Document:

Exhibit 10.8

 

OPTION AGREEMENT

 

Dated as of [•], 2014

 

between

 

		1.	Innocoll AG, a stock corporation under German law, registered with the commercial register at the Local Court of Regensburg
under HRB 14298 (the “Company”),

 

and

 

the Shareholders, as listed,

 

		2.	Rolf D. Schmidt, 205 Sweitzer Rd, Sinking Spring PA 19608, USA,

 

		3.	Big Creek L.P., 855 Berkshire Blvd, Suite 103 Wyomissing, PA 19610-1225, USA,

 

		4.	Friedrich William Schmidt, 534 Ridge Avenue, Ephrata, PA 17511, USA,

 

		5.	Investment Partners L.P., 855 Berkshire Blvd, Suite 130 Wyomissing, PA 19610- 1225, USA,

 

		6.	CAM Investment Cayman Holdings LP, c/o Fortress Investment Group, 1345 Avenue of the Americas, New York, NY 10105, USA,

 

		7.	Value Recovery Fund, c/o Camulos Capital LP, #3 Landmark Square, 4th Floor, Stamford, CT 06901, USA,

 

		8.	NewSmith Opportunities Private Equity Fund LP, c/o NewSmith Capital Partners, 4th Floor West, Lansdowne House, 57
Berkeley Square, London W1J6er, Great Britain,

 

		9.	Morgan Stanley & Co., LLC, c/o Morgan Stanley – Fixed Income, 1585 Broadway, Floor 02, New York, NY 10036, USA,

 

		10.	Anthony Wild, Rigistraße 28, 6006 Luzern, Switzerland,

 

		11.	James Culverwell, 69 Kings Road, Richmond, Surrey, TW10 6EG, Great Britain,

 

		12.	Gordon Dunn, 111 Abingdon Road, London W8 6QU, Great Britain,

 

		13.	Paul Oxholm, 115 Plymouth Court, Wyomissing, PA 19610, USA,

 

		14.	Michael Myers, 42662 Kitchen Prim Court, Ashburn, VA 20148, USA,

 

		15.	Langer VC Holdings LLLP, 8231 Bay Colony Drive, Unit 1804, Naples, Florida 34108, USA,

 

and

 

		16.	Unicredit Bank AG, Kardinal-Faulhaber-Straße 1, 80333 Munich, Germany (“UCB”),

 

		17.	Sudbrook Associates LLP, Lansdowne House (4th Floor), 57 Berkeley Square, London W1J 6ER, Great Britain (“Sudbrook”),

 

    	 

    	 

    

  

		-	No. 2 to 15 together hereinafter referred to collectively as “Shareholders” or singularly as “Shareholder”
-

 

		-	No. 16 and 17 together hereinafter referred to collectively as “Option Holders” or singularly as “Option
Holder” -

 

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CONTENT

 

	LIST OF SCHEDULES TO THE OPTION AGREEMENT	4
	 	 	 
	RECITALS	 	5
	 	 	 
	WITNESSETH	 	6
	 	 	 
	SECTION 1.	GENERAL	7
	 	 	 
	 	1.1	Definitions.	7
	 	1.2	Interpretation.	9
	 	 	 
	SECTION 2.	EXERCISE OF OPTION	9
	 	 	 
	SECTION 3.	EXPIRATION OF OPTIONS	11
	 	 	 
	SECTION 4.	PURCHASE PRICE, EXERCISE PAYMENT, TAX WITHHOLDING	11
	 	 	 
	SECTION 5.	ANTI-DILUTION PROVISIONS, OTHER ADJUSTMENTS.	12
	 	 	 
	SECTION 6.	NO DILUTION OR IMPAIRMENT	15
	 	 	 
	SECTION 7.	RESERVATION OF AUTHORIZED CAPITAL I	15
	 	 	 
	SECTION 8.	UNDERTAKING OF SHAREHOLDERS / OPTION HOLDERS	15
	 	 	 
	SECTION 9.	NEGOTIABILITY, ETC.	15
	 	 	 
	SECTION 10.	PRIOR UNDERSTANDINGS	15
	 	 	 
	SECTION 11.	AMENDMENTS	16
	 	 	 
	SECTION 12.	BINDING AGREEMENTS	16
	 	 	 
	SECTION 13.	NOTICES	16
	 	 	 
	SECTION 14.	EFFECTIVENESS	16
	 	 	 
	SECTION 15.	SEVERABILITY	16
	 	 	 
	SECTION 16.	SECTION HEADINGS	16
	 	 	 
	SECTION 17.	CHOICE OF LAW	16

 

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LIST OF SCHEDULES TO THE OPTION AGREEMENT

 

	Schedule I	Shareholders of the Company and Option Holders being entitled to subscribe for New Ordinary Shares
	 	 
	Schedule II	Draft Exercise Notice
	 	 
	Schedule III	Draft resolution of the Management Board on the utilization of the Authorized Capital I
	 	 
	Schedule IV/1	Draft Subscription Offer (Authorized Capital I)
	 	 
	Schedule IV/2	Draft Subscription Offer (contingent capital)
	 	 
	Schedule IV/3	Draft Subscription Offer (own shares)
	 	 
	Schedule V/1	Draft Subscription Declaration (Authorized Capital I)
	 	 
	Schedule V/2	Draft Subscription Declaration (contingent capital)
	 	 
	Schedule V/3	Draft Subscription Declaration (own shares)

 

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RECITALS

 

This Option Agreement (the “Agreement”),
dated as of    [•] 2014

 

between

 

		1.	Innocoll AG, a stock corporation under German law, registered with the commercial register at the Local Court of Regensburg
under HRB 14298 (the “Company”),

 

and

 

		2.	Rolf D. Schmidt, 205 Sweitzer Rd, Sinking Spring PA 19608, USA,

 

		3.	Big Creek L.P., 855 Berkshire Blvd, Suite 103 Wyomissing, PA 19610-1225, USA,

 

		4.	Friedrich William Schmidt, 534 Ridge Avenue, Ephrata, PA 17511, USA,

 

		5.	Investment Partners L.P., 855 Berkshire Blvd, Suite 130 Wyomissing, PA 19610- 1225, USA,

 

		6.	CAM Investment Cayman Holdings LP, c/o Fortress Investment Group, 1345 Avenue of the Americas, New York, NY 10105, USA,

 

		7.	Value Recovery Fund, c/o Camulos Capital LP, #3 Landmark Square, 4th Floor, Stamford, CT 06901, USA,

 

		8.	NewSmith Opportunities Private Equity Fund LP, c/o NewSmith Capital Partners, 4th Floor West, Lansdowne House, 57
Berkeley Square, London W1J6er, Great Britain,

 

		9.	Morgan Stanley & Co., LLC, c/o Morgan Stanley – Fixed Income, 1585 Broadway, Floor 02, New York, NY 10036, USA,

 

		10.	Anthony Wild, Rigistraße 28, 6006 Luzern, Switzerland,

 

		11.	James Culverwell, 69 Kings Road, Richmond, Surrey, TW10 6EG, Great Britain,

 

		12.	Gordon Dunn, 111 Abingdon Road, London W8 6QU, Great Britain,

 

		13.	Paul Oxholm, 115 Plymouth Court, Wyomissing, PA 19610, USA,

 

		14.	Michael Myers, 42662 Kitchen Prim Court, Ashburn, VA 20148, USA,

 

		15.	Langer VC Holdings LLLP, 8231 Bay Colony Drive, Unit 1804, Naples, Florida 34108, USA,

 

		16.	Unicredit Bank AG, Kardinal-Faulhaber-Straße 1, 80333 Munich, Germany,

 

		17.	Sudbrook Associates LLP, Lansdowne House (4th Floor), 57 Berkeley Square, London W1J 6ER, Great Britain,

 

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WITNESSETH

 

WHEREAS, the Company has been created by transformation
of Innocoll GmbH (“Innocoll GmbH”) according to Sec. 190 et. seq. of the German Transformation Act (Umwandlungsgesetz
– “UmwG”), as resolved by notarized shareholder resolution dated 16 June 2014 and before this transformation
all shareholders of Innocoll Holdings Inc., registered with the Secretary of the State of Delaware under no. 2834305 (“Innocoll
Holdings”), had contributed their entire shareholdings in Innocoll Holdings Inc. to Innocoll GmbH, a German limited liability
company, registered with the Local Court of Regensburg under HRB 13807, as contribution in kind order to incorporate Innocoll GmbH.

