ancillary costs: ancillary costs shall be increased by the respective VAT amounts that are non-deductible for the Landlord on the
basis of VAT-free rental.

 

		A.5.5	An initial monthly prepayment of EUR 2.26 per m2 plus VAT shall be levied on the ancillary
costs, which shall fall due together with the monthly rental payment.

 

		§ A.6 	Deposit

 

		A.6.1	The Tenant shall be entitled to transfer to this agreement the deposit of EUR 3,000.00 provided
on the basis of the rental agreement dated 18 June 2007.

 

		§ A.7	Further regulations

 

		7.1	The Landlord at its cost shall replace all external windows on the first floor of Building II with
new external windows with double glazing in accordance with the cost estimate/attached offer attached as Annex 6.

 

		7.2	The Landlord, also at its cost, shall install a new entrance door on the first floor of Building
II (Annex 8) in accordance with the cost estimate/attached offer attached as Annex 7.

 

		7.3	The aforementioned modernisation measures are to be completed by autumn 2009 at the latest. However,
the Landlord shall not be liable for delays in execution for which neither it nor the specialist firms it commissions are responsible.

 

		7.4	The Tenant is aware that restrictions can occur to the use of the rental object as a consequence
of the works. The Tenant will endeavour to minimise as far as possible the restrictions to the Tenant's ongoing business operations
and to give prompt notification of respective works except where such notification would create a risk of delay.

 

    	 	- 8 -	 

     

    

 

		7.5	The Tenant shall state that it is prepared to tolerate the execution of the modernisation measures.
The Tenant shall obligate itself not to hinder the works on the rental object and to grant the executing specialist firms access
to the rental object where required by the modernisation works. The Tenant shall only be entitled to rent reductions, loss compensation
and reclamation claims against the Landlord on the basis of the building measures being conducted on the rental object, especially
also due to noise, dirt and odour nuisances occurring during the day, to the extent that they wholly or partly prevent utilisation
of the rental object.

 

		7.6	The modernisation works on the rental object do not comprise a defect in the rental property, as
the mutual interests are sufficiently taken into account in this rental agreement.

 

		7.7	The Tenant is aware that no air conditioning system is installed. This represents the contractually
preconditioned condition of the rental object and has been taken into account when assessing the rent. If high room temperatures
arise during the warm periods of the year, the Tenant shall not be entitled to a reduction of the rent nor to a remedying of this
condition.

 

		§ A.8 	Commitment period for the first signing contractual
party

 

			The commitment period for the first signing contractual party shall amount to four weeks from
                                                                               the receipt of the rental contract signed by the first party at the other party.

 

		§ A.9	Contractual elements

 

			This rental agreement shall consist of the following components:

 

			Part I, Special contractual terms & conditions

 

			Part II, General contractual terms & conditions

 

			Annex 1, floor plan Building II, first floor

 

			Annex 2, floor plan Building III, ground floor

 

			Annex 3, floor plan Building II, basement

 

			Annex 4, parking place plan

 

			Annex 5, German Operating Costs Regulation (BetrKV)

 

			Annex 6, cost estimate/offer (external windows)

 

    	 	- 9 -	 

     

    

  

			Annex 7, cost estimate/offer (entrance door)

 

			Annex 8, site plan, entrance door

 

			Annex 9, Inspection report

 

    	 	- 10 -	 

     

    

 

Part
B – General contractual terms and conditions

 

		§ B.1 	Utilisation of the rental object

 

		B.1.1	The Tenant may only use the rental object for the purpose agreed in this rental contract. An amendment
to the utilisation purposes deriving from § A.2.4 is permissible only with prior approval by the Landlord. Such approval shall
require written form.

 

		B.1.1.1	Any statements of approval on the part of the Landlord
in relation to a modification of utilisation shall always be issued subject – even if not stated expressly in the statement
of approval – to any requisite regulatory approval of the modification of utilisation, whose procurement shall be at the
Tenant's expense.

 

		B.1.1.2	Before implementing the approved modification of utilisation, the Tenant must prove to the Landlord
that either the official approval that is required for this purpose is legally valid, or that official approval is not required.

 

		B.1.2	The Tenant shall obligate itself to satisfy at its expense all regulations and requirements connected
with its person and/or its business, and to procure the approvals required for this purpose. This shall not apply to rendering
the rental object suitable in construction terms for the contractual purpose pursuant to § A.2.4.

 

		B.1.3	The Tenant shall ensure that the permitted burdening of storey ceilings, about which the Tenant
shall inform itself before installing heavy fixtures, is not exceeded.

 

		B.1.4	Gas and electric equipment and water supplies may only be connected to the existing network to
the extent that the envisaged burdening, about which the Tenant must provide advance information, is not exceeded.

 

		B.1.5	When it was constructed, the rental object complied with technical construction requirements prevailing
at that time. The rental object shall be made available to the Tenant in its contractual condition pursuant to these requirements
prevailing at that time, subject to its general ageing. The Tenant shall not be entitled to have the rental object comply with
any more stringent and improved technical construction requirements that have been introduced in the meantime or are introduced
during the rental period. The latter shall apply particularly for the area of sound and heat insulation.

 

			This regulation shall only be valid insofar as the contractual utilisation is not thereby
                                                                                restricted considerably.

 

    	 	- 11 -	 

     

    

 

		§ B.2 	Transfer of the rental object

 

			The Tenant is already in possession of the rental object, and no renewed transfer is to
                                                                               occur. Nevertheless, to record the condition of the rental object before signing this agreement / at the start of the rental
                                                                               period, an inspection of the rental object shall be conducted and an inspection report shall be prepared. This report shall
                                                                               become a component of this agreement as Annex 9.

 

		§ B.3	Payment of rent, offsetting, retention

 

		B.3.1	The rent should be paid monthly in advance to the Landlord as of the third working day of a given
month to an account to be specified by the Landlord. The crediting of the money shall be relevant for the rather than the time
of its dispatch.

