Document:

Exhibit 10.1

 

FORM
OF CONTINGENT VALUE RIGHTS AGREEMENT

 

THIS CONTINGENT
VALUE RIGHTS AGREEMENT, dated as of [●], 2017, (this “Agreement”), is entered into by and between Lough
Ree Technologies Limited, an Irish private limited company (the “Buyer”) and [●], a [●], as Rights
Agent.

 

RECITALS

 

WHEREAS,
Gurnet Point L.P., a Delaware limited partnership, the Buyer and Innocoll Holdings plc, an Irish public limited company (the “Company”),
have entered into the Transaction Agreement, dated as of April 4, 2017 (as it may be amended or supplemented from time to time
pursuant to the terms thereof, the “Transaction Agreement”), relating to a recommended offer to be made by the
Buyer for the entire issued and to be issued ordinary share capital of the Company to be implemented by means of a scheme of arrangement
under Irish law (the “Acquisition”);

 

WHEREAS,
pursuant to the Acquisition, in accordance with the terms and conditions thereof, the consideration to be paid for the Innocoll
Shares (as defined in the Scheme Document) includes CVRs (as defined herein);

 

WHEREAS,
if Completion (as defined in the Transaction Agreement) occurs, then on the Effective Date (as defined in the Transaction Agreement)
each [Innocoll Shareholder] (as defined in the Scheme Document) will be entitled to receive one CVR for each Innocoll Share; and

 

WHEREAS,
pursuant to the Acquisition, the maximum potential amount payable per CVR (as defined herein) is $4.90 in cash, without interest.

 

NOW, THEREFORE,
in consideration of the foregoing and the consummation of the transactions referred to above, the Buyer and Rights Agent agree,
for the equal and proportionate benefit of all Holders, as follows:

 

ARTICLE
I

DEFINITIONS; CERTAIN RULES OF CONSTRUCTION

 

Section 1.1           Definitions.
All capitalized terms used in this Agreement without definition shall have the respective meanings ascribed to them in the Transaction
Agreement. As used in this Agreement, the following terms will have the following meanings:

 

“Acting
Holders” means, at the time of determination, Holders of not less than a majority of the outstanding CVRs as set forth
in the CVR Register.

 

“Affiliate”
means in relation to any person, another person that, directly or indirectly, controls, is controlled by, or is under common control
with, such first person (as used in this definition, “control” (including, with its correlative meanings, “controlled
by” and “under common control with”) shall mean the possession, directly or indirectly, of the power to direct
or

 

     

     

    

 

cause the direction
of management or policies of a person, whether through the ownership of securities or partnership or other ownership interests,
by Contract or otherwise).

 

“Affiliate
End User” has the meaning set forth in the definition of Net Sales.

 

“Assignee”
has the meaning set forth in Section 7.3.

 

“Board
of Directors” means the board of directors of the Buyer.

 

“Board
Resolution” means a copy of a resolution certified by a duly authorized officer of the Buyer to have been duly adopted
by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Rights Agent.

 

“Business
Day” means any day other than a Saturday, Sunday or a day on which banking institutions in Dublin, Ireland or New York,
New York are authorized or obligated by Law or executive order to remain closed.

 

“Calendar
Quarter” means the three month period ending on any of March 31, June 30, September 30 or December 31 of a given calendar
year.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended and the rules and regulations promulgated thereunder.

 

“CVRs”
means the rights of Holders to receive contingent cash payments pursuant to the terms of this Agreement, collectively the “CVRs”
and each a “CVR”.

 

“CVR
Payment” means any of the First CVR Payment, Second CVR Payment, Third CVR Payment 2019, Third CVR Payment 2020, Fourth
CVR Payment 2019 or Fourth CVR Payment 2020 and “CVR Payments” shall mean all of the CVR Payments together.

 

“CVR
Payment Amount” means, in respect of a CVR Payment, for a given Holder, the product of (a) the CVR Payment in respect
of such CVR Payment Event and (b) the number of CVRs held by such Holder as reflected on the CVR Register as of the close of business
on the date of the applicable CVR Payment Event Notice.

 

“CVR
Payment Date” means, (a) in the case of the First CVR Payment Event, the Second CVR Payment Event or the Third CVR Payment
Event, the date that is ninety (90) days following the achievement of such CVR Payment Event, (b) in the case of the Fourth CVR
Payment Event 2019, March 31, 2020 and (c) in the case of the Fourth CVR Payment Event 2020, June 30, 2020.

 

“CVR
Payment Event” means any of the First CVR Payment Event, Second CVR Payment Event, Third CVR Payment Event or Fourth
CVR Payment Event.

 

“CVR
Payment Event Notice” has the meaning set forth in Section 2.4(a).

 

“CVR
Register” has the meaning set forth in Section 2.3(b).

 

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“Default
Interest Rate” means a rate equal to the sum of four percent (4%) plus the “prime rate” of interest quoted
in the Money Rates section of The Wall Street Journal (New York Edition) or similar reputable data source, calculated daily on
the basis of a three hundred sixty five (365) day year.

 

“Delaware
Courts” has the meaning set forth in Section 7.5(b).

 

“Diligent
Efforts” means, with respect to the Product, the efforts that a Person within the pharmaceutical industry of comparable
size to the Company and its subsidiaries and reasonably capitalized for an early stage pharmaceutical product development company,
would devote to a product, that is of similar market potential at a similar stage in its development or product life and using
such effort and employing such resources in the exercise of its reasonable business discretion relating to the research, development
or commercialization of such product, taking into account issues of market exclusivity (including patent coverage, regulatory and
other exclusivity), safety and efficacy, product profile, the competitiveness of alternate products in the marketplace or under
development, the launch or sales of a generic or biosimilar product, the regulatory structure involved, and the profitability of
the applicable product (including pricing and reimbursement status achieved), and other relevant factors, including technical,
commercial, legal, scientific, and/or medical factors; provided that the cost of potential CVR Payments hereunder shall be ignored
in the Buyer’s analysis. Subject to the foregoing, “Diligent Efforts” shall include, but shall not be limited
to, the following: (a) refraining from entering into agreements with employees of the Company that would be contradictory to the
achievement of, or would otherwise disincentivize such employees from seeking to achieve, any of the CVR Payment Events, (b) initiating
and completing FDA-mandated post-marketing approval commitments; (c) seeking pricing approvals and/or minimally restrictive payer
coverage decisions; and (d) setting a commercial price for the Product that is consistent with the profile of the Product. For
clarity, “Diligent Efforts” will not mean that the Buyer guarantees that it will actually accomplish any CVR Payment
Event, nor that it will accomplish the applicable CVR Payment Event by a specific date.

 

“DTC”
means The Depository Trust Company or any successor thereto.

 

“Entity”
means any corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership,
joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint stock company),
firm, society or other enterprise, association, organization or entity.

 

“Expanded
Soft Tissue” means Soft Tissue that is not limited to Hernia.

 

“Failed
Fourth CVR Payment” has the meaning set forth in Section 4.4(b).

 

“FDA”
means the United States Food and Drug Administration, or any successor agency.

 

“Finance
Contract” has the meaning set forth in Section 4.8.

 

“First
CVR Payment” means $0.70 per CVR.

 

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“First
CVR Payment Event” means the FDA’s approval, on or prior to December 31, 2018, of the Product with a label covering
indications for the treatment of postsurgical pain following open abdominal Hernia repair.

 

“Fourth
CVR Payment 2019” means $1.87 per CVR.

 

“Fourth
CVR Payment 2020” means $1.00 per CVR; provided that in no event shall the Fourth CVR Payment 2020 become payable
if the Fourth CVR Payment 2019 has been paid by the Buyer.

 

“Fourth
CVR Payment Event” means the first achievement in any Fourth CVR Payment Event Measurement Period of worldwide Net Sales
of the Product, exceeding $60,000,000.

 

“Fourth
CVR Payment Event Measurement Period” means the Fourth CVR Payment Event Measurement Period 2019 or the Fourth CVR Payment
Event Measurement Period 2020, as applicable.

 

“Fourth
CVR Payment Event Measurement Period 2019” means any four (4) consecutive Calendar Quarters ending on or prior to December
31, 2019.

 

“Fourth
CVR Payment Event Measurement Period 2020” means any four (4) consecutive Calendar Quarters ending on or prior to March
31, 2020.

 

“Fourth
CVR Payment Event 2019” means the achievement of the Fourth CVR Payment Event on or prior to December 31, 2019.

 

“Fourth
CVR Payment Event 2020” means the achievement of the Fourth CVR Payment Event after December 31, 2019 but on or prior
to March 31, 2020; provided that in no event shall the Fourth CVR Payment Event 2020 occur if the Fourth CVR Payment Event 2019
has occurred.

 

“Hard
Tissue” means mineralized tissue, including but not limited to orthopedic tissue, with a firm consistency such as bone.

 

“Hernia”
means the indication for which the patient population for the two Phase III registration trials conducted by the Company were treated.

 

“Holder”
means a Person in whose name a CVR is registered in the CVR Register at the applicable time.

 

“Independent
Accountant” has the meaning set forth in Section 4.4(a).

 

“Independent
Accountant Report” has the meaning set forth in Section 4.4(b).

 

“Law”
means any foreign, federal, state, local or municipal laws, rules, judgments orders, regulations, statutes, ordinances, codes,
decisions, injunctions, orders, decrees or requirements of any Relevant Authority.

 

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“Net
Sales” means the gross amount received by the relevant Selling Entity for the Product sold to third parties other than
any other Selling Entity, less the Permitted Deductions, all as determined in accordance with the Selling Entity’s usual
and customary accounting methods consistent with the treatment of other branded prescription products commercialized by the applicable
Selling Entity, which shall be in accordance with generally accepted accounting principles, including the accounting methods for
translating activity denominated in foreign currencies into United States dollar amounts. In the case of any sale of the Product
between or among Selling Entities for resale, Net Sales will be calculated as above only on the value charged or invoiced on the
first arm’s-length sale thereafter to a third party. For the avoidance of doubt, in the case of any sale of the Product between
or among Selling Entities where a Selling Entity is an end-user of (in such capacity, an “Affiliate End User”),
and does not further sell, the Product, Net Sales will be calculated on the value charged or invoiced to such Affiliate End User;
provided that use of the Product for clinical testing in which the cost of the Product is not reimbursed shall not make a Selling
Entity or licensee an Affiliate End User. If a Product is sold or otherwise commercially disposed of for consideration other than
cash or in a transaction that is not at arm’s length between the buyer of such Product and the applicable Selling Entity
(other than with respect to Product supplied expressly for sampling purposes), then the gross amount to be included in the calculation
of Net Sales shall be the amount that would have been received had the transaction been conducted at arm’s length and for
cash. Such amount that would have been received shall be determined, wherever possible, by reference to the average selling price
of such Product in arm’s length transactions in the relevant jurisdiction. Notwithstanding the foregoing, the following shall
not be included in Net Sales: (i) Product provided for administration to patients enrolled in clinical trials or for other research
purposes, or (ii) commercially reasonable quantities of Product used as samples to promote additional sales.

 

“Officer’s
Certificate” means a certificate signed by an authorized officer of the Buyer, in his or her capacity as such an officer,
and delivered to the Rights Agent.