 

WHEREAS, the Company and each Shareholder had concluded
an option agreement, dated as of 28 January 2014 which has been terminated by the Company, each Shareholder and with consent of
Kinabalu Financial Products LLP, Moor House, 120 London Wall, London EC2Y 5ET, Great Britain (“Kinabalu”) on
16 June 2014 with legal effect as of the registration of the transformation of Innocoll GmbH into Innocoll AG with the commercial
register at the Local Court of Regensburg, which has occurred on 3 July 2014.

 

WHEREAS, the Parties furthermore intend to reflect that
Kinabalu has transferred 50 % of its options to UCB and 50% of its options to Sudbrook before transformation of Innocoll GmbH into
the Company and to allow for UCB’s/Sudbrook’s full ownership of Options.

 

WHEREAS, by shareholder resolution dated 16 June, 2014,
the Company has created authorized capital I (genehmigtes Kapital I - “Authorized Capital I”) set
out in Sec. 4 para. 8 of the articles of association of Innocoll AG (“Articles of Association”) in the amount
of EUR 205,199.00 in total. According to this, the management board of Innocoll AG (“Management Board”) is entitled
to increase the Company’s share capital during a period of five (5) years beginning with the registration of this Authorized
Capital I with the commercial register.

 

WHEREAS, each Shareholder and each Option Holder is entitled
to subscribe up to a specific number of new Ordinary Shares in case of such resolution of the Management Board within a period
of fifty-four (54) months (“Expiration Period”) beginning with the registration of the Authorized Capital I
with the commercial register (“Expiration Date”). The specific numbers of Ordinary Shares to which each Shareholder
/ each Option Holder is entitled to, at the beginning, is set out in Schedule I to this Agreement.

 

WHEREAS, the subscription rights of the Shareholders
and of the Option Holders, which have not been exercised within the Expiration Period, will expire upon the Expiration Date, except,
if the shareholders of the Company then may pass a resolution in order to create new authorized capital for another period of maximum
five (5) years. In this case, the Expiration Period shall be extended (“Extended Expiration Period”) up until
the extended Expiration Date (“Extended Expiration Date”). The Extended Expiration Date shall be the latest
day of a fifty-four (54) months period after the registration of such shareholders’ resolution creating new authorized capital
with the commercial register.

 

WHEREAS, the Parties intend to set out in this Agreement
the conditions as to price, timing and further formalities according to which the Shareholders and the Option Holders shall be
entitled to request the Management Board to serve the Options granted by allocation of new Ordinary Shares for contributions in
cash.

 

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WHEREAS, the Parties further intend to set out the terms
and conditions under which the Shareholders and Option Holders shall be entitled to exercise their subscription right resulting
from this Agreement for new Ordinary Shares.

 

NOW, THEREFORE, in consideration of the foregoing premises
and mutual covenants and agreements contained herein and intending to be legally bound hereby, the Parties agree as follows:

 

SECTION 1.          GENERAL.

 

1.1          Definitions.

 

In this Agreement, unless the context requires otherwise, the
following terms shall have the definitions set forth below:

 

“Affiliate” of a Shareholder or Option Holder
shall mean any other Person having Control over, being under Control by or under common Control by such Shareholder or Option Holder
together with another Shareholder or Option Holder (provided that neither the Company nor any of the Subsidiaries shall be deemed
to be an Affiliate of any Shareholder or Option Holder, nor shall any of the Subsidiaries be deemed to be an Affiliate of any Shareholder
or Option Holder solely by reason of such Shareholder’s or Option Holder’s Control of the Company or any of the Subsidiaries).

 

“Agreement” shall have the meaning set forth
in the RECITALS hereto.

 

“Articles of Association” shall mean the
articles of association of Innocoll AG.

 

“Authorized Capital I” shall have the meaning
set forth in the WITNESSETH hereto, including, as the case may by, new authorized capital as referred to in the WITNESSETH.

 

“Business Day” means any day on which banks
are open for business in Frankfurt am Main, Germany (any day other than a Saturday, Sunday or legal or bank holiday in Frankfurt
am Main, Germany).

 

“Capital Increase” shall have the meaning
set forth in SECTION 2.

 

“Company” shall have the meaning set forth
in the RECITALS hereto.

 

“Control” shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of a Person, either through the ownership
of a majority of a Person’s voting capital stock, by contract or otherwise.

 

“Depositary” shall have the meaning set forth
in the WITNESSETH hereto.

 

“Exercise Payment” shall have the meaning
set forth in SECTION 4 hereto.

 

“Exercise Period” shall have the meaning
set forth in SECTION 2.

 

“Exercise Notice” shall have the meaning
set forth in SECTION 2 hereto.

 

“Expiration Date” shall have the meaning
set forth in the WITNESSETH hereto.

 

“Expiration Period” shall have the meaning
set forth in the WITNESSETH hereto.

 

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“Extended Expiration Date” shall have the
meaning set forth in the WITNESSETH hereto.

 

“Extended Expiration Period” shall have the
meaning set forth in the WITNESSETH hereto.

 

“Initial Issuance Date” shall have the meaning
set forth in SECTION 5 hereto.

 

“Innocoll Holdings” shall have the meaning
set forth in the WITNESSETH hereto.

 

“Kinabalu” shall mean Kinabalu Financial
Products LLP, Moor House, 120 London Wall, London EC2Y 5ET, Great Britain as set forth in the WITNESSETH hereto.

 

“Management Board” shall mean the management
board (Vorstand) of the Company.

 

“New Ordinary Shares” shall have the meaning
set forth in SECTION 2 hereto.

 

“New Shares” shall have the meaning set forth
in SECTION 2 hereto.

 

“Option(s)” shall have the meaning set forth
in SECTION 2 hereto.

 

“Option Holders” shall mean the Persons set
forth in no. 16 and 17 to the RECITALS hereto and “each Option Holder” shall mean any of them.

 

“Option Rights” shall have the meaning set
forth in SECTION 5 hereto.

 

“Ordinary Shares” shall mean the ordinary
shares of Innocoll AG, without par value (as mentioned in Sec. 4 para. 2 of the Articles of Association).

 

“Parties” shall mean Innocoll AG, the Shareholders
and the Option Holders.

 

“Person” shall mean and include any natural
person, corporation, general partnership, limited partnership, limited liability company, proprietorship, other business organization,
unincorporated organization, trust, union, association, government or any department or agency thereof or other entity.

 

“Purchase Price” shall have the meaning set
forth in SECTION 4 hereto.

 

“Shareholders” shall mean the Persons set
forth in no. 2 to 15 to the RECITALS hereto and “each Shareholder” shall mean any of them.

 

“Subsidiary” in relation to any company,
corporation or other legal entity (a “Holding Company”), a company, corporation or other legal entity:

 

		(a)	which is controlled, directly or indirectly, by the Holding Company;

 

		(b)	more than half the issued share capital of which is beneficially owned, directly or indirectly, by the Holding Company,

 

and, for this purpose, a legal entity shall be treated as being
controlled by another if that other legal entity is able to determine the composition of the majority of the board of directors
or equivalent body.

 

“Subscription Declaration” shall have the
meaning set forth in SECTION 2 hereto.

 

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“Subscription Offer” shall have the meaning
set forth in SECTION 2 hereto.

 

“Sudbrook” shall mean Sudbrook Associates
LLP, Lansdowne House (4th Floor), 57 Berkeley Square, London WiJ 6ER, Great Britain as set forth in the RECITALS hereto.

 

“Tax-Related Items” shall have the meaning
set forth in SECTION 4 hereto.

 

“Triggering Transaction” shall have the meaning
set forth in SECTION 5 hereto.

 

“UCB” shall mean Unicredit Bank AG, Kardinal-Faulhaber-Straße
1, 80333 München, Germany as set forth in the RECITALS hereto.

 

1.2          Interpretation.

 

Unless a contrary indication appears, in this Agreement, references
to this Agreement include its schedules. References to paragraphs, clauses, recitals or schedules are references to such provisions
of this Agreement. References to a paragraph refer to the relevant paragraph of the clause or schedule in which it appears.

 

Use of singular shall include the plural and vice versa. Words
denoting any gender shall include other gender.