 

		B.3.2	At the Landlord's request, the Tenant shall be obligated to issue a direct debit authorisation.

 

		B.3.3	The Tenant can only offset in relation to the rental payment and the ancillary costs, or exercise
a right of retention, with such claims that are either determined to be legally valid or not contested by the Landlord. A right
of retention can only be exercised on the basis of claims arising from this agreement.

 

		B.3.4	Payments by the Tenant that are insufficient to repay all of the Tenant's open receivables shall
first be offset with any interest due, then with the ancillary costs and finally with the rent, whereby, where several identical
receivables exist, offsetting shall initially occur with the older receivables in accordance with Section 366 of the German Civil
Code (BGB). This shall also apply if the Tenant determines another repayment sequence when making the payment.

 

    	 	- 12 -	 

     

    

 

		§ B.4 	Incidental cost invoicing/adaptation of prepayments

 

		B.4.1	Invoicing of ancillary costs shall occur annually. The calendar year shall be the invoicing period.
The Tenant shall be entitled to view the documents underlying the invoice of the ancillary costs within a six-week period from
the receipt of the invoice. After the expiry of three months after receipt of the invoice, objections to their correctness shall
be excluded.

 

		B.4.2	Any differences arising from the annual invoicing to the benefit of the Landlord or Tenant are
to be settled within one month after receipt of the invoice.

 

		B.4.3	The Landlord shall implement an adjustment to the monthly prepayments for ancillary costs to reflect
modified circumstances pursuant to Section 315 of the German Civil Code (BGB). In this case, the modified prepayment is to be rendered
from the month following the receipt of the amendment notification.

 

		B.4.4	If the rental relationship ends during an invoicing period, the invoice shall not be prepared on
an interim basis, but instead only as part of general invoicing.

 

		§ B.5 	Termination for an important reason

 

		B.5.1	Statutory provisions shall apply for the termination of the rental contract for an important reason.
§ 17 of this agreement shall apply for the receipt of declarations of termination.

 

		B.5.2	The Landlord shall also be entitled to terminate this rental contract without complying with a
notice period,

 

		B.5.2.1	to the extent that, before transferring the rental object, an application has been made to open
insolvency proceedings in relation to the Tenant's assets;

 

		B.5.2.2	if an insolvency application concerning the Tenant's assets is not withdrawn within three weeks,
or if the opening of insolvency proceedings is declined due to a lack of insolvency estate assets.

 

    	 	- 13 -	 

     

    

 

		§ B.6	Construction modifications by the Tenant

 

		B.6.1	Construction modifications within the rental object and the installation of additional facilities
potentially required for the Tenant's operations shall be permissible only with the Landlord's prior consent, to which the Tenant
shall submit suitable related plans in advance. Such approval shall require written form. The costs of such measures shall be charged
to the Tenant. § B. 1.1.1 and 1.1.2 shall apply correspondingly.

 

		B.6.2	When the rental contract ends, the Tenant shall restore the condition in which the rental object
was at the start of the rental duration on 1 July 2009, unless the Landlord states its agreement with the transfer of any modifications
implemented by the Tenant, or facilities installed in the rental object, whereby such modifications and facilities are to be offered
to the Landlord in advance.

 

			If the Landlord is in agreement with transferring such modifications of facilities, the
                                                                              Landlord shall compensate for their agreed value. If no value is agreed, the Landlord shall compensate for the market value.
                                                                              If agreement cannot be reached concerning the market value, such market value is to be calculated by an expert as arbitrator.
                                                                              The expert is to be nominated at the application of one of the parties by submission to the chamber of industry and commerce
                                                                              of relevance to the rental property.

 

		§ B.7	Liability for the condition of the
                                         rental object

 

		B.7.1	The rental object is to be maintained in a functioning condition by the Tenant, unless specified
differently in accordance with the following: .

 

		B.7.2	The Tenant shall be responsible for ongoing aesthetic repairs and the maintenance and repair of
the rental object, including technical equipment utilised exclusively by the Tenant. To the extent that repairs relate to damages
that are not allocable to the rental utilisation of the Tenant or to its sphere of risk, the costs of such repair within a given
calendar year shall be charged to the Tenant, albeit only up to the level of 10% of the annual net rent.

 

		B.7.3	In those rooms of the rental object that serve the joint utilisation by several or all Tenants,
the Landlord shall implement the ongoing aesthetic repairs as well as maintenance and repair, and shall charge on such costs according
to the regulations in § A.5.2.

 

		B.7.4	The Tenant shall have loss compensation claims due to defects of the rental object only if the
Landlord is responsible for the defect by way of intent or gross negligence, and the Tenant has unsuccessfully set a deadline for
the Landlord to remedy the defect. This shall apply only for the lack of pledged characteristics as well as for the infringement
of significant contractual obligations, damage to life, body or health, as well as for losses encompassed under risk covered by
the Landlord's building insurance.

 

    	 	- 14 -	 

     

    

 

		B.7.5	The Tenant can reduce the rent only due to undisputed or legally determined defects to the rental
object. A reduction is only possible if the Tenant has notified the Landlord of the defect one month previously in writing, while
giving a deadline for the remedying of the defect.

 

		B.7.6	Excluded shall be a reduction of rent or loss compensation claims on the part of the Tenant due
to pollution or disruptions to the entrances to the building for which the Landlord is not responsible, or building measures of
third parties outside the building. The Landlord shall nevertheless endeavour to eliminate any pollution or disruptions of which
it is made aware.

 

		B.7.7	The Tenant shall replace defective windowpanes and window fittings in the rooms exclusively serving
the Tenant's use, unless the Landlord is responsible for the defect.

 

		B.7.8	The Tenant shall be responsible for any damage it is responsible for causing within the rental
object, including if the damage is caused by its dependents, employees, subtenants, visitors, suppliers or agents.