 

“Outstanding”
when used with respect to CVRs means, as of the date of determination, all CVRs theretofore authenticated and delivered under this
Agreement, except CVRs theretofore cancelled by the Rights Agent or delivered to the Rights Agent for cancellation; provided, however,
that in determining whether the Holders of the requisite Outstanding CVRs have given any request, demand, direction, consent or
waiver hereunder, CVRs owned by the Buyer or any Affiliate of the Buyer, whether held as treasury securities or otherwise, shall
be disregarded and deemed not to be Outstanding.

 

“Permitted
Deductions” means, to the extent not already excluded from Net Sales:

 

		(1)	normal and customary trade, quantity and prompt settlement
discounts;

 

		(2)	amounts repaid or credited by reasons of defects, recalls,
returns, rebates or allowances of goods;

 

		(3)	normal and customary chargebacks, rebates (or the equivalent
thereof) and other amounts paid on sale of the Product, including such payments mandated by programs of Relevant Authorities;

 

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		(4)	normal and customary rebates (or the equivalent thereof)
and administrative fees paid to medical healthcare organizations, to group purchasing organizations or to trade customers in line
with approved contract terms or other understandings and arrangements;

 

		(5)	tariffs, duties, excise, sales, value-added and other taxes
(other than taxes based on net income);

 

		(6)	any government mandated manufacturing tax, including the
brand manufacturer’s tax imposed pursuant to the Patient Protection and Affordable Care Act (Pub. L. No. 111-149);

 

		(7)	reasonable deductions for uncollectible amounts on previously
sold products (which adjustment shall be based on actual bad debts incurred and written off as uncollectible by the Selling Entity
in a fiscal period);

 

		(8)	discounts pursuant to indigent patient programs and patient
discount programs and coupon discounts;

 

		(9)	normal and customary distribution commissions and fees
(including fees related to services provided pursuant to distribution service agreements with wholesalers, fee-for-service wholesaler
fees and inventory management fees) payable to any third party providing distribution services to the Selling Entities; and

 

		(10)	a reasonable allowance for transportation, freight, postage,
importation, shipping insurance and other handling expenses.

 

For the avoidance of doubt, if
a single item falls into more than one of the categories set forth in clauses (1) through (10) above, such item may not be deducted
more than once.

 

“Permitted
Transfer” means: a transfer of CVRs (a) upon the death of a Holder by will or intestacy; (b) pursuant to a court order;
(c) by operation of law (including by consolidation or merger) or without consideration in connection with the dissolution, liquidation
or termination of any corporation, limited liability company, partnership or other entity; (d) in the case of CVRs held in book-entry
or other similar nominee form, from a nominee to a beneficial owner and, if applicable, through an intermediary, to the extent
allowable by DTC; or (e) to the Buyer as provided in Section 2.6.

 

“Person”
means an individual, group (including a “group” under Section 13(d) of the Exchange Act), corporation, partnership,
limited liability company, joint venture, association, trust, unincorporated organization or other entity or any Relevant Authority
or any department, agency or political subdivision thereof.

 

“Product”
means the product originally submitted by the Company to the FDA under a New Drug Application dated October 31, 2016 having New
Drug Application number 209511.

 

    6 

     

    

 

“Regulatory
Approval” means all approvals from the FDA or other U.S. regulatory authority necessary for the commercial manufacture,
marketing and sale of a product in the United States in accordance with applicable Law.

 

“Relevant
Authority”, any Irish, United States, foreign or supranational, federal, state or local governmental commission, board,
body, bureau, arbitrator, arbitration panel, or other regulatory authority or agency, including courts and other judicial bodies,
or any competition, antitrust, foreign investment review or supervisory body, central bank or other governmental, trade or regulatory
agency or body, securities exchange or any self-regulatory body or authority, including any instrumentality or entity designed
to act for or on behalf of the foregoing, in each case, in any jurisdiction, including the Panel, the High Court and the SEC;

 

“Rights
Agent” means the Rights Agent named in the first paragraph of this Agreement, until a successor Rights Agent will have
become such pursuant to the applicable provisions of this Agreement, and thereafter “Rights Agent” will mean
such successor Rights Agent.

 

“Scheme
Document” has the meaning given to that term in the Transaction Agreement.

 

“Second
CVR Payment” means $1.33 per CVR.

 

“Second
CVR Payment Event” means the FDA’s approval, on or prior to December 31, 2018, of the Product with a label covering
indications for the treatment of postsurgical pain immediately following Expanded Soft Tissue repair. For the avoidance of any
doubt if the FDA approves the Product with a label covering indications for the treatment of postsurgical pain following both (x)
open abdominal Hernia repair and (y) Expanded Soft Tissue repair on or prior to December 31, 2018, both the First CVR Payment Event
and the Second CVR Payment Event shall have occurred.

 

“Selling
Entity” means the Buyer, the Company, any Assignee and each of their respective Affiliates, licensees and sublicensees
with respect to rights to develop or commercialize the Product, and any direct or indirect transferee, successor or assignee (including
through any change of control) of the rights to sell the Product of any of the foregoing (but not a distributor of the Product
acting solely in the capacity of a distributor and not otherwise an Assignee, licensee or sublicensee with respect to development
or commercialization rights as to the Product or transferee, successor or assignee of the rights to sell the Product).

 

“Soft
Tissue” means body tissue that is not hardened or calcified, such as tendon, muscle, skin, fat, and fascia, that connects,
supports or surrounds bone and internal organs, and shall include abdominal and visceral tissue and excludes Hard Tissue.

 

“Tax”
shall mean all national, federal, state, local or other taxes imposed by the United States, Ireland, and any other Relevant Authority,
including income, gain, profits, windfall profits, franchise, gross receipts, environmental, customs duty, capital stock, severances,
stamp, payroll, universal social charge, pay related social insurance and other similar contributions, sales, employment, unemployment,
disability, use, property, gift tax, inheritance tax, unclaimed property, escheat, withholding, excise, production, value added,
goods and services, trading, occupancy and other taxes, duties or assessments of any nature whatsoever, together with all

 

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interest, penalties,
surcharges and additions imposed with respect to such amounts and any interest in respect of such penalties and additions, whether
disputed or not.

 

“Third
CVR Payment 2019” means $1.00 per CVR if the Third CVR Payment Event 2019 occurs.

 

“Third
CVR Payment 2020” means $0.60 per CVR if the Third CVR Payment Event 2020 occurs; provided that in no event shall
the Third CVR Payment 2020 become payable if the Third CVR Payment 2019 has been paid by the Buyer.

 

“Third
CVR Payment Event” means the FDA’s approval of the Product with a label covering indications for the treatment
of postsurgical pain immediately following Hard Tissue repair.

 

“Third
CVR Payment Event 2019” means the achievement of the Third CVR Payment Event on or prior to December 31, 2019.

 

“Third
CVR Payment Event 2020” means the achievement of the Third CVR Payment Event after December 31, 2019, but on or prior
to June 30, 2020.

 

“Treasury
Regulations” means the rules and regulations promulgated by the U.S. Treasury Department under the Code.

 

Section 1.2           Rules
of Construction. Except as otherwise explicitly specified to the contrary, (a) references to a Section means a Section of this
Agreement unless another agreement is specified, (b) the word “including” (in its various forms) means “including
without limitation,” (c) references to a particular statute or regulation include all rules and regulations thereunder and
any successor statute, rules or regulation, in each case as amended or otherwise modified from time to time, (d) words in the singular
or plural form include the plural and singular form, respectively, (e) references to a particular Person include such Person’s
successors and assigns to the extent not prohibited by this Agreement and (f) all references to dollars or “$” refer
to United States dollars.

 

ARTICLE
II

CONTINGENT VALUE RIGHTS

 

Section 2.1           CVRs.
The CVRs represent the rights of Holders to receive contingent cash payments pursuant to this Agreement. The CVRs shall be issued
pursuant to the Acquisition at the time and in the manner set forth in the Scheme Document.

 

Section 2.2           Nontransferable.
The CVRs may not be sold, assigned, transferred, pledged, encumbered or in any other manner transferred or disposed of, in whole
or in part, other than through a Permitted Transfer. Any attempted sale, assignment, transfer, pledge, encumbrance or disposition
of CVRs, in whole or in part, in violation of this Section 2.2 shall be void ab initio and of no effect. The CVRs
have not been registered under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and
will not be listed for trading on any securities exchange.

 

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Section 2.3           No
Certificate; Registration; Registration of Transfer; Change of Address.

 

(a)          The
CVRs will not be evidenced by a certificate or other instrument.

 

(b)          The
Rights Agent will keep a register (the “CVR Register”) for the purpose of registering CVRs and Permitted Transfers
thereof. The CVR Register will initially show one position for Cede & Co. representing all of the Innocoll Shares held by DTC
on behalf of the street holders of the Innocoll Shares held by such holders as of immediately prior to the [Voting Record Time
(as defined in the Scheme Document)]. The Rights Agent will have no responsibility whatsoever directly to the street name holders
with respect to transfers of CVRs. With respect to any payments to be made under Section 2.4 below, the Rights Agent will
accomplish the payment to any former street name holders of the Innocoll Shares by sending a lump payment to DTC. The Rights Agent
will have no responsibilities whatsoever with regard to the distribution of payments by DTC to such street name holders.

 

(c)          Subject
to the restrictions on transferability set forth in Section 2.2, every request made to transfer a CVR must be in writing
and accompanied by a written instrument of transfer in a form reasonably satisfactory to the Rights Agent pursuant to its guidelines,
duly executed by the Holder thereof, the Holder’s attorney duly authorized in writing, the Holder’s personal representative
or the Holder’s survivor, and setting forth in reasonable detail the circumstances relating to the transfer. Upon receipt
of such written notice, the Rights Agent shall, subject to its reasonable determination that the transfer instrument is in proper
form and the transfer otherwise complies with the other terms and conditions of this Agreement (including the provisions of Section
2.2), register the transfer of the CVRs in the CVR Register. The Buyer and Rights Agent may require payment, from such transferee,
of a sum sufficient to cover any stamp or other Tax or governmental charge that is imposed in connection with any such registration
of transfer. The Rights Agent shall have no duty or obligation to take any action under any section of this Agreement that requires
the payment by a Holder of a CVR of applicable Taxes or charges unless and until the Rights Agent is satisfied that all such Taxes
or charges have been paid. All duly transferred CVRs registered in the CVR Register will be the valid obligations of the Buyer
and will entitle the transferee to the same benefits and rights under this Agreement as those held immediately prior to the transfer
by the transferor. No transfer of a CVR will be valid until registered in the CVR Register in accordance with this Agreement.

 

(d)          A
Holder may make a written request to the Rights Agent to change such Holder’s address of record in the CVR Register. The
written request must be duly executed by the Holder. Upon receipt of such written notice, the Rights Agent will promptly record
the change of address in the CVR Register.

 

Section 2.4           Payment
Procedures; Notices.

 

(a)          If
a CVR Payment Event is attained, then, on or prior to the CVR Payment Date, the Buyer shall deliver to the Rights Agent (i) written
notice indicating that a CVR Payment Event has been achieved and specifying such CVR Payment Event (a “CVR Payment Event
Notice”), (ii) an Officer’s Certificate certifying the date of such achievement and that the Holders are entitled
to receive the applicable CVR Payment Event and (iii) the payment required by Section 4.2.