 

SECTION 2.          EXERCISE
OF OPTION.

 

2.1          Each
Shareholder and each Option Holder shall have the individual right to claim the allocation of new Ordinary Shares up to the total
number of Ordinary Shares set forth opposite its name in Schedule I from the Company (“Option”) by notice to
the Company using the form set out in Schedule II (the “Exercise Notice”) which shall also contain the exact
percentage of new Ordinary Shares claimed by this Shareholder or this Option Holder in relation to the total number of New Shares
set forth opposite his/her name in Schedule I.

 

2.2          After
having received an Exercise Notice, the Management Board shall, without undue delay, subject to its duly and properly executed
discretion, offer subscription to the Shareholders and the Option Holders by announcing the content of the Exercise Notice received
using the forms set out in Schedules IV (“Subscription Offer”), however, subject to the stipulation set out
in SECTION 4, according to which each Shareholder / Option Holder shall pay or make adequate arrangements satisfactory to the Company
to satisfy all Tax-Related Items, if applicable.

 

Each Shareholder and each Option Holder intending to participate
in the utilization of the Authorized Capital I (“Capital Increase”) must fill in and sign its subscription declaration
in duplicate as provided in sample form by Schedules V (“Subscription Declaration”) together with the Subscription
Offer within a period of three weeks from the day of receipt of the Subscription Offer (“Exercise Period”).
In case a Shareholder or an Option Holder does not duly deliver such properly filled in and signed Subscription Declaration in
duplicate within the Exercise Period, such Shareholder / Option Holder may not participate in such Capital Increase and is deemed
to have waived its right to participate in such Capital Increase.

 

2.3          A
Shareholder / an Option Holder shall (i) only subscribe for up to the amount of Ordinary Shares equal to the percentage set out
in the Exercise Notice in relation to the number of Ordinary Shares set forth opposite its name in Schedule I and (ii) only subscribe
for up to the amount still available to such

 

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Shareholder / Option Holder due to previous
participation(s) in the exercise of Options granted by this Agreement (if any).

 

In case the Option results in a fraction of Ordinary Shares,
the Management Board herewith is authorized, at its sole discretion, to round fractions of Ordinary Shares, i.e. to round 4 and
below down, but to round 5 and above up, to the next whole Ordinary Share amount.

 

2.4          After
receipt of an Exercise Notice and before sending a Subscription Offer to each Shareholder / each Option Holder, the Management
Board shall, subject to its duly and properly executed discretion, pass, without undue delay (unverzüglich), a resolution
to make use of the Authorized Capital I as stated in Sec. 4 para. 8 of the Articles of Association (by using the draft resolution
in Schedule III) to issue new Ordinary Shares (“New Shares”) in the amount up to the total number of shares
which Shareholders / Option Holders have permissibly subscribed to. The Management Board may also, in its sole discretion, serve
the Options by utilization of (i) a contingent capital created for such purpose, if any, or (ii) own Ordinary Shares (eigene
Aktien), if any available for such purpose, provided that in any case of (i) and (ii) the relation of the number of Ordinary
Shares held by each Shareholder / each Option Holder before the capital measure and Ordinary Shares held by each Shareholder /
each Option Holder after the capital measure would not deviate from such relation resulting from a serve of Options by means of
Authorized Capital I only. The Ordinary Shares resulting from the realization of Options (New Shares or shares resulting from a
contingent capital or own Ordinary Shares are also referred to as “New Ordinary Shares”).

 

Example:

 

		·	Shareholders’ / Option Holders’ Options: 250 New Ordinary Shares (Shareholder A), 140 New Ordinary Shares (Shareholder
B), 80 New Ordinary Shares (Shareholder C), 40 New Ordinary Shares (UCB), 40 New Ordinary Shares (Sudbrook).

		·	In the first step B sends an Exercise Notice and opts for 76 New Ordinary Shares. This meets with 54 % of his Option. This
percentage has to be entered in the Exercise Note.

		·	In the second step the Management Board shall, subject to its duly and properly executed discretion, (i) initiate a Capital
Increase or (ii) install any other measure in order to bring the Company into the position to fulfill the exercises of Options
(e.g. acquisition of own shares, if permitted).

		·	In the third step the Management Board has to offer 54 % of the number of New Ordinary Shares set out in Schedule I for each
Shareholder / each Option Holder: 135 New Ordinary Shares for subscription by A, 76 New Ordinary Shares for subscription by B,
43 New Ordinary Shares for subscription by C, 22 New Ordinary Shares for subscription by UCB and 22 New Ordinary Shares for subscription
by Sudbrook.

		·	In the forth step B subscribes for all the 76 offered New Ordinary Shares. A fails to deliver its duly signed Subscription
Declarations in duplicate within the Exercise Period. C subscribes for 23 New Ordinary Shares. UCB subscribes for all the 22 offered
New Ordinary Shares and Sudbrook subscribes for 11 of the offered New Ordinary Shares.

		·	As a result, Shareholder B’s Option remains to the extent of 64 New Ordinary Shares, Shareholder A’s option to
250 New Ordinary shares, Shareholder C’s option to 57 New Ordinary Shares, UCB’s option to 18 New Ordinary Shares and
Sudbrook’s option to 29 New Ordinary Shares.

 

2.5          Further,
the Management Board, the Shareholders / the Option Holders, as the case may be, shall fulfill, without undue delay, further necessary
requirements stipulated by law, e.g. duly increase the

 

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share capital of the Company on the basis
of exercising the Authorized Capital I, e.g. resolution on the utilization of the Authorized Capital I (Beschluss zur Ausnutzung
des Genehmigten Kapitals I) if making use of it, or exercising contingent capital, and application for registration with the
commercial register (Registeranmeldung). The Management Board shall, subject to its duly and properly executed discretion,
issue New Ordinary Shares only at the Purchase Price to each Shareholder / each Option Holder.

 

2.6          If
a Shareholder / an Option Holder should not claim one hundred (100) percent of the number of New Ordinary Shares set forth opposite
its name in Schedule I from the Company within an Exercise Notice or a Subscription Declaration, the remaining amount of New Ordinary
Shares set forth opposite its name in Schedule I shall be deemed one hundred percent of New Ordinary Shares available for this
Shareholder / this Option Holder for a Exercise Notice and/or a (next) Subscription Declaration.

 

If the Management Board receives several Exercise Notices on
the same Business Day it shall add the amounts of New Ordinary Shares claimed in each Exercise Notice and follow the procedure
mentioned in the paragraphs above with regard to this total amount in one and not in several steps. In case the Management Board
receives several Exercise Notices not on the same Business Day but during the procedure of an Issuance of New Ordinary Shares due
to (an) Exercise Notice(s), the Management Board shall, subject to its duly and properly executed discretion, use its best efforts
to ensure that the required capital increase(s) will be executed in due time and in a reasonable and cost saving way.

 

SECTION 3.          EXPIRATION
OF OPTIONS.

 

The subscription rights of Shareholders / Option Holders which
have not been exercised within the Expiration Period or the Extended Expiration Period, as the case may be, shall expire upon the
Expiration Date or upon the Extended Expiration Date, as the case may be. In no event may this Option be exercised at any time
after the Expiration Date or the Extended Expiration Date, as the case may be.

 

SECTION 4.          PURCHASE
PRICE, EXERCISE PAYMENT, TAX WITHHOLDING.

 

The subscription price / purchase price per New Ordinary Share
amounts to EUR 100.00, comprising capital contribution payments and agio payments (if any), and may from time to time be adjusted
according to SECTION 5, whereas in no event the subscription price / purchase price shall be lower than EUR 1.00 per New Ordinary
Share (“Purchase Price”).

 

The exercise price to be paid in total by each Shareholder /
each Option Holder (each payment individually the “Exercise Payment”) shall be equal to the Purchase Price multiplied
by the number of New Ordinary Shares being purchased pursuant to the Subscription Declaration by such Shareholder / such Option
Holder and be payable only by contribution in cash.

 

With respect to any or all income tax, social insurance, payroll
tax, payment on account or other tax-related items related to a Shareholder’s / Option Holder’s receipt of New Ordinary
Shares hereunder and legally applicable to the Shareholder / Option Holder (“Tax-Related Items”), the Shareholder
/ Option Holder acknowledges that the ultimate liability for all Tax-Related Items is and remains with the Shareholder’s
/ Option Holder’s responsibility.