 

			The Tenant shall inform the Landlord and eliminate immediately without request any damages or
                                                                               contamination to land and buildings outside the rental object that the Tenant, its dependents, employees, subtenants or
                                                                               agents cause and are responsible for.

 

		§ B.8	Ending of the rental agreement

 

		B.8.1	On the date of the ending of the rental period, the Tenant shall transfer the rental object in
its contractual condition and with all keys to the Landlord. The rental object shall be in contractual condition if all rooms have
been vacated and cleaned, damages have been eliminated and due aesthetic repairs have been performed, and any restoration obligation
has been satisfied.

 

    	 	- 15 -	 

     

    

 

		B.8.2	A tacit renewal of the rental contract pursuant to § 545 of the German Civil Code (BGB) shall
be excluded. An objection to renewal is not required. To the extent that the Tenant continues to utilise the rental object after
the end of the rental period, it shall be obligated to pay utilisation compensation equivalent to 1.5 times the previous rent.
Payments shall also be counted as utilisation compensation if they are described as rental payments in the correspondence or on
the transfer form. Moreover, the Tenant shall compensate any loss that arises from the Landlord as the result of not returning
the rental object on the due date.

 

		§ B.9 	Access to the rental premises

 

Following prior notification,
the Landlord or its agent and authorised officer shall be entitled to view the rental object during the Tenant's business hours.
The Landlord is to be granted access at any time in emergencies.

 

		§ B.10 	Building modifications by the Landlord

 

		B.10.1	The Landlord may make improvements and construction modifications required to preserve or maintain
the building or rental object, or to avert potential hazards, or to eliminate damages, including without the Tenant's approval.
The same shall apply for works and construction measures that although not necessary are nevertheless useful and serve to modernise
or improve or better utilise or expand the building (including adding storeys and extensions). The Tenant shall ensure that the
relevant rooms remain accessible and may not hinder or delay the carrying out of works. The Landlord shall notify the Tenant in
advance of the measures, unless where such advance notification brings the risk of delay.

 

		B.10.2	The Tenant is required to tolerate all reasonable modernisation and improvement measures within
the rental object.

 

		B.10.3	Due to measures pursuant to §§ B.10.1 and 10.2 the Tenant shall be entitled to reduction
claims, if the measures are connected with a considerable restriction of the Tenant's operations, or wholly or partially exclude
utilisation of the rental object. Damage compensation claims on the part of the Tenant shall exist only in the case of intentional
or grossly negligent activity on the part of the Landlord or its vicarious agents. The Tenant's right of termination in the case
of maintenance and modernisation measures pursuant to Sections 55 4 (3) in combination with 578 (2) of the German Civil Code (BGB)
shall be excluded.

 

		§ B.11	Design of advertising, nameplates and company
signs

 

		B.11.1	Nameplates and company signs shall be designed and fitted on a standard basis. The right of determination
shall lie with the Landlord, which, to the extent that uniform design permits, shall take Tenants' wishes into account.

 

    	 	- 16 -	 

     

    

 

 

			The Tenant shall bear the costs of nameplates and company signs, and their installation.

 

		B.11.2	To the extent that advertising spaces are rented, their design, which is also to be implemented
on a standard basis, shall require the Landlord's prior consent. Other tenants and third parties can neither be disrupted nor negatively
affected by advertising facilities.

 

			§ B. 1.1.1 and § B.1.1.2 shall also apply correspondingly for advertising
                                                                                  facilities. The Tenant loan shall bear the costs for procuring, assembling, maintaining and disassembling
                                                                                  advertising facilities.

 

		§B.12	Subletting

 

		B.12.1	Subletting shall be permissible only with the Landlord's prior written consent. A consent that
has been granted can be revoked if grounds exist in the subtenant's person or behaviour that entitle the Landlord to terminate
the rental contract without notice, if such grounds were to exist in the Tenant's person or behaviour.

 

		B.12.2	The special right of termination of the Tenant pursuant to Section 540 (1) Clause 2 of the German
Civil Code (BGB) shall not apply if the Landlord refuses consent for subletting due to an important reason consisting in the subtenant's
person or another reason of importance to the Landlord.

 

			An important reason can consist especially in the insufficient creditworthiness of the
                                                                              subtenant, as well as in characteristics, activities or reputation of the subtenant, to the extent that these are suited to
                                                                              exerting a negative effect on the image of the Landlord or the rental object.

 

    	 	- 17 -	 

     

    

 

		B3.12.3	In the case of unauthorised subletting, the Landlord can demand that the Tenant terminate the subletting
arrangement as soon as possible, albeit at the latest within one month. If this does not occur, the Landlord can terminate the
main rental agreement without notice.

 

		B.12.4	The Landlord is entitled to make its consent to subletting dependent on agreeing a subletting surcharge
of up to 10% of the annual net rent. Alternatively, the Landlord can demand that 50% of the subletting rent exceeding the rental
payment owed pursuant to this agreement be transferred to it.

 

		B.12.5	In the instance of subletting, the Tenant shall be liable for all actions or omissions on the part
of the subtenant, without taking into account whether the Tenant itself was responsible for such actions or omissions.

 

		B.12.6	In the case of subletting, the Tenant shall already cede its claims from subletting up to the level
of the Landlord's receivables due from the Tenant to secure all claims from this rental contract.

 

		B.12.7	Subletting shall also be deemed to be any other not only temporary transfer of utilisation and
the inclusion of a partner in the Tenant's business/company, a change of owner of the Tenant's business/company and the modification
of the Tenant's legal form.

 

		Keys	 for the entrance door to the building

 

		§ B.13	At the start of the rental period, the Tenant
shall be in possession of the requisite keys. There type and number shall be specified in the joint inspection report.

 

		B.13.1	These keys and any duplicate keys prepared by the Tenant are to be returned at the end of the rental
contract.

 

			If this does not occur, despite warning and the setting of a deadline, the Landlord shall be
                                                                            entitled to exchange the corresponding locks at the Tenant's expense.