 

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(b)          The
Rights Agent will promptly, and in any event within five (5) Business Days of receipt of a CVR Payment Event Notice, send each
Holder at its registered address a copy of such CVR Payment Event Notice and pay the applicable CVR Payment Amount to each of the
Holders by check mailed to the address of each Holder as reflected in the CVR Register as of the close of business on the date
of the CVR Payment Event Notice.

 

(c)          Except
to the extent any portion of a CVR Payment is required to be treated as imputed interest pursuant to applicable Law, the parties
hereto intend to treat CVR Payments for all Tax purposes as additional consideration for the Innocoll Shares and Innocoll Share
Awards (as defined in the Transaction Agreement) pursuant to the Scheme Document. Except to the extent otherwise required pursuant
to a “determination” within the meaning of Section 1313(a) of the Code (or any comparable provision of applicable Law),
the Buyer or its Affiliate shall (or shall cause the Rights Agent to) determine the portion of any CVR Payment required to be treated
as interest pursuant to Section 483 of the Code and the Treasury Regulations promulgated thereunder (or any comparable provision
of applicable Law). The Buyer shall report imputed interest on the CVRs as required by applicable Law.

 

(d)          The
Buyer or its Affiliate shall (or shall cause the Rights Agent to) deduct and withhold from any CVR Payment Amount or any other
amounts otherwise payable pursuant to this Agreement such amounts as may be required to be deducted and withheld therefrom under
applicable Tax Law, as may reasonably be determined by the Buyer. Any such withholding may be made, or caused to be made, at the
request of the Buyer or its Affiliate, through making payments with respect to Holders who received CVRs in consideration of Innocoll
Share Awards through the Company’s or any of its Affiliates’ payroll system or any successor payroll system. Prior
to making any CVR Payment, the Buyer or its Affiliate shall (or shall cause the Rights Agent to) solicit IRS Form W-9s or W-8s,
or any other appropriate forms or information, from Holders in order to provide a reasonable opportunity for the Holder to timely
provide any necessary Tax forms (including an IRS Form W-9 or an applicable IRS Form W-8) in order to mitigate or reduce such withholding,
and such CVR Payment may be reasonably delayed in order to gather such necessary Tax forms. The Buyer, its Affiliates and the Rights
Agent may assume all such forms in their possession or provided by any Holder are valid under applicable Law until subsequently
notified by such Holder. The Buyer or its Affiliate shall (or shall cause the Rights Agent to) take all action that may be necessary
to ensure that any amounts withheld in respect of Taxes are promptly remitted to the appropriate Relevant Authority. To the extent
any amounts are so deducted and withheld and properly remitted to the appropriate Relevant Authority, such amounts shall be treated
for all purposes of this Agreement as having been paid to the person in respect of whom such deduction and withholding was made,
and as required by applicable Law, the Buyer or its Affiliate shall (or shall cause the Rights Agent to) deliver to the person
to whom such amounts would otherwise have been paid an original IRS Form 1099 or other reasonably acceptable evidence of such withholding.

 

(e)          Any
portion of any CVR Payment Amount that remains undistributed to a Holder six (6) months after the date of the delivery of the CVR
Payment Event Notice will be delivered by the Rights Agent to the Buyer, upon demand, and any Holder will thereafter look only
to the Buyer for payment of such CVR Payment Amount, without interest, but such Holder will have no greater rights against the
Buyer than those accorded to general unsecured creditors of the Buyer under applicable Law.

 

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(f)          Neither
the Buyer nor the Rights Agent will be liable to any person in respect of any CVR Payment Amount delivered to a public official
pursuant to any applicable abandoned property, escheat or similar law. If, despite the Buyer’s and/or the Rights Agent’s
commercially reasonable efforts to deliver a CVR Payment Amount to the applicable Holder, such CVR Payment Amount has not been
paid prior to two (2) years after the applicable CVR Payment Date (or immediately prior to such earlier date on which such CVR
Payment Amount would otherwise escheat to or become the property of any Relevant Authority), any such CVR Payment Amount will,
to the extent permitted by applicable Law, become the property of the Buyer, free and clear of all claims or interest of any person
previously entitled thereto. In addition to and not in limitation of any other indemnity obligation herein, the Buyer agrees to
indemnify and hold harmless the Rights Agent with respect to any liability, penalty, cost or expense the Rights Agent may incur
or be subject to in connection with transferring such property to the Buyer.

 

Section 2.5           No
Voting, Dividends or Interest; No Equity or Ownership Interest in the Buyer.

 

(a)          The
CVRs will not have any voting or dividend rights, and interest will not accrue on any amounts payable on the CVRs to any Holder.

 

(b)          The
CVRs will not represent any equity or ownership interest in the Buyer, the Company, any constituent company to the Acquisition
or any of their respective Affiliates.

 

Section 2.6           Ability
to Abandon CVR. A Holder may at any time, at such Holder’s option, abandon all of such Holder’s remaining rights
in a CVR by transferring such CVR to the Buyer without consideration therefor. Nothing in this Agreement shall prohibit the Buyer
or any of its Affiliates from offering to acquire or acquiring any CVRs for consideration from the Holders, in private transactions
or otherwise, in its sole discretion. Any CVRs acquired by the Buyer or any of its Affiliates shall be automatically deemed extinguished
and no longer outstanding for purposes of the definition of Acting Holders and Article V and Section 6.3 hereunder.

 

ARTICLE
III

THE RIGHTS AGENT

 

Section 3.1           Certain
Duties and Responsibilities. The Rights Agent will not have any liability for any actions taken or not taken in connection
with this Agreement, except to the extent of its willful misconduct, bad faith, fraud or gross negligence.

 

Section 3.2           Certain
Rights of Rights Agent. The Rights Agent undertakes to perform such duties and only such duties as are specifically set forth
in this Agreement, and no implied covenants or obligations will be read into this Agreement against the Rights Agent. In addition:

 

(a)          the
Rights Agent may rely and will be protected and held harmless by the Buyer in acting or refraining from acting upon any resolution,
certificate, statement, instrument,

 

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opinion, report,
notice, request, direction, consent, order or other paper or document believed by it to be genuine and to have been signed or presented
by the proper party or parties;

 

(b)          whenever
the Rights Agent will deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action
hereunder, the Rights Agent may rely upon an Officer’s Certificate, which certificate shall be full authorization and protection
to the Rights Agent, and the Rights Agent shall, in the absence of bad faith, fraud, gross negligence or willful misconduct on
its part, incur no liability and be held harmless by the Buyer for or in respect of any action taken, suffered or omitted to be
taken by it under the provisions of this Agreement in reliance upon such certificate;

 

(c)          the
Rights Agent may engage and consult with counsel of its selection and the written advice of such counsel or any opinion of counsel
will be full and complete authorization and protection to the Rights Agent and the Rights Agent shall be held harmless by the Buyer
in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

 

(d)          the
permissive rights of the Rights Agent to do things enumerated in this Agreement will not be construed as a duty;

 

(e)          the
Rights Agent will not be required to give any note or surety in respect of the execution of such powers or otherwise in respect
of the premises;

 

(f)           the
Rights Agent shall not be liable for or by reason of, and shall be held harmless by the Buyer with respect to, any of the statements
of fact or recitals contained in this Agreement or be required to verify the same, but all such statements and recitals are and
shall be deemed to have been made by the Buyer only;

 

(g)          the
Rights Agent will have no liability and shall be held harmless by the Buyer in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution and delivery hereof by the Rights Agent and the enforceability of this
Agreement against the Rights Agent assuming the due execution and delivery hereof by the Buyer); nor shall it be responsible for
any breach by the Buyer of any covenant or condition contained in this Agreement;

 

(h)          the
Buyer agrees to indemnify the Rights Agent for, and hold the Rights Agent harmless against, any loss, liability, claim, demands,
suits or expense arising out of or in connection with the Rights Agent’s duties under this Agreement, including the reasonable
costs and expenses of defending the Rights Agent against any claims, charges, demands, suits or loss, unless such loss has been
determined by a court of competent jurisdiction to be a result of the Rights Agent’s gross negligence, bad faith or willful
or intentional misconduct;

 

(i)           the
Buyer agrees (i) to pay the fees and expenses of the Rights Agent in connection with this Agreement as agreed upon in writing by
the Rights Agent and the Buyer on or prior to the date hereof and (ii) to reimburse the Rights Agent for all Taxes and governmental
charges, reasonable and documented out-of-pocket expenses incurred by the Rights Agent in the execution of this Agreement (other
than Taxes imposed on or measured by the Rights Agent’s net income and franchise or similar Taxes imposed on it (in lieu
of net income Taxes)). The

 

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Rights Agent
will also be entitled to reimbursement from the Buyer for all reasonable and necessary out-of-pocket expenses paid or incurred
by it in connection with the administration and enforcement by the Rights Agent of its duties hereunder;

 

(j)           No
provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder or in the exercise of its rights if there shall be reasonable grounds for believing
that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it; and

 

(k)          No
Holder shall be obliged to indemnify the Rights Agent for any services or actions under this Agreement and the Rights Agent shall
not be entitled to deduct any sums from a CVR Payment Amount in any circumstance except as provided in Section 2.4(d).

 

Section 3.3           Resignation
and Removal; Appointment of Successor.

 

(a)          The
Rights Agent may resign at any time by giving written notice thereof to the Buyer specifying a date when such resignation will
take effect, which notice will be sent at least sixty (60) days prior to the date so specified but in no event will such resignation
become effective until a successor Rights Agent has been appointed. The Buyer has the right to remove Rights Agent at any time
by a Board Resolution specifying a date when such removal will take effect but no such removal will become effective until a successor
Rights Agent has been appointed. Notice of such removal will be given by the Buyer to the Rights Agent, which notice will be sent
at least sixty (60) days prior to the date so specified.

 

(b)          If
the Rights Agent provides notice of its intent to resign, is removed pursuant to Section 3.3(a) or becomes incapable of
acting, the Buyer, by a Board Resolution, will as soon as is reasonably possible appoint a qualified successor Rights Agent who,
unless otherwise consented to in writing by the Acting Holders, shall be a stock transfer agent of national reputation or the corporate
trust department of a commercial bank. The successor Rights Agent so appointed will, forthwith upon its acceptance of such appointment
in accordance with Section 3.4, become the successor Rights Agent.

 

(c)          The
Buyer will give notice of each resignation and each removal of a Rights Agent and each appointment of a successor Rights Agent
by mailing written notice of such event by first-class mail to the Holders as their names and addresses appear in the CVR Register.
Each notice will include the name and address of the successor Rights Agent. If the Buyer fails to send such notice within ten
(10) days after acceptance of appointment by a successor Rights Agent in accordance with Section 3.4, the successor Rights
Agent will cause the notice to be mailed at the expense of the Buyer.