 

Prior to any relevant taxable or tax withholding event, as applicable,
the Shareholder / Option Holder shall pay or make adequate arrangements satisfactory to the Company to satisfy all Tax-Related
Items.

 

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In this regard, the Shareholder / Option Holder hereby authorizes
the Company, or their respective agents, at the Company’s discretion, to satisfy the obligations with regard to all Tax-Related
Items as far as applicable by one or a combination of the following:

 

(1)            withholding
from the Shareholder’s / Option Holder’s wages or other cash compensation paid to Shareholder / Option Holder by the
Company;

 

(2)            withholding
from proceeds of a sale of New Ordinary Shares acquired upon settlement of this Agreement (such sale being implemented by the Company
on the Shareholder’s / Option Holder’s behalf pursuant to this authorization) either through a voluntary sale or through
a mandatory sale arranged by the Company; or

 

(3)            withholding
the relevant number of New Ordinary Shares to be issued upon settlement of the Agreement in order to issue such New Ordinary Shares
to any other Shareholder / Option Holder or third party and to satisfy the Tax-Related Items by the respective proceeds therefrom.

 

SECTION 5.          ANTI-DILUTION
PROVISIONS, OTHER ADJUSTMENTS.

 

5.1          The
Purchase Price shall be subject to adjustment from time to time in accordance with this SECTION 5. Upon each adjustment of the
Purchase Price pursuant to this SECTION 5, each Shareholder / each Option Holder shall, subject to the duly and properly executed
discretion of the Management Board, thereafter for 10 Business Days be entitled to acquire upon exercise, at the Purchase Price
resulting from such adjustment, the number of New Ordinary Shares by multiplying the Purchase Price in effect immediately prior
to such adjustment by the maximum number of shares acquirable immediately prior to such adjustment and dividing the product thereof
by the Purchase Price resulting from such adjustment, subject to such further New Ordinary Shares being available.

 

5.2          If
and whenever on or after registration of the Authorized Capital I with the commercial register and upon signing of this Agreement
(the “Initial Issuance Date”), the Company shall issue or sell, or shall in accordance with paragraphs 5.2(1)
to (5), inclusive, be deemed to have issued or sold any shares of its Ordinary Shares without consideration or for a consideration
per share less than the Purchase Price in effect immediately prior to the time of such issue or sale, then forthwith upon such
issue or sale (the “Triggering Transaction”), the Purchase Price shall, subject to paragraphs (1) to (5) of
this SECTION 5.2, be reduced to the purchase price (calculated to the nearest tenth of a cent) equal to the price per share at
which such shares are issued or sold or deemed issued or sold.

 

For purposes of determining the adjusted Purchase Price under
this SECTION 5.2, the following paragraphs (1) to (5), inclusive, shall be applicable:

 

(1)            In
case the Company at any time shall in any manner grant (whether directly or by assumption in a merger or otherwise) any rights
to subscribe for or to purchase, or any options for the purchase of, new Ordinary Shares or any other shares (such rights or options
being herein called “Option Rights”), whether or not such Option Rights are immediately exercisable and the
price per share for which the Ordinary Shares are issuable upon exercise (determined by dividing (x) the total amount, if any,
received or receivable by the Company as consideration for the granting of such Option Rights, plus the minimum aggregate amount
of additional consideration payable to the Company upon the exercise of all such Option Rights, by (y) the total maximum number
of Ordinary Shares issuable upon the exercise of such Option Rights) shall be less than the purchase price in effect immediately
prior to the time of the granting of such Option Rights, the Ordinary Shares issuable upon the exercise of such Option Rights,

 

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shall (as of the date of granting of such
Option Rights) be deemed to have been issued and sold by the Company for such price per share. No adjustment of the Purchase Price
shall be made upon the actual issue of such Ordinary Shares upon the exercise of such Option Rights.

 

(2)            In
case any Option Rights shall be issued in connection with the issue or sale of other securities of the Company, together comprising
one integral transaction in which no specific consideration is allocated to such Option Rights by the Parties, such Option Rights
shall be deemed to have been issued without consideration.

 

(3)            In
case any Ordinary Shares or Option Rights shall be issued or sold or deemed to have been issued or sold for cash, the consideration
received therefore shall be deemed to be the amount received by the Company therefore. In case any Ordinary Shares or Option Rights
shall be issued or sold for a consideration other than cash (Sacheinlage), the amount of the consideration other than cash
received by the Company shall be the fair value of such consideration as determined in good faith by the Management Board based
upon a valuation report, if legally required. In case any Ordinary Shares or Option Rights shall be issued in connection with any
merger in which the Company is the surviving corporation, the amount of consideration therefore shall be deemed to be the fair
value of such portion of the net assets and business of the non-surviving corporation as shall be attributable to such Ordinary
Shares or Option Rights, as the case may be.

 

(4)            The
disposition of any Ordinary Share owned or held by or for the account of the Company shall be considered an issue or sale of Ordinary
Shares for the purpose of this SECTION 5.2.

 

(5)            In
case the Company shall declare a dividend or make any other distribution upon the shares of the Company payable in Option Rights,
then in such case any Option Rights issuable in payment of such dividend or distribution shall be deemed to have been issued or
sold without consideration.

 

5.3          In
case the Company shall at any time (i) subdivide the existing Ordinary Shares or (ii) issue a share dividend on its existing Ordinary
Shares, the Purchase Price in effect immediately prior to such subdivision or dividend shall be proportionately reduced by the
same ratio as the subdivision or dividend. In case the Company shall at any time combine its outstanding Ordinary Shares, the Purchase
Price in effect immediately prior to such combination shall be proportionately increased by the same ratio as the combination.

 

5.4          The
provisions of this SECTION 5 shall not apply to any Ordinary Share issued, issuable or deemed issued under paragraphs 5.2(1) to
(5) inclusive: (i) to any Person pursuant to any share option, share purchase or similar plan or arrangement for the benefit of
employees, officers, consultants or directors of the Company or its subsidiaries, in effect on the Initial Issuance Date or thereafter
adopted by the Company, (ii) pursuant to options already in existence on the Initial Issuance Date, (iii) securities issued as
consideration for any acquisition by the Company or its subsidiaries, or (v) securities issued to banks, equipment lessors or other
financial institutions, or to real property lessors, pursuant to a debt financing, equipment leasing or real property leasing transaction
which is approved by the Management Board.

 

5.5           

 

(i)           In
the event that:

 

    	13

    	 

    

 

 

(1)            the
Company shall declare any cash dividend upon its Ordinary Shares, or

 

(2)            the
Company shall declare any dividend upon its Ordinary Share payable in shares or make any special dividend or other distribution
to the shareholders of its Ordinary Share, or

 

(3)            the
Company shall offer for subscription pro rata to the shareholder of its Ordinary Share any additional shares of stock of any class
or other rights, or

 

(4)            there
shall be any capital reorganization or reclassification of the equity of the Company, including any subdivision or combination
of its outstanding Ordinary Shares, or consolidation or merger of the Company with, or sale of all or substantially all of its
assets to, another corporation, or

 

(5)           there
shall be a voluntary dissolution, liquidation or winding up of the Company, then, in connection with such event, the Company shall
give to the Shareholders / to the Option Holders, unless mandatory management duties, in particular, resulting from deviating shareholders’
resolutions and / or equality principle requirements (Gleichbehandlungsgrundsatz) in favour of all shareholders of the Company,
by German corporate law or by German capital market law provide otherwise:

 

(ii)          at
least thirty (30) days prior written notice of the date on which the books of the Company shall close or a record shall be taken
for such dividend, distribution or subscription rights or for determining rights to vote in respect of any such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or winding up; and

 

(iii)         in
the case of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding up, at
least thirty (30) days prior written notice of the date when the same shall take place. Such notice in accordance with the foregoing
clause (i) shall also specify, in the case of any such dividend, distribution or subscription rights, the date on which the shareholders
of Ordinary Shares shall be entitled thereto, and such notice in accordance with the foregoing clause (1) shall also specify the
date on which the holders of Ordinary Shares shall be entitled to exchange their Ordinary Share for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding up, as
the case may be. Each such written notice shall be given by first class mail, postage prepaid, addressed to the Shareholders /
the Option Holders at the address of such Shareholder / such Option Holder as shown on the books of the Company. With regard to
the content of such notices, confidentiality interests of the Company prevail.