 

			Any loss of a key is to be reported immediately to the Landlord.

 

		B.13.2	Given the loss of a key for a locking system, the Landlord can instigate the complete exchange
of the entire locking system at the Tenant's expense, unless it can be assumed that misuse of the lost key is excluded.

 

    	 	- 18 -	 

     

    

 

		B.13.3	The
locking system in the Tenant's premises was purchased by the Tenant and belongs to the Tenant.

 

		§
                          B.14	Sale of the rental object

 

		B.14.1	In the instance that the rental object is sold, the
rental contract shall transfer to the new owner (Sections 566 (1), 578 of the German Civil Code [BGB]). In this instance, the
seller shall not be liable as a guarantor to the Tenant. The regulation pursuant to Sections 566 (2) 578 BGB shall not be applicable.

 

		B.14.2	If, by way of exception, the rental contract does
not transfer in a sale of the rental object to the new owner pursuant to Sections 566 et seq. BGB, the Tenant shall already consent
to a transfer of the rental contract with all rights and obligations to the new owner with effect from the transfer of ownership.
The Tenant shall expressly repeat its statement of consent to the renewal of the Landlord or of the purchaser.

 

		§ B.15	Insurance

 

		B.15.1	The Landlord shall be entitled to insure the building
against fire, storm and water damage as well as rental loss and to charge the expense to the incidental costs pursuant to §
A.5,2.8, and to arrange land and building insurance including fire liability insurance as well as glass insurance. The insurance
of the aforementioned risks can also occur as part of so-called "all risk insurance".

 

		B.15.2	The Tenant shall be obligated to immediately notify
the Landlord of any value-enhancing fixtures as well as any change to risks in the meaning of insurance law. The Tenant loan shall
bear any related premium increases.

 

		B.15.3	The Tenant shall be obligated to ensure its equipment,
installations and inventory at new value and under exclusion of the possibility of regress against the Landlord, as well as to
arrange commercial liability insurance and exclusion of damages to rented buildings, and to provide proof of such insurance to
the Landlord.

 

		B.15.4	The Tenant shall also be obligated to arrange business
interruption insurance and to provide proof of it to the Landlord.

 

    	 	- 19 -	 

     

    

  

		§ B.16 	Several individuals as Tenant

 

			Several individuals as Tenant shall mutually authorise themselves to receive all statements
                                                                                 relating to the rental contract. This authorisation shall be revocable only for an important reason.

 

		§ B. 17 	Authorisation of the Tenant to take receipt
in relation to declarations of intent and constitutive declarations

 

			Exclusively the Landlord shall be entitled to receive declarations of intent and constitutive
                                                                                     declarations, such as declarations of termination or the exercising of options in relation to the respective rental contract.
                                                                                     Irrespective of how it presents itself to the Tenant, the Property Management function is not authorised to
                                                                                     receive declarations of intent and constitutive declarations of the Tenant in relation to the rental contract. If changes
                                                                                     arising this context, exclusively the Landlord itself shall communicate such to the Tenant.

 

		§ B.18 	No competitive protection

 

			Competitive protection shall not be granted.

 

		§ B.19 	House rules

 

			The Landlord should be entitled to approve the set of house rules and to determine its
                                                                             contents at its discretion.

 

		§ B.20 	Time limits

 

			For compliance with all time limits specified in this contract, the receipt of the
                                                                             declaration by the recipient shall be decisive.

 

    	 	- 20 -	 

     

    

 

		B 21.1 	No side agreements have been arranged.

 

		B2l.2	The parties to the rental contract are aware of the special statutory written form requirements
of Sections 550, 126 of the German Civil Code (BGB). They hereby obligate themselves to implement all actions at the request of
a party at any time and to issue declarations required to comply with the statutory written form requirement, and not to terminate
the rental contract early by appeal to non-compliance with the statutory written form. This shall not only apply for the arrangement
of the original/main contract, but also for all and any subsequent, amending and supplementary contracts.

 

		§ B.22 	Partial inefficacy

 

			Should a part of this contract be void or disputable, the validity of the contract shall be
                                                                                thereby unaffected. Should this contract contain a loophole, that which best approximates in a legally permissible manner
                                                                                that which the parties concluding the agreement would have agreed if they had been aware of the loophole shall be deemed to
                                                                                be agreed.

 

    	 	- 21 -	 

     

    

  

Addendum
1 to the

RENTAL AGREEMENT

No. 28390041

 

dated
18 September 2009

between

 

Biofrontera
Bioscience GmbH

Hemmelrather Weg 201, 53177 Leverkusen

represented by Thomas Schaffer (Managing

Director)

and Andrea Piotraschke (Company Officer)

- hereinafter referred to as the “Tenant”
-

and

 

YAL
Immobilien GmbH Ernst-Reuter-Strasse 119

119.95030
Hof/Saale

- hereinafter referred to as the “Previous

Landlord”
 -

and

 

Marie-Curie-Campus
GmbH

Hemmelrather Weg 201, 53177 Leverkusen

represented by Peter Kohlrautz (Managing

Director)

- hereinafter referred to as the “Landlord”
 -

Tax number: 230 5712 2734

 

    	 	Addendum 1 to contract Biofrontera - VAL v. 19.09.2009 . Page 1 of	 

     

    

 

Preamble

 

As a result of transfer of the rental agreement
from the “Previous Landlord” to the “Tenant”, the rental agreement dated 18 September 2009 exists in relation
to rental spaces in House 3 on the property Hemmelrather Weg 201 in 51377 Leverkusen.

 

The spaces rented pursuant to this rental
agreement shall be supplemented to include a space of approximately 301 m2. The supplementary rental space is highlighted
green and has blue edges in the attached plan (Annex “Preamble”). The plan shall form part of the contract.

 

The Tenant shall be responsible for procuring
any type of approval as well as the licensing of the space for the Tenant’s utilisation and all related requirements.