 

Section 3.4           Acceptance
of Appointment by Successor. Every successor Rights Agent appointed pursuant to Section 3.3(b) hereunder will execute,
acknowledge and deliver to the Buyer and to the retiring Rights Agent an instrument accepting such appointment and a counterpart
of this Agreement, and thereupon such successor Rights Agent, without any further act, deed or conveyance, will become vested with
all the rights, powers, trusts and duties of the retiring Rights Agent. On request of the Buyer or the successor Rights Agent,
the retiring Rights

 

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Agent will
execute and deliver an instrument transferring to the successor Rights Agent all the rights, powers and trusts of the retiring
Rights Agent.

 

ARTICLE
IV

COVENANTS

 

Section 4.1           List
of Holders. The Buyer will furnish or cause to be furnished to the Rights Agent in such form as the Buyer receives from the
Company’s transfer agent (or other agent performing similar services for the Company), the names and addresses of the Holders
within seven (7) calendar days of the Effective Date. The Rights Agent will reflect such names and addresses on the CVR Register
and confirm the write up of the CVR Register to the Buyer promptly thereafter and, in any event, within five (5) calendar days
of the receipt of such names and addresses from the Buyer or the Company’s transfer agent, as the case may be.

 

Section 4.2           Payment
of CVR Payment Amounts. If a CVR Payment Event has occurred, the Buyer will, within ten (10) Business Days following the delivery
of the applicable CVR Payment Event Notice to the Rights Agent, deposit with the Rights Agent, for payment to the Holders in accordance
with Section 2.4, the aggregate amount necessary to pay the CVR Payment Amount to each Holder. For the avoidance of doubt,
the CVR Payment Amount shall only be paid in respect of a given CVR Payment Event, if at all, one time under this Agreement.

 

Section 4.3           Books
and Records. The Buyer shall, and shall cause its Affiliates to, keep, true, complete and accurate records in sufficient detail
to enable the amounts payable under this Agreement for a period of two (2) years following the end of the Fourth CVR Payment Event
Measurement Period 2020.

 

Section 4.4           Audits.

 

(a)          Upon
the written request of the Acting Holders and no more than once during any calendar year, and upon thirty (30) days’ prior
written notice, the Company shall provide an independent certified public accounting firm of nationally recognized standing selected
jointly by the Acting Holders and the Buyer (the “Independent Accountant”) with access during normal business
hours to such of the records of the Buyer as may be reasonably necessary to verify the accuracy of the Buyer calculation of Net
Sales and the figures underlying the calculations set forth therein for any period within the preceding three (3) years that has
not previously been audited in accordance with this Section 4.4. The Buyer shall pay for the fees charged by the Independent
Accountant in the event that the Independent Accountant determines that the amount of Net Sales calculated by the Buyer is more
than five percent (5%) below the actual amount of Net Sales calculated in accordance with the manner in which “Net Sales”
is defined pursuant to this Agreement; provided, however, that the Acting Holders shall pay for the fees charged by such Independent
Accountant in the event that the Independent Accountant determines that the amount of Net Sales calculated by the Buyer is equal
to or less than five percent (5%) below the actual amount of Net Sales calculated in accordance with the manner in which “Net
Sales” is defined pursuant to this Agreement, which amount the Buyer may deduct from any future CVR Payments payable pursuant
to this Agreement as its sole recourse for obtaining reimbursement for this fee. This covenant shall survive the termination of
this

 

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Agreement for
a period of two (2) years; provided that the Holders shall only be entitled to one audit following termination of this Agreement.

 

(b)          If
the Independent Accountant concludes that the Buyer did not properly calculate Net Sales and as a result the Holders were entitled
to receive either the Fourth CVR Payment 2019 or Fourth CVR Payment 2020 (the “Failed Fourth CVR Payment”),
the Buyer shall pay the Failed Fourth CVR Payment, within three (3) months of the date the Acting Holders deliver to the Buyer
the Independent Accountant’s written report (the “Independent Accountant Report”); provided that
the respective amount due under the Failed Fourth CVR Payment shall bear interest at the Default Interest Rate beginning from thirty
(30) days after the date the Acting Holders deliver to the Buyer the Independent Accountant Report until payment is made to the
Rights Agent. The decision of such Independent Accountant shall be final, conclusive and binding on the Buyer and the Holders,
shall be non-appealable and shall not be subject to further review.

 

(c)          Each
Person seeking to receive information from the Buyer in connection with a review or audit shall enter into, and shall cause its
accounting firm to enter into, a reasonable and mutually satisfactory confidentiality agreement with the Buyer obligating such
party to retain all such financial information disclosed to such party in confidence pursuant to such confidentiality agreement.

 

(d)          The
Buyer shall not, and shall cause its Affiliates not to, enter into any license or distribution agreement with any third party (other
than the Buyer or its Affiliates) with respect to any Product unless such agreement contains provisions that would allow any Independent
Accountant appointed pursuant to this Section 4.4 such access to the records of the other party to such license or distribution
agreement as may be reasonably necessary to perform its duties pursuant to this Section 4.4; provided, that the Buyer
and its Affiliates may redact documents and information not relevant for such evaluation pursuant to this Section 4.4. The
Parties agree that, if the Buyer or its Affiliates have exercised audit rights under any license or distribution agreement prior
to the Acting Holders’ request for an audit under this Section 4.4 and under such license or distribution agreement
the Buyer and its Affiliates cannot request another audit, the results of the Buyer’s prior audit of such licensee or distributor
will be used for purposes of the audit requested by the Acting Holders under this Section 4.4 and that the Buyer shall not
have any further obligation to provide access to an Independent Accountant with respect to such licensee until such time as the
Buyer may again exercise its rights of audit under the license agreement with such licensee.

 

Section 4.5           Product
Transfer. Subject to Section 7.3 of this Agreement, so long as the CVRs remain Outstanding, the Buyer and its Affiliates
may not, directly or indirectly, by a sale or swap of assets, merger, reorganization, joint venture, lease, license or any other
transaction or arrangement, sell, transfer, convey or otherwise dispose of their respective rights in and to the Product to a third
party (other than the Buyer or its Affiliates), unless at all times after any such sale, transfer, conveyance or other disposition,
the gross amounts invoiced for the Product by the applicable transferee will be reflected in Net Sales in accordance with the terms
hereunder as if such transferee was the Buyer, and the contract for such sale, transfer, conveyance or other disposition (which
the Buyer shall take all reasonable actions necessary to enforce in all material respects) shall provide for such treatment and
shall require the transferee to comply with the

 

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covenants in this
Section 4.5 and Sections 4.4, 4.6 and 4.7 hereof to the same extent as the Buyer.

 

Section 4.6           Regulatory
based CVR Payment Events. The Buyer shall use Diligent Efforts to achieve the First CVR Payment Event and the Second CVR Payment
Event on or prior to December 31, 2018, and the Buyer shall use Diligent Efforts to achieve the Third CVR Payment Event.

 

Section 4.7           Revenue
based CVR Payment Event. The Buyer shall use Diligent Efforts to commercialize the Product in the U.S. following receipt of
Regulatory Approval and to achieve the Fourth CVR Payment Event on or prior to December 31, 2019.

 

Section 4.8           No
Conflicting Agreements. So long as any of the CVRs remain Outstanding, the Buyer shall not, and shall not permit the Company
to, enter into any stockholder agreement, member agreement or similar agreement or credit, loan or similar agreement which would
prohibit, materially delay or condition payment of any CVR Payment that becomes due under this Agreement or which would prohibit,
materially delay or condition the transfer of funds by the Company to the Buyer (by way of dividend, loan or otherwise) to provide
a payment source to fund any CVR Payment that becomes due under this Agreement; provided, that any agreement entered into
by the Company prior to the Effective Date, including that certain Finance Contract, dated as of March 27, 2015, among European
Investment Bank, Innocoll Pharmaceuticals Limited and Innocoll AG (as amended prior to the Effective Date, the “Finance
Contract”), shall not be considered for purposes of determining the Buyer’s compliance with this Section 4.8;
provided that the Finance Contract shall not be amended, revised or restated after the Effective Date in any manner that would
prohibit, materially delay or condition the transfer of funds by the Company to the Buyer (by way of dividend, loan or otherwise)
to provide a payment source to fund any CVR Payment that becomes due under this Agreement (other than as provided in the Finance
Contract as of the Effective Date).

 

ARTICLE
V

AMENDMENTS

 

Section 5.1           Amendments
without Consent of Holders.

 

(a)          Without
the consent of any Holders or the Rights Agent, the Buyer, when authorized by a Board Resolution, at any time and from time to
time, may enter into one or more amendments hereto, for any of the following purposes:

 

(i)          to
evidence the succession of another Person to the Buyer and the assumption by any such successor of the covenants of the Buyer herein
as provided in and subject to conformity with Section 7.3;

 

(ii)         to
add to the covenants of the Buyer such further covenants, restrictions, conditions or provisions as the Buyer and the Rights Agent
will consider to be for the protection of the Holders; provided that, in each case, such provisions do not adversely affect the
interests of the Holders;

 

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(iii)        to
cure any ambiguity, to correct or supplement any provision herein that may be defective or inconsistent with any other provision
herein, or to make any other provisions with respect to matters or questions arising under this Agreement; provided that, in each
case, such provisions do not adversely affect the interests of the Holders;

 

(iv)        as
may be necessary or appropriate to ensure that the CVRs are not subject to registration under the Securities Act of 1933, as amended,
or the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder;

 

(v)         to
evidence the succession of another Person as a successor Rights Agent and the assumption by any such successor of the covenants
and obligations of the Rights Agent herein in accordance with Sections 3.3 and 3.4; or

 

(vi)        any
other amendments hereto for the purpose of adding, eliminating or changing any provisions of this Agreement, unless such addition,
elimination or change is adverse to the interests of the Holders.

 

(b)          Without
the consent of any Holders, the Buyer, when authorized by a Board Resolution, and the Rights Agent, in the Rights Agent’s
sole and absolute discretion, at any time and from time to time, may enter into one or more amendments hereto, to reduce the number
of CVRs, in the event any Holder agrees to renounce such Holder’s rights under this Agreement in accordance with Section
7.4.

 

(c)          Promptly
after the execution by the Buyer and the Rights Agent of any amendment pursuant to the provisions of this Section 5.1, the
Buyer will mail (or cause the Rights Agent to mail) a notice thereof by first class mail to the Holders at their addresses as they
appear on the CVR Register, setting forth such amendment.

 

Section 5.2           Amendments
with Consent of Holders.

 

(a)          Subject
to Section 5.1 (which amendments pursuant to Section 5.1 may be made without the consent of the Holders), with the
prior written consent of the Acting Holders, whether evidenced in writing or taken at a meeting of the Holders, the Buyer, when
authorized by a Board Resolution, and the Rights Agent may enter into one or more amendments hereto for the purpose of adding,
eliminating or changing any provisions of this Agreement, even if such addition, elimination or change is materially adverse to
the interest of the Holders; provided, however, that no such amendment shall, without the consent of the Acting Holders be materially
adverse to the interest of the Holders.

 

(b)          Promptly
after the execution by the Buyer and the Rights Agent of any amendment pursuant to the provisions of this Section 5.2, the
Buyer will mail (or cause the Rights Agent to mail) a notice thereof by first class mail to the Holders at their addresses as they
appear on the CVR Register, setting forth such amendment.