 

5.6          If
any event occurs as to which, in the opinion of the Management Board, the provisions of this SECTION 5 are not strictly applicable
or if strictly applicable would not fairly protect the rights of the Shareholders / the Option Holders in accordance with the essential
intent and principles of such provisions, then, subject to duly and properly executed discretion of the Management Board, it shall
make an adjustment in the application of such provisions as far as shareholders’ resolutions do not oppose and German corporate
law and Germany capital market law, in particular, equal principle requirements in favour of all shareholders (Gleichbehandlungsgrundsatz),
allow such adjustment. But in no event shall any adjustment have the effect of increasing the Purchase Price as otherwise determined
pursuant to any of the provisions of this SECTION 5 except in the case of a combination of shares of a type contemplated in SECTION
5.3 hereof and then in no event to an amount larger than the Purchase Price as adjusted pursuant to SECTION 5.3 hereof or in case
of a deviating shareholders’ resolution.

 

5.7          Whenever
the Purchase Price shall be adjusted as provided in SECTION 5 hereof, the Company shall as promptly as practicable provide the
Shareholders / the Option Holders with a statement, signed

 

    	14

    	 

    

  

by the Management Board, showing in reasonable
detail the facts requiring such adjustment and the Purchase Price that will be effective after such adjustment. As regards the
content of such statements, confidentiality interests of the Company and equal principle requirements in favour of all shareholders
(Gleichbehandlungsgrundsatz) prevail.

 

SECTION 6.          NO
DILUTION OR IMPAIRMENT.

 

The Company will not, or through reorganization, consolidation,
merger, dissolution, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any
of the terms of this Agreement, but will at all times in good faith assist in the carrying out of all such terms and in the taking
of all such action as may be necessary or appropriate in order to protect the rights of the Shareholders / the Option Holders against
dilution or other impairment, except if otherwise stated in this Agreement or otherwise required by German corporate law, German
capital market law or any other relevant German law provision or deviating shareholders’ resolutions.

 

SECTION 7.          RESERVATION
OF AUTHORIZED CAPITAL I.

 

Subject to the duly and properly executed discretion of the
Management Board, the Company shall avoid all actions which may result in a utilization of the Authorized Capital I for other purposes
than serving the Options granted by the Agreement, except (i) if statutory subscription rights of other shareholders due to the
Capital Increase or mandatory German law provisions require such a utilization or (ii) if the delivery of New Ordinary Shares upon
the exercise of Options can be granted by other share capital measures.

 

SECTION 8.          UNDERTAKING
OF SHAREHOLDERS / OPTION HOLDERS.

 

Each Shareholder / each Option Holder undertakes to do all acts,
make all declarations and provide all waivers necessary from time to time, in particular adopt resolutions, make any amendment
to the Articles of Association and waive all subscription rights or remedies as are necessary, to implement the transactions contemplated
under this Agreement.

 

SECTION 9.          NEGOTIABILITY,
ETC.

 

Any existing Option or future Option Right or this Agreement
as a whole is not transferable by any Shareholder or Option Holder to a third party without consent of all other Parties to this
Agreement. All Parties hereby declare in advance their consent to a transfer of Options in the event that the acquiring third party
accedes to all obligations under this Agreement.

 

Prior to the exercise of the Option, the Shareholders / the
Option Holders shall not be entitled to any rights of a shareholder of the Company with respect to shares for which this Option
shall be exercisable, including, without limitation, the right to vote, to receive dividends or other distributions or to exercise
any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein.

 

SECTION 10.         PRIOR
UNDERSTANDINGS.

 

This Agreement represents the complete agreement of the Parties
with respect to the subject matter included herein and supersedes any and all previous agreements relating thereto. The Parties
acknowledge that there have been no representations, warranties, covenants or agreements made by any party hereto other than those
contained in this Agreement. There are no side agreements to this Agreement. The option agreement, dated as of 28 January 2014,
concluded prior to the transformation of

 

    	15

    	 

    

  

Innocoll GmbH into Innocoll AG has been annulled by agreement
dated 16 June 2014, and is substituted by this Agreement. All parties to the option agreement, dated as of 28 January 2014, fully,
finally and forever waive any claims resulting from such previous option agreement.

 

SECTION 11.        AMENDMENTS.

 

Except as otherwise expressly provided, this Agreement, including
this provision, may be amended or modified only upon the consent of the Parties.

 

SECTION 12.        BINDING
AGREEMENTS.

 

The terms and conditions of this Agreement shall inure to the
benefit of and be binding upon the Parties and their respective heirs, legal representatives and successors. The executor, administrator
or personal representative of a deceased Shareholder / Option Holder shall execute and deliver any and all documents or legal instruments
necessary or desirable to carry out the provisions of this Agreement.

 

SECTION 13.        NOTICES.

 

Any and all notices, designations, consents, offers, acceptances,
or any other communication provided for herein shall be given in writing by overnight courier, or facsimile transmission which
shall be addressed, or sent, to the Shareholders / the Option Holders at the respective address as set forth on Schedule I. Each
such notice shall be deemed received 24 hours after it is sent. Alternatively and notwithstanding any stipulation in this Agreement
providing for a stricter form, communication under this Agreement may also happen by email.

 

SECTION 14.        EFFECTIVENESS.

 

This Agreement shall become legally effective upon registration
of the transformation of Innocoll GmbH into Innocoll AG with the commercial register at the Local Court of Regensburg.

 

SECTION 15.        SEVERABILITY.

 

The invalidity or unenforceability of any provisions of this
Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such
jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being
intended that all rights and obligations of the Parties be enforceable to the fullest extent permitted by law. Any such invalid,
ineffective or unenforceable provision shall be deemed replaced by such valid, effective and enforceable provision as comes closest
to the economic intent and purpose of such invalid, ineffective or unenforceable provision as regards subject-matter, amount, time,
place and extent. The aforesaid shall apply mutatis mutandis to any gap in this Agreement.

 

SECTION 16.        SECTION
HEADINGS.

 

Headings contained in this Agreement are inserted only as a
matter of convenience and in no way define, limit or extend the scope or intent of this Agreement or any provisions hereof.

 

SECTION 17.        CHOICE
OF LAW.

 

This Agreement is governed by and shall be construed in accordance
with the laws of the Federal Republic of Germany.

 

    	16

    	 

    

  

[Signature pages follow]

 

    	17

    	 

    

 

Innocoll AG

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

Title: Member of the Management Board

 

	Signature:  	 	 

 

	Name:  	 	 

 

Title: Member of the Management Board

 

    	18

    	 

    

 

Rolf Dieter Schmidt

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

Big Creek L.P.

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

    	19

    	 

    

 

Friedrich William Schmidt

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

Investment Partners L.P.

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

    	20

    	 

    

 

CAM Investment Cayman Holdings LP

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

Value Recovery Fund, c/o Camulos Capital LP

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

    	21

    	 

    

 

NewSmith Opportunities Private Equity Fund LP

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

Morgan Stanley & Co., LLC

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

	Signature: 	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

    	22

    	 

    

 

Anthony Wild

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

James Culverwell

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

    	23

    	 

    

 

Gordon Dunn

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

    	24

    	 

    

 

Paul Oxholm

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

    	25

    	 

    

 

Michael Myers

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

Langer VC Holdings LLLP

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

    	26

    	 

    

 

UBC

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

Sudbrook

 

	Place, Date:  	 	 	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

	Signature:  	 	 

 

	Name:  	 	 

 

	Title:  	 	 

 

    	27

    	 

    

 

	Schedule I	Shareholders / Option Holders of Innocoll AG being entitled to subscribe for New Ordinary Shares

 

    	28

    	 

    

 

	Schedule II	Draft Exercise Notice

 

    	29

    	 

    

 

	Schedule III	Draft resolution of the Management Board on the utilization of the Authorized Capital I

 

    	30

    	 

    

 

	Schedule IV/1	Draft Subscription Offer (Authorized Capital I)

 

    	31

    	 

    

 

	Schedule IV/2	Draft Subscription Offer (contingent capital)

 

    	32

    	 

    

 

	Schedule IV/3	Draft Subscription Offer (own shares)

 

    	33

    	 

    

 

	Schedule V/1	Draft Subscription Declaration (Authorized Capital I)

 

    	34

    	 

    

 

	Schedule V/2	Draft Subscription Declaration (contingent capital)

 

    	35

    	 

    

 

	Schedule V/3	Draft Subscription Declaration (own shares)

 

    	36Exhibit 10.9

 

Award
Agreement 

 

between

 

		1.	Innocoll AG, registered with the commercial register of the local court of Regensburg under HRB 14298,
(the “Company”), and

 

		2.	[Name, address] (the “Grantee”).