 

On this basis, the parties shall
agree the following:

 

		(1)	The rental agreement shall be amended to the extent that
from now

 

Marie-Curie-Campus GmbH, Hemmelrather
Weg 201, 53177 Leverkusen, represented by its Managing Director entitled to sole representation, Mr Peter Kohlrautz, shall be the
“Landlord”.

 

		(2)	§ A.2.3.2 of the rental agreement shall be amended as follows:

 

The Annex 2 specified in the agreement
shall be exchanged for the “Preamble” Annex attached to this addendum.

 

		(3)	§ A.4.1 shall be reformulated as follows:

 

	“The monthly rent for the rental
    spaces pursuant to § A.2.3. shall amount to	 	EUR	 	 	903.00	 
	plus monthly prepayment of incidental costs pursuant to § A.5	 	EUR	 	 	903.00	 
	Total monthly amount, net	 	EUR	 	 	1,806.00	 
	plus VAT in each case at the statutory level, currently 19%	 	EUR	 	 	343.14	 
	Total monthly amount, gross	 	EUR	 	 	2,149.14	 

 

		(4)	The parties shall agree that the modification of the rental space and rent as of 1 August 2014
shall become effective. To the extent that the Tenant takes possession of the rental space before this date for the purpose of
building modifications or installations, it shall be liable for the related operating costs from this date.

 

		(5)	The rental agreement dated 18 September 2009 shall be otherwise unaffected by this Addendum Number
1, and to this extent shall continue to exist unchanged.

 

Otherwise it shall be agreed:

 

Amendments or supplements to the
rental contract and to this Addendum 1 shall require written form.

 

The same shall also apply for
deviating from the written form requirement. Verbal side agreements shall not exist.

 

    	 	Addendum 1 to contract Biofrontera - VAL v. 19.09.2009 . Page 2 of	 

     

    

 

The parties shall assume that the written
form of Section 550 of the German Civil Code (BGB) has been complied with as a result of this addendum. If it should arise that
the parties’ shared notion of compliance with the written form is incorrect, the parties shall obligate themselves to cooperate
to ensure that this agreement together with Addendum 1 is re-concluded at the demand of one of the rental contract parties in such
way as to include identical contents and so that the written form is complied with.

 

In light of the precedence of the German
Federal Supreme Court (BGH) (BGH ruling of 26 February 1992, XII ZR 129/90) and the written form requirement for the rental contract
pursuant to § 550 BGB, the contractual parties shall declare that they shall waive an attachment of today’s addendum to the
original agreement in light of the clear applicability of today’s addendum to the original agreement in the opinion of the parties.

 

By way of precaution for the instance that
the statutory written form requirement of the past should be impaired in whatever manner, they also declare by way of appeal to
the BGH ruling of 29 April 2009 (BGH ruling XII ZR 142/07) that with today’s addendum the parties also wish to remedy any such
lack of written form.

 

The parties shall irrevocably waive the
cancellation of the agreement or any subsequent agreements, or to attack them in any other manner, by way of appeal to a lack of
written form.

 

Should one or several provisions of this
addendum be or become ineffective for whatever reason, the validity of the rental contract plus Addendum 1 shall otherwise be unaffected.
In such an instance, the parties shall be required to immediately arrange an effective agreement that best approximates the economic
purpose of the ineffective provisions.

 

The addendum was prepared in three copies,
one for each party and one for the manager.

 

The place of fulfilment shall be Cologne.

 

The applicant shall grant a deadline of
31 August 2014 for the acceptance of the offer relating to the agreement of the addendum. The receipt of the countersigned contract
by the applicant shall be relevant for the compliance with the deadline.

 

Annexes

		1.	“Preamble”
                                         annex - Ground floor plan for House number
                                         III, 2nd floor

		2.	Rental
                                         contract copy dated 18 September 2009

 

    	 	Addendum 1 to contract Biofrontera - VAL v. 19.09.2009 . Page 3 of	 

     

    

 

Addendum
2 to the

RENTAL AGREEMENT

No. 28390041

 

dated
18 September 2009

between

 

Biofrontera
Bioscience GmbH Hemmelrather Weg 201,53177 Leverkusen

represented
by Thomas Schaffer and Prof. Dr. Hermann Lübbert (both Managing Directors)

- hereinafter referred to as the “Tenant”
-

and

 

YAL
Immobilien GmbH Ernst-Reuter-Strasse 119 119.95030 Hof/Saale

- hereinafter referred to as the “Previous
Landlord”  -

and

 

Marie-Curie-Campus
GmbH

Hemmelrather Weg 201, 53177 Leverkusen

represented by Peter Kohlrautz (Managing Director)

- hereinafter referred to as the “Landlord”
 -

Tax number: 230 5712 2734

 

Version 26.05.2015
ms05

 

    	 	Addendum 1 to contract Biofrontera - YAL v. 19.09.2009 . Seitei von 4 	 

     

    

 

Preamble

 

As a result of transfer of the rental agreement
from the “Previous Landlord” to the “Tenant”, the rental agreement dated 18 September 2009 exists in relation
to rental spaces in House 2 and House 3 on the property Hemmelrather Weg 201 in 51377 Leverkusen.

 

On 14 July 2014, the tenant and the landlord
concluded an Addendum 1 to this agreement, with which the original rental space was expanded to include an additional rental space
of approximately 301 m2.

 

With this addendum, the current rental
space is to be expanded again by approximately 1,238 m2 in the upper storeys 2 and 5 of House 2. The supplementary spaces
are highlighted in yellow, green and beige and edged in blue in the two attached plans (Annex “Preamble 2” and “Preamble
3”). The plans shall form part of the agreement.

 

The tenant shall be responsible for
procuring any type of approval as well as the licensing of the space for the tenant’s utilisation and all related
requirements.