 

Section 5.3           Execution
of Amendments. In executing any amendment permitted by this Article V, the Rights Agent will be entitled to receive,
and will be fully protected in relying

 

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upon, an opinion
of counsel selected by the Buyer stating that the execution of such amendment is authorized or permitted by this Agreement. The
Rights Agent may, but is not obligated to, enter into any such amendment that affects the Rights Agent’s own rights, privileges,
covenants or duties under this Agreement or otherwise.

 

Section 5.4           Effect
of Amendments. Upon the execution of any amendment under this Article V, this Agreement will be modified in accordance
therewith, such amendment will form a part of this Agreement for all purposes and every Holder will be bound thereby.

 

ARTICLE
VI

 

REMEDIES
OF THE RIGHTS AGENT ON EVENT OF DEFAULT

 

Section 6.1           Event
of Default Defined; Waiver of Default.

 

(a)          “Event
of Default” with respect to the CVRs, means each one of the following events which shall have occurred and be continuing
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of
Law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body):

 

(i)          default
in the payment of all or any part of any CVR Payment after a period of thirty (30) days after such CVR Payment shall become due
and payable on a CVR Payment Date or otherwise;

 

(ii)         material
default in the performance, or breach in any material respect, of any covenant or warranty of the Buyer in respect of the CVRs,
and continuance of such default or breach for a period of ninety (90) days after there has been given, by registered or certified
mail, to the Buyer by the Rights Agent or to the Buyer and the Rights Agent by the Acting Holders, a written notice specifying
such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;

 

(iii)        a
court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Buyer in an involuntary case
under any applicable bankruptcy, insolvency or other similar Law now or hereafter in effect, or appointing a receiver, liquidator,
assignee, custodian, trustee or sequestrator (or similar official) of the Buyer or for any substantial part of its property or
ordering the winding up or liquidation of its affairs, and such decree or order shall remain unstayed and in effect for a period
of ninety (90) consecutive days; or

 

(iv)        the
Buyer shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar Law now or hereafter in effect,
or consent to the entry of an order for relief in an involuntary case under any such Law, or consent to the appointment of or taking
possession by a receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Buyer or for any
substantial part of its property, or make any general assignment for the benefit of creditors.

 

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(b)          If
an Event of Default described above occurs and is continuing, then, and in each and every such case, either the Rights Agent or
the Rights Agent upon the written request of the Acting Holders by notice in writing to the Buyer (and to the Rights Agent if given
by the Acting Holders), shall bring suit to protect the rights of the Holders, including to obtain payment for any amounts then
due and payable, which amounts shall bear interest at the Default Interest Rate until payment is made to the Rights Agent.

 

Section 6.2           Collection
by the Rights Agent; Payment Obligations.

 

(a)          The
Buyer covenants that in case default shall be made in the payment of all or any part of the CVRs when the same shall have become
due and payable, whether at a CVR Payment Date or otherwise, then upon demand of the Rights Agent, the Buyer will pay to the Rights
Agent for the benefit of the Holders of the CVRs the whole amount that then shall have become due and payable on all CVRs (with
interest from the date due and payable to the date of such payment upon the overdue amount at the Default Interest Rate); and in
addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including reasonable
compensation to the Rights Agent and each predecessor Rights Agent, their respective agents, attorneys and counsel, and any expenses
and liabilities incurred, and all advances made, by the Rights Agent and each predecessor Rights Agent, except as a result of its
willful misconduct, bad faith, fraud or gross negligence.

 

(b)          The
Rights Agent may in its discretion proceed to protect and enforce its rights and the rights of the Holders by such appropriate
judicial proceedings as the Rights Agent shall deem most effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Agreement or in aid of the exercise of any power granted herein, or to enforce
any other remedy.

 

(c)          In
case the Buyer shall fail forthwith to pay such amounts upon such demand, the Rights Agent, in its own name and as trustee of an
express trust, shall be entitled and empowered to institute any action or proceedings at Law or in equity for the collection of
the sums so due and unpaid, and may prosecute any such action or proceedings to judgment or final decree, and may enforce any such
judgment or final decree against the Buyer or other obligor upon such CVRs and collect in the manner provided by Law out of the
property of the Buyer or other obligor upon such CVRs, wherever situated, the moneys adjudged or decreed to be payable.

 

(d)          Nothing
herein contained shall be deemed to authorize the Rights Agent to authorize or consent to or vote for or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the CVRs, or the rights of any Holder
thereof, or to authorize the Rights Agent to vote in respect of the claim of any Holder in any such proceeding except, as aforesaid,
to vote for the election of a trustee in bankruptcy or similar person.

 

(e)          All
rights of action and of asserting claims under this Agreement, or under any of the CVRs, may be enforced by the Rights Agent without
the possession of any of the CVRs or the production thereof and any trial or other proceedings instituted by the Rights Agent shall
be brought in its own name as trustee of an express trust, and any recovery of judgment,

 

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subject to the payment
of the expenses, disbursements and compensation of the Rights Agent, each predecessor Rights Agent and their respective agents
and attorneys, shall be for the ratable benefit of the Holders.

 

(f)          In
any proceedings brought by the Rights Agent (and also any proceedings involving the interpretation of any provision of this Agreement
to which the Rights Agent shall be a party) the Rights Agent shall be held to represent all the Holders, and it shall not be necessary
to make any Holders parties to any such proceedings.

 

Section 6.3           Application
of Proceeds. Any monies collected by the Rights Agent pursuant to this Article in respect of any CVRs shall be applied in the
following order at the date or dates fixed by the Rights Agent in connection therewith:

 

FIRST:
To the payment of costs and expenses in respect of which monies have been collected, including reasonable compensation to the Rights
Agent and each predecessor Rights Agent and their respective agents and attorneys and of all expenses and liabilities incurred,
and all advances made, by the Rights Agent and each predecessor Rights Agent, except as a result of its willful misconduct, bad
faith, fraud or gross negligence, and all other amounts due to the Rights Agent or any predecessor Rights Agent;

 

SECOND:
To the payment of the whole amount then owing and unpaid upon all the CVRs, with interest at the Default Interest Rate on all such
amounts, and in case such monies shall be insufficient to pay in full the whole amount so due and unpaid upon the CVRs, then to
the payment of such amounts without preference or priority of any CVR over any other CVR, ratably to the aggregate of such amounts
due and payable.

 

Section 6.4           Delay
or Omission Not Waiver of Default. No delay or omission of the Rights Agent or of any Holder to exercise any right or power
accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power or shall be construed
to be a waiver of any such Event of Default or an acquiescence therein; and every power and remedy given by this Agreement to the
Rights Agent or to the Holders may be exercised from time to time, and as often as shall be deemed expedient, by the Rights Agent
or by the Holders in accordance with the terms of this Agreement.

 

ARTICLE
VII

OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 7.1           Notices
to Rights Agent and the Buyer. Any notice or other communication required or permitted hereunder shall be in writing and shall
be deemed given when delivered in person, by overnight courier, by facsimile transmission (with receipt confirmed by telephone
or by automatic transmission report) or by electronic mail, or two (2) Business Days after being sent by registered or certified
mail (postage prepaid, return receipt requested), as follows:

 

If to the Rights Agent,
to it at:

 

[●]

 

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With a copy to:

 

[●]

 

If to the Buyer, to
it at:

 

c/o Gurnet Point,
L.P.

c/o Waypoint International
GP LLC

55 Cambridge Parkway,
Suite 401

Cambridge, MA 02142

United States

Attention: James Singleton

Facsimile: (617) 588-4901

 

with a copy to:

 

Weil, Gotshal &
Manges LLP

767 Fifth Avenue

New York, NY 10153

Attention: Michael Aiello

Facsimile: (212) 310-8007

 

The Rights Agent or the Buyer
may specify a different address or facsimile number by giving notice in accordance with this Section 7.1.

 

Section 7.2           Notice
to Holders. Where this Agreement provides for notice to Holders, such notice will be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at the Holder’s
address as it appears in the CVR Register, not later than the latest date, and not earlier than the earliest date, if any, prescribed
for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor
any defect in any notice so mailed, to any particular Holder will affect the sufficiency of such notice with respect to other Holders.

 

Section 7.3           Buyer
Successors and Assigns. The Buyer may assign, in its sole discretion and without the consent of any other party, any or all
of its rights, interests and obligations hereunder to one or more direct or indirect wholly-owned subsidiaries of the Buyer or
to any purchaser or licensee of substantial rights to the Product (each, an “Assignee”) provided that the Assignee
agrees to assume and be bound by all of the terms of this Agreement. Any such Assignee may thereafter assign, in its sole discretion
and without the consent of any other party, any or all of its rights, interests and obligations hereunder to one or more additional
Assignees who agree to assume and be bound by all of the terms of this Agreement; provided, however, that in connection with any
assignment to an Assignee, the Buyer (or the other assignor) shall agree to remain liable for the performance by each Assignee
(and such other assignor, if applicable) of all obligations of the Buyer hereunder, with such Assignee substituted for the Buyer
under this Agreement. This Agreement will be binding upon, inure to the benefit of and be enforceable by the Buyer’s successors
and each Assignee, and this Agreement shall not restrict the Buyer’s, any Assignee’s or any of their respective successors’
ability to merge or consolidate. Each of the Buyer’s successors and assigns shall expressly assume by an instrument

 

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supplemental
hereto, executed and delivered to the Rights Agent, the due and punctual payment of the CVRs and the due and punctual performance
and observance of all of the covenants and obligations of this Agreement to be performed or observed by the Buyer. The Rights Agent
may not assign this Agreement without the Buyer’s written consent. Any attempted assignment of this Agreement or any such
rights in violation of this Section 7.3 shall be void and of no effect. Notwithstanding anything to the contrary herein,
so long as the CVRs remain Outstanding, the Buyer may not sell, transfer or otherwise convey the Company to an Affiliate of the
Buyer (including by way of a merger, consolidation, sale or other disposition of all or substantially all of the assets of the
Company on a consolidated basis or any other transaction involving the Company in which the Buyer and its direct and indirect subsidiaries
ceases to hold one hundred percent (100%) of the Company’s voting power immediately after such transaction) unless (i) such
Affiliate assumes and agrees to be bound by all of Buyer’s obligations, duties and covenants under this Agreement and (ii)
Buyer and such Affiliate or Affiliates who are bound by all of Buyer’s obligations, duties and covenants under this Agreement
(with their direct and indirect subsidiaries) own one hundred percent (100%) of the Company’s voting power immediately after
such transaction.

 

Section 7.4           Benefits
of Agreement. Nothing in this Agreement, express or implied, will give to any Person (other than the Rights Agent, the Buyer,
the Buyer’s successors and Assignees, the Holders and the Holders’ successors and assigns pursuant to a Permitted Transfer)
any benefit or any legal or equitable right, remedy or claim under this Agreement or under any covenant or provision herein contained,
all such covenants and provisions being for the sole benefit of the foregoing. The rights of Holders and their successors and assigns
pursuant to Permitted Transfers are limited to those expressly provided in this Agreement. Notwithstanding anything to the contrary
contained herein, any Holder or Holder’s successor or assign pursuant to a Permitted Transfer may agree to renounce, in whole
or in part, its rights under this Agreement by written notice to the Rights Agent and the Buyer, which notice, if given, shall
be irrevocable.