 

The Company and the Grantee
are each hereinafter individually referred to as a “Party” and together also as the “Parties”.

 

Section 1

Preliminary Remarks

 

		1.	The nominal share capital of the Company
                                         (Grundkapital) currently amounts to EUR 1,004,523 divided into 1,004,523 shares.
                                         The Grantee currently holds [●] shares in the Company.

 

		2.	The Grantee has previously entered
                                         into an Award Agreement dated 28 January 2014 and amended on 20 March 2014 regarding
                                         reciprocal rights and duties with respect to certain shares issued to the Grantee in
                                         Innocoll GmbH, the Company’s legal predecessor, i.e. shares no. [●] through
                                         [●]. These shares and the shares no. [●] through [●] which were issued
                                         to the Grantee by virtue of a capital increase resolved on 22 May 2014 and registered
                                         with the commercial register of Regensburg on 17 June 2014 are hereinafter referred to
                                         as “Restricted Shares”. This previous Award Agreement shall be replaced
                                         by this Award Agreement (hereinafter referred to as the “Agreement”)
                                         whose provisions shall apply to all Restricted Shares held by the Grantee in the Company.

 

Section 2

Interpretation and Definition

 

In this Agreement defined
terms (“Defined Terms”) shall have the meaning ascribed to them in the relevant section or in this Section 2.1
or in the articles of association of the Company. The following terms are defined:

 

		1.	“AktG” shall mean the German Stock Corporation Act as in effect from time to

 

    	 

    	 

    

 

time.

 

		2.	“Affiliate” means any entity, whether now or hereafter existing, which controls,
is controlled by, or is under common control with, the Company (including, but not limited to, joint ventures, limited liability
companies, and partnerships). For this purpose, “control” shall mean ownership of 50% or more of the total combined
voting power or value of all classes of stock or interests of the entity, or the power to direct the management and policies of
the entity, by contract or otherwise.

 

		4.	“Articles” shall mean the articles of Innocoll AG.

 

		5.	“Bad Leaver Event” has the meaning set forth in Section 3.1

 

		6.	“Bank Business Days” shall be such days, which are bank business days in Frankfurt
am Main, Germany.

 

		7.	“Board” means the management board (Vorstand)
of the Company

 

		8.	“Cause” means:

 

		a)	the commission of any act by a Grantee constituting financial dishonesty against the Company or
any of its Affiliates, which could be chargeable as a crime under applicable law;

 

		b)	an act of dishonesty, fraud, intentional misrepresentation, moral turpitude, illegality or harassment
which, as determined in good faith by the Board, would: (i) materially adversely affect the business or the reputation of the Company
or any of its Affiliates with their respective current or prospective customers, suppliers, lenders and/or other third parties
with whom such entity does or might do business; or (ii) expose the Company or any of its Affiliates to a risk of civil or criminal
legal damages, liabilities or penalties;

 

		c)	the repeated failure to follow the directives of the Board or the chief executive officer of the
Company or any of its Affiliates,

 

		d)	any material misconduct in violation of the Company’s or an Affiliate’s policies, or

 

		e)	willful and deliberate non-performance of the Grantee’s duties in connection with the business
affairs of the Company or its Affiliates.

 

    	Page | 2

    	 

    

 

		9.	“Code” means the
United States Internal Revenue Code of 1986 (and any successor Internal Revenue Code), as amended from time to time. References
to a particular section of the Code include references to regulations and rulings thereunder and to successor provisions.

 

		10.	“Constructive Termination”
shall mean Grantee’s resignation due to a material and non-temporary adverse change in the Grantee’s title, duties
or responsibilities with the Company or any of its Subsidiaries, or any material reduction in the Grantee’s base compensation,
if material, non-temporary, adverse change or reduction is not fully corrected by the Company within thirty (30) days after the
Grantee provides the Company with written notice describing the circumstances that the Grantee believes constitute grounds for
a Constructive Termination.

 

		11.	“Disability” means, unless otherwise defined in the Award Agreement, a permanent
and total disability within the meaning of Section 22(e)(3) of the Code.

 

		12.	“Equity Value” means the value of the Company on a cash free / debt free basis
at the time and as a result of an Exit Event.

 

		13.	“Exit Event” means the
earlier to occur of the following:

 

		i.	a Liquidity Event, and

 

		ii.	the 183rd day after the Company successfully completed an IPO.

 

		14.	“Fair Market Value” means with respect to the Shares (i) if the Company's ADRs are listed
on the Nasdaq Global Market (“Nasdaq”) or any established securities exchange, the closing price of the ADSs on the date
of determination reported on Nasdaq or such established securities exchange; or (ii) if the ADSs are not listed on Nasdaq or an
established securities exchange, the closing sales price of the ADSs as reported by the National Market System, or similar organization,
or if no such quotations are available, the average of the high bid and low asked quotations for the ADSs in the over-the-counter
market as reported by the National Quotation Bureau Incorporated or similar organizations, in each case multiplied by 13.25.

 

		15.	“FICA” has the meaning set forth in Section 5.1.

 

		16.	“Good Leaver Event” has the meaning set forth in Section 3.1.

 

		17.	“Grant Date” means the date on which Restricted Shares (which were issued to
the Grantee) come into existence, i.e. the date of registration of the respective capital increase in the course of which he has
subscribed to such Restricted Shares.

 

    	Page | 3

    	 

    

 

		18.	“Immediate Family” has the meaning set
forth in Section 4.3.

 

		19.	“IPO” means the sale of shares of the Company’s successor in interest
to the public in an underwritten public offering effective pursuant to applicable law and stock exchange rules.

 

		20.	“Liquidity Event” means (a) the merger or consolidation of the Company into
or with another limited liability company or corporation, the merger or consolidation of any other limited liability company or
corporation into or with the Company, (b) the sale, conveyance, mortgage, pledge or lease of all or substantially all the assets
of the Company, or (c) the disposition of Shares representing a majority of the voting power of the Company through a transaction
or series of related transactions; other than a merger or consolidation involving the Company or a subsidiary in which the Shares
outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares
of capital stock that represent, immediately following such merger or consolidation, at least a majority, by voting power, of the
capital stock of (A) the surviving or resulting limited liability company or corporation or (B) if the surviving or resulting limited
liability company or corporation is a wholly owned subsidiary of another limited liability company or corporation immediately following
such merger or consolidation, the parent corporation of such surviving or resulting limited liability company or corporation.

 

		21.	“NIC” means UK National Insurance Contributions imposed by the Social Security
Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

 

		22.	“NIC Agreement” means an agreement under paragraph 3A(2) of Schedule 1 to the
Social Security Contributions and Benefits Act 1992 or under paragraph 3A(2) of Schedule 1 to the Social Security Contributions
and Benefits (Northern Ireland) Act 1992.

 

		23.	“NIC Election” means an election under paragraph 3B(1) of Schedule 1 to the
Social Security Contributions and Benefits Act 1992 or under paragraph 3B(1) of Schedule 1 to the Social Security Contributions
and Benefits (Northern Ireland) Act 1992.

 

		25.	“Permitted Transferee” has the meaning
set forth in Section 4.3.

 

		26.	“Person” means any individual, sole proprietorship, partnership, joint venture,

 

    	Page | 4

    	 

    

 

limited liability
company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, entity or government
instrumentality, division, agency, body or department.

 

		27.	“Purchase Offer” has
the meaning set forth in Section 3.2.

 

		28.	“Purchaser” has the meaning set forth in Section 3.2.

 

		29.	“Restricted Shares” has the meaning set forth in Section 1.3.

 

		30.	“Section 430 Election” means a joint election
between the Grantee or, if different, the relevant Eligible Person, and that person’s employer under section 430(1) of the
UK Income Tax (Earnings and Pensions) Act 2003.