 

On this basis, the parties shall agree
the following:

 

		(1)	§ A.2.3.2 of the rental agreement shall be amended
as follows:

 

Annex 1 in the original
agreement shall be supplemented by the Annexes “Preamble 2” and “Preamble 3” attached to this
addendum.

 

		(2)	§ A.2.3.1 shall be reformulated as follows:

 

Building II, the first-floor rooms
highlighted in colour in this agreement in the attached Annex 1, and the rooms on the second and fifth floors marked in yellow,
green and beige and outlined in blue in the attached annexes “Preamble 2” and “Preamble 3”

 

		(3)	§ A.2.3.2 shall be reformulated as follows:

 

Building something, the ground-floor
rooms highlighted in colour (blue and yellow) in this agreement in the attached “Preamble” Annex (previously Annex 2)

 

		(4)	§ A.2.3 shall be reformulated as follows in relation
to the last paragraph:

 

The spaces designated above
in Section A.2.3 are referred to hereinafter in their entirety as the “rental object”. The entire space is
determined as amounting to 1,330 m2 (original rental contract)

+       301
m2 (1st Addendum)

+ 1,238 m2 (2nd Addendum)

+       2,869
m2.

The parties are aware that precise
measurement has not been made, with this space being regarded as binding nevertheless.

 

		(5)	§ A.4.1 shall be reformulated as follows:

 

Pursuant to § A.2.3, the
monthly rent for the rental spaces shall amount to (basic rent excluding incidental costs)

 

    	 	Addendum 1 to contract Biofrontera - YAL v. 19.09.2009 . Page 2 of 4	 

     

    

 

	+ for rental spaces from original agreement dated 18 September 2009	 	EUR	9,046.87	 
	+ for the rental spaces from the 1st Addendum dated 14 July 2015	 	EUR	903.00	 
	+ for the rental spaces from this 2nd Addendum	 	EUR	8,421.07	 
	= together:	 	EUR	18,370.94	 
	plus monthly prepayment of incidental costs purs. § A.5 (plus €3.5/m2)	 	EUR	10,041.50	 
	Total monthly amount, net	 	EUR	28,412.44	 
	plus VAT in each case at the statutory level, currently 19%	 	EUR	5,398.36	 
	Total monthly amount, gross	 	EUR	33,810.81	 

 

		(6)	§ A.4.2 shall be reformulated as follows:

 

The basic rent excluding incidental costs of currently
EUR ... shall be increased as follows:

As of 1 July 2017 to EUR 18,894.99.

 

		(7)	The parties shall agree that the modification of the rental space and rent as of 1 July 2014 shall
become effective. To the extent that the tenant takes possession of the rental space before this date for the purpose of building
modifications or installations, it shall be liable for the related operating costs from this date.

 

The rental agreement dated 18
September 2009 in combination with Addendum 1 shall be otherwise unaffected by this Addendum Number 2, and to this extent shall
continue to exist unchanged.

 

Otherwise it shall be agreed:

 

Amendments or supplements to the rental
contract dated 18 September 2009 in combination with Addendum 1 and this Addendum 2 shall require written form. The same shall
also apply for deviating from the written form requirement. Verbal side agreements shall not exist.

 

The parties shall assume that the written
form of Section 550 of the German Civil Code (BGB) has been complied with as a result of this addendum. If it should arise that
the parties’ shared notion of compliance with the written form is incorrect, the parties shall obligate themselves to cooperate
to ensure that this agreement together with Addendum 1 and Addendum 2 is re-concluded at the demand of one of the rental contract
parties in such way as to include identical contents and so that the written form is complied with.

 

In light of the precedence of the German
Federal Supreme Court (BGH) (BGH ruling of 26 February 1992, XII ZR 129/90) and the written form requirement for the rental contract
pursuant to § 550 BGB, the contractual parties shall declare that they shall waive an attachment of today’s addendum to the
original agreement in light of the clear applicability of today’s addendum to the original agreement in the opinion of the parties.

 

By way of precaution for the instance that
the statutory written form requirement of the past should be impaired in whatever manner, they also declare by way of appeal to
the BGH ruling of 29 April 2009 (BGH ruling XII ZR 142/07) that with today’s addendum the parties also wish to remedy any such
lack of written form.

 

The parties shall irrevocably waive the
cancellation of the agreement or any subsequent agreements, or to attack them in any other manner, by way of appeal to a lack of
written form.

 

Should one or several provisions of
this addendum be or become ineffective for whatever reason, the validity of the rental contract plus Addendum 1 shall
otherwise be unaffected. In such an instance, the parties shall be required to immediately arrange an effective agreement
that best approximates the economic purpose of the ineffective provisions.

 

     

     

    

 

The addendum was prepared in three
copies, one for each party and one for the manager.

 

The place of fulfilment shall
be Cologne.

 

The applicant shall grant a deadline
of 15 June 2015 for the acceptance of the offer relating to the agreement of the addendum. The receipt of the countersigned contract
by the applicant shall be relevant for the compliance with the deadline.

 

     

     

    

 

Addendum
3 to the

RENTAL AGREEMENT

No. 28390041

 

dated
18 September 2009

between

 

Biofrontera
Bioscience GmbH Hemmelrather Weg 201,53177 Leverkusen

represented
by Thomas Schaffer and Prof. Dr. Hermann Lübbert (both Managing Directors)

- hereinafter referred to as the “Tenant”
-

and

 

YAL
Immobilien GmbH Ernst-Reuter-Strasse 119 119.95030 Hof/Saale

- hereinafter referred to as the “Previous
Landlord”  -

and

 

Marie-Curie-Campus
GmbH

Hemmelrather Weg 201, 53177 Leverkusen

represented by Peter Kohlrautz (Managing Director)

- hereinafter referred to as the “Landlord”
 -

Tax number: 230 5712 2734

 

Version 12.08.2015
msOl

 

    	 	Addendum 3 to contract Biofrontera - YAL v. 19.09.2009 . Page 1 of	 

     

    

 

Preamble

 

As a result of transfer of the rental agreement
from the “Previous Landlord” to the “Tenant”, the rental agreement dated 18 September 2009 exists in relation
to rental spaces in House 2 and House 3 on the property Hemmelrather Weg 201 in 51377 Leverkusen.