 

Section 7.5           Governing
Law; Jurisdiction; Waiver of Jury Trial.

 

(a)          This
Agreement, the CVRs and all actions arising under or in connection therewith shall be governed by and construed in accordance with
the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts
of law thereof.

 

(b)          Each
of the parties hereto (i) irrevocably and unconditionally consents and submits to the exclusive jurisdiction and venue of the Chancery
Court of the State of Delaware and any state appellate court therefrom or, if (but only if) such court lacks subject matter jurisdiction,
the United States District Court sitting in New Castle County in the State of Delaware and any appellate court therefrom (collectively,
the “Delaware Courts”); and (ii) consents to service of process by first class certified mail, return receipt
requested, postage prepaid, to the address at which such party is to receive notice in accordance with Section 7.1. Each
of the parties irrevocably and unconditionally (1) agrees not to commence any such action or proceeding except in the Delaware
Courts, (2) agrees that any claim in respect of any such action or proceeding may be heard and determined in the Delaware Courts,
(3) waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the
jurisdiction or laying of venue of any such action or proceeding in the Delaware Courts

 

    22 

     

    

 

and (4) waives,
to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in
the Delaware Courts.

 

(c)          EACH
OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING BETWEEN THE PARTIES (WHETHER
BASED ON CONTRACT, TORT OR OTHERWISE), INCLUDING ANY COUNTERCLAIM, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THE ACTIONS OF ANY PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF. EACH PARTY
HERETO (A) MAKES THIS WAIVER VOLUNTARILY AND (B) ACKNOWLEDGES THAT SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS CONTAINED IN THIS SECTION 7.5(c).

 

Section 7.6           Severability.
If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in
part or degree shall remain in full force and effect to the extent not held invalid or unenforceable. The parties further agree
to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve,
to the extent possible, the economic, business and other purposes of such invalid or unenforceable provision.

 

Section 7.7           Counterparts
and Signature. This Agreement may be executed in two or more counterparts (including by facsimile or by an electronic scan
delivered by electronic mail), each of which shall be deemed an original but all of which together shall be considered one and
the same agreement and shall become effective when counterparts have been signed by each of the parties hereto and delivered to
the other party, it being understood that the parties need not sign the same counterpart.

 

Section 7.8           Termination.
This Agreement will be terminated and of no force or effect, the parties hereto will have no liability hereunder (other than with
respect to monies due and owing by the Buyer to the Rights Agent), and no payments will be required to be made, upon the earliest
to occur of (a) the mailing by the Rights Agent to the address of each Holder as reflected in the CVR Register the full amount
of all potential CVR Payment Amounts (if any) required to be paid under the terms of this Agreement, (b) the delivery of a written
notice of termination duly executed by the Buyer and the Acting Holders and (c) March 31, 2020, with respect to the Buyer’s
obligation to pay the Fourth CVR Payment Event 2020 if not then achieved.

 

Section 7.9           Entire
Agreement. This Agreement and the Scheme Document (including the schedules, annexes and exhibits thereto and the documents
and instruments referred to therein) contain the entire understanding of the parties hereto and thereto with reference to the transactions
and matters contemplated hereby and thereby and supersedes all prior agreements, written or oral, among the parties with respect
hereto and thereto.

 

Section 7.10         Legal
Holiday. In the event that a CVR Payment Date shall not be a Business Day, then, notwithstanding any provision of this Agreement
to the contrary, any

 

    23 

     

    

 

payment required
to be made in respect of the CVRs on such date need not be made on such date, but may be made on the next succeeding Business Day
with the same force and effect as if made on the applicable CVR Payment Date.

 

[Remainder
of page intentionally left blank]

 

    24 

     

    

 

IN WITNESS
WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its duly authorized officers as of the day
and year first above written.

 

	 	LOUGH REE TECHNOLOGIES LIMITED
	 	 	 
	 	By:	                
	 	Name:
	 	Title:
	 	 	 
	 	[RIGHTS AGENT]
	 	 	 
	 	By:	 
	 	Name:
	 	Title:Exhibit
10.2

 

EXECUTION
VERSION

 

	DATED APRIL 4, 2017	

 

(1) GURNET
POINT L.P.

(ACTING
THROUGH ITS GENERAL PARTNER

WAYPOINT
INTERNATIONAL GP LLC)

 

AND

 

(2)
INNOCOLL HOLDINGS PUBLIC LIMITED COMPANY

 

	 	EXPENSES REIMBURSEMENT AGREEMENT	 

 

	
        Matheson

        70 Sir John
        Rogerson’s Quay

        Dublin 2

        Ireland

         

        Tel: + 353
        1 232 2000

        Fax:
+353 1 232 3333

 

     

     

    

 

CONTENTS

 

	 	 	Page No
	 	 	 
	1	Interpretation	2
	 	 	 
	2	Pre-Condition to Effectiveness	7
	 	 	 
	3	Reimbursement	7
	 	 	 
	4	General	10
	 	 	 
	Execution Page	13

 

    	 	1	 

     

    

 

THIS
EXPENSES REIMBURSEMENT AGREEMENT is made on 4 April 2017

 

BETWEEN

 

		(1)	GURNET POINT L.P., a Delaware limited partnership, acting through its general partner Waypoint
International GP LLC (hereinafter called “Gurnet”);

 

AND

 

		(2)	INNOCOLL HOLDINGS PUBLIC LIMITED COMPANY, a company incorporated in Ireland with registered
number 544604 having its registered office at Unit 9, Block D, Monksland Business Park, Monksland, Athlone, County Roscommon, Ireland
(hereinafter called “Innocoll”).

 

RECITALS:

 

		A.	Gurnet has agreed to make a proposal to acquire Innocoll through its wholly owned subsidiary Lough
Ree Technologies Limited, a company incorporated in Ireland with registered number 594503 having its registered office at 70 Sir
john Rogerson's Quay, Dublin 2, Ireland (“Gurnet Sub”) on the terms and subject to the conditions set out in
the Rule 2.5 Announcement (as defined below) and the Transaction Agreement (as defined below) and Innocoll has agreed to reimburse
certain third-party costs and expenses incurred and to be incurred by Gurnet and/or Gurnet Sub, for the purposes of, in preparation
for, or in connection with the Acquisition (as defined below) if the Transaction Agreement is terminated in certain circumstances.

 

		B.	This Expenses Reimbursement Agreement (this “Agreement”) sets out the agreement
between the Parties as to, among other things, the reimbursement in certain circumstances by Innocoll of certain costs and expenses
incurred and to be incurred by Gurnet and / or Gurnet Sub for the purposes of, in preparation for, or in connection with the Acquisition.

 

NOW IT
IS HEREBY AGREED as follows:

 

		1	Interpretation

 

		1.1	Definitions

 

In
this Agreement (including in the Recitals), the following expressions shall have the following meanings:

 

“Acquisition”
means the proposed acquisition by Gurnet Sub of Innocoll by means of the Scheme or (subject to the provisions of the Transaction
Agreement and Rule 41.3 of the Takeover Rules) a Takeover Offer pursuant to the Transaction Agreement (and any such Scheme or Takeover
Offer as it may be revised, amended or extended from time to time, subject to the consent of the Panel where required), including,
in each case, the payment by Gurnet Sub of the aggregate Consideration as described in the Rule 2.5 Announcement and provided for
in the Transaction Agreement;

 

“Act”
means the Companies Act 2014 and all enactments which are to be read as one with, or construed or read together as one with, the
Companies Act 2014;

 

    	 	2	 

     

    

  

“Acting
in Concert”, shall have the meaning given to that term in the Irish Takeover Panel Act 1997 (as amended);

 

“Business
Day” means any day, other than a Saturday, Sunday, public holiday or a day on which banks in Ireland or in the State
of New York are authorised or required by law or executive order to be closed;

 

“Cap”
shall have the meaning given to that term in Clause 3.1;

 

“Concert
Parties” means, in relation to any Party, such persons as are Acting in Concert with that Party (including such persons
as are deemed to be Acting in Concert with that Party pursuant to Rule 3.3 of Part A of the Takeover Rules);

 

“Conditions”
means the conditions to the Scheme and the Acquisition set forth in the Rule 2.5 Announcement, and “Condition”
means any one of the Conditions;

 

“Court
Hearing” means the hearing by the High Court of the petition to sanction the Scheme under Sections 449 to 455 of the
Act;

 

“EGM”
means the extraordinary general meeting of Innocoll Shareholders (and any adjournment thereof) to be convened in connection with
the Scheme, expected to be held as soon as the Scheme Meeting shall have been concluded or adjourned (it being understood that
if the Scheme Meeting is adjourned, the EGM shall be correspondingly adjourned);

 

“EGM
Resolutions” means the resolutions to be proposed at the EGM for the purposes of approving and implementing the Scheme,
the related reduction of capital of Innocoll, changes to the constitution of Innocoll and such other matters as Innocoll reasonably
determines, subject to the consent of Gurnet (such consent not to be unreasonably withheld, conditioned or delayed), to be necessary
or desirable for the purposes of implementing the Scheme or the Acquisition;

 

“End
Date” has the meaning given to that term in the Rule 2.5 Announcement;

 

“Exchange
Act” means the United States Securities Exchange Act of 1934, as amended, together with all rules and regulations promulgated
thereunder;

 

“Gurnet
Reimbursement Payment” shall have the meaning given to that term in Clause 3.1;

 

“Gurnet
Sub” shall have the meaning given to that term in Recital A;

 

“High
Court” means the High Court of Ireland;

 

“Innocoll
Alternative Proposal” means any bona fide proposal or bona fide offer, which proposal or offer may be subject to due
diligence, definitive documentation or both, made by any person (other than a proposal or offer pursuant to Rule 2.5 of the Takeover
Rules by Gurnet or any of its Concert Parties) for:

 

		(a)	the acquisition of Innocoll by scheme of arrangement, takeover offer or business combination transaction;

 

    	 	3	 

     

    

  

		(b)	any merger, reorganization, share exchange, consolidation, business combination, recapitalisation,
or similar transaction involving Innocoll that, if consummated, would result in the holders of Innocoll Shares immediately prior
to such transaction owning, in the aggregate, less than 80% of the outstanding voting power of the surviving or resulting entity
in such transaction immediately after the consummation thereof;

 

		(c)	the direct or indirect acquisition by any Person of more than 20% of the assets of the Innocoll
Group, taken as a whole, measured by either book value or fair market value (including equity securities of Innocoll’s Subsidiaries);
or

 

		(d)	the direct or indirect acquisition by any Person of more than 20% of the voting power or the issued
share capital of Innocoll, including any offer or exchange offer that if consummated would result in any Person beneficially owning
shares with more than 20% of the voting power of Innocoll;

 

“Innocoll
Board” means the board of directors of Innocoll from time to time and for the time being;

 

“Innocoll
Shareholder Approval” means:

 

		(a)	the passing of the Scheme Meeting Resolution, by a majority in number of those Innocoll Shareholders
(representing at least 75% in value of the Innocoll Shares held by such Innocoll Shareholders) present and voting either in person
or by proxy, at the Scheme Meeting (or at any adjournment of such meeting); and

 

		(b)	the EGM Resolutions being duly passed by the requisite majorities of Innocoll Shareholders at the
EGM (or at any adjournment of such meeting);