 

		31.	“Section 431 Election”
means a joint election between the Grantee or, if different, the relevant Eligible Person, and that person’s employer under
section 431(1) of the UK Income Tax (Earnings and Pensions) Act.

 

		33.	“Shareholders” means the shareholders of the Company.

 

		34.	“Shares” shall mean the non-par value shares registered in the name of the Company.

 

		35.	“Subsidiary” as to any Person shall mean a corporation or other entity of which
shares or similar stock having ordinary voting power to elect a majority of the board of directors or other managers of such corporation
or entity are at the time owned, directly or indirectly, through one or more intermediaries, by such Person. Except as otherwise
expressly indicated herein, references to Subsidiaries shall mean Subsidiaries of the Company within the meaning of Sec. 15 et
seq AktG.

 

		36.	“Taxes” has the meaning set forth in Section 5.1.

 

		37.	“Tax Date” has the meaning set forth in Section 5.1.

 

		38.	“Taxable Event” has the meaning set forth in Section 9.5.

 

		39.	“Termination of Affiliation” occurs on the first day on which an individual
is for any reason no longer providing services to the Company or an Affiliate in the capacity of an employee, officer, consultant
or non-employee director, including by reason of any transaction that causes each Affiliate for whom the individual performs services
to cease to be an Affiliate of the Company.

 

    	Page | 5

    	 

    

 

Section 3

Purchase Offer

 

		1.	For purposes of this Agreement a “Good Leaver Event” is defined as:

 

		a)	a Termination of Affiliation initiated by the Company for any reason other than for Cause;

 

		b)	a Termination of Affiliation due to the Grantee’s death or Disability; or

 

		c)	a Termination of Affiliation due to the Grantee’s Constructive Termination.

 

A Termination
of Affiliation will not be treated as a Constructive Termination unless the Grantee provides the Company with written notice within
90 days after the Grantee first becomes aware of circumstances that may constitute grounds for a Constructive Termination and the
Grantee’s Termination of Affiliation occurs within the 60 day period commencing 30 days after the Grantee provides such written
notice to the Company.

 

If the Grantee’s
Termination of Affiliation is due to any of the reasons stated above under (a) through (c), he/she is hereinafter called a “Good
Leaver”. If the Grantee’s Termination of Affiliation is not due to a Good Leaver Event, such Termination of Affiliation
is deemed a “Bad Leaver Event”.

 

		2.	The Grantee hereby irrevocably offers to sell and transfer (to the extent legally permissible)
to the Company or to a third party designated by the Company (“Purchaser”), any or all Restricted Shares in
the Company held by the Grantee pursuant to this Agreement now or in the future for the consideration set forth in subsection 4
below (“Purchase Offer”).

 

		3.	Upon the occurrence of a Bad Leaver Event prior to an Exit Event, the Purchase Offer can be accepted
by the Purchaser at any time, without further notice or any action by the Grantee, with regard to all or part of the Restricted
Shares held by the Grantee. If no Bad Leaver Event has occurred, the Purchaser's right to accept the Purchase Offer lapses upon
the earlier of (i) the occurrence of an Exit Event and (ii) the day prior to the date that is the fifth (5th) anniversary of the
Grant Date, and the Grantee shall be free to sell and transfer its Restricted Shares without the transfer restrictions referenced
in Section 5 hereof.

 

    	Page | 6

    	 

    

 

		4.	If the Purchase Offer is accepted as provided for in subsection 3 above, the Purchaser shall pay
to the Grantee a price equal to the lesser of (x) the amount paid by the Grantee for such Restricted Shares, or (y) the
Fair Market Value per Share on the date of receipt of the acceptance of the Purchase offer by the Grantee as per para. 5, 2. Sentence
below. The Company shall pay to the Grantee the deemed sale price as soon as is administratively practical following the date of
receipt of the acceptance.

 

		5.	There shall be no deadline for acceptance of this Purchase Offer once a Bad Leaver Event occurs,
irrespective of the occurrence an Exit Event before the sale and purchase pursuant to the Purchase Offer has been fully completed.
The acceptance of the Purchase Offer shall be made in writing and become effective upon receipt by the Grantee. In case the Purchaser
is not the Company, such Purchaser shall provide to the Grantee, together with the written acceptance of the Purchase Offer, a
written statement of the Company designating him as the Purchaser.

 

		6.	The purchase price provided for in subsection 4 above shall become payable upon acceptance of the
Purchase Offer. The legal effectiveness of the acceptance of the Purchase Offer shall however not be conditional on the payment
of the purchase price. The transfer of the Restricted Shares shall become immediately effective upon receipt of the written acceptance
by the Grantee and not be subject to the payment of the purchase price. The Grantee shall notify the transfer of Restricted Shares
to the Company, providing the Company with a copy of this Agreement and with a copy of the acceptance by the Purchaser (section
67 para. 3 German Stock Corporation Act).

 

		7.	Any Restricted Shares sold and transferred to the Purchaser pursuant to this Section 3 are sold
together with all shareholder rights and ancillary rights, including the right to receive the profits for the respective business
year such sale and transfer becomes effective. As per the date any sale and transfer to the Purchaser becomes effective pursuant
to this Section 4, the Grantee hereby represents and warrants that he is free to dispose of such Restricted Shares to the Purchaser
and that such Restricted Shares are not encumbered with any third party rights.

 

Section 4

Transfer Restrictions

 

		1.	Any rights under this Agreement shall be exercisable only by the Grantee during

 

    	Page | 7

    	 

    

 

the Grantee’s
lifetime, or, if permissible under applicable law, by the Grantee’s guardian or legal representative.

 

		2.	No Restricted Shares may be assigned, alienated, pledged, attached, sold or otherwise transferred
or encumbered by the Grantee otherwise than by will or by the laws of descent and distribution or to the Company, and any such
purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the
Company or any Affiliate; provided that the designation of a beneficiary to receive benefits in the event of the Grantee’s
death shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

 

		3.	Notwithstanding subsections 1. and 2. above, Restricted Shares may be transferred, without consideration,
to a Permitted Transferee. For this purpose, a “Permitted Transferee” in respect of the Grantee means any member
of the Immediate Family of the Grantee, or any partnership (including limited liability companies and similar entities) of which
all of the partners or members are such Grantee or members of his or her Immediate Family; and the “Immediate Family”
of a Grantee means the Grantee’s spouse, children, stepchildren, grandchildren, parents, stepparents, siblings, grandparents,
nieces and nephews or the spouse of any of the foregoing individuals.

 

Section 5

Withholding

 

		1.	Subject to subsection (b), when federal, state, local or foreign taxes, including Social Security
and Medicare (“FICA”) or similar foreign social taxes (including employer’s NIC where a NIC Agreement
or NIC Election has been made) (hereinafter referred to as “Taxes”) are to be withheld upon the lapse of restrictions
on Restricted Shares (the date on which such lapse of restrictions occurs hereinafter referred to as the “Tax Date”),
the Grantee may elect to make payment for the withholding of those Taxes by one or a combination of the following methods:

 

		a)	payment of an amount in cash equal to the amount to be withheld;

 

		b)	selling and transferring to the Company a number of Shares having a Fair Market Value on the Tax Date equal to the amount to
be withheld;

 

		c)	withholding from any compensation otherwise due to the Grantee; or

 

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		d)	at the discretion of the Committee and subject to applicable law (including the prohibited loan provisions of Section 402 of
the Sarbanes-Oxley Act of 2002, if applicable), the Company may loan a Grantee all or any portion of the amount to be withheld.

 

An election
by a Grantee under this subsection is irrevocable. Any fractional share amount and any additional withholding not paid by the withholding
or surrender of Shares must be paid in cash. If no timely election is made, the Grantee must deliver cash to satisfy all tax withholding
requirements.

 

		2.	Any Grantee who makes an election under Section 83(b) of the Code and/or a Section 430 Election
or Section 431 Election shall remit to the Company an amount sufficient to satisfy all resulting tax withholding requirements in
the same manner as set forth in subsection (b).

 

		3.	If the Grantee, in connection with the grant of Restricted Shares, makes the election permitted
under Section 83(b) of the Code to include in such Grantee’s gross income in the year of transfer the amounts specified in
Section 83(b) of the Code, then such Grantee shall notify the Company of such election within 10 days of filing the notice of the
election with the Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued
under Section 83(b) of the Code. The Managing Directors together with the Board may, in connection with the grant of an Award
or at any time thereafter, prohibit a Grantee from making the election described above.