 

On 14 July 2014, the tenant and the landlord
concluded an Addendum 1 to this agreement, with which the original rental space was expanded to include an additional rental space
of approximately 301 m2.

 

On 28/05/2015, the tenant and the landlord
concluded an Addendum 2 to this agreement, with which the rental space was expanded to include an additional rental space of approximately
1,238 m2.

 

With this addendum, the current rental
space is to be expanded again by approximately 868 m2 on the ground floor of House 3. The supplementary rental space is highlighted
yellow, green and beige and has blue edges in the attached plan (Annex “Preamble 4”). The plan shall form part
of the contract.

 

The tenant shall be responsible for procuring
any type of approval as well as the licensing of the space for the tenant’s utilisation and all related requirements.

 

On this basis, the parties shall agree
the following:

 

		(1)	§ A.2.3.2 of the rental agreement shall be amended
as follows:

 

Annex 1 in the original agreement
and annexes “Preamble 2” and “Preamble 3” from the addenda shall be supplemented to include the annex “Preamble
4” attached with this addendum.

 

		(2)	§ A.2.3.2 shall be reformulated as follows:

 

Building III, the ground-floor
rooms marked in colour (blue and yellow) in this agreement in the attached Annex “Preamble” (previously Annex
2), and the ground-floor rooms highlighted in yellow, green and beige and edged in blue in the attached Annex “Preamble
4”

 

		(3)	§ A.2.3 shall be reformulated as follows in relation
to the last paragraph:

 

The spaces designated above
in Section A.2.3 are referred to hereinafter in their entirety as the “rental object”. The entire space is
determined as amounting to 1,330 m2 (original rental contract)

+301m2 (1st
Addendum)

+ 1,238 m2 (2nd Addendum)

+ 868 m2 (2nd Addendum)

=       3,737
m2.

The parties are aware that precise
measurement has not been made, with this space being regarded as binding nevertheless.

 

		(4)	§ A.4.1 shall be reformulated as follows:

 

Pursuant to § A.2.3, the
monthly rent for the rental spaces shall amount to (basic rent excluding incidental costs)

+ for the rental spaces from the
original agreement dated 18 September 2009

+ for the rental spaces from the
1st Addendum of 14 July 2015 EUR 903.00

 

    	 	Addendum 3 to contract Biofrontera - YAL v. 19.09.2009 . Page 2 of	 

     

    

 

	+ for the rental spaces from the 2nd Addendum dated 28 May 2015	 	EUR	8,421.07	 
	+ for the rental spaces from this 3rd Addendum	 	EUR	3,906.00	 
	= together:	 	EUR	22,276.94	 
	plus monthly prepayment of incidental costs purs. to § A.5 (plus €3.5/m2)	 	EUR	13,079.50	 
	Total monthly amount, net	 	EUR	35,356.44	 
	plus VAT in each case at the statutory level, currently 19%	 	EUR	6,717.72	 
	Total monthly amount, gross	 	EUR	42,074.17	 

 

		(5)	§ A.4.2 shall be reformulated as follows:

 

The basic rent excluding incidental costs of currently
EUR ... shall be increased as follows:

as of 1 July 2017 to EUR 22,918.17.

 

		(6)	The parties shall agree that the modification of the rental space and rent as of 1 September 2015
shall become effective. To the extent that the tenant takes possession of the rental space before this date for the purpose of
building modifications or installations, it shall be liable for the related operating costs from this date.

 

		(7)	The rental agreement dated 18 September 2009 in combination with Addendum 1 and Addendum 2 shall
be otherwise unaffected by this Addendum Number 3, and to this extent shall continue to exist unchanged.

 

Otherwise it shall be agreed:

 

Amendments or supplements to the rental
contract dated 18 September 2009 in combination with Addendum 1 and Addendum 2 and this Addendum 3 shall require written form.
The same shall also apply for deviating from the written form requirement. Verbal side agreements shall not exist.

 

The parties shall assume that the written
form of Section 550 of the German Civil Code (BGB) has been complied with as a result of this addendum. If it should arise that
the parties’ shared notion of compliance with the written form is incorrect, the parties shall obligate themselves to cooperate
to ensure that this agreement together with Addendum 1 and Addendum 2 is re-concluded at the demand of one of the rental contract
parties in such way as to include identical contents and so that the written form is complied with.

 

In light of the precedence of the German
Federal Supreme Court (BGH) (BGH ruling of 26 February 1992, XII ZR 129/90) and the written form requirement for the rental contract
pursuant to § 550 BGB, the contractual parties shall declare that they shall waive an attachment of today’s addendum to the
original agreement in light of the clear applicability of today’s addendum to the original agreement in the opinion of the parties.

 

By way of precaution for the instance that
the statutory written form requirement of the past should be impaired in whatever manner, they also declare by way of appeal to
the BGH ruling of 29 April 2009 (BGH ruling XII ZR 142/07) that with today’s addendum the parties also wish to remedy any such
lack of written form.

 

The parties shall irrevocably waive the
cancellation of the agreement or any subsequent agreements, or to attack them in any other manner, by way of appeal to a lack of
written form.

 

Should one or several provisions of this
addendum be or become ineffective for whatever reason, the validity of the rental contract plus addenda 1, 2 and 3 shall otherwise
be unaffected. In such an instance, the parties shall be required to immediately arrange an effective agreement that best approximates
the economic purpose of the ineffective provisions.

 

    	 	Addendum 3 to contract Biofrontera - VAL v. 19.09.2009 . Page 3 of	 

     

    

 

The addendum was prepared in three copies, one for each party
and one for the manager. The place of fulfilment shall be Cologne.