 

“Innocoll
Shareholders” means the holders of Innocoll Shares;

 

“Innocoll
Shares” means the ordinary shares with a par value of US$0.01 each in the capital of Innocoll;

 

“Innocoll
Superior Proposal” means a bona fide Innocoll Alternative Proposal (where each reference to 20% or 80% set forth
in the definition of such term shall be deemed to refer to 50%) made by any Person that the Innocoll Board determines in good faith
(after consultation with Innocoll’s financial advisor(s) and outside legal counsel) is more favourable to the Innocoll Shareholders
than the transactions contemplated by the Transaction Agreement, taking into account such financial, regulatory, legal and other
aspects of such proposal as the Innocoll Board considers in good faith to be appropriate;

 

“Ireland”
means the island of Ireland, excluding the counties of Antrim, Armagh, Derry, Down, Fermanagh and Tyrone on the island of Ireland,
and the word “Irish” shall be construed accordingly;

 

“Irrecoverable
VAT” means in relation to any person, any amount in respect of VAT which that person has incurred and in respect of which
that person is not entitled to a refund (by way of credit or repayment) from any relevant Tax Authority pursuant to and determined
in accordance with Section 59 of the Value Added Tax Consolidation Act 2010 and any regulations made under that act (and “recoverable
VAT” shall be construed accordingly);

 

    	 	4	 

     

    

  

“Parties”
means Gurnet and Innocoll (and “Party” shall mean any one of them, as the context requires);

 

“Payment
Events” shall have the meaning given to that term in Clause 3.2;

 

“Person”
or “person” means an individual, group (including a “group” under Section 13(d) of the Exchange
Act), corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organisation or other
entity or any Relevant Authority (as defined in the Transaction Agreement) or any department, agency or political subdivision thereof;

 

“Resolutions”
means, collectively, the Scheme Meeting Resolution and the EGM Resolutions, which will be set out in the Scheme Document;

 

“Rule
2.5 Announcement” means the announcement to be made by the Parties pursuant to Rule 2.5 of the Takeover Rules in accordance
with the Transaction Agreement;

 

“Scheme”
means the proposed scheme of arrangement under Chapter 1 of Part 9 of the Act and the related capital reduction under Sections
84 and 85 of the Act to effect the Acquisition pursuant to and on the terms set forth in the Transaction Agreement and the Rule
2.5 Announcement, and in such form not being inconsistent therewith as the Parties, acting reasonably, mutually agree in writing,
including any revision thereof as may be so agreed between the Parties and, as required, by the Panel and the High Court;

 

“Scheme
Document”, means a document comprising the scheme document (including any amendments or supplements thereto) to be distributed
to Innocoll Shareholders and, for information only, to holders of Innocoll Option or Innocoll Share Awards or German Options (each
as defined in the Transaction Agreement), containing (i) the Scheme, (ii) the notice or notices of the Scheme Meeting
and the EGM, (iii) an explanatory statement as required by Section 452 of the Act with respect to the Scheme, (iv) such
other information as may be required or necessary pursuant to the Act, the Exchange Act or the Takeover Rules (or required by the
Panel) and (v) such other information as Innocoll and Gurnet shall agree, each acting reasonably;

 

“Scheme
Meeting” means the meeting or meetings of the Innocoll Shareholders or, if applicable, any class of Innocoll Shareholders
(as may be directed by the High Court pursuant to Section 450(5) of the Act) (and any adjournment of any such meeting or meetings)
convened by (i) resolution of the Innocoll Board or (ii) order of the High Court, in either case pursuant to Section 450 of the
Act, to consider and vote on the Scheme Meeting Resolution;

 

“Scheme
Meeting Resolution” means the resolution to be considered and voted on at the Scheme Meeting proposing that the Scheme,
with or without amendment (but subject to such amendment being acceptable to each of Innocoll and Gurnet, except for a technical
or procedural amendment which is required for the proper implementation of the Scheme and does not have a substantive consequence
on the implementation of the Scheme), be agreed to;

 

“Scheme
Recommendation” means the unanimous recommendation of the Innocoll Board that Innocoll Shareholders vote in favour of
the Resolutions;

 

    	 	5	 

     

    

  

“Takeover
Offer” means an offer in accordance with Clause 3.6 of the Transaction Agreement for the entire issued and to be issued
share capital of Innocoll (other than any Innocoll Shares beneficially owned by any member of the Gurnet Group (if any)), including
any amendment or revision thereto pursuant to this Agreement, the full terms of which would be set out in the Takeover Offer Documents
or (as the case may be) any revised offer document(s);

 

“Takeover
Offer Document”, means, if following the date of this Agreement, Gurnet elects to implement the Acquisition by way of
the Takeover Offer in accordance with clause 3.6 of the Transaction Agreement, the document to be despatched to Innocoll Shareholders
and others by Gurnet Sub containing, amongst other things, the Takeover Offer, the Conditions (to the extent appropriate in the
case of a Takeover Offer, and as amended in such manner as Gurnet and Innocoll shall determine, and the Panel shall agree, to be
necessary to reflect the terms of the Takeover Offer) and certain information about Gurnet, Gurnet Sub and Innocoll and, where
the context so admits, includes any form of acceptance, election, notice or other document reasonably required in connection with
the Takeover Offer;

 

“Takeover
Rules” means the Irish Takeover Panel Act 1997, Takeover Rules, 2013;

 

“Tax”
(or “Taxes” and, with correlative meaning, the term “Taxable”) means all national, federal,
state, local or other taxes imposed by the United States, Ireland, and any other Tax Authority, including income, gain, profits,
windfall profits, franchise, gross receipts, environmental, customs duty, capital stock, severances, stamp, payroll, universal
social charge, pay related social insurance and other similar contributions, sales, employment, unemployment, disability, use,
property, gift tax, inheritance tax, unclaimed property, escheat, withholding, excise, production, value added, goods and services,
trading, occupancy and other taxes, duties or assessments of any nature whatsoever, together with all interest, penalties, surcharges
and additions imposed with respect to such amounts and any interest in respect of such penalties and additions, whether disputed
or not, and any liability in respect of any of the foregoing items payable by reason of contract, assumption, transferee or successor
liability;

 

“Tax
Authority” means any Irish, United States, foreign or supranational, federal, state or local governmental commission,
board, body, bureau, or any other governmental, trade or regulatory agency or body, in each case, in any jurisdiction responsible
for the assessment, collection or enforcement of laws relating to Taxes or for making any decision or ruling on any matter relating
to Tax (including the Irish Revenue Commissioners and United States Internal Revenue Service);

 

“Transaction
Agreement” means the transaction agreement dated the date hereof by and among Gurnet, Gurnet Sub and Innocoll; and

 

“VAT”
means any Tax imposed by any member state of the European Community in conformity with the Directive of the Council of the European
Union on the common system of value added tax (2006/112/EC).

 

		1.2	Construction

 

		1.2.1	In this Agreement, words such as “hereunder”, “hereto”, “hereof”
and “herein” and other words commencing with “here” shall, unless the context clearly indicates to the
contrary, refer to the whole of this Agreement and not to any particular section or clause thereof.

 

    	 	6	 

     

    

  

		1.2.2	In this Agreement, save as otherwise provided herein, any reference herein to a section, clause,
schedule or paragraph shall be a reference to a section, sub-section, clause, sub-clause, schedule or paragraph or sub-paragraph
(as the case may be) of this Agreement.

 

		1.2.3	In this Agreement, any reference to any provision of any legislation shall include any amendment,
modification, re-enactment or extension thereof and shall also include any subordinate legislation, rules or regulations made from
time to time under such provision, and any reference to any provision of any legislation, unless the context clearly indicates
to the contrary, shall be a reference to legislation of Ireland.

 

		1.2.4	In this Agreement, the masculine gender shall include the feminine and neuter and the singular
number shall include the plural and vice versa.

 

		1.2.5	In this Agreement, any phrase introduced by the terms “including”, “include”,
“in particular” or any similar expression shall be construed as illustrative and shall not limit the sense of the words
preceding those terms.

 

		1.2.6	In this Agreement, any agreement or instrument defined or referred to herein or in any agreement
or instrument that is referred to herein means such agreement or instrument as from time to time amended, modified or supplemented,
including by waiver or consent, and all attachments thereto and instruments incorporated therein.

 

		1.3	Captions

 

The
headings or captions to the clauses in this Agreement are inserted for convenience of reference only and shall not be considered
a part of or affect the interpretation or construction hereof.

 

		1.4	Time

 

In
this Agreement, references to time are to New York City times unless otherwise specified.

 

		2	Pre-Condition to Effectiveness

 

		2.1	This Agreement shall not have effect unless and until the Rule
2.5 Announcement has been issued; provided, however, that if the Rule 2.5 Announcement has not been issued on or before 11:59 pm
New York City time on April 4, 2017 (or such later time on that date as the Parties may have agreed in writing pursuant to clause
2.1.2 of the Transaction Agreement) this Agreement shall lapse and be of no further effect.

 

		3	Reimbursement

 

		3.1	Subject to Clause 2 and to the other provisions of this Agreement,
in consideration for the issuance of the Rule 2.5 Announcement, Innocoll agrees to pay to Gurnet, if any Payment Event occurs,
an amount equal to all documented, specific quantifiable third-party costs (including vouched out of pocket expenses incurred by
third party advisers) and expenses incurred by Gurnet and / or Gurnet Sub, for its or their account or on its or their behalf,
for the purposes of, in preparation for, or in connection with the Acquisition, including but not limited to exploratory work carried
out in contemplation of and in connection with the Acquisition, legal, financial, technical, tax and commercial due diligence,
arranging financing and engaging advisors to assist in the process (the payment provided for in this 

 

    	 	7	 

     

    

  

Clause
3.1, the “Gurnet Reimbursement Payment”); provided that the gross amount payable
to Gurnet pursuant to this Agreement shall not, in any event, exceed US$1,344,000 (the “Cap”).
The amount payable by Innocoll to Gurnet under this Clause 3.1 will exclude any amounts in respect of VAT incurred by Gurnet attributable
to such third-party costs other than Irrecoverable VAT incurred by Gurnet.