 

		4.	Irrespective of the above, when Taxes are to be withheld by the Company in any event the Grantee
will make a payment for the withholding of those Taxes to the Company by one or a combination of the following methods:

 

		a)	payment of an amount in cash equal to the amount to be withheld;

 

		b)	selling and transferring to the Company a number of Shares having a Fair Market Value equal to the amount to be withheld;

 

		c)	withholding from any compensation otherwise due to the Grantee; or

 

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d)         at
the discretion of the Committee and subject to applicable law, the Company may loan a Grantee all or any portion of the amount
to be withheld.

 

Section 6

Confidentiality

 

The Parties agree to
treat the contents of this Agreement including all related information and all Annexes and all data and information relating to
the business, customers, financial statements, conditions or operations of the Company and its Affiliates, as confidential, preserve
the confidentiality thereof, not duplicate or use or disclose to any person such information and to cause his, her or its employees,
Affiliates and representatives who have had access to such information to keep confidential and not to use any such information
(a) unless such information is now or is hereafter disclosed, through no act or omission of any Party or their controlled Affiliates,
employees or representatives, in a manner making it available to the general public, or (b) unless such information is required
by law or legal process to be disclosed, or (c) to the extent necessary to be disclosed in connection with resolution of any dispute
with respect to this Agreement. In addition, every Party may entrust confidential matters to persons occupied in a profession bound
to professional secrecy in the fields of law, business, accounting and tax consultancy if and to the extent this is required to
safeguard his or her own legitimate interests. Other exceptions to the professional secrecy may be permitted in individual cases
by a resolution of the Shareholders.

 

Section 7

Implementation of
this Agreement

 

		1.	This agreement shall take effect as
                                         of July 3rd, 2014.

 

		2.	This Agreement and the Articles constitute the entire agreement between the Company and the Grantee
with respect to the subject matter hereof. This Agreement may not be orally changed, modified or terminated, nor shall any oral
waiver of any of its terms be effective. This Agreement may be changed, modified or terminated only by an agreement in writing
signed by the Company and the Grantee.

 

		3.	The Parties further agree that, in case of deviations between the Articles and this Agreement,
the provisions agreed upon in the Articles shall take precedence over those of this Agreement. The provisions agreed herein represent
additional regulations under the law of obligations (schuldrechtliche Regelungen) with respect to the internal relationships
between the Parties. Insofar as provisions of the Articles are open to interpretation or amendment, the Parties agree to draw

 

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upon the regulations
stipulated in this Agreement for the interpretation or amendment of the former. Insofar as provisions of this Agreement are not
included or regulated in the Articles, the provisions of this Agreement shall apply.

 

Section 8

Declarations

 

Unless otherwise agreed herein, all notices,
legal remedies or claims required or given hereunder, are sent to the Parties by registered mail to the addresses indicated in
the preface of this Deed or to such other address or addresses or to such other Person or Persons as were communicated by the respective
Party to the other Party in accordance with this provision, provided however that each Party has always nominated an authorized
representative for receiving the service of official or court documents within the territory of the Federal Republic of Germany.

 

Section 9

Tax 

 

		1.	The Grantee hereby acknowledges that the Grantee has been advised by the Company to seek independent
tax advice regarding the availability and advisability of making an election under Section 83(b) of the United States Internal
Revenue Code of 1986, as amended, and that any such election, if made, must be made within 30 days of the Grant Date. The Grantee
is not relying on the Company or any of its officers, directors or employees for tax advice regarding Restricted Shares granted
in this Agreement. The Grantee bears sole responsibility for the filing any such Section 83(b) election with the appropriate governmental
authorities, irrespective of the fact that a copy of such election will also be delivered to the Company. The Grantee agrees to
promptly notify the Company in the event the Grantee makes a Section 83(b) election.

 

		2.	The Grantee hereby acknowledges that the Grantee has been advised by the Company to seek independent
tax advice regarding the availability and advisability of making a Section 431 Election, and that any such election, if made, must
be made no later than the date falling 14 days after the Grant Date. The Grantee is not relying on the Company or any of its officers,
directors or employees for tax advice regarding Restricted Shares granted in this Agreement.

 

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		3.	The Grantee agrees to enter into a NIC Agreement or a NIC Election prior to the date on which the
Purchase Offer lapses if requested to do so by the Company.

 

		4.	Where no valid Section 431 Election as been made, the Grantee agrees to enter into a Section 430
Election within 14 days of the date on which the Purchase Offer lapses if requested to do so by the Company.

 

		5.	Whenever the Purchase Offer with respect to any Restricted Shares granted under the terms of this
Agreement lapses, or upon the making of a Section 83(b) election or a Section 431 Election (a “Taxable Event”),
the Grantee must remit or, in appropriate cases, agree to remit when due, the minimum amount necessary for the Company to satisfy
all of its federal, state, local or foreign withholding (including FICA, employee’s NIC and, where a NIC Agreement or NIC
Election has been entered into, employer’s NIC) tax requirements relating to such Taxable Event. At its discretion, the Board
may require the Grantee to satisfy these minimum withholding tax obligations by any (or a combination) of the following means:
(1) a cash payment; (2) withholding from compensation otherwise payable to the Grantee; (3) authorizing the Company to withhold
from the Restricted Shares that become unrestricted as a result of the lapsing of the Purchase Offer a number of shares having
a fair market value, as of the date the withholding tax obligation arises, less than or equal to the amount of the withholding
obligation; or (4) delivering to the Company unencumbered Shares having a fair market value, as of the date the withholding tax
obligation arises, less than or equal to the amount of the withholding obligation.

 

		6.	By entering into this Award Agreement the Grantee agrees that the Company may, unless it chooses
to exercise its discretion as set in sub-section 5, withhold from the Restricted Shares that become unrestricted as a result of
the lapsing of the Purchase Offer a number of shares having a fair market value, as of the date on which the withholding tax obligation
arises, of not less than the amount of the withholding obligation.

 

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Section 10

Costs

 

Each Party bears the costs for the draft
and advice in connection with the conclusion of this Agreement and the measures provided for in it themselves, but the Company
shall bear the costs of the Grantee in connection with the conclusion of this Agreement.

 

Section 11

Severability

 

		1.	Changes or additions to this Agreement must be made in writing to become effective unless the notarisation
or another specific form is prescribed by law. This applies accordingly to the amendment of the written form clause.

 

		2.	If a provision of this Agreement should be completely or partly invalid or impracticable, or if
this Agreement should contain omissions, then the validity of the remaining provisions shall not be affected hereby. In place of
the invalid or impracticable provision, a reasonable stipulation shall apply which, if legally permitted, most closely approximates
the intention of the Shareholders in terms of the spirit and purpose of this Agreement.

 

Section 12

Miscellaneous

 

		1.	This Agreement is governed by German law. In case of disputes of the Parties resulting out of or
in connection with this Agreement or which otherwise affect the Grantee’s position as a Shareholder and his Shareholders’
rights, to the extent to which a specification about the place of jurisdiction is permissible, lies exclusively within the competence
of the respective local responsible court at the relevant registered office of the Company.

 

		2.	Restricted Shares shall be special incentives awarded to the Grantee and shall not be taken into
account in computing the amount of salary or compensation of the Grantee for purposes of determining any pension, retirement, death
or other benefit under (a) any pension, retirement, profit-sharing, bonus, insurance or other employee benefit plan of the
Company or any Affiliate, except as such plan shall

 

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otherwise
expressly provide, or (b) any agreement between (i) the Company or any Affiliate and (ii) the Grantee, except as such agreement
shall otherwise expressly provide.

 

		3.	Nothing in this Agreement shall interfere with or limit in any way the right of the Company or
any Affiliate to terminate the Grantee’s employment or consulting contract at any time, nor confer upon the Grantee the right
to continue in the employ of or as an officer of or as a consultant to the Company or any Affiliate.

 

		4.	Headings in this Agreement are inserted merely for the purposes of ease of reference and shall
have no effect on the content or the interpretation of the provisions.

 

	Place, Date	Place, Date
	 	 
	_____________________	_____________________
	 	 
	Innocoll AG	[Grantee]
	 	 
	Michael Myers	 
	 	 
	CEO / Vorstandsvorsitzender	 

 

    	Page | 14

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