 

The applicant shall grant a deadline of
20 August 2015 for the acceptance of the offer relating to the agreement of the addendum. The receipt of the countersigned contract
by the applicant shall be relevant for the compliance with the deadline.

 

Annexes

		1.	“Preamble
                                         4” annex - Ground floor plan for House
                                         number III, ground floor

		2.	Rental
                                         contract copy dated 18 September 2009

		3.	1st
                                         Addendum copy dated 14/07/2014

		4.	2nd
                                         Addendum copy dated 28/05/2015

 

(Place, date, name, function and signature
of the Landlord)

 

(Place,
date, name, function and signature of the Tenant)

 

    	 	Addendum 3 to contract Biofrontera - VAL v. 19.09.2009 . Page 4 of	 

     

    

 

Addendum
4 to the

RENTAL AGREEMENT

No. 28390041

 

dated
18 September 2009

between

 

Biofrontera
Bioscience GmbH Hemmelrather Weg 201,53177 Leverkusen

represented
by Thomas Schaffer and Prof. Dr. Hermann Lübbert (both Managing Directors)

- hereinafter referred to as the “Tenant”
-

and

 

YAL
Immobilien GmbH Ernst-Reuter-Strasse 119 119.95030 Hof/Saale

- hereinafter referred to as the “Previous
Landlord”  -

and

 

Marie-Curie-Campus
GmbH

Hemmelrather Weg 201, 53177 Leverkusen

represented by Peter Kohlrautz (Managing Director)

- hereinafter referred to as the “Landlord”
 -

Tax number: 230 5712 2734

 

Version 16.09.2015
msOlb

 

    	 	Addendum 4 to contract Biofrontera - YAL v. 18.09.2009 . Page 1 of	 

     

    

 

Preamble

 

As a result of transfer of the rental agreement
from the “Previous Landlord” to the “Tenant”, the rental agreement dated 18 September 2009 exists in relation
to rental spaces in House 2 and House 3 on the property Hemmelrather Weg 201 in 51377 Leverkusen.

 

On 14 July 2014, the tenant and the landlord
concluded an Addendum 1 to this agreement, with which the original rental space was expanded to include an additional rental space
of approximately 301 m2.

 

On 28 May 2015, the tenant and the landlord
concluded an Addendum 2 to this agreement, with which the rental space was expanded to include an additional rental space of approximately
1,238 m2.

 

On 17 August 2015, the tenant and the landlord
concluded an Addendum 3 to this agreement, with which the rental space was expanded to include an additional rental space of approximately
868 m2.

 

With this addendum, the rental duration
for the currently rented property including all of the spaces added by the three addenda is to be extended until 30 September 2025.

 

On this basis, the parties shall agree
the following:

 

		(1)	§ A.3.2 of the rental agreement shall be amended as
follows:

 

The rental contract shall end on 30 September
2025, including for all spaces rented with addenda.

 

		(2)	The parties shall agree that the amendment to the rental duration shall become effective with the
signing of this Addendum 4.

 

		(3)	The rental agreement dated 18 September 2009 in combination with Addendum 1 and Addendum 2 and
Addendum 3 shall be otherwise unaffected by this Addendum Number 4, and to this extent shall continue to exist unchanged.

 

Otherwise it shall be agreed:

 

Amendments or supplements to the rental
contract dated 18 September 2009 in combination with Addendum 1 and Addendum 2 and Addendum 3 and this Addendum 4 shall require
written form. The same shall also apply for deviating from the written form requirement. Verbal side agreements shall not exist.

 

The parties shall assume that the written
form of Section 550 of the German Civil Code (BGB) has been complied with as a result of this addendum. If it should arise that
the parties’ shared notion of compliance with the written form is incorrect, the parties shall obligate themselves to cooperate
to ensure that this agreement together with Addendum 1 and Addendum 2 is re-concluded at the demand of one of the rental contract
parties in such way as to include identical contents and so that the written form is complied with.

 

In light of the precedence of the German
Federal Supreme Court (BGH) (BGH ruling of 26 February 1992, XII ZR 129/90) and the written form requirement for the rental contract
pursuant to § 550 BGB, the contractual parties shall declare that they shall waive an attachment of today’s addendum to the
original agreement in light of the clear applicability of today’s addendum to the original agreement in the opinion of the parties.

 

    	 	Addendum 4 to contract Biofrontera - YAL v. 18.09.2009 . Page 2 of	 

     

    

 

By way of precaution for the instance that
the statutory written form requirement of the past should be impaired in whatever manner, they also declare by way of appeal to
the BGH ruling of 29 April 2009 (BGH ruling XII ZR 142/07) that with today’s addendum the parties also wish to remedy any such
lack of written form.

 

The parties shall irrevocably waive the
cancellation of the agreement or any subsequent agreements, or to attack them in any other manner, by way of appeal to a lack of
written form.

 

Should one or several provisions of this
addendum be or become ineffective for whatever reason, the validity of the rental contract plus addenda 1, 2, 3 and 4 shall otherwise
be unaffected. In such an instance, the parties shall be required to immediately arrange an effective agreement that best approximates
the economic purpose of the ineffective provisions.

 

The addendum was prepared in three copies, one for each party
and one for the manager. The place of fulfilment shall be Cologne.

 

The applicant shall grant a deadline of
30 September 2015 for the acceptance of the offer relating to the agreement of the addendum. The receipt of the countersigned contract
by the applicant shall be relevant for the compliance with the deadline.

 

Annexes

		1.	Rental
contract copy dated 18 September 2009

		2.	1st
Addendum copy dated 14/07/2014

		3.	2nd Addendum copy dated 28/05/2015

		4.	3rd Addendum copy dated 17/08/2015

 

(Place,
date, name, function and signature of the Tenant)

 

    	 	Addendum 4 to contract Biofrontera - YAL v. 18.09.2009 . Page 3 of

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