 

		3.2	The “Payment Events”
shall be the occurrence of any one or more of the following, to the extent occurring after the issue by the Parties of the Rule
2.5 Announcement:

 

		3.2.1	the Transaction Agreement is terminated:

 

		3.2.1.1	by Gurnet for the reason that the Innocoll Board or any committee thereof (A) withdraws (or modifies
or withholds or qualifies in any manner adverse to Gurnet), or proposes publicly to withdraw (or modify or withhold or qualify
in any manner adverse to Gurnet) or fails to make the Scheme Recommendation (or the recommendation contemplated by clause 3.6.3(c)
of the Transaction Agreement) when required pursuant to the Transaction Agreement; or (B) approves, adopts, recommends or declares
advisable, or proposes publicly to approve, adopt, recommend or declare advisable, any Innocoll Alternative Proposal (it being
understood, for the avoidance of doubt, that the provision by Innocoll to Gurnet of notice or information in connection with an
Innocoll Alternative Proposal or Innocoll Superior Proposal as required or expressly permitted by the Transaction Agreement shall
not, in and of itself, satisfy this clause 3.2.1.1); or

 

		3.2.1.2	by Innocoll, at any time prior to obtaining the Innocoll Shareholder Approval, in order to enter
into any agreement, understanding or arrangement providing for an Innocoll Superior Proposal; or

 

		3.2.2	all of the following occur:

 

		3.2.2.1	prior to the Scheme Meeting, an Innocoll Alternative Proposal has been publicly disclosed or any
Person shall have publicly announced an intention (whether or not conditional) to make an Innocoll Alternative Proposal and, in
either case, at the time the Transaction Agreement is terminated under the circumstances specified in clause 3.2.2.2 (it being
understood that, for the purposes of this clause 3.2.2.1 and clause 3.2.2.3, references to “20%” and “80%”
in the definition of Innocoll Alternative Proposal shall be deemed to refer to “50%”), such person shall not have publicly
withdrawn such proposal or intention; and

 

		3.2.2.2	the Transaction Agreement is terminated by either Innocoll or Gurnet for the reason that the Scheme
Meeting or the EGM shall have been completed and the Scheme Meeting Resolution or the EGM Resolutions, as applicable, shall not
have been approved by the requisite majority of votes; and

 

		3.2.2.3	an Innocoll Alternative Proposal is consummated within 12 months, or a definitive agreement providing
for an Innocoll Alternative Proposal is

 

    	 	8	 

     

    

  

entered
into within 12 months after such termination and such Innocoll Alternative Proposal is consummated pursuant to that definitive
agreement (as such definitive agreement may be amended, modified or supplemented), in each case, regardless of whether such Innocoll
Alternative Proposal is the same Innocoll Alternative Proposal referred to in clause 3.2.2.1; or

 

		3.2.3	all of the following occur:

 

		3.2.3.1	prior to the Scheme Meeting, an Innocoll Alternative Proposal has been publicly disclosed or any
person shall have publicly announced an intention (whether or not conditional) to make an Innocoll Alternative Proposal and, in
either case, at the time the Transaction Agreement is terminated under the circumstances specified in clause 3.2.3.2 (it being
understood that, for the purposes of this clause 3.2.3.1 and clause 3.2.3.3 below, references to “20%” and “80%”
in the definition of Innocoll Alternative Proposal shall be deemed to refer to “50%”) such person shall not have publicly
withdrawn such proposal or intention; and

 

		3.2.3.2	the Transaction Agreement is terminated by Gurnet pursuant to clause 9.1.1(f) of the Transaction
Agreement; and

 

		3.2.3.3	an Innocoll Alternative Proposal is consummated within 12 months, or a definitive agreement providing
for an Innocoll Alternative Proposal is entered into within 12 months after such termination and such Innocoll Alternative Proposal
is consummated pursuant to that definitive agreement (as such definitive agreement may be amended, modified or supplemented), in
each case, regardless of whether such Innocoll Alternative Proposal is the same Innocoll Alternative Proposal referred to in clause
3.2.3.1; or

 

		3.2.4	all of the following occur:

 

		3.2.4.1	prior to the termination of the Transaction Agreement, an Innocoll Alternative Proposal has been
publicly disclosed or any person shall have publicly announced an intention (whether or not conditional) to make an Innocoll Alternative
Proposal and, in either case, at the time the Transaction Agreement is terminated under the circumstances specified in clause 3.2.4.2
(it being understood that, for the purposes of this clause 3.2.4.1 and clause 3.2.4.3 below, references to “20%” and
“80%” in the definition of Innocoll Alternative Proposal shall be deemed to refer to “50%”) such person
shall not have publicly withdrawn such proposal or intention; and

 

		3.2.4.2	the Transaction Agreement is terminated by either Gurnet or Innocoll pursuant to clause 9.1.1(b)
of the Transaction Agreement (without the Scheme Meeting or EGM having been completed or the Scheme Meeting Resolutions or EGM
resolutions, as applicable, having been approved by the requisite votes); and

 

    	 	9	 

     

    

  

		3.2.4.3	an Innocoll Alternative Proposal is consummated within 12 months, or a definitive agreement providing
for an Innocoll Alternative Proposal is entered into within 12 months after such termination and such Innocoll Alternative Proposal
is consummated pursuant to that definitive agreement (as such definitive agreement may be amended, modified or supplemented), in
each case, regardless of whether such Innocoll Alternative Proposal is the same Innocoll Alternative Proposal referred to in clause
3.2.4.1.

 

		3.3	The request, or as the case may be, requests by Gurnet for a
Gurnet Reimbursement Payment shall in each case be:

 

		3.3.1	submitted in writing to Innocoll no later than 45 calendar days following the occurrence of the
applicable Payment Event;

 

		3.3.2	accompanied by payment instructions and written invoices or written documentation supporting the
request for such Gurnet Reimbursement Payment; and

 

		3.3.3	subject to satisfactory compliance with Clause 3.3.2 and subject to the Gurnet Reimbursement Payment
to be made hereunder not exceeding the Cap, (provided that, to the extent the Gurnet Reimbursement Payment would exceed the Cap,
Innocoll shall be required to pay the amount of such Gurnet Reimbursement Payment up to the amount of the Cap) satisfied in full
by payment in full by Innocoll to Gurnet in cleared, immediately available funds within 10 calendar days following submission by
Gurnet of such invoices or documentation.

 

		3.4	If and to the extent that any relevant Tax Authority determines
that the Gurnet Reimbursement Payment is consideration for a Taxable supply and that Innocoll is liable to account to a Tax Authority
for VAT in respect of such supply and that all or any part of such VAT is Irrecoverable VAT, then:

 

		3.4.1	the amount payable by Innocoll by way of the Gurnet Reimbursement Payment, together with any Irrecoverable
VAT arising in respect of the supply for which the payment is consideration, shall not exceed the Cap; and

 

		3.4.2	to the extent that Innocoll has already paid an amount in respect of the Gurnet Reimbursement Payment
which exceeds the amount described in Clause 3.4.1 above, Gurnet shall repay to Innocoll the portion of the Irrecoverable VAT in
excess of the Cap.

 

		4	General

 

		4.1	This Agreement shall be governed by, and construed in accordance
with, the laws of Ireland. Each of the Parties irrevocably agrees that the courts of Ireland are to have exclusive jurisdiction
to settle any dispute arising out of or in connection with this Agreement and, for such purposes, irrevocably submits to the exclusive
jurisdiction of such courts. Any proceeding, suit or action arising out of or in connection with this Agreement shall therefore
be brought in the courts of Ireland.

 

    	 	10	 

     

    

  

		4.2	This
                                         Agreement may be executed in any number of counterparts, all of which, taken together,
                                         shall constitute one and the same agreement, and each Party may enter into this Agreement
                                         by executing a counterpart and delivering it to the other Party (by overnight delivery
                                         service (with proof of service), hand delivery or e-mail).

 

		4.3	Any notice or other document to be served under this Agreement
may be delivered by overnight delivery service (with proof of service), by facsimile transmission (with receipt confirmed
                                         by telephone or by automatic transmission report), by email or hand delivery to the Party to be served as follows:

 

		4.3.1	if to Gurnet, to:

 

Gurnet
Point, L.P.

c/o
Waypoint International GP LLC

55
Cambridge Parkway, Suite 401

Cambridge,
MA 02142

United
States

Attention     James Singleton

Facsimile:    (617) 588-4901

 

with
copy to:

 

Weil,
Gotshal & Manges LLP

767
5th Avenue

New
York, NY 10153

United
States

Attention:    Michael
J. Aiello

Facsimile:    (212)
310-8007

 

and
to

 

 Matheson

70
Sir John Rogerson’s Quay

Dublin
2

Ireland

Attention:    Tim
Scanlon; Madeline McDonnell

Email:          tim.scanlon@matheson.com;
and

    madeline.mcdonnell@matheson.com

 

		4.3.2	if to Innocoll, to:

 

Unit
9, Block D, Monksland Business Park,

Monksland,
Athlone,

County
Roscommon,

Ireland

Attention:
Pepe Carmona

Email:
PCarmona@innocoll.com

 

with
copy to:

 

William
Fry

2 Grand Canal Square

Dublin 2

    	 	11	 

     

    

  

Ireland

Attention:    David Carthy; Ken Casey

Email:          david.carthy@williamfry.com; and

    ken.casey@williamfry.com

and
to:

 

Dentons
US LLP

1221 Avenue of the Americas

New York, NY 10020

United States

Attention:    Jeffrey A. Baumel; Ilan Katz

Email:           jeffrey.baumel@dentons.com; and

    ilan.katz@dentons.com

 

or
such other postal address, facsimile number or e-mail address as it may have notified to the other Party in writing in
accordance with the provisions of this Clause 4.3.

 

		4.3.3	Any notice or document shall be deemed to have been served:

 

		4.3.3.1	if delivered by overnight delivery or by hand, at the time of delivery; or

 

		4.3.3.2	if sent by e-mail or facsimile,
                                         at the time of the sending of the e-mail or facsimile (provided that any notice
                                         deemed to have been served on any day that is not a Business Day, or on any Business
                                         Day after 5:30 pm (addressee’s local time), shall be deemed to have been served
                                         at 9:00 am (addressee’s local time) on the next Business Day).

 

		4.4	The invalidity, illegality or unenforceability of any provision
of this Agreement does not and shall not affect or impair the continuance in force of the remainder of this Agreement.

 

		4.5	No release, discharge, amendment, modification or variation of
this Agreement shall be valid unless it is in writing and signed by or on behalf of each Party.

 

		4.6	Each Party hereto represents and warrants to the other that,
assuming due authorisation, execution and delivery by the other Party hereto, this Agreement constitutes the valid and binding
obligations of that Party.

 

		4.7	Each Party hereto confirms and agrees that no provision of the
Transaction Agreement shall supersede, vary or otherwise amend the provisions of this Agreement.

 

IN WITNESS
whereof the Parties hereto have entered into this Agreement on the day and year specified above.

 

    	 	12	 

     

    

  

Schedule
1

 

Execution
Page

 

	
        SIGNED

        for and
        on behalf of

        GURNET
        POINT L.P.

        by: Waypoint International GP LLC, its general partner

        in the presence
        of:
	 	/s/ James B. Singleton
	 	 	  Signature
	 	 	 
	 	 	James B. Singleton
	/s/ Donald Travis Wilson	 	  Print name
	  Witness (Signature)	 	 
	 	 	 
	Donald Travis Wilson	 	 
	  Print name	 	 
	 	 	 
	22 Brewster Road, Newton, MA 02461	 	 
	  Print address	 	 

 

	
        SIGNED

        for and
        on behalf of

        INNOCOLL HOLDINGS
        PUBLIC

        LIMITED COMPANY

        in the presence
        of:
	 	/s/ Anthony Zook
	 	 	  Signature
	 	 	 
	 	 	Anthony Zook
	/s/ Jose Carmona	 	  Print name
	  Witness (Signature)	 	 
	 	 	 
	Jose Carmona	 	 
	  Print name	 	 
	 	 	 
	Unit 9, Block D, Monksland Business Park, Monksland, Athlone, Co. Roscommon, Ireland	 	 
	  Print address	 	 

 

[Signature Page
to the Expenses Reimbursement Agreement]

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